Wiktor Wise
Texas has three main types of electricity providers: cities, cooperatives, and private companies. If your electricity provider goes out of business, your home will not lose power. Instead, your electricity will be switched to a Provider of Last Resort (POLR). This is a temporary measure to ensure you don't lose your connection to the Texas power grid. You will have 60 days to choose a new provider and plan. If you paid a deposit to your original provider, they are required to pay any unused portions back to you. If you owe money to the original provider, you may be required to finish paying off your debt.
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What You'll Learn
- Your electricity will be switched to a Provider of Last Resort (POLR)
- You will need to choose a new electricity plan and provider
- You will get any unused portions of your electricity deposit back
- You can file a consumer complaint with the Office of the Attorney General of Texas
- You can prevent your electricity from being disconnected by staying in contact with your provider
Your electricity will be switched to a Provider of Last Resort (POLR)
If your electricity provider in Texas goes out of business, you will not lose power. Instead, your electricity will be switched to a Provider of Last Resort (POLR). This is a system implemented by the Electric Reliability Council of Texas (ERCOT) and executed by the Public Utility Commission of Texas (PUCT) to ensure that Texas homeowners and renters do not suffer a power outage if their provider shuts down.
POLRs are meant to be a temporary solution, not a long-term electricity service provider. They are designed to ensure that you don't lose your connection to the Texas power grid. You will have 60 days to choose a new provider and plan. It is recommended that you switch away from the month-to-month plan assigned by your POLR as soon as possible, as these plans are typically more expensive and the rates change each month. If you do not switch within the 60-day window, you may have to pay an early termination fee.
If you paid a deposit to your original provider, they are required to pay any unused portions of that deposit back to you. Additionally, any outstanding credit balances will be returned to you. If you owed money to the original provider, you may still be required to finish paying off your debt.
The Public Utility Commission's Know Your Rights page outlines when an electricity provider can disconnect your service or refuse new service. For example, they cannot refuse service due to non-payment by a previous occupant, and they must provide you with ten days' notice before cutting your electricity for non-payment. The Public Utility Commission rules only apply to private utility companies.
If you have concerns about your electricity service, you can contact the Public Utility Council. They oversee electric companies and may be able to assist you. If you have a billing dispute, you can file a consumer complaint with the Office of the Attorney General of Texas.
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You will need to choose a new electricity plan and provider
If your electricity provider in Texas goes out of business, your home's electricity will be switched to what is called a Provider of Last Resort (POLR). This is a temporary measure to ensure you don't lose connection to the Texas power grid. You will have 60 days to choose a new electricity provider and plan.
It is important to switch away from the month-to-month plan assigned by your POLR as soon as possible, as these plans are typically more expensive and the rates change each month. When choosing a new electricity plan, consider a fixed-rate plan instead of a variable rate to lock in a rate for the duration of your contract. Avoid gimmicky plans like bill credits, free nights, and free weekends, as these often lead to higher-than-expected bills.
Always check the Electricity Facts Label (EFL) before signing up for a new electricity plan. Consider enrolling in a simple, fixed-rate electricity plan without base charges or usage fees. Additionally, if you paid a deposit to your original provider, they are required to pay any unused portions back to you, and you will receive any outstanding credit balances.
If you have questions or concerns about a private electricity provider, you can contact the Public Utility Council. The Public Utility Council oversees electric companies and may be able to assist you. If you have a billing dispute, you can file a consumer complaint with the Office of the Attorney General of Texas.
If you are considering switching to solar power, it is important to know that even if your solar company goes out of business, it is usually still possible to upgrade your solar equipment or add additional solar panels. This work can be done by another company experienced with working on a wide range of solar equipment, as they will know what equipment can work together. Additionally, if you have a warranty, it may cover potential issues with your equipment, but it is easier to let another solar company negotiate with the manufacturer on your behalf.
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You will get any unused portions of your electricity deposit back
If your electricity provider in Texas goes out of business, your electricity will be switched to a Provider of Last Resort (POLR). This is a temporary measure to ensure you don't lose power and are still connected to the Texas power grid. POLRs are implemented by the Electric Reliability Council of Texas (ERCOT) and executed by the Public Utility Commission of Texas (PUCT).
If you paid a deposit at the start of your contract with your original electricity provider, they are required to pay back any unused portions of that deposit to you. You will also get back any outstanding credit balances. If you owed money to the provider, you will be required to finish paying off the debt.
You will have a 60-day window to choose a new electricity provider and plan. It is recommended to switch from the month-to-month plan assigned by the POLR as soon as possible, as these plans are typically more expensive and the rates change each month. If you do not switch within the 60-day window, you may have to pay an early termination fee.
When choosing a new electricity plan, it is important to consider a few things to find the most cost-effective option. Opt for a fixed-rate plan instead of a variable rate to lock in a rate for the duration of your contract. Avoid gimmicky plans like free nights and weekends, as these often lead to higher bills. Always check the Electricity Facts Label (EFL) before signing up for a new plan.
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You can file a consumer complaint with the Office of the Attorney General of Texas
If your electricity provider in Texas goes out of business, your home will not lose power. Instead, your electricity will be switched to a Provider of Last Resort (POLR). This is a temporary measure to ensure you don't lose your connection to the Texas power grid.
However, if you find yourself in a situation where you have a billing dispute or other concerns with your electricity provider, you can file a consumer complaint with the Office of the Attorney General of Texas. This applies to billing disputes with private electricity providers, which are overseen by the Public Utility Council.
The Public Utility Council's website provides information on utility rights, including when an electricity provider can disconnect your service or refuse new service. For example, a provider cannot refuse service due to non-payment by a previous occupant, and they must provide ten days' notice before disconnecting your electricity for non-payment.
Additionally, if you are having trouble making payments, it is important to stay in contact with your electric provider. You can request a deferred payment plan or a levelized payment plan, where you pay the same amount each month. You may also be able to enroll in payment assistance programs or energy efficiency programs.
It is worth noting that if you had an electricity deposit with your original provider, they are required to refund any unused portions of the deposit. If you had any outstanding credit balances, those will also be returned to you. However, if you owed money to the provider, you may still need to finish paying off your debt.
When choosing a new electricity plan, it is important to consider a few things to find the most cost-effective option. Look for a fixed-rate plan instead of a variable rate to lock in a rate for the duration of your contract. Avoid gimmicky plans with offers like free nights or weekends, as these often lead to higher bills than expected. Always check the Electricity Facts Label (EFL) before signing up for any plan.
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You can prevent your electricity from being disconnected by staying in contact with your provider
If your electricity provider in Texas goes out of business, your home will not lose power. Instead, your electricity will be switched to a Provider of Last Resort (POLR). This is a temporary measure to ensure you don't lose your connection to the Texas power grid.
However, if you fall behind on your electricity bill, your new provider may threaten to disconnect your service. To prevent this from happening, it's important to stay in contact with your provider. Here are some ways to do that:
- Ask for a deferred payment plan, which will allow you to pay off the balance you owe over time while keeping your lights on.
- Enroll in available payment assistance programs, the weatherization program, or other energy efficiency programs.
- If you have a chronic health condition or critical care needs that require uninterrupted electricity, register your status with the electric company.
- If you have a billing dispute, you can file a consumer complaint with the Office of the Attorney General of Texas.
- If you have questions or concerns about a private electricity provider, contact the Public Utility Council, which oversees electric companies and may be able to assist you.
Remember, if you do receive a disconnect notice, you will have to pay a fee, even if your power is not ultimately disconnected. Therefore, it's best to stay in communication with your provider and work out a payment plan that suits your needs.
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Frequently asked questions
If your residential electricity provider (REP) goes out of business, your home will not lose power. Instead, your home’s electricity will be switched to what is called a Provider of Last Resort (POLR). This is a temporary measure to ensure you don’t lose your connection to the Texas power grid.
If you paid an electricity deposit at the start of your contract with the original provider, they are required to pay any unused portions of the deposit back to you.
If you have an outstanding credit balance, it will be returned to you.
If you owed money to the provider, you may be required to finish paying off your debt.
If you don't pay your bill, the electric company can disconnect your service only after providing you with written notice and a 10-day window before the disconnect date.
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