Question 1

How does ERCOT pricing work for Texas businesses?

Accepted Answer

ERCOT (Electric Reliability Council of Texas) operates the wholesale electricity market for 90% of Texas. Generators sell power to Retail Electric Providers (REPs), who then sell it to businesses at retail rates. ERCOT does not sell electricity directly to businesses. Your Transmission Distribution Utility (TDU) delivers power over regulated wires — your REP sets your supply rate. Understanding ERCOT nodal pricing helps businesses time contract renewals to avoid rate spikes.

Question 2

Do Texas commercial electricity contracts auto-renew?

Accepted Answer

Yes. Most Texas commercial electricity contracts include auto-renewal clauses. If you do not actively renew or switch REPs before your contract expires, your provider will typically roll you into a month-to-month variable rate plan. These rollover rates are often 20–40% higher than competitive fixed-rate market offers. Texas businesses should begin shopping rates 90–120 days before contract expiration to maximize negotiating leverage.

Question 3

What happens if I do nothing before my electricity contract renewal?

Accepted Answer

If no action is taken before your Texas commercial electricity contract expires, your REP will auto-renew you at rollover pricing — typically a month-to-month variable rate at above-market prices. You remain locked into higher rates until you negotiate a new fixed contract or switch REPs. The longer you wait, the more you overpay. Most contracts allow switching at any month-to-month point without early termination fees.

Question 4

Can I lower my business electricity rate without installing solar?

Accepted Answer

Yes. In Texas's deregulated electricity market, businesses can reduce their electricity supply costs by comparing Retail Electric Provider (REP) rates, switching from rollover pricing to fixed-rate contracts, optimizing demand charge structures, and timing contract renewals during periods of favorable ERCOT wholesale market pricing. No solar panels or equipment purchases are required.

Question 5

Who delivers my power in Texas — my REP or the utility?

Accepted Answer

Your power is physically delivered by your Transmission Distribution Utility (TDU) — Oncor, CenterPoint Energy, AEP Texas, or TNMP — depending on your location. Your TDU never changes and its delivery charges are regulated by the PUCT. Your Retail Electric Provider (REP) sets your supply rate and handles billing. You choose your REP; you cannot choose your TDU.

Question 6

How do electricity brokers get paid in Texas?

Accepted Answer

In Texas, PUCT-licensed electricity brokers are typically compensated through commissions paid by Retail Electric Providers (REPs) when a business enrolls with a provider. This means there is generally no direct cost to the business for broker services. Power My Business is a PUCT-registered broker (BR240245) compensated by providers, not directly by the businesses we serve.

Commercial Electricity Insights

Featured Article

How to Switch Commercial Electricity Providers in Texas

All Articles

How Much Does Commercial Electricity Cost in Texas? (2026 Guide)

What Does a Commercial Electricity Broker Do? (Complete Guide)

Fixed vs Variable Commercial Electricity Rates in Texas

Ready to Lower Your Electricity Costs?