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New to Texas

Moving to Texas? Here's How Electricity Actually Works

Unlike most of the country, Texas has a deregulated electricity market — meaning you, not a single utility, choose your electricity company. Here's what that means in practice and how to set up service before move-in.

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What actually matters

What to look for

1

You choose a Retail Electric Provider (REP), not "the electric company"

In most of Texas (deregulated areas, which include most major metros), dozens of competing REPs — TXU, Gexa, Reliant, and many others — sell you electricity. There's no default single provider to just call and sign up with; you have to pick one.

2

Your delivery utility (TDU) is fixed by your address

Separately from your REP choice, the physical wires to your home are owned by a regulated utility — Oncor, CenterPoint, AEP Texas, or TNMP depending on where you live. You don't choose this one; it's determined by your address, and every REP in that area pays the same delivery rate.

3

Set up service before move-in, not after

Electricity in Texas doesn't automatically transfer between tenants — the previous occupant's service typically ends and you need your own account set up, ideally a few days before your move-in date so power is on when you arrive.

4

Compare plans by ZIP code, not just by REP name

The same REP often offers different rates in different TDU territories. Always compare using your actual move-in address's ZIP code rather than a rate you saw for a different part of the state.

Common traps

What to watch out for

Some parts of Texas are NOT deregulated

Areas served by municipal utilities (like Austin Energy or San Antonio's CPS Energy) or electric cooperatives don't have REP choice — you're served by a single regulated provider. Check your specific address before assuming you need to shop for a REP.

Watch for teaser rates that expire quickly

As a new resident comparing plans for the first time, low advertised rates can be promotional and roll to a much higher rate after a few months. Check the full contract term, not just the headline number.

Bill credit plans require consistent usage to pay off

Many popular plans advertise a bill credit (often $75-150) only if you use 1,000+ kWh in a cycle. If you're moving into a smaller space or don't yet know your usage pattern, be cautious about betting on hitting that threshold every month.

Found a plan with a credit threshold?

Track your usage from day one

If you land on a plan with a bill credit threshold, HitMyCredit connects to your Smart Meter and alerts you before the cycle ends if you're on track to miss it — useful especially while you're still learning your new home's usage pattern.

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FAQ

Do I get to choose my electricity company in Texas?

In most deregulated areas of Texas (which includes most major metros like Dallas-Fort Worth, Houston, and Corpus Christi), yes — you choose from dozens of competing Retail Electric Providers. Some areas served by municipal utilities or cooperatives don't have this choice, so check your specific address first.

How far in advance should I set up electricity before moving to Texas?

A few days before your move-in date is typical, so service is active when you arrive. Most REPs can set up same-day or next-day service if needed, but don't wait until moving day to start the process.

What's the difference between my electric company and my utility in Texas?

Your Retail Electric Provider (REP) — like TXU, Gexa, or Reliant — is the company you choose and pay for the electricity itself. Your Transmission and Distribution Utility (TDU) — Oncor, CenterPoint, AEP Texas, or TNMP — owns the physical wires and is fixed by your address, not something you choose.

What should a first-time Texas resident look for in an electricity plan?

A rate that reflects your actual expected usage (not just the advertised 1,000 kWh figure), a contract term that matches how long you plan to stay, and caution around bill-credit thresholds until you know your usage pattern. See our guide on the best plans for a first apartment for more detail.