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855-475-8315If you are a consumer of electric energy in Texas, it’s important to understand your rights and responsibilities when it comes to choosing a provider. One of those responsibilities is knowing what it means to have a provider of last resort. A provider of last resort is responsible for providing electricity service to consumers if the consumer’s chosen provider cannot provide service.
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So, if you can’t get service from your chosen provider, your provider of last resort will step in to resolve the interruption in service. Luckily, there are several providers of last resort available in Texas, so you don’t have to worry about the supply of energy. If you’re interested in learning more about providers of last resort, or if you need help choosing a provider, read on.
What Is a Provider of Last Resort?
In the state of Texas, a provider of last resort (POLR) is a electricity provider that’s responsible for providing electric service to customers whose retail electric provider has gone out of business or is otherwise unable to provide service.
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The POLR Texas is a safety net for customers who may be left without service if their retail electricity provider goes out of business. The POLR energy companies are responsible for making sure that these customers have access to electric service.
In most cases, the provider of last resort electricity is typically the incumbent electric provider in the state. The incumbent provider is the company that provided service to the area before energy deregulation.
The Purpose of a Provider of Last Resort
When the electricity market in Texas was deregulated, the POLR system was created. The provider of last resort for most customers in Texas is designated by the Public Utility Commission of Texas (PUCT) for each service territory. The provider of last resort Texas supplies electricity to a customer at the price set by the PUCT.
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The POLR is not intended to be a customer’s long-term provider. Instead, the arrangement is meant to provide the customer with a transitional provider until they select an alternative supplier.
How Your Provider of Last Resort Is Determined
Your provider of last resort is the electric company that will deliver electricity to your home or business if your current provider is no longer able to do so. In Texas, the provider of last resort is chosen by the PUCT.
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The commission periodically designates a POLR for each service territory open to competition. If you’re a customer of a provider that’s no longer able to deliver electricity, the PUCT will assign you to a provider of last resort in your locality. This provider will be responsible for delivering electricity to your home or business until you can find another supplier. Customers, on the other hand, can also request to be switched to POLR service from any provider that offers it.
Factors to Consider With POLR Energy Suppliers
When you’re assigned to a last resort provider, it’s important to take all of your options into account before you sign up for the service. The last resort provider is not obligated to provide the same level of service or the same rates as your previous provider, so you may want to compare rates and services after being assigned to a POLR provider.
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In addition, the provider of last resort is allowed to charge higher rates than other providers in the market. These price fluctuations may be due to the expenses the provider takes on by serving as the last resort supplier. This means that you should ask the provider about their rates and how they compare to other providers in the market.
You should plan on being with a provider of last resort for the least amount of time. You can switch to another electricity provider or contact your POLR provider and enquire about alternative plans.
1. The Cost of Electricity With a POLR Could Be Higher Initially
You may wonder why your provider of last resort would charge more for their services. The provider of last resort is allowed to charge higher rates than your former energy company. This helps to recover the cost of providing last resort service to the additional customers. This includes the extra administrative costs they incur and the cost of purchasing electricity on the spot market to meet your needs.
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2. You’re on Limited Time With a POLR Electricity Service
Being assigned to a POLR can be stressful because you’re effectively on a clock. If you’re assigned to a provider of last resort, you’ll only have that provider for 60 days. Then you have to find a new electricity provider. At the end of the 60 days, your service is upgraded to month-to-month varied rates that are much higher than fixed rates. The POLR’s price fluctuations act as an incentive to take on new customers when a provider goes out of business.
3. You Might Have to Pay a Deposit
If you are assigned to a provider of last resort, you may be required to pay a deposit. The deposit is payable 15 days after the provider of last resort has been notified of your assignment. To avoid paying the high varied month-to-month POLR rates, you can switch to another provider within 60 days of the assignment.
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4. You’ll Eventually Have to Choose an Electricity Provider
If you are assigned to a POLR, you have to choose an electricity provider within 60 days. This provider will become your new default provider. You’ll have to sign up with this provider and pay any applicable deposits and fees. Before the 60 days are up, you need to look for a new provider. Makre sure to select one that offers competitive rates that meet your energy needs.
Why Texas Has POLRs
The POLR system is designed to protect consumers from becoming stranded by defaulting electricity providers. Under this system, if an electric utility provider goes out of business or is unable to provide electric service, the PUCT will appoint another provider to take over. This new provider will be responsible for providing electric service to all of the utility company’s customers.
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The Texas provider of last resort system is an important safety net for consumers. It ensures that everyone has access to electric service, even if their provider goes out of business.
Receive Affordable Electricity Rates and Change Providers With Ease
Retail energy is a high-stakes and constantly changing marketplace. This means that it’s important for consumers to understand their provider options, including the POLR. At Power Wizard, our mission is to provide consumers with the tools and resources they need to make informed decisions about their electricity provider.
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We believe all consumers should have access to affordable electricity rates and the ability to easily switch providers. That’s why we’ve developed a process that allows consumers to compare providers. And sign up for the best option—with ease.
Power Wizard is the solution to your high energy bills. We offer a variety of services to make it easier for you to save on your electricity. You can use our DIY shopping tool or take advantage of our white glove service, where we do everything for you. Our team is dedicated to helping you find an affordable and reliable electricity plan that meets your needs.
So, what are you waiting for? Start saving today!
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