Your Texas Fixed Rate Can Still Change for 3 Reasons. The PUCT Is Now Weighing a Fourth

Fixed rate electricity plans in Texas have to charge the same price in every billing period of the term, with exactly three exceptions written into the Public Utility Commission of Texas (PUCT) rule that defines them, 16 TAC 25.475(b)(5): actual changes in TDU delivery charges, changes to ERCOT or Texas Regional Entity administrative fees, and new costs imposed by law. A possible fourth, grid reserve costs, is now under review in PUCT Project 59997.

That fourth path isn't new, and it has never been used. The same rule already lets the PUCT designate a specific ancillary service as a cost beyond a provider's control for existing contracts. The one petition the commission has decided under that sentence, for a reserve product called ECRS, was denied in December 2024. On November 5, 2026, PUCT Staff asked whether the path should be repealed, rebuilt with clear rules, or used for ERCOT's newest reserve product, DRRS. Comments are due December 4, 2026. Nothing has been decided.

Key takeaways

• Under 16 TAC 25.475(b)(5), a Texas fixed rate product runs at least three months, and its price, including all recurring charges and ancillary service charges, stays the same every billing period except for three listed causes.
• The three causes are actual TDU delivery charge changes, ERCOT or Texas Regional Entity administrative fee changes, and new or modified fees or costs from federal, state or local law that are beyond the provider's control.
• Grid reserve (ancillary service) costs can't move a fixed price today. That takes an express PUCT designation of a specific ancillary service product, and none has ever been granted. The one petition decided, for ECRS in Docket 55959, was denied on December 19, 2024.
• In Project 59997, PUCT Staff asked on November 5, 2026 whether to repeal that designation path or define a process for using it, starting with ERCOT's new Dispatchable Reliability Reserve Service (DRRS). Comments are due December 4, 2026 and reply comments December 18, 2026.
• ERCOT estimates DRRS will be fully implemented in mid-2028, according to an October 29, 2026 PUCT staff memo. A 12-month fixed plan signed in November 2026 ends before that estimate. A 24-month or 36-month plan runs past it.

What does a fixed rate actually lock in on a Texas electricity plan?

A fixed rate locks in the total price for each billing period of the contract term, not just the energy charge. The PUCT's definition of a fixed rate product in 16 TAC 25.475(b)(5) covers "all recurring charges and ancillary service charges," and the term must be at least three months.

Two other parts of the same rule shape what "fixed" means on a Texas electricity bill:

• 25.475(b)(8) defines price to exclude state and local sales taxes and the reimbursement for the state miscellaneous gross receipts tax, so those can still appear as separate lines.
• 25.475(c)(1)(A)(i) bars a retail electric provider (REP) from using the term "fixed" to market a plan that doesn't meet the definition.

A fixed rate is not a fixed bill. The price holds, but the bill still rises and falls with the kilowatt-hours you use. If you're still choosing between plan types, Fixed-Rate vs Variable-Rate Electricity in Texas covers that decision. This article is about what can still move after you sign.

What are the three reasons a Texas fixed rate can still change?

The rule lets a fixed price vary from the disclosed amount for three reasons only, and anything outside them stays locked for the term. In the words of 25.475(b)(5), the price may vary "solely to reflect actual changes in TDU charges, changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity, Inc. administrative fees charged to loads or changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP's control."

1. TDU delivery charges

TDU delivery charges are the fees your local wires utility, such as Oncor, CenterPoint, AEP Texas or TNMP, bills through your provider to move power to your meter. They are the exception most Texans actually see, because every provider in a territory bills the same delivery charges and a fixed plan can pass a change straight through.

The most recent large example is Oncor. Its residential delivery charge rose from 6.0295 to 6.8673 cents per kWh on October 4, 2026, about $8.38 more at 1,000 kWh a month (as of October 4, 2026), under PUCT Docket 59249. Oncor's fixed monthly charges stayed at $4.06. Those rates are temporary until the PUCT issues a final order, as the Oncor delivery charge breakdown explains. For every territory's line items, see TDU Delivery Charges Explained, and for TNMP's September steps and December surcharge, see the TNMP rate guide.

2. ERCOT and Texas Regional Entity administrative fees

ERCOT, the grid operator for most of Texas, funds itself through a system administration fee charged per megawatt-hour of load, and a change in that fee is the second allowed reason. Texas Regional Entity, which monitors reliability standards in the ERCOT region, is named in the same clause.

This exception is usually tiny. The PUCT approved changing ERCOT's System Administration Fee from $0.63 to $0.61 per MWh, effective January 1, 2026, according to ERCOT's 45-day market notice. One MWh is 1,000 kWh, so on a 1,000 kWh month that change is $0.02.

3. New fees or costs imposed by law

The third reason covers changes from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP's control. It needs a law, not a market move, which makes it the narrowest of the three in day-to-day practice.

One word-level detail is worth knowing. The indexed product definition right below it, 25.475(b)(6), adds "or regulatory actions" to the same exception. The fixed rate definition leaves those words out and handles grid reserve costs in a separate sentence of its own, which is where Project 59997 comes in.

The Fixed-Rate Exception Map

This table puts every possible cause side by side, with the latest real case for each and its size on a 1,000 kWh month.

Can grid reserve costs raise a fixed rate in Texas today?

No. Ancillary service costs are already part of a Texas fixed price, and the rule says the price "may not vary from the disclosed amount to reflect changes in ancillary service charges unless the commission expressly designates a specific type of ancillary service product as incurring charges beyond the REP's control for a customer's existing contract." No ancillary service product has ever received that designation.

Ancillary services are the reserves ERCOT buys so the grid can cover a sudden loss of a power plant or a fast swing in demand. Retail providers pay their share of those costs. Because a fixed price includes ancillary service charges by definition, the cost risk of reserves sits with the provider for the length of a fixed term.

The designation sentence is the one opening the rule leaves. It is written narrowly: a specific type of ancillary service product, an express commission designation, and existing contracts only.

Has the PUCT ever let a fixed rate change for a new reserve product?

No. The only petition the PUCT has decided under the designation sentence was denied. In Docket 55959, the Texas Energy Association for Marketers and the Alliance for Retail Markets filed a joint petition on December 8, 2023, asking the commission to designate ERCOT Contingency Reserve Service (ECRS) so providers could make a one-time adjustment to certain existing fixed-rate contracts. The PUCT issued its declaratory order on December 19, 2024, and the answer was no.

The request covered fixed-rate contracts signed on or before June 9, 2023. According to EnergyChoiceMatters' report of the decision, the PUCT found providers had adequate notice that ECRS was coming. The final order said ERCOT's ECRS procurement in 2023 totaled 2,531 MW, "which was within the estimated range of 1,093 MW and 3,039 MW that ERCOT provided to the Wholesale Market Working Group in 2022."

Commissioners Lori Cobos and Kathleen Jackson voted to deny the petition. Chairman Thomas Gleeson and Commissioner Courtney Hjaltman were recused. The final order did not adopt an administrative law judge's broader proposed conclusion that "there is no question that REPs have a significantly greater ability to [accurately predict A/S costs] than their residential and small commercial customers," so the larger question of who should carry new reserve costs was left open.

The Retail Electric Provider Coalition filed a motion for rehearing on January 13, 2025. On January 22, 2025, the commission voted not to add it to an open meeting agenda.

What is DRRS, and why is the question back in front of the PUCT?

DRRS, short for Dispatchable Reliability Reserve Service, is a new ancillary service ERCOT is building under Nodal Protocol Revision Request 1309. ERCOT's NPRR1309 page says the change "develops Dispatchable Reliability Reserve Service (DRRS) as a new Ancillary Service," and records PUCT approval on July 9, 2026, "as presented in Project No. 54445."

Before that vote, the Retail Electric Provider Coalition asked for order language designating DRRS as a service "that will incur costs beyond the REPs' control at the time that service is incorporated into the ERCOT Ancillary Services plan," EnergyChoiceMatters reported. The July order left that language out, and the PUCT said it would open a project instead.

At the July open meeting, PUCT Chair Thomas Gleeson said he didn't know when the commission would move forward, adding, "I don't think there are lot of details around how that would be done, safeguards for customers, and the like," according to the same EnergyChoiceMatters report. He recommended a project "to see what changes need to be made, what details or guardrails need to be put around this," and tied the issue to the commission's concern with "affordability."

That project is Project 59997. Staff filed the control request on July 15, 2026, and on October 28, 2026 the project was restyled "Treatment of DRRS and Other Future Ancillary Services Costs in Existing Fixed-Rate Retail Contracts."

DRRS isn't running yet. ERCOT estimates DRRS will be fully implemented in mid-2028, according to an October 29, 2026 PUCT staff memo, which says ERCOT's project management office gave that estimate at an October 2026 Protocol Revision Subcommittee meeting. The same memo says DRRS "must also be considered in ERCOT's 2028 AS Methodology development so that quantities may be determined." ERCOT's own comments for its June 2026 board vote also said "Implementation in 2028." No DRRS cost per kWh has been published.

What did the PUCT ask on November 5, 2026?

On November 5, 2026, PUCT Rules & Projects Staff filed questions for comment in Project 59997, and one option on the table is removing the ancillary-service path from the fixed rate rule altogether. Comments are due December 4, 2026, and reply comments are due December 18, 2026. Staff hasn't proposed a rule change, and nothing has been decided.

The Staff memo, from Luisa Venegoni of Rules & Projects, asks stakeholders to address these open questions, as summarized in the memo and in EnergyChoiceMatters' November 5 report:

1. Whether to "Repeal the relevant language in §25.475(b)(5), to eliminate the avenue through which a REP could change the price of an existing fixed-rate contract to reflect ancillary service costs."
2. Whether the PUCT should clearly define a process for considering and authorizing variations to existing fixed-rate contracts to reflect the cost of a new ancillary service.
3. If the provision stays, how the PUCT should designate a qualifying service: a contested case started by providers, part of adopting the new service, or a rulemaking or other proceeding "that establishes criteria in advance to guide the Commission's determination (e.g., a required showing, trigger date, guardrails on the amount or duration of an adjustment)."
4. What standard should apply, whether "beyond the REP's control" is enough by itself, and what notice affected customers should get.
5. For DRRS, at what point "control" over the cost should be deemed established, including: "What circumstances, if any, would prevent a prudent REP from managing DRRS costs through hedging and other risk management practices?"
6. If a variation were allowed, whether it should be a one-time adjustment or a recurring pass-through, and "How should the adjustment or pass-through amount be quantified?"
7. What additional customer protections to order, and whether to settle DRRS after any rule change or through an interim process.

Staff's questions run in both directions. Some would close the path for good. Others would write the rules for using it.

The Office of Public Utility Counsel (OPUC), the state agency that represents residential and small commercial consumers, filed a notice of participation on November 9, 2026. As of November 13, 2026, the project lists four filings, and OPUC's notice is the most recent.

Does DRRS overlap your fixed-rate contract term?

Only the longer terms do, based on ERCOT's current estimate. A 12-month fixed plan signed in November 2026 ends in November 2027, before mid-2028. A 24-month plan ends in November 2028 and a 36-month plan in November 2029, so both run past the estimated DRRS start.

The Term Overlap Check

Overlap by itself changes nothing on your bill. A DRRS cost could reach an existing fixed price only if the PUCT designated DRRS under 25.475(b)(5) or changed the rule, and then allowed a variation for existing contracts. One of the options Staff put on the table would remove that path entirely. The mid-2028 date is also an estimate, and it can move.

The protection on the other three causes is the same for every term length. For when to lock in, the forward price curve guide covers timing, and the renewal guide covers the notice and switching windows at the end of a term.

How do you check what your own fixed-rate contract allows?

Your Electricity Facts Label (EFL) and Terms of Service spell out exactly when your price can move. Start with the EFL Disclosure Chart's answer to "Can my price change during the contract period?" and the row beneath it, then find the fixed rate section of the Terms of Service.

1. Open your EFL and find the Disclosure Chart. On a fixed rate plan, the row "If my price can change, how will it change and by how much?" should list the same causes as the rule. How to Read Your Texas Electricity Facts Label walks through the rest of the label.
2. Open your Terms of Service and find the pricing language for fixed rate products.
3. Compare the TDU delivery lines on your bill with the current TDU rates for your territory.
4. Follow Project 59997 on the PUCT Interchange, where the PUCT also offers a Filing Notification System.

Ambit Energy's own documents use the rule's three causes. The Ambit Texas Residential Terms of Service (version v. TOU103123, dated October 31, 2023) says: "The price of a fixed rate product may change during a contract term only to reflect changes in TDU charges, changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity administrative fees charged to loads or changes resulting from federal, state or local laws that impose new or modified fees or costs on REPs, including Ambit Energy, that are beyond our control." To see how Ambit's plans and terms compare, see Every Ambit Energy Plan Compared.

Frequently asked questions

Will DRRS raise my electric bill?

Not on an existing fixed-rate contract under today's rule. A DRRS cost could reach a fixed price only if the PUCT expressly designated DRRS or changed the rule, and neither has happened. ERCOT estimates DRRS will be fully implemented in mid-2028, and no DRRS cost per kWh has been published.

Can a heat wave or an ERCOT price spike raise my fixed rate?

No. Wholesale price swings are not one of the three causes in 25.475(b)(5). A heat wave or a winter storm can raise your bill through higher usage, but not your fixed price. What a Texas winter storm can and can't do to your electric bill covers the winter side.

Is a fixed rate the same as a fixed bill?

No. A fixed rate holds your price, while your bill still moves with the kilowatt-hours you use. Budget billing smooths the bill amount instead, without changing what you pay over the year, as the Average Monthly Billing guide explains.

Does my provider have to warn me before a TDU-driven price change?

It depends on your Terms of Service. Ambit Energy's Texas Residential Terms of Service says: "Price changes resulting from these scenarios do not require us to provide you with advance notice."

Can I weigh in on Project 59997?

Comments go to Project No. 59997 by December 4, 2026, with reply comments by December 18, 2026, according to the Staff memo. Every filing is posted on the PUCT Interchange listing for Project 59997.

Plan details and rates subject to change. TDU charges and ERCOT fees in this article are as of the dates shown.

Budget billing won't lower what you pay for electricity over a year. It changes when you pay it. Ambit Energy's Texas version, called Average Monthly Billing, bases each bill on your last 12 months of usage, and Ambit's own program page says it "doesn't lower your actual usage charges." The gap between what you use and what you pay rides along as a carried balance.

That carried balance is the part most explanations skip. A carried balance is the running difference between your actual usage charges and your average payments. It grows through a Texas summer, shrinks through the mild months, and gets "either charged or credited to your account when you end Average Monthly Billing," in Ambit's words. This guide walks through the math month by month, so you can see where your balance will sit before you enroll or quit.

Key takeaways

• Average Monthly Billing at Ambit Energy averages your last 12 months of usage. Your payment still "will vary slightly each month," per Ambit, because the formula multiplies your average daily usage by the days in each billing cycle and your current rate.
• It spreads costs out. It doesn't cut them. In the illustrative home below, the year costs $1,980 with or without the program.
• The carried balance peaks right after summer. The example home owes about $268 after its September bill, which is what it would settle if it ended the program then.
• Texas rules require every retail electricity provider to offer a level or average payment plan to customers who aren't delinquent, and to reconcile over- and underpayments at least every 12 months under its terms of service (16 TAC §25.480(h)).
• Ambit's program is open to residential Customers with at least one Ambit bill, no outstanding balance and no active payment extension.

Does budget billing lower your electric bill?

No. Budget billing lowers your summer bills and raises your mild-month bills by the same amount over a year, so the total you pay doesn't change. Ambit's Average Monthly Billing page puts it plainly: the program "doesn't lower your actual usage charges. It allows you to pay a consistent amount every month while carrying over the balance between your actual usage charges and average billing amount."

Outside experts say the same thing. Lance Cothern, a CPA, put it this way in a Discover personal finance guide: budget billing "won't save you money," and "it just evens your bill out over time." Jenifer Bosco, a senior attorney at the National Consumer Law Center, told CNET in June 2024: "It's not really a way to save money. It's more a way to help a family budget their energy expenses during the year."

So the promise is narrow on purpose. Your August bill does come down on Average Monthly Billing. Your year doesn't. What you get is a predictable bill, and what you take on is a running balance you settle later.

Why do Texas electric bills swing so much by season?

Texas bills swing because Texas homes use far more electricity in summer than in spring or fall. In August 2026, Texas residential customers bought 21.7 million megawatt-hours, according to the U.S. Energy Information Administration's Electric Power Monthly (Table 5.4.A, preliminary, released October 23, 2026). That's about 45% above the state's monthly average for January through August 2026, August included, which works out to 14.9 million megawatt-hours (Table 5.4.B).

Summer 2026 also ran heavier than summer 2025. Texas residential sales in August 2026 were about 12% above August 2025's 19.4 million megawatt-hours. EIA's Electricity Monthly Update reports that ERCOT's daily peak demand in August 2026 "came close to, but did not exceed, the record high set in July 2026."

Price adds to the swing. EIA puts the average Texas residential price at 15.91 cents per kWh in August 2026, up 3.3% from 15.40 cents in August 2025 (Table 5.6.A, as of October 23, 2026). At EIA's 2024 Texas average of 1,096 kWh a month, that's about $174 for an average month, as the average Texas electric bill breakdown shows. A summer month runs well above that and a spring month well below it. Average Monthly Billing exists to flatten that curve.

What is Average Monthly Billing at Ambit Energy?

Average Monthly Billing is Ambit Energy's average payment plan for Texas residential Customers. It sets each bill from a 12-month usage average instead of that month's meter read alone. Ambit's page describes it in one line: "We take the average of your last 12 months of usage to calculate your average monthly bill amount."

Ambit's FAQ calls the Texas program Average Billing, and points Customers outside Texas to a separate Budget Billing program. That's why "budget billing" and "average monthly billing" lead Texans to the same idea under two names.

Every Texas retail electricity provider has to offer a plan like it. The Public Utility Commission of Texas rule on bill payments, 16 TAC §25.480(h), says "A REP shall make a level or average payment plan available to its customers," and requires the plan to be offered to any customer "who is not currently delinquent in payment to the REP."

How does Ambit calculate your monthly payment?

Ambit multiplies three numbers: your average daily usage over the last 12 months, the days in the billing cycle, and your current rate. Ambit's FAQ spells it out: "Average Billing looks at your historical usage for the last 12 months and determines what your average daily usage is. That average daily usage is multiplied times the number of days in the billing cycle and the current rate."

That formula is why Ambit says the payment "will vary slightly each month." Three things can move it:

1. Cycle length. A 33-day billing cycle bills more days of average usage than a 28-day cycle.
2. Your rate. The formula uses the current rate, so a new price after a renewal moves the payment right away.
3. The rolling 12-month window. Each new month replaces the same month a year earlier, so a hotter August nudges the average up.

Here's how big each effect is for an illustrative home that used 13,200 kWh over its last 12 months, which is 36.16 kWh a day. The 15-cent price is a hypothetical all-in price chosen to keep the math readable. It isn't an Ambit rate.

The rolling window moves the payment least. If this August used 1,900 kWh instead of last August's 1,700, the 12-month total rises by 200 kWh. Spread over 365 days, that adds about $2.47 to a 30-day payment at 15 cents. In practice, "slightly" means a few dollars from cycle length or a hot month, and more from a rate change.

Is average monthly billing the same as levelized billing?

No. Texas rules treat level and average payment plans as two different plans, and Ambit's program is an average plan. Under 16 TAC §25.480(h)(2), a provider on an average plan "may recalculate the average consumption or average bill and adjust the customer's required minimum payment as frequently as every billing period." A level plan works differently: the same rule lets a provider collect level-plan underpayments "over a period no less than the reconciliation period or upon termination of service."

In plain terms, a level plan holds one payment and settles up later. An average plan keeps re-pricing itself as your history and rate change. "Levelized billing" is a common search term, but it isn't what Ambit's page describes. Ambit's payment moves a little every month.

What does a summer-peak year look like on Average Monthly Billing?

For a home that peaks in summer, the carried balance climbs from June through September and pays down through spring. In the illustrative example below, the home owes about $268 after its September bill and is back to roughly zero by May.

This is illustrative arithmetic, not an Ambit bill. It uses the same 13,200 kWh home from above, a hypothetical flat 15-cent all-in price, billing cycles that match calendar months, and usage that repeats last year's exactly, so the 12-month average holds at 36.16 kWh a day. A positive carried balance means you owe it.

The 3 cents left in May is rounding.

Three things stand out. The August bill drops from $255.00 to $168.16. The year costs $1,980 either way. And the carried balance is largest right after summer, which matters if you plan to end the program or leave the home in the fall.

Does it matter which month you start?

Yes, for the carried balance, though not for what the year costs. Start right after summer, as in the table, and you carry what you owe through the mild months. Start after a November bill instead, with the same 12 months of history, and the mild months come first. The illustrative home would build a credit through spring that peaks at about $200 after its May bill, then spend that credit down over the summer.

What happens in a winter-peak home or a freeze month?

A home that heats with electricity can peak twice, in summer and again in January, and its carried balance swings twice too. Two smaller peaks can leave a smaller carried balance than one big summer peak, even when the home uses more electricity over the year.

Same assumptions as above, for an illustrative home that uses 14,400 kWh a year (39.45 kWh a day) with a January peak:

This home pays $180 more over the year than the summer-peak home ($2,160 against $1,980), yet its carried balance tops out near $154, not $268.

Now add a freeze. Say a February cold snap adds 600 kWh, so February uses 1,900 kWh and costs $285.00 at 15 cents. That's $90 more than the table shows. Because the payment is built on a 12-month average, the extra 600 kWh lifts the 12-month average by only 50 kWh a month (600 divided by 12). Once the freeze month is in your history, it adds about 49 kWh, or $7.40, to a 30-day payment. The rest of the $90 waits in the carried balance and gets paid down over the following year. For what grid planners expect this season, see ERCOT's December 2026 winter outlook.

Who can sign up for Average Monthly Billing with Ambit?

Ambit's page says the program "is available to residential customers who have received at least one bill from Ambit Energy and don't have outstanding balances or active payment extensions." That's three conditions: a residential account, at least one Ambit bill, and nothing past due or on an extension.

Twelve months of history isn't required, but Ambit says the program "works best if you have 12 months of billing history." The formula shows why. A short history built on mild months can't see the summer coming, so the carried balance can build faster than in the tables above.

Enrolling while current also matters under state rules. Under 16 TAC §25.480(h)(7), "If the customer is not delinquent in payment when the level or average payment plan is established, a switch-hold shall not be applied," apart from one exception the rule names. A switch-hold is a block that stops you from changing electricity providers.

What happens to the carried balance when you end Average Monthly Billing?

It comes due, or it comes back to you. Ambit's page says the difference "is either carried over each month and either charged or credited to your account when you end Average Monthly Billing." If you owe a carried balance, it's charged. If you've paid ahead, it's credited.

Ambit's page doesn't lay out its reconciliation schedule, and it doesn't describe what happens to the balance if you change providers. Texas rules put those details in writing. Under 16 TAC §25.480(h)(2), "All details concerning a level or average payment program shall be disclosed in the customer's terms of service document," and the terms must provide for reconciliation "at least every twelve months." Read Ambit's terms of service before you plan an exit around a specific date.

Two more protections in the same rule are worth knowing:

• You can learn your balance at any time. If the deferred balance doesn't appear on each bill, the provider "shall inform the customer that the customer may call the REP at any time to determine the amount that must be paid to be removed from the level or average payment plan" (§25.480(h)(4)).
• A late payment is still late. A provider "may initiate its normal collection activity if a customer fails to make a timely payment" on the plan (§25.480(h)(2)). Bosco made the same point to CNET about budget billing in general: "Budget billing does not protect you from that, you still pay the money you owe."

Budget billing or a fixed-rate plan: which one steadies your bill?

They steady different things, and you can use both. A fixed-rate plan fixes your price per kWh for the contract term, so your bill still rises in August because you use more kWh. Average Monthly Billing fixes neither your price nor your usage. It smooths the bill amount by spreading your usage over 12 months.

Because Ambit's formula uses your current rate, a price change shows up in the average payment right away. On a variable-rate plan, that means the payment can move whenever the rate does. If a steady price is what you're after, compare plans on their Electricity Facts Labels. The fixed-rate vs variable-rate guide covers the difference. Plan details and rates subject to change. Visit ambitenergy.com for current Ambit plans and their Electricity Facts Labels.

The Carried Balance Check: 3 numbers to know before you enroll or quit

The Carried Balance Check is a three-step test. It shows whether Average Monthly Billing fits your year and what ending it would settle on a given date.

1. Your 12-month total. Add up the last 12 months of usage in kWh from your bills or from Smart Meter Texas, then divide by 365. That's the daily average Ambit's formula starts from. If one or two months dwarf the rest, expect a bigger carried balance.
2. Your carried balance today. Find it on your bill, or call and ask, which the PUCT rule lets you do at any time (§25.480(h)(4)). A positive balance is what you owe when the program ends.
3. Where you are on your usage curve. Before summer, the balance is about to grow. Right after summer, it's near its high. After the mild months, it's near its low. If you're moving or ending the program, the month you choose decides how much you settle.

In the summer-peak example, the same home settles about $268 if it ends the program after September and about $18 after April. Nothing about its year changed except the date.

Who is budget billing a good fit for, and who should skip it?

Average Monthly Billing fits households that budget to a set monthly number and would rather not absorb a $255 August bill on its own. "Anyone who sticks to a strict, detailed monthly budget may prefer the predictability of budget billing," Sara Rathner, a financial author, said in the same Discover guide. Bosco's advice to CNET adds the condition: "it might be the right option as long as you are prepared to pay any additional amount at the end."

It's a weaker fit in a few situations:

• You expect to move or end the program right after summer, when the carried balance is at its high.
• You'd stop watching your usage once the bill evens out. Cothern's advice: "Always keep an eye on your monthly bill, even though you pay a level amount for months at a time."
• You're new to your home or have only a few months of Ambit history, so the average can't see the next season yet.
• Your budget already absorbs seasonal swings, so a steadier bill doesn't buy you much.

If you want to see what's behind each line of a bill before you decide, the line-by-line Texas bill guide walks through it.

Frequently asked questions

Is the budget billing payment the same every month?

No. Ambit says the amount "will vary slightly each month," because the formula multiplies your 12-month average daily usage by the days in each billing cycle and your current rate. In the illustrative example above, payments ranged from $151.89 to $168.16.

Do I need 12 months with Ambit to enroll?

No. Ambit requires at least one Ambit bill, no outstanding balance and no active payment extension. It says the program works best with 12 months of billing history, because a shorter history may not reflect the season ahead.

What happens if I cancel Average Monthly Billing?

Ambit's page says the carried difference is "either charged or credited to your account when you end Average Monthly Billing." If you owe, it's charged. If you've paid ahead, it's credited. For timing, check Ambit's terms of service, which Texas rules require to spell out the program's details.

Can I change electricity providers while on budget billing?

Under 16 TAC §25.480(h)(7), a provider can't place a switch-hold on a customer who wasn't delinquent when the plan started, apart from one exception the rule names. How a carried balance settles when service ends is set by the provider's terms of service, so read Ambit's before you switch.

Does budget billing help during a winter storm?

It spreads a storm month's cost out. It doesn't remove it. In the freeze example above, an extra 600 kWh raised the following year's 30-day payment by about $7.40, and most of the $90 sat in the carried balance until it was paid down.

To set up electricity for a new business location in Texas, work in this order: find the ESI ID, confirm the utility (TDU) and that the address is in the competitive market, estimate usage and peak demand, choose a plan, schedule the move-in, then check the first meter read on your first bill.

Starting service at a new location is a move-in, not a switch, and that changes a few rules. This guide walks franchise owner-operators and professional offices, from law and dental practices to insurance and accounting offices, through each step, with the PUCT rules and utility tariff details behind it. The goal is simple: power on by opening day, on a plan you actually chose.

Key takeaways

• It's a move-in: Texas rules define a move-in as a request for service at a new premise, or at an existing one where the customer of record changes. The three-day right to rescind covers switches, not move-ins.
• ESI ID first: Every point of service delivery has an ESI ID, a 17- or 22-digit number that has to appear on every electric bill for that space.
• Size it early: Oncor sets a new nonresidential premise's initial rate from projected load information you or your builder provide, and it bills secondary service above 10 kW largely on demand.
• Timing: In Oncor's area, a move-in at a space with an existing meter can be done the same day if the order arrives by 7 p.m. CT and it isn't a Sunday or a holiday. A new meter needs at least two business days' notice, and neither works while required inspections, permits or construction are still open.

Is a new location a move-in or a switch?

It's a move-in. Under 16 TAC §25.471, a move-in is "a request for service to a new premise where a customer of record is initially established or to an existing premise where the customer of record changes." A switch is "the process by which a person changes REPs without changing premises." Taking over a space from a previous tenant counts as a move-in, because the customer of record changes.

The difference shows up in a few places. For a switch, the provider has to offer a right to rescind "without penalty or fee of any kind for a period of three federal business days" after you receive the terms of service. 16 TAC §25.474(j) is direct about move-ins: "The right of rescission is not applicable to an applicant requesting a move-in." So read the EFL and terms of service before you submit, not after.

The same rule has providers explain on their enrollment websites that only the applicant, or the applicant's authorized agent, can make a move-in or switch request. A provider also can't charge you a fee just to enroll, though it can pass through properly tariffed TDU charges for connecting service (§25.474(n)).

Moving rather than adding a site? Your current contract is "limited to service to a customer at a location specified in the contract," and 16 TAC §25.475(c)(2)(C) bars an early termination fee for relocating when you give a forwarding address and, if your provider asks, reasonable evidence that you've left the old location.

Step 1: Find the location's ESI ID

The ESI ID, short for Electric Service Identifier, is how the Texas market identifies a specific point of service. Power to Choose describes it in its glossary as "a 17 or 22-digit number used in the deregulated market to identify a unique point of electric service delivery to a premise (your home or business)."

The fastest place to find it is an old bill for the space, because Texas billing rules require every bill to show the "service address, electric service identifier (ESI), and account number" (16 TAC §25.479). Ask the landlord or property manager for a recent bill, or for the ESI ID itself.

In a strip center, double-check the suite. Oncor's tariff (Section 6.2.3.1.2) serves multitenant buildings either through an individual meter for each tenant space or through one meter for several spaces. If your suite has its own meter, make sure the ESI ID you give the provider belongs to that meter, not the unit next door. If it shares a meter, settle with the landlord who holds the account before you enroll. If nobody has a bill, give your provider the exact service address with the suite number. The enrollment rules have the provider obtain or confirm the ESI ID when one is available.

Step 2: Confirm the TDU and the market

The TDU, or transmission and distribution utility, owns the wires, reads the meter and delivers the power, whoever your retail provider is. Oncor lists four TDUs in the state's deregulated zones: Oncor, CenterPoint Energy Houston Electric, Texas-New Mexico Power (TNMP) and AEP Texas. Your TDU sets the delivery charges and move-in rules for your address, so it's worth knowing before you compare plans.

Retail choice runs through those utilities. If a city-owned utility or an electric cooperative serves the address, start with that utility, because the shopping steps in this guide may not apply there.

Step 3: Estimate usage and peak demand

Your TDU wants this number before you open. Oncor's Tariff for Retail Delivery Service (Section 6.2.3.5, effective June 1, 2026) bases the initial rate for a new nonresidential premise "on projected load information provided by Retail Customer or builder/developer to ensure adequate facilities are installed." Your electrician, builder or kitchen designer can help you total the equipment list.

Two thresholds are worth planning around. First, in Oncor's area, nonresidential secondary service splits at 10 kW, and above that line most of the variable delivery charges are billed on demand in kW, based on your highest 15-minute demand of the month. CenterPoint's line is 10 kVA. The second threshold is the small commercial line, peak demand under 50 kW during any 12-month period. Below it, your EFL must show the average price at 1,500, 2,500 and 3,500 kWh a month, with a 30 percent load factor assumed if demand charges apply.

A dental, insurance or accounting office will usually look very different from a kitchen. If you're opening a restaurant, our guide to what uses the most electricity in a restaurant walks through demand billing in detail.

Step 4: Time the move-in

Your provider submits the move-in so it's processed on "the approximate scheduled date agreed to by the applicant and as allowed by the tariff" of your TDU (§25.474(k)). In other words, the TDU's tariff sets the real timing. Here's how Oncor handles it under its tariff effective June 1, 2026 (Sections 6.1.2.1 and 6.1.2.3), as read on November 3, 2026:

Two details matter more than the dollar amounts. Neither standard move-in is available while required inspections, permits or construction are still open, and a new meter needs its own lead time. If your buildout runs late, your power-on date moves with it, so plan the move-in around your final inspection, not the day you get the keys.

Your provider can pass these TDU charges through to you (§25.474(n)). CenterPoint, AEP Texas and TNMP set their own move-in timing and charges in their tariffs, so ask your provider what applies at your address.

Step 5: Choose the plan for the new location

Pick the plan before you schedule the move-in, because the move-in is how you enroll on it. For a new location, a few things deserve extra weight:

• Term vs lease. A fixed rate product holds its price for the term, apart from allowed pass-through changes like TDU charges. A term that runs well past your lease, or past a planned remodel, can leave you with an early termination fee to manage if plans change.
• Usage you don't know yet. A new location has no history, so the EFL's sample prices at 1,500, 2,500 and 3,500 kWh are only a starting point. Keep your first months of bills, because they're the baseline for your first renewal.
• A business product, not a residential one. A shop or office is a nonresidential premise, so enroll it on a business product. Oncor's residential delivery schedule, for example, is limited to service "for residential purposes of a permanent nature to Individual Private Dwellings" and individually metered apartments.
• More than one site. Lining up end dates across locations means you renew once instead of tracking several deadlines. We can work out the setup for all of them.

When the contract eventually comes up, our small business electricity renewal guide explains the notices Texas requires and when to start shopping.

Opening soon? Request small business plan options

Common mistakes when opening a new location

• Treating the lease date as the power-on date. The TDU won't complete a standard move-in while required inspections, permits or construction are still open.
• Enrolling the wrong suite. Match the ESI ID to your meter before you enroll.
• Signing up on a residential plan. A business location belongs on a business product.
• Skipping the EFL and terms of service. They hold the early termination fee and, for small commercial customers, how any demand charge is applied. And a move-in has no three-day rescission window.
• Not checking the first bill. Texas bills show the previous and current meter reads and their dates when the provider has that data. Make sure the first read lines up with your move-in date.

How VIP Energy Service helps you open with power on

Ambit Energy is the retail electric provider, so Ambit sells the electricity and sends the bill, while your TDU connects the meter and delivers the power.

If you're signing a lease or getting close to opening, the business plan request form is the place to start. Sending it doesn't enroll you in anything. We'll reach out to talk through your options.

Have the address and your opening date? Request small business plan options

Frequently asked questions

How do I set up electricity for a new business location in Texas?

Find the ESI ID, confirm the TDU and that the address is in the competitive market, estimate your usage and peak demand, choose a business plan, then have the provider schedule the move-in for a date the TDU's tariff allows. Check the meter read dates on your first bill.

What is an ESI ID, and where do I find it for a commercial space?

It's the 17- or 22-digit Electric Service Identifier for a point of service delivery. Texas bills have to show it, so a recent bill for the space from the landlord or the previous tenant is the quickest source. Make sure it matches your suite.

How long does it take to get power on at a new business location in Texas?

It depends on the TDU and the meter. In Oncor's area, a move-in at a space with an existing meter can happen on the requested day if the order reaches Oncor by 7 p.m. CT on any day but Sunday or a holiday, and a new meter needs at least two business days' notice. Neither standard move-in happens while required inspections, permits or construction are still open.

Is starting service at a new location different from switching providers?

Yes. Starting service at a new premise, or taking over a space from another tenant, is a move-in. A switch is changing providers at the same premise. Switches come with a three-federal-business-day right to rescind, and move-ins don't.

Can I use a residential plan for a small office or shop?

No. A shop or office is a nonresidential premise and should be enrolled on a business product. Oncor's residential delivery schedule, for example, is limited to service "for residential purposes of a permanent nature to Individual Private Dwellings" and individually metered apartments.

Sources

• Public Utility Commission of Texas, 16 TAC §25.471, General Provisions of Customer Protection Rules (effective January 6, 2022). Accessed November 3, 2026.
• Public Utility Commission of Texas, 16 TAC §25.474, Selection of Retail Electric Provider (effective March 8, 2017). Accessed November 3, 2026.
• Public Utility Commission of Texas, 16 TAC §25.475, General Retail Electric Provider Requirements and Information Disclosures to Residential and Small Commercial Customers (effective January 6, 2022). Accessed November 3, 2026.
• Public Utility Commission of Texas, 16 TAC §25.479, Issuance and Format of Bills (effective January 6, 2022). Accessed November 3, 2026.
• Public Utility Commission of Texas, Electric Substantive Rules (index of current rules and effective dates). Accessed November 3, 2026.
• Power to Choose, Glossary. Accessed November 3, 2026.
• Oncor Electric Delivery, Delivery Charges 101 and Tariff for Retail Delivery Service (Sections 6.1.1.1.1, 6.1.1.1.3, 6.1.2.1, 6.1.2.3, 6.2.3.1.2 and 6.2.3.5, effective June 1, 2026). Accessed November 3, 2026.
• CenterPoint Energy Houston Electric, Tariff for Retail Delivery Service (Sections 6.1.1.1.2 and 6.1.1.1.3, effective February 26, 2026). Accessed November 3, 2026.

Plan details and rates subject to change. Electricity service is subject to credit approval. Rule text, tariff charges and move-in timing in this article are as of November 3, 2026, from the sources linked above. Published by Ambit Energy, VIP Energy Service.

Smart Meter Texas is the website where Texas delivery utilities post the readings from your home's smart meter. Register with your ESI ID, meter number and electricity provider, download up to two years of usage, then price each plan's Electricity Facts Label (EFL) at your own month-by-month kWh instead of the 1,000 kWh example.

That last step is where most shoppers stop. An EFL's average price is calculated at exactly 500, 1,000 and 2,000 kWh, and few homes use exactly 1,000 kWh in a given month. In the worked example below, a bill credit plan whose label looks 4.5 cents cheaper per kWh at 1,000 kWh costs $91.45 more over a year of an example home's usage.

Key takeaways

• What Smart Meter Texas holds: up to two years of 15-minute, daily and monthly usage for homes served by Oncor, CenterPoint, AEP Texas and TNMP, according to the Smart Meter Texas residential user guide.
• What you need to register: your name, email address, full ESI ID, meter number and the retail electric provider that bills you. The ESI ID is a 17 or 22 digit number printed on your bill, according to Ambit Energy.
• Why the label isn't enough: the average Texas home used 1,096 kWh a month in 2024, according to the U.S. Energy Information Administration (EIA), but real homes swing far above and below that between seasons.
• How to price a plan: for each month, add the base charge, the energy charge times your kWh and the TDU delivery charges, then subtract any bill credit your kWh actually qualifies for.
• The winter preview: a plan you sign this fall bills winter first, so last December to February is the best guide to your next three bills.

What is Smart Meter Texas?

Smart Meter Texas (SMT) is a secure website, smartmetertexas.com, that stores the electricity readings from advanced meters in the competitive areas of Texas. The delivery utilities that own the meters post the data: AEP Texas Central, AEP Texas North, CenterPoint Energy Houston Electric, Oncor Electric Delivery and Texas-New Mexico Power (TNMP), according to the SMT Data Access Interface Guide.

Your electricity provider sends the bill, but your delivery utility reads the meter. That's why Smart Meter Texas works the same way whichever provider you choose. The portal offers three kinds of reports, which the SMT residential user guide lists as "Energy Data 15 Min Interval, Daily Meter Reads, and Monthly Billing Information."

The 15-minute readings come from a Public Utility Commission of Texas (PUCT) rule. The PUCT's advanced metering rule requires utilities to provide "15-minute or shorter interval data" to providers and customers on a daily basis, available no later than the day after it was recorded. That works out to 96 readings for every day your meter runs.

Not sure your home has a smart meter? Ambit Energy's FAQ for new customers says that if a digital meter was installed at your home since January 2009, "it's most likely a Smart Meter."

What do you need to register for Smart Meter Texas?

You need five pieces of information to open a residential Smart Meter Texas account: your first and last name, an email address, your full ESI ID, your meter number and the name of your retail electric provider (REP). The SMT residential user guide lists the ESI ID, meter number and REP as the required "Security Information."

1. Find your ESI ID on a recent bill. The ESI ID, short for Electric Service Identifier, "is a 17 or 22 digit number assigned to your electric meter(s) and can be found on your bill," according to Ambit Energy's ESI ID FAQ. Copy every digit.
2. Find your meter number. It usually sits near the ESI ID in the meter or service section of your bill. Don't enter your account number in its place.
3. Note your provider's exact name. Smart Meter Texas asks you to pick the REP that bills you from a list.
4. Go to smartmetertexas.com and choose a residential account. Enter your name, email address, ESI ID, meter number and provider.
5. Confirm your email and set your password. Then log in to reach your usage dashboard.

If Smart Meter Texas doesn't accept your numbers, compare them with your most recent bill, or ask your provider to confirm them.

How do you download 12 to 24 months of usage from Smart Meter Texas?

Smart Meter Texas lets you view and export up to two years of usage. Log in, open the energy data report, choose the report type and date range, and export the result as a CSV file you can open in any spreadsheet. For pricing plans, the monthly report is the one you need.

The current SMT residential user guide says the dashboard can "view up to two years of your energy usage data," and the same two years are available for export. Some older guides online still say 13 months, which was the limit of an earlier SMT export format.

Pick the report that matches the question you're asking:

Pull at least your last 12 complete months so every season is in the file. If you have 24 months, keep both years. A mild winter next to a hard one shows the range your bills can cover. If you're weighing a time-of-use plan, the free nights plan calculator walks through the 15-minute math.

Why doesn't the 1,000 kWh price on an EFL tell you what you'll pay?

The 1,000 kWh price on an Electricity Facts Label is an average at one exact usage level. Texas rules require every EFL to show the average price at 500, 1,000 and 2,000 kWh, but your bill depends on where your real usage lands each month. Bill credits, base charges and usage tiers can make a plan cheap at 1,000 kWh and expensive at 940.

Texas homes rarely sit at one number. The EIA's 2024 residential bill data puts the average Texas home at 1,096 kWh a month and an average price of 14.94 cents per kWh (as of October 7, 2025, the most recent edition of that EIA table), for an average bill of $163.72 across 12,547,863 residential customers. That average blends summer peaks with spring and fall lows.

The PUCT's Electricity Facts Label rule, 16 TAC §25.475, sets those three usage levels. Three EFL features react most to your real kWh:

• Base charge: a flat monthly fee that weighs most in your lowest months.
• Bill credit: a dollar amount taken off the bill only when usage lands in a set range, often starting at 1,000 kWh.
• Tiered energy charge: a different cents-per-kWh rate above or below a usage line.

The guide to reading a Texas Electricity Facts Label covers each line, and the explainer on how Texas bill credit plans work shows when a credit disappears.

How do you price an electricity plan at your real kWh?

To price a plan at your real usage, build each month's bill from the EFL and add delivery: the base charge, plus the energy charge times your kWh, plus the TDU's monthly charge, plus the TDU's per-kWh charge times your kWh, minus any bill credit that month's kWh qualifies for. Then add the 12 months together.

Monthly cost = base charge + (energy charge × kWh) + TDU monthly charge + (TDU per-kWh charge × kWh), minus any bill credit you qualify for

Some EFLs list TDU delivery charges on their own lines, and others fold them into one price per kWh. Either way, delivery charges are the same for every provider in your area. These are the residential delivery charges on the PUCT's table as of November 1, 2026:

Source: PUCT residential TDU delivery charges, as of November 1, 2026, read November 3, 2026. The PUCT rounds the AEP per-kWh charges, so multiplying them won't reproduce the AEP totals exactly.

The guide to TDU delivery charges for Oncor, CenterPoint, AEP and TNMP explains how these lines appear on a bill. The examples below leave out taxes and small regulatory fees, which vary by city.

What is the 12-3-1 Usage Check?

The 12-3-1 Usage Check is a three-part test for any plan you're considering, built from your Smart Meter Texas download. Price all 12 months of your real usage, preview your next bills with last winter's 3 months, and stress-test the plan against your 1 lowest month. A plan that holds up in all three fits your home.

• 12 months: total the plan's cost across your last 12 complete months. This is the number that decides a 12-month contract.
• 3 winter months: total last December, January and February on their own. If you sign this fall, these are your first bills.
• 1 lowest month: run your lightest month against every base charge, minimum usage fee and credit threshold on the EFL.

What does the 12-3-1 check look like in practice?

Here's the 12-3-1 Usage Check for an example home in Oncor territory that used 14,390 kWh over 12 months, about 1,199 kWh a month on average. It compares two hypothetical plans built only to show the math. They aren't real offers, and the usage profile is illustrative. Delivery uses Oncor's charges as of November 1, 2026.

• Plan A, flat rate (hypothetical, as of November 1, 2026): no base charge and an energy charge of 8.5 cents per kWh. EFL average price: 16.2 cents at 500 kWh, 15.8 cents at 1,000 kWh and 15.6 cents at 2,000 kWh.
• Plan B, bill credit (hypothetical, as of November 1, 2026): an energy charge of 14.0 cents per kWh and a $100 bill credit in any month with 1,000 kWh or more. EFL average price: 21.7 cents at 500 kWh, 11.3 cents at 1,000 kWh and 16.1 cents at 2,000 kWh.

On the label, Plan B looks 4.5 cents cheaper per kWh at 1,000 kWh. Here's what each plan would cost at this home's usage, at Oncor's delivery charges as of November 1, 2026:

What the three checks show:

• 12 months: Plan B costs $91.45 more than Plan A over the year, even though it looked 4.5 cents cheaper on the label. The credit paid out in 7 months and missed in 5.
• 3 winter months: Plan B wins the winter, about $499 against about $592, because December, January and February all cleared 1,000 kWh.
• 1 lowest month: April's 760 kWh cost $41.80 more on Plan B. May is the sharper lesson. At 980 kWh, the home missed the credit by 20 kWh and paid $53.90 more than Plan A that month.

There's a second edge. Plan B only beats Plan A in months between 1,000 and about 1,818 kWh. Below 1,000 it loses the credit, and above about 1,818 kWh its higher energy charge outweighs the $100. August, at 1,780 kWh, saved just $2.10.

None of this makes bill credit plans bad. A home that stays between those two lines most months could come out ahead on Plan B. Only your own usage file can tell you which kind of home you have.

Why should last December to February be your winter preview?

Last December to February is your winter preview because a plan you sign this fall bills those months first, and winter usage behaves differently from summer usage. Homes with electric heat can jump sharply on cold days, so last winter's kWh is a better guide to your next three bills than your 12-month average.

Electric heat is common in Texas. Researchers Blake Shaffer and Daniel Quintero of the University of Calgary and Joshua Rhodes of the University of Texas at Austin noted that the share of Texas households using electric heat rose from 52% to 61% over about 15 years, citing U.S. Census Bureau data. Their 2022 study in iScience concluded that "Texas's increased sensitivity to cold weather extremes is not limited to the supply side, but the demand side as well."

The type of heat matters. ACEEE's 2024 Texas analysis estimated that over 25% of Texas households, 2.76 million homes in 2020, pair central air conditioning with an electric resistance furnace. When temperatures drop, those systems average about 9 kW of demand per home, according to the American Council for an Energy-Efficient Economy.

A separate analysis by Matthew Skiles, Joshua Rhodes and Michael Webber of UT Austin found that ERCOT's winter peak has grown far less steadily than its summer peak. The authors called that pattern "likely a consequence of high residential electrical heating load on winter peak demand days."

The grid shows the same thing. ERCOT set its all-time winter demand record of 80,560 MW on February 20, 2025, topping the 78,349 MW record from January 16, 2024, according to ERCOT's peak demand records. Last winter's monthly peaks were 63,131 MW in December 2025, 75,572 MW in January 2026 and 69,612 MW in February 2026, according to ERCOT's monthly operational overviews. The ERCOT December 2026 winter outlook covers what a winter storm can and can't do to your bill.

To build your own winter preview:

1. Add up last December, January and February from your monthly report. That's your three-month winter total.
2. Price each of those months separately on every plan you're considering, so credits and thresholds apply the way they would on a real bill.
3. Open the daily report for the same months. Days far above the rest usually line up with cold snaps.
4. Check the 15-minute data on those cold days if you're considering a time-of-use plan, to see which hours your heat runs hardest.

How do Ambit's Weekly Usage Report and MyAmbit fit in?

Ambit Energy customers get two more views of the same meter data. Ambit's Weekly Usage Report is a short, regular summary of your usage, and your MyAmbit account holds your usage history. Smart Meter Texas is still the place to download a full file for pricing a new plan.

Ambit describes its Weekly Usage Reports as "quick rundowns that show when you use the most electricity and how the weather impacts your usage," with tips "to help you save no matter what the seasons bring." That weather link is what a winter preview needs. A cold week that shows up as a spike in the report is a week to find in your Smart Meter Texas daily data.

For a look back, Ambit's FAQ on viewing usage history says to "Visit your MyAmbit Account for all your usage history information."

Each tool has its own job:

• Weekly Usage Report: learn your patterns as they happen, week by week.
• MyAmbit: check the usage behind the bills you've already paid.
• Smart Meter Texas: download a file you can test against a new EFL.

What mistakes make a usage-based plan comparison go wrong?

Most pricing errors come from using too little data or dropping delivery charges. A comparison is only as good as the months it covers and the charges it includes.

• Using one month or a yearly average: credit thresholds act on each month's kWh. In the example above, a 1,199 kWh average hid five months under 1,000.
• Leaving out TDU charges: at Oncor's charges as of November 1, 2026, delivery alone came to $1,036.92 of the example home's year on either plan.
• Mixing billing months and calendar months: the Monthly Billing Information report follows your billing periods, so match it to your bills rather than to calendar months.
• Comparing labels from a different delivery area: EFL prices change by delivery utility, so compare labels written for your utility only.

If your contract ends soon, the guide to the best time to renew an electricity contract in Texas explains how to plan the switch date.

Frequently asked questions

Does it cost anything to sign up for Smart Meter Texas?

Signing up doesn't ask for any payment details. The residential form asks for your name, email address, ESI ID, meter number and provider. The data itself belongs to you: Texas law, PURA §39.107, says meter data from advanced meters "shall belong to a customer."

How far back does Smart Meter Texas usage data go?

Smart Meter Texas keeps up to two years of usage in 15-minute, daily and monthly form, according to the current SMT residential user guide. Your account may show less if your meter is newer than that.

How soon does yesterday's usage show up on Smart Meter Texas?

PUCT rules require 15-minute data to be available no later than the day after it was recorded, so yesterday's usage should appear today.

Which Smart Meter Texas report should I download to compare plans?

Download Monthly Billing Information to price fixed-rate and bill credit plans. Add the Energy Data 15 Min Interval report if you're comparing free nights, free weekends or other time-of-use plans.

Can last winter's usage predict this winter's bills?

Last winter's usage is the best starting point you have, but weather changes from year to year. If you have 24 months of data, price plans on both winters and plan around the colder one.

The bottom line

Smart Meter Texas turns plan shopping from a guess at 1,000 kWh into simple arithmetic on your own home. Download 12 to 24 months, price each EFL month by month with delivery included, and run the 12-3-1 Usage Check before you sign. In the example here, that check flipped the winner: the plan that looked 4.5 cents cheaper cost $91.45 more over a year.

When you're ready to compare, start with Ambit Energy's Texas electricity rates and plans and price each plan's EFL the same way.

Delivery rates in this article come from the PUCT residential TDU table as of November 1, 2026. Plan A, Plan B and the example home's usage are hypothetical, built to show the math, and are not offers. Plan details and rates subject to change, and an Electricity Facts Label is available for every plan.

TNMP TDU delivery charges for homes are $7.56 a month plus 7.7710 cents per kWh as of October 1, 2026, according to the Public Utility Commission of Texas (PUCT). At 1,000 kWh, that's $85.27 a month for delivery alone, the highest of the five delivery utilities on the PUCT's residential table. The rates from TNMP's rate case took effect September 13, and December 2026 bills add a one-month surcharge on top.

The September 13 change was the second step in two weeks. Texas-New Mexico Power's per-kWh charge rose from 6.4665 to 7.4022 cents on September 2, then to 7.7710 cents on September 13, according to BKV Energy's historical TDU rate table. Together the two steps add $12.75 a month at 1,000 kWh. Only $3.40 of that came from the rate case itself.

Key takeaways

• Today's rate: TNMP's residential delivery charge is $7.56 a month plus 7.7710 cents per kWh, or $85.27 at 1,000 kWh (as of October 1, 2026, per the PUCT).
• Highest on the table: At 1,000 kWh, the same PUCT table lists AEP Texas Central at $60.42, AEP Texas North at $59.27, CenterPoint at $70.23 and Oncor at $64.36. Oncor's October 4 increase took it to $72.73, still $12.54 below TNMP.
• Two September steps: Delivery at 1,000 kWh went from $72.52 to $81.87 on September 2, 2026, then to $85.27 on September 13. The rate case accounts for the $3.40 second step.
• The stacking trap: As of September 13, 2026, TNMP's base distribution charge is 2.035 cents higher per kWh, but the total per-kWh charge rose only 0.3688 cents, and the fixed monthly charge fell $0.29.
• December surcharge: A one-month rider called Rider IS adds the gap between final rates and the rates billed from May 22 to September 12, 2026. The PUCT found TNMP's amended calculation in compliance on October 13, 2026, in Docket No. 59973.

What are TNMP TDU delivery charges?

TNMP TDU delivery charges are the PUCT-approved fees Texas-New Mexico Power Company collects to carry electricity over its poles, wires and meters to homes and businesses in its service area. TNMP is a transmission and distribution utility (TDU), not a retail electric provider. Every provider in TNMP territory passes the same delivery charges through to its customers.

TNMP says it delivers power to more than 280,000 homes and businesses in Texas, from its headquarters in Lewisville. Its service area spans three regions, North-Central Texas, Gulf Coast Texas and West Texas, according to TNMP's service area page. Outages and meter problems go to TNMP at 888-866-7456, not to your electricity provider.

For a home, the TNMP delivery charge has two parts:

• A fixed monthly charge of $7.56: a $1.70 customer charge plus a $5.86 metering charge.
• A per-kWh charge of 7.7710 cents: a stack of base distribution rates plus riders the PUCT approves separately.

TNMP's sister utility in New Mexico, PNM, is regulated by the New Mexico Public Regulation Commission and has no role in Texas delivery charges. The broader guide to TDU delivery charges for Oncor, CenterPoint, AEP and TNMP explains how each line item appears on a Texas bill.

How much are TNMP delivery charges compared with other Texas utilities?

TNMP charges more to deliver power than any other utility on the PUCT's residential table. At 1,000 kWh, TNMP delivery costs $85.27 a month as of October 1, 2026, compared with $59.27 to $70.23 at the other four utilities on that table. TNMP also has the largest fixed monthly charge.

Source: PUCT residential TDU delivery charges, as of October 1, 2026, read again on October 22, 2026. The PUCT table rounds the AEP per-kWh charges, so multiplying them won't reproduce the AEP totals exactly.

One update since that table: Oncor's per-kWh charge rose to 6.8673 cents on October 4, 2026, according to BKV Energy's rate history. That puts Oncor at $72.73 at 1,000 kWh. TNMP still costs $12.54 a month more than Oncor and $15.04 a month more than CenterPoint. Over a year at 1,000 kWh a month, that's about $150 more than Oncor and about $180 more than CenterPoint, for delivery alone.

The fixed charge matters most for small homes and apartments. TNMP's $7.56 compares with $4.90 at CenterPoint, $4.06 at Oncor and $3.24 at both AEP Texas utilities. It applies every month, whatever you use.

Why did TNMP delivery charges change twice in September 2026?

TNMP delivery charges changed twice because two separate updates landed 11 days apart. On September 2, 2026, the per-kWh charge rose from 6.4665 to 7.4022 cents, before the rate case took effect. On September 13, the rate case rates replaced that stack, taking the per-kWh charge to 7.7710 cents and trimming the fixed charge from $7.85 to $7.56.

The TNMP September Timeline shows which rate applied when:

Dates and rates come from BKV Energy's historical TDU table. The PUCT's September 1, 2026 TNMP rate report lists the same 7.4022-cent rate and the $81.87 total at 1,000 kWh, and the PUCT's October 1 table confirms the September 13 row.

The September 2 step was the bigger of the two: $9.35 a month at 1,000 kWh, a 14.5 percent jump in the per-kWh charge. It came before TNMP's new base rates applied, so it reflects an update to other pieces of TNMP's per-kWh stack rather than the rate case.

That timing explains why TNMP numbers online disagree. Pages written in early September show $81.87 at 1,000 kWh, which was current for only 11 days. Some AI-generated answers fold both steps into a single increase of about $12.75. The rate case accounts for $3.40 of it.

What did the PUCT approve in TNMP's rate case?

The PUCT approved a settlement of TNMP's rate case, Docket No. 58964, on July 30, 2026. TNMP described the result as a modest increase of about 1% to delivery rates, in its first rate filing in seven years. New rates apply to bills rendered 45 days after the order, which matches the September 13, 2026 effective date on TNMP's current tariff.

TNMP's "about 1%" describes delivery rates across its whole system. For a residential customer at 1,000 kWh, the September 13 step was about 4.2 percent, so the household effect is larger than the headline figure.

Source: EnergyChoiceMatters, July 31, 2026.

The settlement created or resumed three riders that retail providers pass through:

• Rider HCRF (Hurricane Cost Recovery Factor) recovers $20.5 million in Hurricane Beryl restoration costs, spread over five years, according to TNMP's settlement announcement. At 0.0882 cents per kWh, it adds about $0.88 a month at 1,000 kWh.
• Rider RCE (rate case expense) recovers the cost of the case itself, at 0.0180 cents per kWh, or about $0.18 a month at 1,000 kWh.
• Rider IS (interim surcharge) is the December charge covered below.

TNMP's announcement quoted the settlement as saying the agreement "is in the public interest... and will conserve the parties' and the public's resources." The deal was signed by consumer groups, cities, large customers and PUCT Staff, according to TNMP.

Why didn't a 2-cent base rate increase add 2 cents to your bill?

A 2-cent base rate increase didn't add 2 cents because other charges came down at the same time. TNMP's residential distribution system charge rose 2.035 cents, from 2.5670 to 4.6020 cents per kWh. The total per-kWh delivery charge rose only 0.3688 cents, from 7.4022 to 7.7710 cents, because charges TNMP was already collecting through riders were reset or folded into the new base rate.

The arithmetic is simple. The new base charge plus the two new per-kWh riders added about 2.14 cents. For the total to rise only 0.3688 cents, the rest of the stack had to fall about 1.77 cents.

Stacking the base increase on top of the old total would put TNMP's per-kWh charge near 9.44 cents, or about $101.93 at 1,000 kWh. That overstates the September 13 increase about six times, $20.06 versus the real $3.40. The PUCT's October 1 table lists 7.7710 cents and $85.27. The same trap showed up with CenterPoint's September 30 rider change, as the Houston CenterPoint delivery charge breakdown explains.

The fixed side moved the other way. The customer charge rose 57 cents and the metering charge fell 86 cents, so the fixed monthly charge dropped 29 cents. The whole increase sits in the per-kWh charge, so bigger homes absorb more of it:

• 500 kWh: +$1.56, from $44.86 to $46.42
• 1,000 kWh: +$3.40, from $81.87 to $85.27, about 4.2 percent
• 2,000 kWh: +$7.09, from $155.89 to $162.98

What is the December 2026 Rider IS surcharge on TNMP bills?

Rider IS is a one-month interim surcharge on December 2026 TNMP bills. It collects the difference between TNMP's final rates and the rates it actually billed from May 22 through September 12, 2026. TNMP's final residential rates are higher than the rates billed during that window, so for residential customers Rider IS is expected to be a charge rather than a credit.

TNMP didn't put interim rates into effect while the case was pending. EnergyChoiceMatters reporter Paul Ring summed up the result: "Rider IS essentially grants TNMP the revenues it would have received under interim rates without having implemented interim rates prior to a final order."

The PUCT set the surcharge in Docket No. 59973:

• July 9, 2026: The PUCT opens the compliance docket for Rider IS.
• September 21, 2026: TNMP files its surcharge calculation.
• October 2, 2026: TNMP files an amended calculation.
• October 12, 2026: Commission Staff files its recommendation. Staff's memo says TNMP asked to recover a net $2,310,999 from ratepayers in December 2026, using estimated December billing units.
• October 13, 2026: Order No. 4 finds the amended filing in compliance and keeps the docket open.
• October 20, 2026: Order No. 5 requires a procedural schedule for the next stage.

Three details matter for households:

• The amount: The residential per-kWh rate appears in TNMP's October 2 amended filing, approved on October 13. Your provider passes the approved amount through and will show it on your December bill.
• Not every class pays more: Staff's memo describes "interim surcharge and refund rates" by customer class. The $2,310,999 is a net figure across all classes, not the residential total.
• It ends after one month: After December, TNMP must file a report confirming it stopped collecting and showing any under- or over-recovery by class.

Oncor customers saw a similar interim-rate rider this summer, covered in the Oncor August 1 delivery charge breakdown. December is also when winter usage starts to climb, which the ERCOT December 2026 winter outlook puts in context.

Does a fixed-rate plan protect you from TNMP delivery charge changes?

A fixed-rate plan doesn't fully protect you from TNMP delivery charge changes. Texas rule 16 TAC §25.475 lets a fixed-rate product's price change "solely to reflect actual changes in TDU charges," along with certain ERCOT fees and new legal costs. So a TNMP rate change or rider, including Rider IS, can reach a fixed-rate bill.

How it shows up depends on how your plan bills delivery:

• Separate delivery line: If your bill shows TNMP charges on their own line, the new rates and the December Rider IS appear there directly.
• One all-in price: If your plan quotes a single price per kWh, check its Terms of Service and Electricity Facts Label (EFL) for the TDU pass-through language.
• EFL timing: The average prices on an EFL use the delivery rates in effect when the label was issued. A TNMP-area label issued before September 13, 2026 reflects the old delivery rates.

The walkthrough on how to read a Texas Electricity Facts Label covers the six numbers to check before you sign.

What changed for TNMP move-in and reconnect fees?

The rate case settlement also reset TNMP's discretionary service charges. Moving into a home with an existing standard meter got cheaper, while a new standard meter and service at premium locations got more expensive.

Source: EnergyChoiceMatters, July 31, 2026, summarizing the Docket No. 58964 settlement.

Your provider passes these TNMP fees through when the service is performed. For a typical move into a home with a working standard meter, the TNMP move-in charge is now $1.00.

When will TNMP customers see Blackstone rate credits?

TNMP customers won't see Blackstone rate credits until the deal closes, and it hasn't closed. The PUCT approved Blackstone Infrastructure's purchase of TNMP's parent company, TXNM Energy, with $45 million in rate credits, TNMP said on February 6, 2026. Those credits begin only after closing, so they won't offset December's Rider IS.

As of TXNM Energy's July 17, 2026 announcement, filed with the SEC, the deal had approval from the PUCT, the Federal Energy Regulatory Commission and the Federal Communications Commission, plus federal antitrust clearance. It still needed the Nuclear Regulatory Commission and the New Mexico Public Regulation Commission. TXNM estimated closing in the first half of 2027 and extended the merger agreement's end date to May 31, 2027.

"We remain committed to our proposed partnership with Blackstone Infrastructure because it is critical to TXNM Energy's long-term ability to provide clean, affordable and reliable power to the customers we serve," said Don Tarry, President and CEO of TXNM Energy, in that announcement.

Why are Texas delivery charges rising?

Texas delivery charges are rising because utilities are spending on grid growth and storm recovery, and riders are how that spending reaches bills between rate cases. TNMP's Hurricane Beryl rider is one example. The Texas Energy Poverty Research Institute (TEPRI) reported that ERCOT residential electricity rates rose about 30 percent since 2021. TEPRI projected a further 29 percent increase from 2025 to 2030, from 15.33 to 19.75 cents per kWh (as of December 9, 2025), driven mainly by planned transmission and distribution investment.

Demand growth sits behind much of that investment. "Texas is continuing to grow beyond data centers significantly," Thomas Gleeson, chair of the Public Utility Commission of Texas, said in July 2026, as reported by the Texas Tribune.

David Kinchen, Chief Operating Officer at Energy Ogre, put the household effect plainly in his Q1 2026 Texas market update: "Delivery fees are rising regardless of your provider."

TNMP's share of a bill shows why. The latest U.S. Energy Information Administration Electric Power Monthly put the average Texas residential price at 15.88 cents per kWh for July 2026. At 1,000 kWh, TNMP delivery works out to about 8.5 cents per kWh by itself, more than half of that statewide all-in average, before any supply charge.

The TNMP Three-Date Bill Check

The TNMP Three-Date Bill Check is a quick way to see which TNMP delivery rate your bill used and what's still coming. You need your bill's service dates, its bill date and your kWh.

To check the math, multiply your kWh by the per-kWh charge for your row and add the fixed monthly charge. At the current rate, that's your kWh times 7.7710 cents, plus $7.56. If the delivery line doesn't match and your provider can't explain the gap, the guide to disputing an electric bill in Texas walks through the next steps.

What can TNMP households do now?

TNMP households can't shop away delivery charges, so the levers are the supply rate, usage and timing:

• Compare plans at your real usage. Delivery is identical for every provider in TNMP territory, so the difference between plans is the supply side. Compare EFL average prices at 500, 1,000 and 2,000 kWh, and prefer labels issued after September 13, 2026.
• Budget for December. Expect the Rider IS charge on one bill, on top of higher winter usage.
• Trim kWh where it's easy. Every kWh you avoid saves 7.771 cents in TNMP delivery alone (as of October 1, 2026), before your supply rate.
• Time your renewal. If your contract ends this winter, the guide to the best time to renew an electricity contract in Texas explains how to plan it.

Frequently asked questions

Are TNMP delivery charges the same with every electricity provider?

Yes. TNMP delivery charges are PUCT-approved and passed through at the same amount by every retail electric provider in TNMP territory. For the same usage, the TNMP delivery cost is identical no matter which company bills you.

When did TNMP's new delivery rates start?

TNMP's rate case rates apply to bills rendered on or after September 13, 2026, 45 days after the PUCT's July 30 order in Docket No. 58964. A separate per-kWh increase took effect earlier, on September 2, 2026.

How do I find the TNMP December 2026 surcharge amount?

The residential Rider IS rate is set in TNMP's October 2, 2026 amended filing, which the PUCT found in compliance on October 13 in Docket No. 59973. It applies to December 2026 bills only. Check the delivery or TDU line on your December bill, or ask your provider for the rate it's passing through.

Is TNMP the most expensive delivery utility in Texas?

Among the five utilities on the PUCT's residential TDU table, yes. At 1,000 kWh, TNMP delivery costs $85.27 as of October 1, 2026, compared with $72.73 for Oncor after its October 4 increase and $70.23 for CenterPoint.

What is Rider HCRF on a TNMP bill?

Rider HCRF is TNMP's Hurricane Cost Recovery Factor. It recovers $20.5 million in Hurricane Beryl restoration costs over five years, at 0.0882 cents per kWh for residential customers, about $0.88 a month at 1,000 kWh.

Can switching providers lower TNMP delivery charges?

No. Every provider passes through the same TNMP delivery charges. Switching can lower the supply part of your bill, so compare plans by the EFL average price at your usage rather than the energy charge alone.

The bottom line

TNMP delivery now costs $85.27 a month at 1,000 kWh as of October 1, 2026, the highest on the PUCT's table, after two September increases worth $12.75 combined. The rate case itself added $3.40, and a one-month Rider IS charge lands on December bills. Rate credits from the Blackstone deal wait on a closing that TXNM expects in the first half of 2027.

Delivery rates in this article come from the PUCT residential TDU table as of October 1, 2026, the PUCT's September 1, 2026 TNMP rate report and BKV Energy's historical TDU table, as of the dates shown. Plan details and rates subject to change, and an Electricity Facts Label is available for every plan.

A provider of last resort in Texas, or POLR, is the backup retail electric provider that keeps your lights on if your chosen provider stops serving you. On October 9, 2026, the Public Utility Commission of Texas (PUCT) approved the POLR list for the 2027-28 term, which begins in January 2027. Your power stays on, and you can leave POLR service at any time.

That safety net has existed since Texas opened retail electricity choice in 2002. What changed this month is who stands behind it for the next two years. As of October 10, 2026, POLR service costs about 20 to 21.5 cents per kWh at 1,000 kWh, depending on your utility area, according to the PUCT-posted POLR Electricity Facts Labels.

Key takeaways

• The PUCT approved the 2027-28 POLR designations on October 9, 2026, in Project No. 59209 (Notice of Approval, item 260). The new two-year term starts in January 2027.
• TXU Energy is the only volunteer POLR for 2027-28. Up to 15 large service providers (LSPs) per customer class and utility area stand behind it.
• If your provider fails, ERCOT moves you to a POLR provider automatically. There's no gap in service, and you don't pick which company catches you.
• As of October 10, 2026, the Oncor POLR price is 21.5 cents per kWh at 1,000 kWh. A flat 9-cent-per-kWh customer charge makes up about 42% of it.
• You can switch to any plan at any time. If you stay, an LSP must move you to a month-to-month product with no termination fee by about day 61.

What is a provider of last resort in Texas?

A provider of last resort is a retail electric provider (REP) that the PUCT designates to serve customers whose provider can't continue, plus any customer who asks for POLR service directly. Texas rule 16 TAC §25.43 sets up POLR service in every competitive utility area: Oncor, CenterPoint, AEP Texas Central, AEP Texas North and TNMP.

The rule covers four customer classes: residential, small non-residential, medium non-residential and large non-residential. It also creates two types of POLR providers:

• Volunteer retail electric providers (VREPs) ask to take transitioned customers and say how many they're willing to serve.
• Large service providers (LSPs) are designated by market share. In each area, for each customer class, the PUCT names up to 15 of them, starting with the REPs that sell the most electricity.

The PUCT is plain about what POLR service is for. "POLR service is a safety net for customers whose chosen REP is unable to continue service," the commission's Provider of Last Resort page says. "This service is intended to be temporary and used only under rare circumstances when a REP is unable to provide service, or when a customer requests POLR service."

POLR designations apply only where retail choice is in effect. Lubbock Power & Light runs its own POLR process (see the Lubbock LP&L rate change explainer), and city-owned utilities and most electric cooperatives don't offer retail choice at all.

Who are the Texas POLR providers for 2027-2028?

TXU Energy Retail Company is the only volunteer POLR for the 2027-28 term, and up to 15 LSPs per customer class back it up in each utility area. The PUCT approved the list in Commission Staff's September 18 final recommendation without modification, according to EnergyChoiceMatters (October 9, 2026).

The filings in PUCT Project No. 59209 show how the list came together:

• July 10, 2026: REPs filed customer counts and megawatt-hour sales by area, the deadline §25.43(h) sets for even-numbered years.
• August 31, 2026: Commission Staff filed its initial list of POLRs and VREPs (item 253).
• September 18, 2026: Staff filed its final recommendation (item 256).
• October 9, 2026: The PUCT filed its Notice of Approval (item 260).

TXU volunteered for residential and small non-residential customers in all five areas, and for medium non-residential customers everywhere except AEP Texas North, according to EnergyChoiceMatters. TXU's volunteer request, which includes how many customers it will take, was filed in redacted and confidential versions (items 247 and 249).

In each area, the LSP with the largest market share also files the monthly residential POLR Electricity Facts Label (EFL), under §25.43(j)(3). That label publishes the POLR rate for the area.

The label filers shown are the current 2025-26 filers listed on the PUCT's POLR page, and Staff's September 18 recommendation keeps the same companies first on the 2027-28 residential lists. The 2025-26 designations stay in place through December 2026, so nothing changes for customers on the day the new term starts unless a provider fails.

What happens to your electricity if your provider goes out of business?

Your electricity keeps flowing. When a REP can't serve its customers or fails its obligations to ERCOT, ERCOT runs a "mass transition" that moves every affected meter to a POLR provider. Your utility still delivers the power and restores outages. Only the company that bills you changes.

Texas has done this at scale. ERCOT transitioned 9,926 Griddy customers to POLR providers between February 26 and March 2, 2021, according to a PUCT filing. "It's going to be very important for customers who are shifted to the Provider of Last Resort to take a look at the plan that they're put on because they very likely might want to go ahead and change again," Tim Morstad, associate state director for AARP Texas, told NBC 5 Dallas-Fort Worth on March 1, 2021.

How does ERCOT decide which provider gets you?

ERCOT fills volunteer POLR slots first, then spreads the remaining customers across LSPs by market share. Section 25.43(l) sets the order:

1. ERCOT sorts affected meters (ESI IDs) by utility area, customer class and number.
2. It assigns meters to VREPs in a randomly generated order, up to the number each volunteer offered to serve.
3. Any meters left over go to LSPs in proportion to each LSP's share of megawatt-hour sales.

You don't choose your POLR provider, and neither does your old provider. For 2027-28, a transitioned household goes first to TXU, the only volunteer, until TXU's limit is reached. Customers beyond that limit are spread across the LSPs.

Which group you land in matters for your price on day one. A VREP must serve you on a market-based, month-to-month product, under §25.43(m)(1). An LSP can bill you at the POLR formula rate covered below. In February 2021, the PUCT reopened volunteer POLR applications for exactly that reason. "I don't want (consumers) to have to deal with getting put on a bad POLR plan," then-Commissioner Arthur D'Andrea said at the time, adding that "this outcome is all about protecting them," as reported by Texas Public Radio.

What notices will you get?

You'll get three notices. Section 25.43(t) requires one each from ERCOT, your old provider and your new POLR provider:

• ERCOT sends a postcard with the PUCT seal, plus an automated call and email where it has your contact information. The rule calls for this within two days of the point when ERCOT and the exiting provider know you must be moved and have your contact details.
• Your old provider explains why you were moved and either returns your deposit with interest or states that it will be returned within seven days. It also lists Power to Choose and the toll-free number 1-866-797-4839.
• Your POLR provider gives the date it starts serving you, describes its rate, explains any deposit and includes its Terms of Service and EFL. An LSP charging the POLR formula rate has to state that its price is generally higher than available competitive prices.

Residential bills from an LSP at the POLR rate also carry a PUCT message headed "An Important Message from the Public Utility Commission Regarding Your Electric Service."

How much does POLR electricity cost right now?

As of October 10, 2026, POLR service costs about 20 to 21.5 cents per kWh at 1,000 kWh. The PUCT posts one residential POLR EFL per utility area each month, filed by the largest LSP.

All prices are average cents per kWh from the PUCT-posted residential POLR EFLs. An October TNMP label couldn't be confirmed at publication, so check the PUCT POLR page for the current one.

For context, as of October 20, 2026, the latest U.S. Energy Information Administration Electric Power Monthly put the average Texas residential price at 15.88 cents per kWh for July 2026, up from 15.36 cents in July 2025. That average covers every kind of residential customer, so it's a rough yardstick. Even so, the Oncor POLR price at 1,000 kWh sits about 5.6 cents, or roughly 35%, above it. On a 1,000 kWh month, that's about $215 on POLR versus about $159 at the statewide average.

Why is POLR priced higher than a regular plan?

The POLR formula adds a fixed charge on top of last month's wholesale prices. Under §25.43(m)(2)(A), the residential LSP rate equals non-bypassable charges, plus an LSP customer charge of $0.09 per kWh, plus an LSP energy charge, all divided by the kWh you used:

• Non-bypassable charges are your utility's delivery charges plus ERCOT fees and applicable taxes. The guide to TDU delivery charges for Oncor, CenterPoint, AEP and TNMP breaks those line items down.
• The LSP customer charge is a flat 9 cents on every kWh.
• The LSP energy charge is the average real-time ERCOT price for your load zone in the prior calendar month, multiplied by 120%. It resets on the 10th of each month, and the rule caps it at 160% of the prior month's energy charge.

On a 1,000 kWh month, the customer charge alone comes to $90. The cap matters, too. Starting from the October Oncor energy charge of 5.19 cents, the November charge can't go above about 8.3 cents, whatever wholesale prices do in October. A wholesale spike reaches POLR bills a month late and in limited steps, which is one reason a Texas winter storm's effect on your electric bill depends so much on the plan you're on.

The PUCT gives its own reason for the higher price: "POLR service is relatively high-priced, due to the costs associated with planning and the risk of serving an uncertain number of customers with uncertain electricity loads."

Can you leave POLR service, and is there a fee?

Yes, you can leave POLR service at any time by enrolling in a plan with any provider. "Customers who are switched to a POLR are free to choose another provider or plan at any time," Reliant said in a written statement to Texas Public Radio in February 2021.

Two details help you move faster:

• Your notices must tell you that you can ask for a special or out-of-cycle meter read to speed up a switch.
• Power to Choose and 1-866-PWR-4-TEX list the providers serving your area.

Some AI-generated answers describe a "60-day fee-free window" for leaving POLR service. That reads the rule backward. The 60 days in §25.43 is a deadline for the LSP, not a window for you. It's when the LSP has to stop charging the POLR formula rate, which the next section covers. Leaving early doesn't depend on that date at all.

What happens on day 61 if you do nothing?

If you stay put, an LSP must move you off the POLR formula rate and onto its own market-based, month-to-month product by the 61st day of service, or the first billing cycle after day 60. Section 25.43(c)(8) bars a month-to-month product from carrying a termination fee or penalty.

• The LSP can tell you about the change in its first POLR notice or 14 days ahead of the switch.
• Every transitioned customer in the same class and area gets the same product terms.
• If you're behind on POLR charges at day 60, the LSP doesn't have to move you until you're current. Once you catch up, it must switch you on the next billing cycle that falls five business days later.

A month-to-month product beats the POLR formula, but its price isn't locked the way a fixed-rate contract's is. Shopping still pays.

Will you need a new deposit, and what happens to your old one?

Your old provider must return your deposit within seven calendar days of the start of the transition, under §25.43(p)(5). Your new POLR provider can ask for a deposit, but it must serve you in the meantime, and Texas rules limit when it can collect.

• Timing: A POLR provider can require a residential deposit after 15 calendar days of service, and only if you got 10 days' notice. It can't disconnect you before that period ends.
• Good credit means no deposit: If the POLR provider has enough data to find you have satisfactory credit, it must not request a deposit. Under 16 TAC §25.478, one way to show it is having been a customer of any Texas REP or utility in the past two years, with no delinquent balance and no more than one late payment in the last 12 months.
• Help for low-income customers: If the failed provider kept a current low-income customer list, the PUCT can use proceeds from that provider's letter of credit for deposit help, up to $400 per meter unless it finds good cause to set the amount higher.
• Later top-up: After 90 days, a POLR provider can ask you to bring your deposit up to what it would charge a similar customer.

If a deposit is a hurdle when you shop for a replacement plan, the guide to no-deposit light companies in Texas covers what you may qualify for.

The 60-Day POLR Exit Plan

The 60-Day POLR Exit Plan is a four-step checklist for leaving POLR service on your own terms, built around the deadlines in §25.43. The day-61 and price rows describe an LSP at the POLR formula rate. If you landed with the volunteer POLR instead, you start on its month-to-month market-based product, and the same four steps still get you onto a plan you chose.

For the comparison step, the walkthrough on how to read a Texas Electricity Facts Label shows the six numbers that decide what a plan really costs.

Can you request POLR service on purpose?

Yes, though few households would want to at current prices. Any residential customer can ask an LSP designated for their area to serve them at the POLR rate, under §25.43(p)(1), and the LSP can't refuse except where Texas rules allow it. At about 20 to 21.5 cents per kWh as of October 10, 2026, POLR works as a guaranteed fallback rather than a bargain.

What else changed for Texas retail providers this month?

The PUCT adopted updated retail provider certification rules on October 15, 2026, six days after it approved the POLR list. It adopted amendments to 16 TAC §25.107, the REP certification rule, in Project No. 59288. The order revises the REP letter of credit form, certification form and reporting instructions as part of an e-filing update. The Texas Register acknowledgment lists an effective date of November 4, 2026.

The rule reaches a large field. The PUCT counted 138 certificated REPs in 2024, according to its 2025 Biennial Agency Report.

Those letters of credit connect to households in one specific way. In a mass transition, §25.43(p)(9) directs available letter of credit proceeds first toward deposit help for the failed provider's low-income customers, when that provider kept a current low-income list.

Frequently asked questions

Is the provider of last resort the same as my utility?

No. Your utility (Oncor, CenterPoint, AEP Texas or TNMP) owns the poles and wires, delivers power and restores outages no matter who bills you. A POLR provider is a retail electric provider that sells you electricity and sends the bill.

Is TXU the provider of last resort for all of Texas?

No. TXU Energy is the only volunteer POLR for 2027-28, but each area also has up to 15 designated LSPs per customer class. Once volunteer capacity is used, ERCOT assigns customers to those LSPs by market share.

When does the 2027-28 POLR term start?

The new term begins in January 2027 and runs two years, under §25.43(g)(2). The 2025-26 designations cover any transition through December 2026.

Will my old provider still bill me?

Yes, for electricity used before the transfer. Under §25.43(p)(3), the exiting provider stays financially responsible for serving you until the transfer to the POLR provider is complete, and its notice may describe how it will collect any unpaid balance.

Does POLR apply in Lubbock or co-op areas?

Not through this list. The 2027-28 designations cover the five competitive utility areas. Lubbock Power & Light runs a separate POLR process, and most electric cooperatives and city-owned utilities don't offer retail choice.

Where can I see the current POLR price?

The PUCT's Provider of Last Resort page links the monthly residential EFL for each area, such as the Oncor residential POLR EFL. LSPs supply a new label by the 10th of each month.

The bottom line

POLR service keeps the lights on, and the October 9 approval settles who holds that job from January 2027. It's also a temporary price, about 20 to 21.5 cents per kWh as of October 10, 2026. The simplest protection is a plan you picked on purpose, with an EFL you've read at your real usage and a renewal date on your calendar. The guide to the best time to renew an electricity contract in Texas explains how to time that.

Rates in this article come from PUCT-posted POLR Electricity Facts Labels as of the dates shown. Plan details and rates subject to change, and an Electricity Facts Label is available for every plan.