What Is a REP? Retail Electric Providers Explained

What Is a Retail Electric Provider?

A Retail Electric Provider, or REP, is the company that sells you electricity in deregulated areas of Texas. They buy electricity on the wholesale market or from generators and package it into plans they sell to homes and businesses.

Think of it like this: the REP is the store where you buy your electricity. The delivery company (TDU) is the truck that brings it to your door. You get to pick which store you shop at, but the delivery truck is always the same.

What REPs Actually Do

REPs handle the commercial side of electricity:

• Buy electricity from the wholesale market or through contracts with power generators
• Create plans with different rate structures, contract lengths, and features
• Bill you each month for the electricity your home uses
• Provide customer service for billing questions, plan changes, and account management

What REPs do not do:

• They do not own or maintain power lines
• They do not handle power outages
• They do not read your meter
• They do not control the physical delivery of electricity

Those responsibilities belong to your TDU.

How REPs Differ From TDUs

This is one of the most common sources of confusion for Texas electricity customers. Here is the key difference:

Your TDU (Transmission and Distribution Utility) is the company that owns the poles, wires, and meters. They deliver the electricity to your home and respond when the power goes out. You do not choose your TDU — it is based on where you live. There are four major TDUs in Texas: Oncor, CenterPoint Energy, AEP Texas, and Texas-New Mexico Power.

Your REP is the company you buy your electricity from. You choose your REP, and you can switch whenever you want. The REP charges you for the electricity itself, while TDU delivery charges are passed through on your bill.

Types of REPs in Texas

Not all REPs are the same. Here are the main types you will encounter:

Large national companies — Big energy companies that operate in multiple states. They often have name recognition and extensive customer service teams.

Texas-only providers — Companies that focus exclusively on the Texas market. They may offer more competitive rates because they have lower overhead.

Green energy REPs — Providers that specialize in renewable energy plans backed by wind and solar power.

Prepaid REPs — Companies that let you pay for electricity in advance with no credit check and no long-term contract.

How to Choose the Right REP

Picking a REP comes down to a few key factors:

Price. Compare the all-in rate on the Electricity Facts Label (EFL) at the kWh level that matches your home. A difference of even 1 cent per kWh adds up to $12-$15 per month for a home that uses 1,200 kWh.

Contract terms. Check the contract length, early termination fee, and auto-renewal terms. Some plans automatically roll into a variable rate when the contract ends.

Customer service. Look at reviews and complaints filed with the Public Utility Commission of Texas. A low rate does not help if you cannot reach anyone when you have a problem.

Plan features. Free nights, free weekends, bill credits, and 100% renewable options are all available. Decide which features matter to your household.

REP Ratings and Complaints

The PUCT publishes a scorecard for every REP in Texas. It tracks complaint rates, disconnection notices, and other customer service metrics. Checking this scorecard takes two minutes and can save you months of frustration with a poorly run company.

The Bottom Line

Your REP is your electricity retailer. They set your rate and send your bill, but they have nothing to do with delivering your power or keeping the lights on. Comparing REPs by price, contract terms, and reputation is the fastest way to lower your electricity bill.