When can I legally break an Electric Contract?

The Public Utility Commission of Texas states that an electrical contract can be broken without any Early Termination Fee when the customer is moving from one address to another. This fact is not commonly known and it has occurred often enough that a Retail Electric Provider has charged Early Termination Fees to customers because the Retail Electric Provider was not informed that the customer was moving.

The PUCT Law is:

“A contract is limited to service to a customer at a location specified in the contract.

If the customer moves from the location, the customer is under no obligation to

continue the contract at another location.  The REP may require a customer to

provide evidence that it is moving.  There shall be no early termination fee assessed

to the customer as a result of the customer’s relocation if the customer provides a

forwarding address and, if required, reasonable evidence that the customer no longer

occupies the location specified in the contract.”

– CHAPTER 25. SUBSTANTIVE RULES APPLICABLE TO ELECTRIC  SERVICE PROVIDERS.

Subchapter R. CUSTOMER PROTECTION
(c) General Retail Electric Provider requirements.
(2) General contracting requirements.
(C)
http://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.475/25.475.pdf

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