How deregulation works here
Two companies, two roles.
CenterPoint Energy owns and maintains the poles, wires, and meter. They handle outages and they’re the same for everyone in the Houston service area. You don’t choose them and you can’t switch them.
A retail electricity provider (REP) sells you the electricity. There are dozens competing, and you choose. TXU Energy, Reliant, Gexa, Green Mountain and many others sell here.
Your bill comes from the REP and includes CenterPoint’s delivery charges. That’s why two people in the same building can pay very different amounts for the same usage.
If you’re new to Texas, here’s the big one: there’s no default utility to call. Nobody will connect you automatically. Plenty of new Houston renters find that out the day they move in. The wider moving checklist is on moving concierge.
The setup, step by step
- Know your move-in date. Schedule service to start the day before you get keys, so you’re not testing it with a truck outside.
- Have your address and unit number, plus the ESI ID (the meter’s ID number) if the property gives you one. That speeds things up.
- Compare plans at your realistic usage rather than at the advertised tier. This is the step that saves you money.
- Sign up three to five business days ahead. Same day service usually means an expedite fee.
- Check for a deposit. Some REPs waive it after a credit check. Others take a deposit and refund it once you’ve paid on time for a few months.
- Note the contract end date. Match it roughly to your lease so you’re not paying an early termination fee when you move.
The teaser rate trap
Here’s how it works, since it catches nearly everyone.
Comparison sites show plans at set usage tiers, usually 500, 1,000, and 2,000 kWh. That includes the state’s own Power to Choose, run by the Public Utility Commission of Texas. The ads quote whichever one looks best, which is usually 1,000 or 2,000.
A Houston one bedroom often uses 500 to 800 kWh outside the peak summer months. Some plans include a bill credit that only kicks in above 1,000 kWh, or a minimum usage charge below it. On those, your effective rate at 700 kWh can be double the advertised number.
The document that tells the truth is the Electricity Facts Label, which every REP must publish. It shows the average rate at each usage tier and lists the base charge. Read that, not the ad. Worked examples are in how Power to Choose plans actually price out.
The one number to find
Your realistic monthly kWh, then the plan’s rate at that number. Everything else on a comparison site is decoration.
Fixed or variable
Fixed rate. The energy charge is locked for the contract term. Predictable, and it typically comes with an early termination fee if you leave before the end. For a twelve month lease this is usually the simpler choice.
Variable rate. Moves month to month with the market. Can be cheaper for a stretch and can move sharply. Texas has seen that happen. Fine for a short, flexible stay. For a full year, it’s a gamble.
Match the contract length to your lease term where you can. A 12 month plan on a 15 month lease means shopping for a new plan at an awkward time.
Estimating your usage
Rough numbers for Houston, where summer air conditioning drives most of the year’s usage:
| Unit | Spring and fall | Peak summer |
|---|---|---|
| Studio / small 1BR | 400 to 600 kWh | 800 to 1,100 kWh |
| Standard 1BR | 500 to 800 kWh | 1,000 to 1,400 kWh |
| 2BR | 700 to 1,000 kWh | 1,300 to 1,800 kWh |
Older buildings with less insulation run higher. Units with a lot of west facing glass run higher. High ceilings, common in loft buildings, run higher.
Don’t forget the other setup items
Most Houston communities require renters insurance before they hand you keys. They usually set a minimum liability limit and often want the community named on the policy. And check your lease for bulk internet, RUBS water billing (the building’s water bill split across units by formula), valet trash, and pest control. Each one is a monthly cost on top of the rent.
We handle the electricity comparison and the insurance for renters we place, free. The property pays our fee after you sign.