Apartment renters in Texas get hit with traps that homeowners often avoid.
Here’s the problem: Most electricity plans are designed for average Texas homes using 1,000-1,500 kWh per month. Apartments use 400-700 kWh. That mismatch means plans with “minimum usage fees” that crush your effective rate, contracts that outlast your lease, and deposits that eat into your security funds.
The electricity industry doesn’t build plans for you. You have to know which plans work for renters—and which ones to avoid at all costs.
Do You Need to Set Up Your Own Electricity?
The first question to answer: is electricity included in your rent, or do you need your own account?
Electricity Included in Rent
Some apartments, particularly older buildings with master-metered systems, include electricity in your monthly rent. The landlord pays one electric bill for the entire building and divides costs among tenants.
Signs electricity is included:
- Your lease explicitly states utilities are included
- There’s no individual electric meter for your unit
- The apartment listing advertised “all bills paid”
You Need Your Own Account (Most Common)
Most Texas apartments have individual meters, meaning you’re responsible for setting up electricity service in your name. Your lease will specify this, often with language like “tenant responsible for utilities.”
Timeline matters: Set up service at least 3-5 days before your move-in date. Texas providers process requests within 1-2 business days, but planning ahead avoids complications.
Ratio Utility Billing (RUB)
Some complexes use ratio utility billing, where one master meter serves the building but costs are allocated to individual units based on square footage or occupancy. With RUB, you don’t choose a provider—you receive a bill from a third-party company based on your unit’s allocated share.
The downside: you pay your share of building costs without control over common area usage or inefficient neighbors.
Short-Term Leases vs. Electricity Contracts
One of the biggest challenges for apartment renters: understanding how electricity contracts work with short-term leases.
The Good News: Moving Protections
Texas law protects you when you move. If you relocate to a new address, you can cancel your electricity contract without paying an early termination fee (ETF)—even if you’re in the middle of a 24-month plan. You just need to provide your move-out date and new address.
Why Contract Length Still Matters
So why not always grab that cheap 24-month rate? A few reasons:
Your new place might not need your own meter. If you move to an apartment with ratio utility billing (RUB) or included utilities, you can’t transfer your plan—you’d need to cancel. While no ETF applies, you lose the rate you locked in.
Administrative hassle. Transferring service requires notice, coordination with your new address, and dealing with final bills. Shorter contracts mean cleaner breaks between leases.
Solutions for Short-Term Renters
Match contract to lease: Look for plans with terms matching your lease length. The per-kWh rate might be slightly higher, but you avoid ETF risk. See our guide on when your contract expires to understand the risks.
Choose month-to-month plans: Variable-rate plans have no contracts and no ETFs. The trade-off: rates fluctuate and typically run 1-2 cents higher than fixed-rate plans.
Use prepaid electricity: Prepaid plans have zero contracts and zero termination fees. Rates are higher (14-18 cents vs. 10-14 cents for traditional plans), but the flexibility has real value for uncertain housing situations.
Check ETF waiver policies: Some providers waive ETFs if you’re moving outside their service area or transferring service to a new address.
Month-to-Month Lease Strategies
If your apartment lease is month-to-month, consider starting with a month-to-month electricity plan. Accept the slightly higher rate for flexibility. If you end up staying longer, switch to a fixed-rate plan once your housing situation stabilizes.
Providers like Payless Power offer same-day activation, no credit check, and no contract—ideal for uncertain timelines.
Low-Usage Plans: Why Apartments Are Different
Apartments typically use less electricity than houses. Smaller square footage and shared walls mean lower monthly consumption—and that matters because many Texas plans penalize low usage.
Typical Apartment Usage
A 1-bedroom Texas apartment typically uses 500-800 kWh monthly. A 2-bedroom might use 700-1,100 kWh. Compare that to single-family homes averaging 1,200-1,500 kWh—apartments often use half as much.
Plans That Punish Low Usage
Watch for these structures that hurt apartment renters:
Minimum usage fees: Plans that charge $10-15 if you use less than a certain threshold (often 1,000 kWh). Your 600-kWh apartment bill suddenly includes a fee that makes the effective rate much higher.
Tiered pricing that favors high usage: A plan advertising “10 cents after 1,000 kWh” might charge 14 cents for your first 1,000 kWh—bad news if you only use 700 kWh.
Bill credits at high usage: “Use more, save more” plans offer credits when you hit usage thresholds your apartment will never reach.
How to Find Apartment-Friendly Plans
Check the Electricity Facts Label (EFL): Every Texas plan shows the average price per kWh at 500, 1,000, and 2,000 kWh. For apartments, focus on the 500 kWh column.
Look for flat-rate pricing: Plans that charge the same per-kWh rate regardless of usage treat apartment dwellers fairly.
Compare total monthly cost: A plan at 11 cents with no base charge beats a plan at 10 cents with a $10 monthly fee for a 500 kWh apartment.
Providers like Frontier Utilities, 4Change Energy, Rhythm Energy, and Discount Power offer plans without minimum usage penalties—but always verify on the current EFL.
Deposit Requirements for Renters
Moving into an apartment often means deposits for both your landlord and potentially your electricity service.
Who Pays a Deposit?
Electricity providers use credit checks to determine deposit requirements. Your credit history—not your renter status—determines whether you pay.
No deposit required if:
- You have good credit (typically 650+ score)
- You’ve maintained 12+ months of on-time payments with another Texas electric provider
Deposit required if:
- You have poor credit or no credit history
- You’ve had a utility disconnection within the past 12 months
Typical Deposit Amounts
When required, electricity deposits typically range from $100-400, calculated as 1-2 months of estimated usage. Apartments, with lower usage, generally have lower deposit requirements than houses.
How to Avoid Deposits
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Use prepaid electricity. No deposits required—you’re paying before you use power.
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Provide proof of positive payment history. A letter from a previous provider showing 12 months of on-time payments can sometimes satisfy requirements.
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Choose no-deposit providers. Some providers specialize in serving customers regardless of credit.
Getting Your Deposit Back
Texas regulations require providers to return deposits (with interest) after 12 consecutive months of on-time payments. When you cancel service, your deposit applies to your final bill, with any remaining balance refunded.
What Happens When You Move Out
Moving out requires closing your electricity account properly. Mishandle this and you could pay for electricity you didn’t use.
Timing Your Service End Date
Set your electricity service to end on your actual move-out date—not your lease end date if different. Don’t end service too early; you don’t want to spend moving day without lights or AC.
The Move-Out Process
Contact your provider 3-5 days before moving. Schedule your disconnection and provide a forwarding address for your final bill.
Final bill timing: Expect your final bill within 2-3 weeks, covering usage from your last billing date through your move-out date, minus your deposit if applicable.
Document your final meter reading. Take a photo on move-out day in case of disputes.
Breaking Your Lease Early
Breaking your apartment lease early often means breaking your electricity contract too. If your electricity contract extends beyond your move-out date, you’ll owe the ETF.
Mitigation strategies:
- Transfer service to your new address if staying with the same provider
- Check if your provider waives ETFs for customers moving outside their coverage area
Avoid Common Mistakes
Don’t assume the landlord handles it. If no one sets up new service after you leave, the power could be disconnected, creating problems for everyone.
Update your address. An unpaid final bill can go to collections and damage your credit—all for a bill that never reached you.
Roommate Situations
When multiple people share an apartment, only one person’s name goes on the electricity account. That person is legally responsible for the full bill.
Best practices:
- The most creditworthy roommate should sign up (lower deposit risk)
- Establish clear agreements about bill splitting before signing
- If a roommate leaves, the account holder remains responsible
Finding the Best Plan for Your Apartment
Ready to shop? Here’s your checklist:
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Know your expected usage. Use 500-800 kWh for a 1-bedroom, 700-1,100 kWh for a 2-bedroom as starting estimates.
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Know your lease term. Match your electricity contract length to your lease.
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Check your credit. This determines deposit requirements. If credit is an issue, consider prepaid.
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Compare at your usage level. Look at the 500 kWh column in the EFL, not just the advertised rate.
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Watch for minimum usage fees. Read plan details for charges that apply when usage falls below a threshold.
When you’re ready to compare plans, visit ComparePower to see current rates filtered by your usage level and contract preferences.
The Bottom Line
Apartment electricity in Texas isn’t one-size-fits-all. Your ideal plan depends on your lease length, credit situation, typical usage, and how long you expect to stay.
Key takeaways:
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Confirm whether you need your own account before assuming you’re responsible for electricity.
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Match contract terms to lease terms to avoid early termination fees when you move.
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Shop for low-usage-friendly plans that don’t penalize apartment-sized consumption.
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Understand deposit requirements and explore no-deposit or prepaid options if credit is an issue.
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Plan your move-out carefully to avoid paying for electricity you don’t use.
Texas’s deregulated electricity market gives you more choices than renters in most states. A little research before signing up saves money every month you live in your apartment.
Related Resources
- Prepaid vs Traditional Electricity - Compare payment options
- How to Switch Electricity Providers - Step-by-step guide
- Understanding Your Electricity Bill - Know what you’re paying for