Why you have to pick your own electricity provider

Texas deregulated its electricity market, which means the state does not assign a utility company to your home. Instead, multiple retail electricity providers (REPs) compete for customers, and you choose the one you want. This is different from most states, where your utility is determined by your address and you have no choice.

The grid itself, ERCOT, is still regulated. The poles and wires that deliver power to your building are maintained by a local transmission and distribution company regardless of which REP you choose. Picking a provider does not change who fixes the lines when there's an outage. It only determines who you pay and at what rate.

If you're moving from another state, this is likely the first time you've had to shop for electricity. It's a reasonable thing to find confusing. The good news is that the process is shorter than it looks once you know the steps.

Step-by-step: setting up electricity in a Texas apartment

Step 1

Confirm your full address including unit number. REPs look up available plans by zip code and address. Having it ready speeds up the process.

Step 2

Go to powertochoose.org, which is the PUCT-administered comparison tool for Texas electricity plans. Enter your zip code and you'll see all plans available at your address. This is the most complete and unbiased list available.

Step 3

Compare plans using the Electricity Facts Label (EFL). Every plan is required to publish one. It shows the actual price per kWh at 500, 1,000, and 2,000 kWh usage levels, the contract length, and the early termination fee. The 1,000 kWh column is the most useful for apartments.

Step 4

Sign up directly with the provider you choose. The online application asks for your address, requested start date, and personal information. A credit check may be required. If your score is below the provider's threshold, you may be asked for a deposit.

Step 5

Set your start date to your move-in date or one day before. Electricity needs to be on when you arrive. It does not turn on automatically when the previous tenant moves out.

What to watch for when comparing plans

The advertised rate on a plan is not always the rate you actually pay. Some plans include a bill credit at certain usage levels that makes the math work only if you use exactly that amount. At 500 kWh or 2,000 kWh, the same plan might cost significantly more per kWh. The EFL shows all three levels, so compare across them.

Contract length is the other variable that catches people. A 12-month fixed-rate plan locks in your price for a year, which is good for predictability but comes with an early termination fee if you move before it ends. Match the contract length to your expected lease length if you can.

Month-to-month plans avoid the ETF problem but typically carry higher rates. If you're uncertain how long you'll be in the apartment, a shorter fixed term or a month-to-month plan is worth the rate premium.

Texas-specific tip: Electricity rates in Texas vary by zip code. A plan in one neighborhood may not be available in another, and the rates differ. Always enter your actual address on powertochoose.org rather than a nearby one, because the results will be different.

What changes when your apartment handles enrollment

Some Texas apartment properties set up electricity through the landlord rather than having each resident apply with a REP individually. When that's the case, the standard process above does not apply to you. Your property manager will provide enrollment instructions after you sign your lease.

The practical differences for you as a resident: there is typically no credit check, no deposit, no plan shopping required, and no separate contract to track alongside your lease. Enrollment happens at lease signing, and the electricity account is aligned to your lease dates from the start.

If you received a sign-up link or QR code from your property, use that link. Do not sign up with a separate REP on your own, as this can create two active accounts on the same meter.

If you're unsure whether your apartment handles electricity this way, ask your property manager before you sign up with a provider. The answer should be in your lease or welcome packet.

About PowerCord Energy PowerCord Energy is a Texas-based automated energy management platform built specifically for multifamily properties in the ERCOT deregulated market. PowerCord's team has direct operational experience working with property management companies, on-site leasing teams, and retail electricity providers across the DFW multifamily market. Our work is grounded in PUCT regulatory compliance, lease lifecycle management, and the practical realities of managing electricity transitions at scale across residential portfolios.