Texas businesses can switch commercial electricity providers in 7-14 days by reviewing current contracts, comparing broker-negotiated quotes from multiple providers, selecting the best rate for their usage patterns, and coordinating the switch through their broker—all without service interruption or installation costs.
The independent system operator that manages the flow of electric power to 26 million Texas customers across 75% of the state. ERCOT's deregulated market allows businesses to choose their electricity provider.
The company that owns and maintains the physical power lines and infrastructure. Your TDU (Oncor, CenterPoint, AEP Texas, or TNMP) does not change when you switch providers—only your retail electricity provider changes.
A unique 17- or 22-digit number that identifies your specific electric meter. You'll need this number to switch providers. Find it on your current electricity bill or by calling your TDU.
The length of your electricity agreement, typically ranging from 12 to 36 months for commercial accounts. Fixed-rate contracts lock in your rate for the entire term, protecting against market fluctuations.
A penalty charged by your current provider if you cancel your contract before the expiration date. ETFs for commercial accounts typically range from $200-500, though some contracts may have higher fees based on remaining contract length or usage volume.
Check your existing electricity contract for the expiration date and early termination fees (ETFs). If your contract expires within 60 days, you can switch without penalties. If you're mid-contract, calculate whether the savings from a new rate justify paying the ETF (typically $200-500 for commercial accounts). Contact your current provider or review your original contract documents to confirm these details.
Collect your ESI ID (found on your electricity bill), current rate per kWh, monthly usage history (12 months recommended), and TDU provider name. This information helps brokers and providers accurately quote rates based on your actual consumption patterns. Businesses with seasonal usage (like restaurants or retail) should provide summer and winter usage data for more accurate pricing.
Work with a licensed Texas electricity broker who has access to extensive network of providers and can negotiate competitive rates on your behalf. Brokers charge no fees to businesses—they're compensated by providers. A good broker will analyze your usage patterns, explain contract terms, and handle all paperwork. Avoid going direct to providers, as brokers typically secure 15-30% lower rates through volume purchasing and relationships.
Review at least 3-5 quotes from different providers, comparing not just the per-kWh rate but also contract length, demand charges, early termination fees, and billing structure. Pay attention to 'all-in' pricing that includes TDU delivery charges and base fees. Ask your broker to explain any charges you don't understand—transparency is critical for avoiding surprise costs.
Choose the provider offering the best combination of rate, contract terms, and customer service reputation. Read the Electricity Facts Label (EFL) carefully before signing—this document discloses all charges and terms. Your broker should review the contract with you and answer any questions. Most commercial contracts require a DocuSign or wet signature from an authorized company representative.
Coordinate with your broker to schedule the switch date, typically 7-14 days from contract signing. The switch happens automatically through ERCOT's system—no technician visit or service interruption occurs. Your new provider will notify your TDU, who updates their records. You'll receive a final bill from your old provider and your first bill from the new provider within 30-45 days.
Verify the switch completed by checking your first bill from the new provider. Confirm the rate matches your contract, all charges are correct, and your ESI ID is accurate. Set a calendar reminder for 60 days before your new contract expires to start the comparison process again—this prevents auto-renewal at higher rates and ensures you continue getting competitive pricing.
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Why it's a problem: Starting the comparison process on your expiration date leaves no time to negotiate or compare offers. Most businesses end up auto-renewing at rates 20-40% higher than market rates.
Solution: Begin comparing rates 60-90 days before your contract expires. This gives your broker time to negotiate with multiple providers and secure the best possible rate.
Why it's a problem: The advertised rate often excludes TDU delivery charges, base fees, and demand charges that can add 30-50% to your actual cost. You may think you're getting a great deal but end up paying more.
Solution: Always compare 'all-in' pricing that includes every charge. Ask your broker for a total estimated monthly cost based on your actual usage, not just the energy rate.
Why it's a problem: Month-to-month and short-term contracts (6 months or less) typically carry rates 25-40% higher than 24-36 month contracts. The perceived flexibility costs thousands of dollars annually.
Solution: Lock in a 24-36 month fixed-rate contract when market rates are favorable. The savings far outweigh the flexibility of shorter terms, and you can still switch if you pay the ETF (usually worth it if rates drop significantly).
Why it's a problem: Many commercial contracts include demand charges based on your peak usage during a billing period. Businesses unaware of these charges can see bills 50-100% higher than expected, especially during summer months.
Solution: Ask your broker to explain how demand charges work and whether they apply to your contract. Request historical demand data from your TDU to estimate these costs accurately.
Why it's a problem: Businesses sometimes switch mid-contract without calculating whether the savings justify the ETF. Paying a $500 ETF to save $30/month means you won't break even for 17 months.
Solution: Calculate your monthly savings, divide the ETF by that amount, and determine your break-even point. Only switch mid-contract if you'll recoup the ETF within 6-12 months.
The switching process typically takes 7-14 days from contract signing to activation. The actual switch happens automatically through ERCOT's system on your scheduled switch date—there's no service interruption, no technician visit, and no downtime. Your broker coordinates all timing with your new provider and TDU to ensure a seamless transition.
No, your electricity service continues uninterrupted during the switch. The transition happens electronically through ERCOT's system. Your TDU (the company that owns the power lines) remains the same—only your retail electricity provider changes. You'll continue receiving power throughout the entire process with zero downtime.
No, your new provider and broker handle all notifications to your current provider through ERCOT's system. You don't need to call or email your old provider—they'll automatically receive notice of the switch and send you a final bill. However, if you're switching mid-contract, you should confirm your early termination fee before signing with a new provider.
Yes, but you'll typically pay an early termination fee (ETF) ranging from $200-500 for commercial accounts. Calculate whether your monthly savings justify the ETF—if you'll save $100/month and the ETF is $300, you'll break even in 3 months and save money thereafter. Many businesses find it worthwhile to switch mid-contract when rates drop significantly.
Your ESI ID appears on your current electricity bill, usually near the top or in the account details section. It's a 17- or 22-digit number that uniquely identifies your meter. If you can't find it on your bill, call your TDU (Oncor, CenterPoint, AEP Texas, or TNMP) and provide your service address—they'll give you the ESI ID over the phone.
Fixed-rate contracts lock in your per-kWh rate for the entire contract term (12-36 months), protecting you from market price spikes. Variable-rate contracts fluctuate monthly based on wholesale electricity prices—they can be lower during mild weather but spike dramatically during high-demand periods. For commercial accounts, fixed-rate contracts provide budget certainty and typically offer better long-term value.
No, your TDU (Transmission and Distribution Utility) never changes—they own the physical power lines and infrastructure in your area. When you switch providers, you're only changing the retail electricity company that supplies your power and sends your bill. Your TDU remains the same and continues maintaining the lines and responding to outages.
Texas businesses typically save 15-30% by switching from direct provider rates to broker-negotiated rates. Actual savings depend on your current rate, usage patterns, and market conditions. For example, a business paying 12¢/kWh and using 10,000 kWh/month could save $180-360 monthly ($2,160-4,320 annually) by switching to a broker-negotiated rate of 9-10.5¢/kWh. Your broker can provide exact savings estimates based on your specific usage.
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