POLR — Provider of Last Resort
Texas Electricity Glossary
A Provider of Last Resort (POLR) is a retail electric provider designated by PUCT to serve customers who have no other option — primarily when their existing REP exits the market, loses its license, or fails. Each TDU territory has at least one designated POLR. Your electricity service continues uninterrupted during the transition, but POLR rates are typically set higher than competitive market prices, so switching to a new competitive plan should be a priority.
When You End Up on POLR Service
The most common POLR triggers are:
- Your REP loses its PUCT license or voluntarily exits the market
- Your REP fails financially and cannot serve customers
- You move into a property where the previous occupant's REP no longer serves that account
- You are a new resident who has not yet selected a competitive plan
What to Do When Placed on POLR
When PUCT transfers you to a POLR, you have the right to switch to any competitive REP immediately — no ETF, no waiting period. Use TexasPowerCost.com to compare plans for your ZIP code and enroll in a new competitive plan. Switching typically completes within 1–2 billing cycles.
PUCT rules require POLR providers to notify you of the transfer in writing and provide information about how to shop for a competitive plan. Keep an eye on your mail and email for this notice.
POLR vs. Competitive REP Rates
POLR rates are set by PUCT as a regulated tariff and are designed to be high enough to discourage long-term reliance on POLR service and incentivize switching to a competitive plan. Depending on the market, POLR rates can be 20–50% higher than the cheapest available fixed-rate plans. Every month you stay on POLR service likely costs more than necessary.
Related Terms
- REP — the competitive provider you should switch to after POLR placement
- PUCT — the regulator that designates POLR providers and manages market exits
- ETF — not applicable when switching away from POLR service
- Deregulated Electricity — the competitive market POLR protects consumers from being locked out of
Frequently Asked Questions
What is a POLR in Texas electricity?
A POLR (Provider of Last Resort) is a retail electric provider designated by PUCT to serve customers when their current REP leaves the market, loses its license, or fails financially. Each TDU territory has a designated POLR. Being placed on POLR service typically results in higher-than-market rates, so you should switch to a competitive plan as quickly as possible.
What happens to my service if my REP goes out of business?
Your electricity service will not be interrupted. PUCT coordinates a seamless transfer of your account to the designated POLR for your area. You will receive a notice about the transfer and your new rate. You can then switch to any other competitive REP at any time without paying an ETF.
How long can I stay on POLR service?
There is no strict time limit, but POLR rates are set as a regulated tariff and are typically significantly higher than competitive market rates. PUCT rules require POLR providers to offer you the option to transfer to a competitive plan, and you should treat POLR placement as a temporary status to resolve quickly.