Texas Apartment Electricity: A Complete Guide for Renters

How Does Apartment Electricity Work in Texas?

Texas apartment electricity works through a deregulated market in most of the state. The renter chooses a licensed retail electricity provider, signs a separate electricity contract, and pays the provider directly each month. The local transmission and distribution utility delivers the power through the wires but does not sell the plan.

This guide is the umbrella for everything a Texas apartment renter needs to know about electricity: how the market is structured, how to choose a provider, how to set up service, what the bill includes, and how to avoid the most common mistakes.

For specific topics, see also:

How to Set Up Electricity in a Texas Apartment

Apartment Electricity Providers in Texas

Best Electric Company for Texas Apartments

Apartments with Electricity Included in Texas

What Is the Texas Deregulated Electricity Market?

The Texas deregulated electricity market separates the company that delivers electricity through the wires (the transmission and distribution utility, or TDU) from the company that sells the electricity plan (the retail electricity provider, or REP). About 85 percent of Texas residents live in deregulated areas. The remaining 15 percent are served by municipally owned utilities or rural electric cooperatives.

The four main TDUs in deregulated Texas are Oncor, CenterPoint, AEP Texas, and TNMP. The TDU is determined by the apartment's address. The renter does not choose the TDU.

The REP, by contrast, is chosen by the renter. There are dozens of licensed REPs in Texas, each offering multiple plans. The plan, contract length, rate structure, and renewal terms vary widely between providers and even between plans from the same provider.

How Do I Choose an Electricity Plan for a Texas Apartment?

To choose an electricity plan for a Texas apartment, compare plans on the Electricity Facts Label, which is required by Texas law and shows the average price at three usage levels. Match the row that corresponds to your apartment's expected usage. A one-bedroom apartment in Texas typically uses 600 to 800 kilowatt-hours per month.

The four factors that matter on every plan:

The average price per kilowatt-hour at your expected usage. The lowest advertised rate is rarely the lowest actual cost.

The contract term. Match the contract length to the lease length.

The early termination fee. If you have to break the contract, what does it cost?

The renewal terms. After the contract expires, what rate applies? Many plans roll to a higher month-to-month variable rate.

A common pattern in apartment-targeted advertising is to feature the lowest price-per-kWh on the largest usage band, which apartment renters rarely reach. Read the 500 kWh row of the Electricity Facts Label, not the 2,000 kWh row.

How Do I Set Up Electricity Before Move-In?

To set up electricity before move-in, enroll with the chosen REP at least three business days before the move-in date. The REP coordinates with the local TDU to schedule meter activation. Standard scheduling is 1 to 3 business days. Same-day service is sometimes available for an additional fee.

The information the REP needs to enroll a new resident: the service address with unit number, the move-in date, the renter's full legal name, date of birth, and Social Security number for credit verification. Some REPs accept a deposit instead of credit verification.

After enrollment, the REP issues a confirmation email that contains the contract terms, the effective date, the rate, the contract length, and the renewal terms. Save this email for the duration of the contract.

What Is on a Texas Apartment Electricity Bill?

A Texas apartment electricity bill includes three main components: the energy charge for electricity used during the billing period, the TDU delivery charge for the wires that brought it to the apartment, and any base charges or minimum-usage fees defined in the contract.

The energy charge is the kilowatt-hours used multiplied by the rate. The TDU delivery charge is set by the local TDU and is the same regardless of which REP the renter chose. The base charge is a flat monthly fee set by the REP.

Some plans include bill credits or tiered pricing. A bill credit might apply at usage above 1,000 kWh per month. Tiered pricing might charge one rate for the first 500 kWh and a different rate above 1,000 kWh. Read the Electricity Facts Label to see how the rate behaves across usage levels.

What Is Lease-Synchronized Electricity Enrollment?

Lease-synchronized enrollment is an automated process where the electricity contract start date, end date, and apartment unit address are aligned with the apartment lease. The renter enrolls once at lease signing. The system handles every subsequent transition without requiring separate calls to the electricity provider.

The traditional process generates errors. A vacant apartment can stay billed to a former tenant. A new resident can move in without service. A lease renewal can fall out of sync with the electricity contract end date.

Lease-synchronized enrollment treats electricity as a lease event rather than a separate shopping decision. The property provides lease data through a secure connection, the REP issues a contract that matches the lease term, and the renter signs once. This is the model that PowerCord Energy is built around. It works with PUCT-licensed REPs in the ERCOT deregulated market and operates under PUCT SS25.471 and SS25.486 customer protection rules.

This reflects PowerCord Energy's direct experience operating in the ERCOT deregulated market under PUCT SS25.471 and SS25.486 compliance requirements.

Common Mistakes Texas Apartment Renters Make

The most common mistakes Texas apartment renters make with electricity are picking the lowest advertised rate without reading the Electricity Facts Label, choosing a contract longer than the lease, missing the contract end date and rolling to a high month-to-month rate, and waiting until move-in day to enroll. Each can be avoided with a few minutes of preparation at lease signing.

Picking based on a sign-up bonus or gift card is also a common mistake. The bonuses are usually built into the rate and are paid back through the contract term.

Frequently Asked Questions

Is electricity included in rent for Texas apartments?

Most Texas apartments do not include electricity in rent. In the deregulated market, the renter is responsible for selecting a retail electricity provider and paying the bill directly. Some apartments include electricity in an all-bills-paid package, but this is the exception in modern Texas multifamily.

Can my landlord choose my electricity provider in Texas?

A Texas landlord cannot require a specific retail electricity provider for an individually metered apartment. The renter has the right to choose any PUCT-licensed REP. A landlord can recommend a provider or partner with an enrollment service, but the contract is between the renter and the REP.

How long does it take to set up electricity in a Texas apartment?

Most Texas REPs require 1 to 3 business days to schedule start of service for a new account. Some offer same-day service for an additional fee. Plan to enroll at least three business days before move-in to avoid losing power on day one.

What is a typical electricity bill for a Texas apartment?

A typical electricity bill for a Texas apartment varies by season and rate. A one-bedroom apartment using 700 kWh per month at a fixed rate of 12 cents per kWh would have an energy charge around $84, plus the TDU delivery charge and any base fees. Bills are typically higher in summer due to air conditioning use.