The Public Utility Commission of Texas (PUCT) is the state agency that writes and enforces the rules retail electric providers (REPs) and TDUs have to follow. If you’ve ever wondered what your provider can and can’t do — or what you can do if they’ve done something they shouldn’t — these are the rules that answer the question.

The disclosure rules: EFL, ToS, YRAC

PUCT Substantive Rule §25.475 requires every retail electricity plan to publish three standardized documents:

  • Electricity Facts Label (EFL). One page, standardized format. Shows the average price at 500, 1,000, and 2,000 kWh, term length, early termination fee, and renewable content. The single most important document in shopping.
  • Terms of Service (ToS). The contract. Lays out cancellation rights, switching procedures, and dispute resolution.
  • Your Rights as a Customer (YRAC). Standardized rights document. Explains disconnection rules, deposit limits, complaint procedures, and language-access rights.

If a REP doesn’t provide all three before you sign up, that’s a violation. Report it to the PUCT.

Disconnection rules

REPs cannot disconnect a customer for non-payment without specific notice and timing requirements:

  • 10 days’ written notice. A "Disconnect Notice" must be mailed at least 10 days before disconnection.
  • Cold-weather disconnect protection. Disconnection is prohibited on days where the local forecast is at or below 32°F. Many REPs extend this to multi-day cold snaps.
  • Summer disconnect moratorium. When the local heat-index forecast hits 95°F or higher, disconnection is prohibited. In practice, this runs much of June through September.
  • Critical-care customers. Households with documented medical equipment dependencies can register as "Critical Care" with the TDU and gain extended protection.

If you’re facing disconnection, contact your REP’s customer service first — most have hardship programs and deferred-payment plans. The PUCT’s customer protection division (1-888-782-8477) is the next step if the REP refuses to work with you.

Deposit rules

REPs can require a deposit if a customer’s credit history doesn’t meet their threshold. PUCT rules cap deposits at 1/5 of the estimated annual bill, and require the REP to refund the deposit (with interest) after 12 months of timely payment. A "Letter of Credit" from a previous REP showing 12 months of on-time payment can waive the deposit at a new provider.

Switching rules

Once your initial-term commitment ends, you can switch REPs any time — no permission needed from your TDU or your old REP. The new REP handles everything; the switch typically completes in 1–3 days. Early switching (during your contract’s minimum term) triggers the early termination fee (ETF) listed in your EFL.

Move-in switches are exempt from ETFs at most REPs if you can show proof of move (lease, utility bill, closing statement). Read your specific ToS — a few REPs charge ETF even on documented moves, and PUCT rules permit it.

Marketing and contract rules

SB 3 (2021) tightened the rules around residential indexed-rate products, marketing practices, and renewal notices. Key provisions:

  • 30–60 days’ renewal notice required. If your fixed-term contract is ending, your REP must notify you 30–60 days before. If you don’t act, they roll you to a default rate that can be much higher.
  • No real-time wholesale pass-through to residential. The "indexed" plans that caused the Uri bill shock are now banned for residential customers.
  • "Average price" disclosure required in ads. Marketing claims about rates must reference the EFL average price at one of the three standard usage levels (500/1,000/2,000 kWh).

How to file a complaint

If your REP has violated any of these rules — billing errors, refused disconnection moratorium, failed to provide required disclosures — your path is:

  1. Contact your REP first. Document the issue in writing.
  2. If unresolved in 21 days, file with the PUCT’s customer protection division: puc.texas.gov or 1-888-782-8477.
  3. The PUCT will assign a complaint number and require the REP to respond within 21 days.
  4. Most complaints resolve at this stage. If not, the PUCT can sanction or revoke the REP’s certificate.
Most Texans never file a complaint because they assume the rules don’t favor them. The rules actually favor the customer in most disputes — but only if you invoke them.

What this means for you

Read your EFL before you sign. Save your Terms of Service. If your REP does something that smells wrong, the PUCT has an enforcement path that works. Compare plans from REPs with strong customer ratings to minimize the chance you’ll need to use it.