Switching Electricity Providers in AEP Texas Territory

As a resident or business owner in the AEP Texas service area, you have the power to choose your Retail Electric Provider (REP). This is a key benefit of living in a deregulated part of the Texas electricity market, managed by the Electric Reliability Council of Texas (ERCOT). While AEP Texas, as your Transmission and Distribution Utility (TDU), will always be responsible for delivering your power and maintaining the grid, you can select a separate company to supply the actual electricity and manage your billing.

Switching your REP can lead to better rates, different plan structures (like fixed-rate or variable-rate plans), or customer service that better suits your needs. The process is designed to be straightforward, with consumer protections in place to ensure a smooth transition. This guide will walk you through the steps of switching providers and answer common questions you might have.

In most of Texas, the electricity market is deregulated. This separates the companies that generate and sell electricity from the companies that transmit and distribute it. Here’s what that means for you:

• Retail Electric Provider (REP): This is the company you choose to buy your electricity from. They set the rates (per kilowatt-hour), manage your account, and send you your monthly bill. You can find and compare REPs on the official Power to Choose website.
• Transmission and Distribution Utility (TDU): This is your utility company, which for you is AEP Texas. They are responsible for the poles, wires, and meters that deliver electricity to your home. You cannot choose your TDU; it is determined by your location. TDU charges are separate from your REP's charges and are passed through on your bill. You can learn more about these on our understanding TDU charges page.

Because AEP Texas is your TDU, they will continue to deliver your power safely and reliably, regardless of which REP you choose. If you experience a power outage, you will still contact AEP Texas for assistance, not your REP.

Switching your REP is a simple, regulated process. Here are the typical steps involved:

1. Review Your Current Plan: Before you switch, check the terms of your current contract. Look for the expiration date and any potential early termination fees (ETFs). By law, you can switch to another provider without penalty up to 14 days before your contract ends.
2. Shop for a New Plan: Use the Power to Choose website to compare plans from different REPs. You can filter by rate, contract length, renewable energy content, and more. Carefully read the Electricity Facts Label (EFL) for each plan to understand its full terms and pricing structure.
3. Sign Up with Your New Provider: Once you've selected a new REP and plan, you can sign up directly on their website or over the phone. You will need to provide your service address and your Electric Service Identifier (ESI ID), which can be found on your current electricity bill.
4. Confirmation and Switch: Your new REP will handle the switch with ERCOT and AEP Texas. You do not need to contact your old provider to cancel. The switch usually takes place within seven business days, and there will be no interruption to your power. You will receive a final bill from your old provider and a confirmation from ERCOT.

The Public Utility Commission of Texas (PUCT) has established rules to protect consumers during the switching process. Key protections include:

• Right to Cancel: If you are switching to a new provider, you have the right to cancel the switch without penalty within three federal business days of receiving your new terms of service.
• No-Fee Switching Window: REPs must allow you to switch to a new provider without charging an early termination fee if you are within 14 days of your contract's expiration date.
• Dispute Resolution: If you have an issue with your provider, you can file a complaint with the PUCT.

It's important to be aware of these rights as you navigate the process of choosing a new electricity provider.