Operating a retail electric provider (REP) in the deregulated Texas energy market is a high-risk commodity business. Providers must purchase electricity in advance to meet their customers' needs. During extreme grid stress events—like severe winter storms or record-breaking summer heatwaves—wholesale electricity prices can spike to ERCOT's cap, requiring massive financial liquidity.
Occasionally, a provider cannot meet its wholesale financial obligations or maintain the collateral required by the grid operator. When this happens, they go out of business.
If you are a customer of a provider that suddenly shuts down, what happens to your electricity? Do your lights go out?
The short answer is no. The State of Texas has a robust safety-net system called the Provider of Last Resort (POLR) program. In this guide, we will outline exactly how the POLR system works, explain the pricing reality of POLR plans, and show you how to quickly transition back to a low, competitive rate using GetElectricity.
What is a Provider of Last Resort (POLR)?
The Provider of Last Resort (POLR) is a backup electricity provider designated by the Public Utility Commission of Texas (PUCT).
If a retail electric provider collapses or exits the Texas market, the PUCT automatically transfers that provider's customers to a designated POLR. This ensures that your home never loses power during a provider transition. The physical transmission and distribution utility (TDU)—like Oncor or CenterPoint—continues to deliver electricity to your home without interruption.
The PUCT designates major, financially stable providers to act as POLRs in each utility territory every two years. Below is the interactive directory of POLR designations and transition rules for each TDU:
The Catch: POLR Plan Pricing
While the POLR program is an excellent safety net that guarantees continuous utility service, it is not designed to be a long-term rate solution.
When you are transitioned to a POLR, your old fixed-rate contract is terminated. The POLR is not required to match your old rate. Instead, you are placed on a default variable-rate month-to-month plan.
Because the POLR must absorb thousands of unexpected customers and purchase last-minute power to support them, POLR rates are priced at a premium. They are tied directly to wholesale market fluctuations and are often 2x to 3x higher than standard fixed-rate contracts available on the open market.
How to Switch Away from a POLR
If you receive a notice from the PUCT or your new provider stating that you have been transitioned to a POLR, you must act quickly to avoid high bills.
Fortunately, you have full flexibility:
- No Early Termination Fees: Because you did not sign a contract with the POLR, you are free to switch away from them at any time. There are no cancellation fees.
- The 15-Day Window: Under PUCT rules, you have 15 days from the date of the transition notice to select a new provider. If you select a new plan within this window, your switch will be backdated to the transition date, shielding you from paying the high variable POLR rate for those transition days.
Get a Stable Rate Instantly with GetElectricity
If your provider has gone under or you have been transitioned to a POLR plan, do not wait for your first high bill. Let GetElectricity guide your transition:
- Verify Your Area: Enter your zip code on GetElectricity to instantly view the lowest fixed-rate plans available in your TDU territory.
- Seamless Switching: Select a plan and check out in under 5 minutes. We coordinate the transition date with your utility, moving you off the POLR month-to-month plan seamlessly.
- Continuous Monitoring: We monitor the wholesale market and provider financial signals, helping you choose stable, reliable energy companies that are well-hedged against grid stress.
Restore your rate security. Compare plans and switch to a competitive fixed rate on GetElectricity today.
Escape POLR Pricing for Good on GetElectricity
Provider of Last Resort rates are deliberately punishing — the escape route is a fast, informed switch to a stable fixed plan priced on your real usage.
GetElectricity connects directly to your Smart Meter Texas data to build your real 12-month usage profile, then simulates hundreds of active plans across Houston, Dallas, Fort Worth, and Spring, so you can move off POLR pricing onto the cheapest stable plan your usage supports — not just the first one that answers.
Enter your ZIP code on GetElectricity to get off POLR rates and onto a stable plan today.
Your First 72 Hours on a POLR Plan
If a transition notice lands in your inbox, the clock that matters has already started. Work through these steps in order:
- Note the date on the transition notice. That date anchors your 15-day window. Select a new provider within it and your switch is backdated to the transition date, which shields you from the premium POLR rate for the in-between days. Miss it and every day on the variable plan is billed at the full premium.
- Do not wait for the first bill to confirm the damage. POLR rates track wholesale fluctuations and routinely run two to three times a standard fixed contract. The premium is accruing daily whether you look at it or not.
- Shop fixed plans immediately — there is no penalty for leaving. You never signed a contract with the POLR, so there is no early termination fee in either direction. The only cost of switching fast is the few minutes it takes.
And do not fear the dark: your TDU keeps delivering power the entire time. The only thing at risk is your rate, and that is fixable in one sitting.
Frequently Asked Questions
Will my power go out if my Texas electricity provider goes out of business?
No. The Public Utility Commission of Texas automatically transfers the failed provider's customers to a designated Provider of Last Resort — financially stable providers appointed for each utility territory every two years. Your transmission and distribution utility, such as Oncor or CenterPoint, continues delivering electricity to your home without interruption throughout the transition.
How expensive is a POLR plan?
When you are moved to a POLR, your old fixed-rate contract is terminated and you are placed on a default variable-rate month-to-month plan. Because the POLR must absorb thousands of unexpected customers and buy last-minute power, its rates track wholesale market fluctuations and are often two to three times higher than standard fixed-rate contracts on the open market.
How do I switch away from a Provider of Last Resort?
Act quickly. You never signed a contract with the POLR, so there are no early termination fees and you can leave at any time. Under PUCT rules, if you select a new provider within 15 days of the transition notice, your switch is backdated to the transition date — shielding you from paying the high variable POLR rate for those transition days.
Related reading: If your provider fails and you land on a POLR rate, speed matters — our guide to the timeline of switching electricity providers in Texas explains exactly how fast you can move to a normal plan.