Glossary Term

What is a REP?

REP (Retail Electric Provider) is the company that sells electricity to consumers in Texas's deregulated market. REPs purchase electricity from the wholesale market managed by ERCOT and sell it to homes and businesses. Texas has over 100 PUCT-licensed REPs including TXU Energy, Reliant, Gexa Energy, Constellation, and Green Mountain Energy. You can compare and switch REPs to find the best electricity rate for your home.

Definition verified January 2026 from PUCT

What Does a REP Do?

REPs handle the commercial side of your electricity service:

  • Electricity Pricing: Sets your per-kWh rate and plan terms
  • Billing: Sends your monthly electricity bill (including TDU delivery charges)
  • Customer Service: Answers questions about your bill, plan, and account
  • Plan Options: Offers fixed-rate, variable-rate, and renewable energy plans

Types of REP Plans

Fixed-Rate Plans

Your rate stays the same for the entire contract term (6-36 months). Protects against market price increases but may have early termination fees.

Variable-Rate Plans

Rate changes monthly based on market conditions. No contract commitment but rates can spike during high-demand periods like summer.

Green Energy Plans

100% renewable energy from wind or solar sources. Available from providers like Green Mountain, Chariot Energy, and others.

Prepaid Plans

Pay for electricity before you use it. No credit check required. Good for renters or those with credit issues.

How to Switch REPs

Switching REPs in Texas is simple and your power is never interrupted during the process:

  1. 1 Compare Plans: Enter your ZIP code to see available rates from all REPs
  2. 2 Enroll Online: Sign up with your new REP in 2-3 minutes
  3. 3 Automatic Switch: Your new rate starts within 1-2 billing cycles

Frequently Asked Questions

What does REP stand for?

REP stands for Retail Electric Provider. A REP is the company that sells you electricity in Texas. You receive one bill from your REP that covers both the electricity supply and TDU delivery charges.

Can I switch REPs in Texas?

Yes, Texas residents in deregulated areas can switch REPs at any time. The switch typically takes 1-2 billing cycles and your power is never interrupted during the switch. Some fixed-rate plans have early termination fees if you switch before your contract ends.

Do all REPs have the same rates?

No, rates vary significantly between REPs. That's why comparing rates is important. Prices can differ by 20-30% or more between providers for similar plan types. Always compare the total price at your expected usage level.

What happens if my REP goes out of business?

If a REP goes out of business, you're automatically moved to a Provider of Last Resort (POLR) by ERCOT. Your power is never interrupted. However, POLR rates are typically higher, so you should shop for a new REP quickly.