REP — Retail Electric Provider
Texas Electricity Glossary
A Retail Electric Provider (REP) is a PUCT-licensed company that purchases electricity on the ERCOT wholesale market and sells it to Texas homes and businesses. REPs compete on price, plan structure, contract length, and green energy options. Unlike your TDU (which is a regulated monopoly assigned to your address), you choose your REP — and can switch to a different one whenever your contract allows.
How REPs Work
REPs are the middlemen of Texas electricity. They buy power from generators through ERCOT's wholesale market, arrange for delivery through your local TDU's wires, and bill you for the combined cost. The energy charge on your bill goes to your REP; the delivery charge goes to your TDU (though your REP typically collects both on one invoice).
REPs set their own pricing structures — fixed rates, variable rates, indexed plans, free-nights plans, prepaid accounts — within the rules established by PUCT. They also set contract terms, early termination fees, and any promotional credits or bill discounts.
REP vs. TDU — Key Differences
| Feature | REP | TDU |
|---|---|---|
| Can you choose? | Yes — competitive market | No — assigned by address |
| Examples | TXU, Reliant, Gexa, Green Mountain | Oncor, CenterPoint, AEP Texas, TNMP |
| Regulation | PUCT-licensed; competitive pricing | Regulated monopoly; PUCT-approved tariffs |
| Owns wires? | No | Yes |
| Bills you for | Energy charge + TDU pass-through | Delivery charges (via REP bill) |
Switching REPs
You can switch REPs when your current contract ends (no fee) or mid-contract by paying the early termination fee (ETF). PUCT rules require your new REP to complete the switch within 1–2 billing cycles. Your electricity service will not be interrupted during a switch — the TDU continues delivering power uninterrupted throughout the change.
Related Terms
- ERCOT — the wholesale market REPs buy from
- TDU Charge — the delivery fee that appears alongside your REP's energy charge
- EFL — the disclosure each REP must provide for every plan
- ETF — the fee for leaving a REP's fixed-rate contract early
- POLR — the safety-net REP if your current one exits the market
Compare REPs side by side: TexasPowerCost.com shows every PUCT-licensed REP's plans for your ZIP code with true monthly costs — not just the advertised 1,000 kWh rate. Enter your ZIP to compare.
Frequently Asked Questions
What is a REP in Texas electricity?
A REP (Retail Electric Provider) is a PUCT-licensed company that buys electricity on the ERCOT wholesale market and sells it to Texas consumers. REPs compete for your business on price, plan features, and contract terms. Examples include TXU Energy, Reliant, Gexa Energy, and Green Mountain Energy.
How is a REP different from a TDU?
Your REP is the company you choose and pay for electricity. Your TDU (Oncor, CenterPoint, AEP Texas, or TNMP) is the regulated company that owns the wires and delivers electricity to your home. You cannot choose your TDU — it is determined by your address. Both charges appear on a single bill, usually sent by your REP.
How many REPs operate in Texas?
There are typically 60–100 active REPs in the ERCOT market at any given time, though the number visible in any single ZIP code is usually 20–40. REPs range from large national providers like TXU and Reliant to smaller Texas-focused companies. PUCT publishes the current licensed REP list at puc.texas.gov.