As a Texas homebuyer you have a to-do list that never seems to end. Setting up electricity should be at the top of that list. This guide gives you the quick run-down on setting up electricity when you’re buying a new home.
If You’re Moving to Texas from Out of State
Welcome to deregulated electricity. Most states don’t have it, so this may be your first time shopping for an electricity plan the way you’d shop for internet service or car insurance.
In most of Texas, you don’t get your electricity from one company, you get it from two: the utility company and a retail electricity provider. The utility company (called a TDU, or Transmission and Distribution Utility) owns the poles, wires, and meters in your area and is responsible for delivering electricity to your home and responding to outages. You can’t choose your TDU; it’s determined by where you live. But you need to choose your electricity supplier. The retail electricity provider (REP) is the company you actually sign a contract with, pay a bill to, and work with for any customer service needs. When you choose your electricity supplier, you also choose your electricity plan.
You’ll receive one monthly bill from your REP that includes delivery charges and energy charges.
Check your zip code to see if you have electricity choice the area where you’re moving, then select the lowest cost basic fixed rate plan for your new home. Avoid bill credit, tiered rate or free nights and weekends plans until you know what your usage pattern actually looks like. This helps you avoid signing up for a plan that doesn’t fit your usage.
🔑 Closing Day Tip: Schedule your electricity move-in for the day of closing and bring a copy of the service confirmation with you, either via a print-out or via an email on your phone. If your closing date moves, simply contact the REP to change the move-in date. Coordinate this date with your realtor and/or title company to ensure the seller doesn’t turn off power too early.
If You’re Moving Within Texas
If you’re moving within Texas, you likely already understand deregulation, and as a homebuyer you’ll fit into one of two categories: Moving within the Same Utility Area or Moving to a New Utility Area.
Moving within the Same Utility Area
When you’re moving within the same utility area, you can take your contract with you as a transfer of service. Or, you can find a cheaper plan, set up service in your new home, and cancel your old contract with no penalty. Moving gives you an automatic waiver of any early termination fee, with proof of your move-out.
To make this decision, grab a copy of your most recent bill and make a note of two things: the average price per kWh and your total usage. Then enter your zip code to see plans in your area. Enter your exact usage to see how much each plan would cost at that level. Is the price higher with a new plan? Keep your current electricity plan and request a transfer of service. Is the price lower with a new plan? Schedule a move-out for your current address, and sign up for the lowest available rate for your new home.
>>Want more details? Read our full blog post on Moving Before Your Electricity Plan Expires.
Moving to a New Utility Area
If you’re moving to a new utility area, you can’t take your current plan with you. You’ll contact your provider to schedule a move-out, which you can typically handle over the phone or through your REP’s account management tool. Simply provide a forwarding address for your final bill and your early termination fee is waived. Then shop for a new electricity plan based on your zip code.
Current Fixed Rate Electricity Plans – Average Rate by Texas Utility Market
- Average electricity rate in AEP Texas Central: 15.05¢ per kWh
- Average electricity rate in AEP Texas North: 16.34¢ per kWh
- Average electricity rate in CenterPoint Energy: 14.67¢ per kWh
- Average electricity rate in Lubbock Power & Light: 16.01¢ per kWh
- Average electricity rate in Oncor: 15.16¢ per kWh
- Average electricity rate in TNMP: 16.77¢ per kWh
🛡️Pro Tip: Select a Basic Fixed Rate plan for your new home. While bill credit and tiered rate electricity plans offer temptingly low advertised rates, your effective rate is highly variable and based on usage. Until you have a full year of usage, you’re better off with a safe, no gimmicks electricity plan.
Moving into a New Construction Home
Electricity setup for a new construction home in Texas involves a few steps that don’t apply to existing homes, and the timeline matters.
Temporary vs. permanent meter. During construction, your home has a temporary construction meter. Before you move in, your builder will request a permanent meter set. They’ll coordinate that with the local utility company and handle any city inspections and permits. Both the temporary and permanent meter are in the builder’s name (and they pay the bill) until you take possession of the home.
Start shopping before your closing date. Once your closing date is set, compare electricity plans and choose a fixed rate plan. During enrollment, you’ll choose the move-in date to start your electricity service. Set this as your closing date.
Watch out for builder-preferred provider arrangements. Some builders have relationships with specific REPs and may present one provider as the default or recommended option. You are not required to use them. You have the right to shop the full market and choose any licensed REP that serves your area.
Estimating usage in a new home. Since there’s no billing history to reference, use square footage as a starting point. A rough rule of thumb for Texas: plan for approximately 6.48 kWh per square foot per year based on data from the Energy Information Administration. This chart can help you estimate your usage.
| Square Footage | Average Monthly kWh Usage | Average Annual kWh Usage |
|---|---|---|
| 500 | 270 | 3,238 |
| 750 | 405 | 4,857 |
| 1000 | 540 | 6,476 |
| 1250 | 675 | 8,095 |
| 1500 | 809 | 9,713 |
| 1750 | 944 | 11,332 |
| 2000 | 1,079 | 12,951 |
| 2250 | 1,214 | 14,570 |
| 2500 | 1,349 | 16,189 |
| 2750 | 1,484 | 17,808 |
| 3000 | 1,619 | 19,427 |
| 3250 | 1,754 | 21,046 |
| 3500 | 1,889 | 22,665 |
| 3750 | 2,024 | 24,284 |
| 4000 | 2,159 | 25,903 |
| 4250 | 2,293 | 27,521 |
| 4500 | 2,428 | 29,140 |
| 4750 | 2,563 | 30,759 |
| 5000 | 2,698 | 32,378 |
💸 Avoid Concierge Services: Your realtor or title company may offer you a concierge service to help set up your electricity and other utility services. These services typically operate on commission and push higher cost REPs or electricity plans. It’s best to comparison shop on your own. Electricity Plans BillSmart tools make it easy to find the best fixed rate plan for your home.
Electricity for a Second Home
Managing electricity for a home you don’t live in full-time requires a different approach than your primary residence.
Watch out for base charges. Some electricity plans have a base charge or a minimum usage fee which will drive up your costs each month. Look at the plan details on every plan you’re considering. This section includes a full breakdown of what you’ll pay.
Consider a free weekends plan. If your second home is primarily used on weekends, a free weekends electricity plan could significantly reduce your bill. It’s worth reviewing that against a standard fixed rate plan.
Invest in a smart thermostat. Being able to adjust the temperature remotely means you’re not paying to cool or heat an empty house all week. Use different thermostat settings when you’re away and bring it back to comfortable level before you arrive. Never turn off the HVAC system completely; doing so can result in mold and mildew in your home.
Unplug what you’re not using. TVs, coffee makers, phone chargers, and small appliances draw standby power continuously. When you leave, unplug them. It’s a small habit that adds up over time, especially in a home you visit infrequently.
>>Additional Move Center Resources
FAQs – Electricity for the Homeowner
Yes, most electricity providers in Texas will let you add a new home to your existing contract when you’re moving. Your new home and the one you’re selling can remain on the same rate and contract as long as you’re moving within the same service area, and complete the transaction within 60 days.
Your retail electricity provider will run a soft-hit credit check before approving you for service, and may require a deposit if you don’t meet their minimum credit threshold. You can pay the deposit, provide a letter of credit from your current electricity provider, or qualify for a deposit waiver based on your age or income. The deposit typically ranges from $250-$350 and is based on an estimated two months of electricity usage.
Yes, you can get electricity service without a deposit from prepaid electricity companies like Payless Power. With prepaid electricity, you will make a minimal upfront payment as low as $75. You’ll receive text alerts on your daily account balance, and can add money as needed when your balance gets low. There’s no deposit and no credit check, but these plans are typically 30% more expensive than a traditional post-pay plan.
The unexpected sometimes happens. If you’ve already set up electricity service ties to your original closing date, simply call your electricity provider and change the date, as long as you contact them by 5pm the day prior.
