Texas's deregulated electricity market gives you the power to choose your provider — but it also means navigating a more complex system when you're struggling to pay. With summer bills regularly exceeding $300-$500 and limited shutoff protections compared to regulated states, knowing your rights is critical.
Understanding Texas Deregulated Electricity
Key Players
- Retail Electric Providers (REPs): TXU Energy, Reliant, Direct Energy, etc. — they bill you
- Transmission and Distribution Utilities (TDUs): Oncor, CenterPoint, AEP Texas — they own the wires
- PUCT: Public Utility Commission of Texas — the regulator
- ERCOT: Manages the power grid (no direct consumer interaction)
Why This Matters for Bill Disputes
When you have a billing issue, contact your REP (e.g., TXU). When power is physically disconnected, the TDU (e.g., Oncor) handles the actual reconnection. The PUCT oversees both and handles complaints.
TXU Energy Payment Options
Payment Arrangements
TXU offers several options:
- Payment extensions: 1-2 weeks past due date (call to request)
- Installment plans: Spread past-due balance over 6-12 months on top of current charges
- Average billing: Smooth out seasonal fluctuations
- Prepaid electricity: Pay as you go with daily usage updates
Deferred Payment Plans (DPPs)
Under PUCT rules, if you've been a customer for at least 3 months and haven't had a DPP in the last 12 months, TXU MUST offer you a deferred payment plan. Key rules:
- Must be offered before disconnection
- Spreads the past-due amount over equal installments
- Term equals the number of months the bill accumulated (minimum 3 months)
- Cannot require more than 50% of the current past-due as a down payment
Texas Disconnection Rules
Notice Requirements
Before shutting off power, your REP must:
- Send a disconnection notice at least 10 days before the disconnect date
- The notice must be a separate mailing (not just on your bill)
- Include information about payment assistance and your right to a DPP
- Provide PUCT contact information
When They CANNOT Disconnect
- During a heat advisory issued by the National Weather Service for your area
- On weekends or holidays
- After the close of business on the business day before a weekend/holiday
- If you have a valid medical certificate on file
- If you have a pending complaint with the PUCT about the amount owed
Extreme Weather Protections
Texas protections are limited but include:
- Heat advisory rule: No disconnections during NWS heat advisories
- Cold weather rule: No disconnections when temps are forecast to be 32°F or below in the next 24 hours
- These are temporary — disconnection can proceed once the advisory/forecast changes
Filing a PUCT Complaint
When to File
- Your REP refuses to offer a deferred payment plan
- You were disconnected without proper 10-day notice
- Billing errors aren't being resolved
- You're being charged unauthorized fees
- Switching providers without your consent (slamming)
- Reconnection is being delayed after payment
How to File
- Phone: 888-782-8477 (PUC-TIPS)
- Online: puc.texas.gov → File a Complaint
- Mail: PUCT, P.O. Box 13326, Austin, TX 78711
What Happens Next
- PUCT sends your complaint to the REP
- REP has 21 days to resolve or respond
- If unresolved, PUCT may investigate further
- PUCT can order refunds, payment plans, and reconnection
- A pending complaint about the disputed amount prevents disconnection
Assistance Programs
| Program | Benefit | Eligibility |
|---|---|---|
| LITE-UP Texas | 10-17% monthly discount | Below 150% FPL |
| LIHEAP | Up to $500/year | Below 150% FPL |
| Comprehensive Energy Assistance Program (CEAP) | Bill payments + weatherization | Below 200% FPL |
| TXU Energy Aid | Up to $500 in assistance | TXU customers with hardship |
| SHARE (Salvation Army) | Emergency bill payment | Any utility customer in crisis |
LITE-UP Texas
The state's primary discount program:
- 10-17% discount automatically applied to monthly bills
- Must be income-eligible (at or below 150% federal poverty level)
- Apply through local Community Action Agency
- Self-certification of income — no extensive documentation initially
- Renew annually
Switching Providers to Save
One advantage of deregulation: you can shop for better rates.
- Visit powertochoose.org (official PUCT comparison site)
- Enter your zip code and average monthly usage
- Compare rates — look at the "Price per kWh" at your usage level
- Check contract terms, cancellation fees, and rate structure
- Switching typically takes 1-2 billing cycles
- Your old provider cannot charge an early termination fee if you switch after contract ends
Tip: Look for plans with no deposit and no cancellation fee if your credit is a concern.
Quick Checklist
- [ ] Call TXU (or your REP) to request a Deferred Payment Plan
- [ ] Know your rights: 10-day written notice required before shutoff
- [ ] Apply for LITE-UP Texas (10-17% discount)
- [ ] File PUCT complaint at 888-782-8477 if plan is refused
- [ ] Check heat advisory status before a scheduled disconnect date
- [ ] Get medical certificate if household member needs electric equipment
- [ ] Shop powertochoose.org for better rates
- [ ] Contact 211 for local emergency assistance
Bottom Line
Texas's deregulated market can work in your favor — you can switch providers and shop for better rates. But the limited shutoff protections mean you need to act fast. Your strongest tools are the mandated Deferred Payment Plan (your REP MUST offer one) and the PUCT complaint process, which freezes disconnection on disputed amounts. Don't wait until the disconnect date to take action.
Sources
- PUCT: puc.texas.gov (888-782-8477)
- Power to Choose: powertochoose.org
- TXU Energy: txu.com
- LITE-UP Texas: lite-up.org
- Texas 211: 211texas.org
