Texas Electricity FAQs: Top 10 Questions for New Customers

With smart meters covering most of Texas, electricity can be activated within hours. Standard connections take 1-3 business days from enrollment. Same-day service is available if you enroll before the provider's cutoff (typically noon to 6pm depending on the REP). Prepaid electricity offers the fastest activation—often within 30 minutes to 2 hours. Same-day activation is not available on Sundays or major holidays. If power is currently active under another tenant's name (a "move-in switch"), allow 1-3 business days for the transfer. Plan ahead and enroll at least one week before move-in to avoid dark first nights.

It depends on your credit. Most REPs run a soft credit check during enrollment. Good to excellent credit typically means no deposit required. Fair credit might require a deposit of $100-200, often refunded after 12 months of on-time payments. Poor or no credit history may require $200-400 deposits. Alternatives exist: prepaid electricity plans require no credit check or deposit—you pay in advance. Some providers accept a letter of credit from your previous utility showing 12 months of on-time payments. Seniors over 65, military members, and those with landlord references may qualify for deposit waivers.

Yes. Prepaid electricity providers like Payless Power, NOW Power, and Pogo Energy do not require SSN or credit checks. You pay upfront for electricity and add funds as needed. Some traditional REPs accept ITIN (Individual Taxpayer Identification Number) as an alternative to SSN. If you are new to the US or rebuilding credit, prepaid is your easiest path to electricity. Rates are higher than traditional plans (typically 15-20% more), but you avoid deposits and credit requirements. Once you establish Texas residency and credit history, consider switching to a traditional plan for better rates.

Your first bill typically arrives 2-4 weeks after service starts, covering usage from your start date through your first billing cycle end. The first bill may be prorated (less than a full month) depending on when you started service. Most REPs bill monthly, with payment due about 15-20 days after the bill date. Set up autopay during enrollment to avoid late fees and often receive a per-kWh discount (typically 2-5 cents). Download your REP's app to check usage and pending charges anytime. Your bill will include energy charges from your REP plus TDU delivery charges—both appear on the same statement.

TDU (Transmission and Distribution Utility) charges cover the cost of delivering electricity through power lines and maintaining the grid infrastructure. Every Texas electricity customer pays TDU charges regardless of which REP they choose. These charges include a fixed monthly fee ($3-8 depending on your TDU) plus a per-kWh delivery charge (typically 3-5 cents). Your REP has no control over TDU rates—they pass through directly. When comparing plans on Power to Choose, the displayed price already includes TDU charges, so you see the true total cost per kWh.

Call your TDU (Oncor, CenterPoint, AEP Texas, or TNMP)—not your REP—for power outages. Your TDU owns and maintains the physical infrastructure: poles, wires, transformers, and meters. Your REP handles billing and customer service but cannot fix outages. TDU emergency numbers: Oncor: 888-313-4747. CenterPoint: 800-332-7143. AEP Texas: 866-223-8508. TNMP: 888-866-7456. Report outages through their websites or apps too. During widespread outages (storms, extreme weather), check ERCOT's website for grid status. Your REP can answer billing questions or service changes but always routes outage calls to the TDU.

Yes, but typically with a penalty. Most fixed-rate contracts include an Early Termination Fee (ETF) of $150-200 or a per-month fee ($20 times remaining months). Check your EFL (Electricity Facts Label) for exact terms. Important exception: if you are moving, Texas law allows penalty-free cancellation under the "take it or break it" provision—just provide proof of the move. Variable-rate and month-to-month plans usually have no ETF; you can switch anytime. Some promotional plans waive ETF under certain conditions. Always verify the cancellation policy before signing up.

If you do nothing, most REPs automatically roll you to a month-to-month variable rate—often significantly higher than your contract rate. You might go from 10 cents to 16+ cents per kWh overnight. Texas law requires your REP to send renewal notices 30-45 days before contract expiration. Read these carefully and set calendar reminders. Before your contract ends, shop for a new plan (same REP or different) and enroll. The new service starts automatically when your old contract ends. Never let your contract expire without action—it almost always costs more.

Texas is a wind power leader, and many REPs offer 100% renewable plans sourced from Texas wind and solar farms. On Power to Choose, filter by "100% renewable" to see green options. Green plans are often competitively priced—sometimes cheaper than conventional plans. Popular green providers include Green Mountain Energy, Chariot Energy, and Gexa Energy. Read the EFL to confirm renewable sourcing—some plans use renewable energy credits (RECs) rather than direct renewable sourcing. If environmental impact matters, look for plans that specifically source from Texas renewable projects.

Power to Choose (powertochoose.org) is the official Texas comparison site run by the Public Utility Commission. It shows every available plan in your ZIP code with standardized pricing at 500, 1,000, and 2,000 kWh. Independent sites like ElectricRates.org provide additional context, plan analysis, and tools for finding best rates. Avoid sites that only show plans from providers paying them commissions—they may not show the cheapest options. Always read the EFL for any plan you are considering. The best comparison strategy: check multiple sources and verify pricing directly with the REP before enrolling.