How to Switch Retail Electric Providers in Texas: A Step-by-Step Guide for Cannabis and Hemp Businesses

Who must choose a REP in Texas

Unlike Ohio or Illinois, Texas does not offer a Standard Service Offer or Price to Compare [ercot-retail-market]. If your REP contract expires without a replacement, you are not automatically moved to a regulated default rate. You must actively enroll with a new REP or renew with your current one.

Non-choice territories: Austin Energy, CPS Energy, most electric cooperatives, Entergy Texas, Southwestern Public Service, El Paso Electric, and SWEPCO [ercot-retail-market]. About 85% of Texas electricity consumers have retail choice [ercot-retail-market].

Step 1: Confirm ERCOT choice area

Check the TDU name on your bill. If it reads Oncor Electric Delivery, CenterPoint Energy Houston Electric, AEP Texas, TNMP, or Lubbock Power and Light, you can shop REPs [ercot-retail-market].

If the bill shows Austin Energy or CPS Energy, the account is on bundled municipal service with no REP option [ercot-retail-market]. A TCUP satellite storefront planned for San Antonio or Austin must budget for municipal rates, not ERCOT competitive supply.

Use the state deregulation eligibility checker if you are unsure which territory a prospective site falls in.

Step 2: Locate your ESI ID

Each metered premise has an Electric Service Identifier (ESI ID) on the REP bill [ercot-retail-market]. Multi-site operators may have separate ESI IDs for cultivation campus, processing wing, and satellite dispensaries under HB 46 [tlo-hb46]. Each enrolls separately [ercot-retail-market].

A vertically integrated TCUP site with one service entrance has one ESI ID. A campus with separate meters for cultivation and retail has two. Confirm the count before requesting quotes.

Step 3: Pull twelve months of bills

Separate:

• REP charges: energy rate, contract type, contract end date
• TDU pass-throughs: delivery energy, distribution demand, transmission (4CP), metering

Note billing kW after Oncor's 80% ratchet [oncor-tariff] and 4CP kW updated each January 1 [oncor-tariff]. For a cultivation site, also note whether the account is on Secondary Service Greater Than 10 kW or Primary Service [oncor-tariff].

Calculate your current all-in cost: total bill divided by total kWh. Texas commercial customers averaged 8.66 cents per kWh in June 2026 on a bundled EIA basis [eia-epm-5-6-a], but your site may bill higher with demand and transmission pass-throughs.

Step 4: Choose contract type

Load profile	Recommended contract	Why
Dispensary under 10 kW	Fixed 12-month	Predictable small load [oncor-tariff]
TCUP cultivation	Block-and-index	Flat lighting block + variable HVAC
Hemp extraction (batch)	Block-and-index	Baseload + spiky process load
Large campus	Custom negotiated	Volume pricing off ERCOT wholesale

See fixed vs. index vs. block-and-index contracts.

A TCUP grow with 250,000 kWh monthly and flat 18-hour lighting should not sign a pure real-time index contract unless the operator can curtail during ERCOT price spikes [ercot-retail-market]. ERCOT real-time prices spiked above $9,000/MWh during Winter Storm Uri in February 2021 [ercot-retail-market].

Step 5: Compare REP offers

Small commercial: PowerToChoose.org lists PUCT-certified REPs [ercot-retail-market]. Large commercial: request custom quotes from three or more REPs. Compare energy rate, term, early termination fee, and congestion pass-through provisions.

There is no single benchmark rate because no default supply exists [ercot-retail-market]. Use your current all-in cost as the baseline. Confirm whether the quoted rate includes or excludes TDU delivery pass-throughs. Most REP quotes show energy only; TDU charges appear as separate line items on the bill [ercot-retail-market].

Step 6: Review contract fine print

Read before signing:

• Auto-renewal. Many REPs roll expired contracts to a month-to-month variable rate. Calendar renewal 60 days before expiration.
• Early termination fee. Typical range is $50 to $300 per ESI ID for small commercial; larger loads may face higher ETFs.
• Congestion and ancillary pass-throughs. Index and block-and-index contracts may pass through ERCOT ancillary charges.
• TDU charge pass-through. Should match regardless of REP [ercot-retail-market].

See contract terms, early termination fees, and evergreen clauses.

Step 7: Enroll with the new REP

The REP submits enrollment to ERCOT for your ESI ID [ercot-retail-market]. Provide legal entity name, service address, authorized signatory, and tax ID. The switch takes effect on the next scheduled meter read, typically two to four weeks for a monthly-read account.

No PUCT approval is required for the switch itself [ercot-retail-market]. The TDU does not change. Oncor, CenterPoint, or your local TDU continues delivering power and billing regulated pass-throughs [ercot-retail-market].

For a new TCUP campus or HB 46 satellite storefront, coordinate REP enrollment with TDU new-service energization so the account does not run on an unintended product during commissioning [tlo-hb46].

Step 8: Verify and plan 4CP

On the first post-switch bill, confirm:

• REP name and energy rate match the contract
• TDU pass-through lines are unchanged
• Billing kW and 4CP kW carry forward from prior months

Before June, review 4CP curtailment plan for accounts above 10 kW. Demand during four ERCOT system-peak 15-minute intervals sets next year's transmission cost [oncor-tariff]. Switching REPs does not reset 4CP history [oncor-tariff].

Common mistakes in Texas

Treating TDU and REP as one bill line. Delivery pass-throughs stay the same when you switch REPs [ercot-retail-market]. A lower energy rate with unchanged delivery is real savings; a quote that ignores TDU pass-throughs is incomplete.

Signing pure index for a cultivation load. Flat lighting load needs price certainty during summer peak hours when ERCOT real-time prices are most volatile [ercot-retail-market].

Ignoring ratchet after one hot August. Oncor bills 80% of peak NCP for 11 months [oncor-tariff]. A new REP contract does not reset the ratchet floor.

Assuming TCUP licensing restricts REP choice. It does not [dps-tcup]. Energy eligibility follows TDU territory, not DPS license type.

Letting a contract lapse without renewal. Texas has no default supply [ercot-retail-market]. An expired contract can leave the account in a month-to-month variable rate or require urgent re-enrollment.

Non-choice territories and co-op exclusions

Austin Energy, CPS Energy in San Antonio, most electric cooperatives, and non-ERCOT areas (Entergy Texas, Southwestern Public Service, El Paso Electric, SWEPCO) provide bundled regulated service with no REP choice [ercot-retail-market]. Confirm ERCOT TDU territory on the ESI ID before soliciting REP quotes [ercot-retail-market].

Hemp processors in Austin or San Antonio follow municipal tariff books, not this REP switching procedure [ercot-retail-market]. TCUP conditional campuses sited outside choice areas need bundled procurement plans from day one [dps-tcup-phase-2] [ercot-retail-market].

4CP calendar paired with contract start dates

Oncor updates 4CP kW each January 1 from four ERCOT system-peak intervals in June through September [oncor-tariff]. Sign REP contracts before summer peaks if you want a fixed energy price during the season when HVAC and lighting coincide with system peaks [oncor-tariff] [ercot-retail-market].

Document whether the REP passes TDU 4CP charges through as billed or estimates them in fixed pricing [oncor-tariff]. Cultivation accounts with ratchet floors need twelve-month billing demand history in the RFP packet [oncor-tariff].

ESI ID and TDU confirmation checklist

Before signing a REP contract, verify each account [ercot-retail-market] [oncor-tariff]:

1. ESI ID matches the meter you intend to switch.
2. TDU name (Oncor, CenterPoint, AEP, TNMP) matches the delivery charges on the last bill.
3. Billing kW and 4CP kW from the TDU page of the bill, not the REP summary.
4. Contract start date aligns with meter read cycle to avoid overlap penalties.
5. Early termination fee and auto-renewal language for multi-year TCUP campuses [ercot-retail-market].

Hemp processors outside ERCOT choice areas should stop here and request bundled tariff quotes from Austin Energy, CPS Energy, or the local cooperative instead [ercot-retail-market] [tx-tribune-hemp-impasse].

Contract renewal and auto-roll risk

Many REP contracts auto-renew at index or month-to-month rates if not terminated sixty days before expiration [ercot-retail-market]. TCUP operators should calendar renewal dates against HB 46 campus energization so a low fixed rate does not roll to index during first harvest [dps-tcup-phase-2] [tlo-hb46]. Compare renewal language on every ESI ID in a portfolio [ercot-retail-market].

TDU switch fees and meter reprogramming

Changing REPs does not change the TDU; the same Oncor or CenterPoint account continues with updated REP code on the bill [ercot-retail-market]. Switching typically completes on the next meter read without a physical truck roll [ercot-retail-market]. Verify the new REP appears on the first consolidated bill and that TDU demand and 4CP lines unchanged except REP energy rate [oncor-tariff] [ercot-retail-market].

Credit requirements for cannabis operators

REPs may require deposits or personal guarantees from cannabis licensees [ercot-retail-market]. Have DPS or hemp registration documents ready for credit review [dps-tcup] [tx-tribune-hemp-impasse]. Multiple ESI IDs under one parent may need separate credit approvals even on a portfolio contract [ercot-retail-market].

Where to go next

• Texas commercial electricity rates.
• Texas hub for TCUP overview.
• Energy broker vs. direct supplier.
• What happens to my utility when I switch.

Confirm REP PUCT certification before signing.