In deregulated cities like Dallas, electricity is not automatically bundled with your home purchase. Buyers must choose their own provider and that decision can impact long-term costs. Here are five practical tips to simplify the process and avoid common mistakes.
1. Know How Deregulation Works in Dallas
Texas has one of the largest deregulated electricity markets in the U.S., and Dallas is part of it. This means new homeowners aren’t automatically assigned a utility provider. Instead, they must choose from dozens of Retail Electric Providers (REPs).
Plans vary widely by provider, contract length, usage requirements, and fees. Choosing without research can result in costly surprises. According to the U.S. Energy Information Administration, the average residential electricity rate in Texas was 16.00 cents per kilowatt-hour as of 2023, but actual costs depend heavily on the fine print.
If you’re buying a home with solar or a smart thermostat, check whether your electricity plan includes net metering, if applicable. Not all REPs offer credits for surplus solar energy, and policies vary widely.
2. Use Transparent Comparison Tools
Avoid relying on broker-backed comparison sites that prioritize commission-based plans. Instead, use tools that break down actual monthly bill estimates, delivery charges, and usage tiers.
One example is Gatby, a free electricity marketplace built specifically for Texas. It allows users to compare providers without creating an account and focuses on real costs rather than teaser rates.
We also recommend checking the Power to Choose website, operated by the Public Utility Commission of Texas, for a neutral view of available plans. While the interface isn’t flashy, it’s an official resource that lets you filter by contract length, pricing type, and customer reviews.
3. Set Up Utilities Before Move-In
Schedule service activation at least 48 hours before your move. While same-day setups are sometimes possible, delays are common during peak moving periods.
To avoid issues, select a service start date one day before your official move-in. This ensures power is on when you arrive and prevents disruptions during unloading or setup.
Don’t forget to confirm if your new home’s breaker box or smart meter needs resetting after service activation—especially if the home was vacant. Property inspectors often leave systems off, which can cause confusion when utilities are first turned on.
4. Review Contract Details Carefully
Many electricity plans offer perks like “free nights and weekends,” but often with trade-offs, such as elevated daytime rates, variable pricing, or long-term commitments.
Key things to verify:
- Are there early termination fees?
- Does the plan include tiered pricing based on usage?
- Is there a minimum usage penalty that could affect smaller households?
- If you’re planning to move again soon, look for a month-to-month or short-term plan with no cancellation fee.
For investment properties or short-term rentals, consider fixed-rate plans that offer price stability across peak seasons. This makes budgeting easier, especially during high-consumption months like July and August, when cooling costs in Dallas can surge.
5. Automate Plan Renewals to Avoid Price Spikes
Electricity rates in Texas fluctuate with market demand. When your promotional rate expires, many providers roll customers into higher variable-rate plans.
Some marketplaces, offer “Autopilot” features that automatically re-shop your contract and notify you before your rate expires. This can help you avoid overpaying and eliminate the hassle of manually tracking contract terms.
You can also set calendar reminders 45 to 60 days before your plan ends, giving yourself time to evaluate new offers and switch if needed. For multi-property owners, consider creating a spreadsheet to track start dates, renewal deadlines, and REP contact info.
Final Thoughts
Dallas homeowners need to make an active choice about their electricity plan. By understanding how deregulation works, using transparent comparison tools, and planning ahead, you can avoid costly surprises and streamline your utility setup. It only takes a few hours to compare plans, but the savings can last for years.
For more tips on Dallas homeownership, check out this helpful guide to staying safe with electricity.
Author Bio:
Cate Burrow is a Growth Associate at Gatby, a Texas-based electricity marketplace helping renters and homeowners compare providers and save on their monthly bills. Originally from Houston and a graduate of the University of Texas, Cate works directly with real estate professionals, property managers, and affiliate partners across the state to improve the electricity setup experience for new movers. At Gatby, she leads initiatives related to social media, affiliate outreach, paid advertising, and enterprise sales.
Cate’s expertise lies in helping consumers and housing professionals navigate Texas’ deregulated electricity market—ensuring that residents don’t fall into high-cost or unclear plans. She regularly collaborates with real estate professionals through Gatby’s affiliate program, offering them a no-cost way to support their clients while earning additional income for each successful electricity enrollment.
With a deep understanding of the moving experience, Cate frequently contributes educational content focused on reducing friction for buyers and renters when it comes to utilities. Her mission is to make energy shopping simpler, more transparent, and financially beneficial for all parties involved.
You can connect with Cate on LinkedIn.
