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Moving to Texas? Welcome. Now read this before you turn on the lights.

Wide panorama of the downtown Austin, Texas skyline against a bright blue sky — high-rise office towers and the Texas Capitol dome visible in the distance.

You probably came for the no income tax, the BBQ, and the sunshine. You stayed because Tuesday is 78° in February. Then July hit and your power bill came in at $340. Here’s what nobody told you about utilities in Texas — in the order it’ll matter.

Quick survival kit: Your electricity is on a free market — pick wrong and you overpay all summer. July–August bills can double, December–February gas bills creep up, and spring/fall are the cheap months. You can usually transfer your contract to a new TX address. The ice storms are real and rare. Welcome.
The Lone Star Flag of Texas — single white five-pointed star on a vertical blue band, with horizontal white and red stripes.
Welcome to the Lone Star State. The flag is everywhere. So is the state pride. Get used to both.

Thing #1: You actually pick your electric company

About 85% of Texans live in a deregulated electricity market — one of the only places in America where this is true. Translation: the wires are owned by a transmission utility (Oncor in Dallas/Fort Worth, CenterPoint in Houston, AEP in much of South/West Texas, TNMP in pockets), but the actual electricity is sold to you by a retail electric provider (REP). There are dozens of REPs. They compete. You shop. The same wires deliver the power either way.

This is great if you know what you’re doing and a slow-motion mugging if you don’t. Apartments and HOAs often push a “preferred” provider that pays them a kickback — you are not required to use them. Pick your own. We have a whole guide on reading a Texas EFL so the marketing-page lies don’t cost you $40 a month.

A massive Texas Longhorn steer with sweeping curved horns standing in a sun-bleached pasture near Rocksprings, Texas.
The Longhorn isn’t just on UT shirts. They’re still on the ranches. Drive far enough out of any TX city and you’ll see one staring at you over a fence.

Thing #2: The summer bill spike is not a myth

Here’s the seasonal cheat sheet:

  • July–August: peak electric bills. Air conditioning runs nearly 24/7. Bills can double or triple versus spring. Budget for it.
  • December–February: gas bill creeps up. The furnace runs more, the water heater works harder against cold incoming water. If your home is all-electric (about 35% of new TX builds), your January electric bill jumps too.
  • March–May and September–November: the cheap months. Open the windows. This is when you make up the budget you blew in July.

The trick: don’t pick a plan based on what you’d use in March. Pick it based on what you’ll use in July. A plan that’s amazing at 800 kWh and a punishing ripoff at 2,000 kWh exists, and it’s usually the one being marketed at you.

Thing #3: Yes, you can usually move your electricity contract

New Texans coming from utility-choice-impaired states (looking at you, California) often assume signing an electricity contract is a 12- or 24-month prison sentence. Mostly it’s not. If your new address is in the same transmission territory as your old one — say, Dallas to Plano, both Oncor — nearly every REP transfers your service in five minutes online. Same account, same plan, new address.

Cross-territory move (Dallas to Houston, Oncor to CenterPoint)? Different story: you have to close the contract and start fresh. The good news is most REPs waive the early termination fee when the move is outside their service area. We cover the whole transfer-vs-shop math in our transfer guide.

A vast field of Texas bluebonnets in bloom across rolling Hill Country near Burnet — bright blue wildflowers stretching to a tree line under partly cloudy skies.
Spring in the Hill Country. The bluebonnets bloom for about three weeks in March/April. Your power bill spends those three weeks at its annual minimum. Enjoy it — July is coming.

Thing #4: The ice storms are real, rare, and consequential

February 2021 happened. The grid froze, wholesale prices went vertical, variable-rate customers got bills in the thousands, and the state passed a stack of laws to make sure it doesn’t repeat at that scale. The takeaway is simple and forever: do not pick a variable-rate plan. Choose a 12-month or 24-month fixed-rate plan. The peace of mind is free.

Thing #5: Property taxes are the hidden cost of “no income tax”

Not a utility — but it touches everything else. If you’re a homeowner, file your homestead exemption within the first year. It can shave 20% off your tax bill. Some appraisal districts let you do it the day you close. Your future self will high-five you.

A working cowboy on horseback silhouetted against a fiery orange Texas sunset, hat tipped low, lasso coiled at the saddle.
Yes, real cowboys still exist. No, most of them don’t live in Austin. The boots and hats you’ll see downtown are mostly fashion; the ones at the feed store are working clothes.

Thing #6: Water is the city, gas is a private company, and trash depends on the wind

Water and sewer are run by your city — sometimes you literally have to walk into city hall to set them up. Gas (if your house has gas appliances; about a third of new builds don’t) is run by Atmos or CenterPoint or another regional utility, and they require a tech to come out and light pilots. Trash is bundled with water in cities and a private hauler in rural areas. None of these are deregulated — you take what your address gets.

Thing #7: Internet at your address ≠ internet at your ZIP

Same ZIP, different blocks — one has fiber, one has DSL only. Don’t trust ZIP-level coverage maps. We cover this in detail in how to set up internet when moving.

A loaded plate of central-Texas BBQ — sliced brisket with a thick smoke ring, glistening pork ribs, pulled pork, beans and pickled jalapeños from Pinkerton’s in San Antonio.
Texas BBQ is religion. You’ll learn the difference between Central, East, South, and West Texas styles within your first year. (Central wins. Don’t @ us.)

Thing #8: You will be asked for your SSN. A lot.

Every utility, every REP, every internet company. Texas is no exception — and because the market is fragmented, you may end up giving your SSN to four or five companies inside a week. That is the highest identity-theft window most adults ever experience. Freeze your credit before you start (it’s free), thaw it briefly for the soft pulls, and refreeze. Or read our identity theft guide. Or hand the whole thing to us — Utilify never stores your SSN, ever.

The cheat-sheet, one more time

  • Electricity: shop, pick fixed-rate 12 or 24 month, avoid variable forever.
  • Summer: budget double for July–August.
  • Transfers: usually free within the same TDSP territory.
  • Property tax: file your homestead exemption immediately.
  • Water/gas/trash: not deregulated; whatever your address gets is what you get.
  • Internet: check at your exact address, not ZIP.
  • SSN: freeze your credit before you start.

Frequently asked questions

Can I choose my electricity company in Texas?

Yes. About 85% of Texans live in deregulated areas where you choose your retail electric provider. The transmission utility delivers the power regardless of who you buy from.

Are Texas electric bills higher in summer or winter?

Summer. AC runs nonstop June–September. Bills routinely double versus spring. Budget for July and August, not January.

Can I transfer my Texas electricity contract to a new address?

Yes if both addresses are in the same transmission territory (Oncor, CenterPoint, AEP, or TNMP). Cross-territory moves usually let you cancel without an early-termination fee.

Should I pick a fixed-rate or variable-rate plan in Texas?

Fixed. Always. February 2021 produced bills in the thousands for variable-rate customers. Choose 12-month or 24-month fixed.

Deeper Texas-utility guides

Want more than the survival kit? These cover the parts every competitor guide skims past — written for new Texans who actually need to set up the bills.

Images via Wikimedia Commons (Texas flag, public domain; Longhorn cattle near Rocksprings, public domain; Texas Hill Country bluebonnets, U.S. Library of Congress; Sunset Cowboy by Mark Spearman, CC BY 2.0; Pinkerton’s BBQ, CC BY-SA 4.0; Austin skyline, CC BY-SA 4.0).

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