Start Electricity Service in Texas: New Customer Setup Guide

Unlike most states where you call a single utility company, Texas operates a deregulated electricity market.

About 85% of Texas is served by ERCOT, where you choose your own Retail Electric Provider (REP) from over 100 competing companies.

How it works:

This competition means more choices and potentially lower rates—but requires you to actively shop and select a provider rather than simply calling "the power company."

Gather these items before shopping:

- Your new address (exact as it appears on lease or closing documents)
- Social Security Number or Tax ID for credit verification
- Valid government-issued ID
- Move-in date
- Estimated monthly usage if known

Why usage matters: Texas rates vary by consumption level.

The same plan can cost 50% more at low usage due to minimum usage fees.

Moving from another Texas address? Find your historical usage through Smart Meter Texas.

Step 1: Enter your ZIP code on Power to Choose (powertochoose.org)

This shows all available plans with standardized pricing at 500, 1,000, and 2,000 kWh.

Step 2: Filter by your preferences:
- Term length (month-to-month to 36 months)
- Rate type (fixed, variable, or indexed)
- Renewable energy percentage

Step 3: Read the Electricity Facts Label (EFL) carefully

The EFL reveals:
- Hidden fees
- Minimum usage requirements
- Exactly how your rate is calculated

Quick tips:
- Under 1,000 kWh usage: Look for plans with no monthly base charge
- Higher usage: Tiered plans may reward more consumption

Once you select a plan, enrollment typically takes 10-15 minutes online.

You'll provide:
- Personal information for credit check
- Service address
- Preferred start date
- Payment setup

Autopay tip: Most REPs offer discounts of 5-10 cents per kWh for autopay enrollment.

For new construction (premises that never had service): Contact your TDU first to establish the meter.

For existing addresses: Your REP coordinates with the TDU automatically.

After enrollment:
1. Receive confirmation within minutes
2. Your TDU schedules meter activation
3. Keep your confirmation number—you'll need it if questions arise

With smart meters installed at most Texas addresses, electricity can be activated remotely—often within hours.

Activation timelines:

Important: Same-day service is not available on Sundays or major holidays. Plan ahead if your move-in falls on these days.

Texas REPs typically run a soft credit check during enrollment.

Credit scenarios:

Ways to avoid deposits:
- Letter of credit from previous utility (12 months good payment history)
- Military members at participating REPs
- Seniors over 65 at participating REPs
- Landlord reference letter at some providers

Prepaid electricity requires no credit check—you pay upfront and add funds as needed.

❌ Mistake 1: Waiting until move-in day
Start shopping at least a week before your move.

❌ Mistake 2: Choosing on advertised rate alone
Always read the EFL—promotional rates often require specific usage levels.

❌ Mistake 3: Ignoring contract terms
Understand the cancellation fee before signing.

❌ Mistake 4: Forgetting to cancel old service
Many people pay for electricity at two locations. Cancel your old address when you move.

❌ Mistake 5: Missing the "move with us" option
If transferring within Texas, your current provider may waive early termination fees.

❌ Mistake 6: Forgetting contract expiration
Set a calendar reminder 30 days before your contract expires to avoid expensive month-to-month rollover rates.

Within 24 hours of enrollment, you'll receive a welcome packet (email or mail) with:
- Contract terms
- Account number
- Payment options

Set up immediately:
1. Download your REP's app to monitor usage and pay bills
2. Register on Smart Meter Texas (smartmetertexas.com) to track daily consumption
3. Set up autopay and paperless billing to maximize discounts

Your first bill may be prorated based on your start date.

Power not on by scheduled date?
Contact your REP first—they coordinate with the TDU.

For outages: Keep your TDU's emergency number handy. They handle physical infrastructure, not your REP.