Why Texas makes you choose your electricity company (and how to do it calmly)

In Brazil, electricity usually feels like a simple local utility question. You move into a home, there is one distribuidora for that region, and the path is mostly about transferring or starting service with that company. In many parts of Texas, especially across much of Dallas–Fort Worth, the structure can feel strange at first because the market is open to retail choice.

The calm version: the company that owns the poles, wires and meter is not always the company that sells you the electricity plan. In competitive areas, the delivery company stays tied to the address, while you choose a Retail Electric Provider, usually called an REP.

You are not choosing who repairs a power line after a storm. You are choosing the retail contract: price, contract length, fees and billing relationship.

The Brazilian mental model does not quite fit

For a Brazilian family, the instinct is to ask, “Who is the electricity company for this city?” In Texas, ask first: “Is this address in a competitive electric choice area?”

If it is, you will usually shop for a plan from an REP. That REP is the company whose name appears on your bill. The Transmission and Distribution Utility, or TDU, still delivers power and maintains the physical infrastructure. In many DFW addresses, that TDU is Oncor, but you should confirm by address because service territories do not follow the emotional map people have in their heads.

Changing REP changes the retail plan and biller, not the wires.

This belongs next to housing, documents and school logistics. If you are organising the first month, read it with the broader first 30 days paperwork sequence, because utilities are part of making the house actually work.

Some DFW cities are different

Not every North Texas address is in a competitive retail electricity market. Some cities and areas are served by a municipal utility or electric cooperative, so you may not choose from a list of REPs.

Two concrete DFW-area examples are Denton and Garland. Denton Municipal Electric says it is not participating in retail deregulation. Garland’s city information says Garland Power & Light is the sole electric provider for approximately 85% of Garland, while some addresses outside GP&L service may choose another provider.

So the practical rule is simple: never assume based only on the city name. Use the exact address. One family may compare REP plans; another may call a municipal utility. Neither is doing it wrong.

Power to Choose is the official starting point

For competitive areas, the state’s official comparison site is Power to Choose, provided by the Public Utility Commission of Texas. It helps Texans compare plans and filter by location, usage, plan type, contract length and other preferences.

As you compare plans, try not to shop only by the lowest number on the screen. The cheapest advertised rate can depend on a very specific usage pattern. A plan that looks wonderful at one monthly usage level may be less attractive when your air conditioning runs heavily in July or August.

Power to Choose’s guide tells consumers to estimate average monthly usage and remember that electric use follows seasonal patterns, with higher consumption in months such as August and February. For a Brazilian family new to Texas, that summer air-conditioning load can change the bill more than expected.

Read the Electricity Facts Label slowly

The Electricity Facts Label, often called the EFL, is the document to read before enrolling. The Public Utility Commission describes it as similar to a nutrition label for electricity: a standardised way to compare prices and contract terms.

The EFL is where you look for the details that matter:

• the average price at different usage levels;
• the base charge and energy charge;
• delivery charges from the TDU;
• contract length;
• whether the plan is fixed, variable, indexed, prepaid or time-of-use;
• any early termination fee;
• renewable content;
• bill credits, minimum usage rules or tiered pricing.

For many families, the most useful habit is to compare how the plan behaves around 1,000 kWh and 2,000 kWh, not just at the lowest usage example. A smaller apartment may stay lower. A larger house, a pool, poor insulation or a very hot month can push usage up.

Be especially careful with bill credits. Some plans look attractive because they give a credit only after you cross a certain usage threshold, or only within a narrow band. If your usage falls just outside that band, the effective price can change.

Fixed, variable, prepaid and time-of-use plans

The Public Utility Commission explains several common plan types. A fixed-rate plan keeps the REP’s price per kWh stable during the contract period, although certain delivery, ERCOT, regulatory or legal charges can still change.

A variable-rate plan is month to month. It usually has no cancellation fee, but the price can change from month to month at the provider’s discretion. That flexibility can be useful in some situations, but it may feel stressful when a family is already learning a new country, new expenses and a new house.

Prepaid service works more like paying in advance. The PUCT notes that prepaid service may require upfront payment and should be reviewed carefully. Some newcomers consider prepaid options when credit history is limited, but it is still important to understand notifications, balances and how service can be interrupted.

Time-of-use plans price electricity differently by time or day. They can help if your family can shift usage to lower-cost hours. If your routine does not match the plan, the bill may not improve.

Deposits and credit history

Without a U.S. credit history or Social Security number, some REPs may ask for a deposit or suggest a prepaid plan. This does not automatically mean something is wrong. It often means the provider cannot evaluate your local credit profile.

Texas customer protection rules allow REPs to require satisfactory credit as a condition of service, and if that cannot be established, a deposit may be required. The rules also recognise prior satisfactory electric service history. Some families ask a previous utility for a letter showing good payment history and ask the Texas provider whether it can be considered.

Because every provider has its own process, ask direct questions before enrolling: What deposit is required? When can it be refunded? Is there an alternative with a prior utility reference? Is there another identity process?

This is general information, not legal, tax or immigration advice. Confirm current requirements directly with the provider and the official PUCT resources before making a decision.

Set it up before move-in day

Electricity is not something to leave for the morning you receive the keys. In a competitive area, choose the REP and schedule the start date before move-in so the power is on when the family arrives. That matters for air conditioning, the refrigerator, internet installation, phone charging and simply feeling safe.

Ask the landlord, apartment office, builder or seller what date service needs to be in your name. A lease or move-in note may say whether proof is required before keys are released.

Water, sewer and trash are different. In many DFW cities, water and sanitation are handled through city departments or city utility billing, not through the electricity REP. Internet is separate again, usually with private providers available by address. Your setup list may look like this:

• electricity, through an REP or local utility depending on the address;
• water, sewer and trash, often through the city;
• internet, through an available provider for that exact address;
• gas, only if the home uses natural gas.

This is why settling in is a sequence. Once electricity and heating or cooling are working, you can think ahead to seasonal routines, including your first Texas winter and the heat-and-AC adjustment many families notice in their first impressions of Texas.

Choose calmly, not perfectly

The goal is not to become an energy-market expert in your first week in Texas. The goal is to avoid common surprises: assuming there is only one company, choosing only by the advertised price, missing a bill credit condition, forgetting the early termination fee or waiting too long to start service.

If you feel overwhelmed, slow the decision down into a few questions. Is this address in a competitive area? Who is the TDU or local utility? What is the contract length? What happens at higher summer usage? Is there a deposit? What fee applies if you cancel early?

Once those questions are clear, the process becomes manageable. You are not failing because this feels unfamiliar. The system is simply different from Brazil, and it has its own vocabulary.

Alora helps families place this kind of decision in the right order, alongside housing, documents, school, bank accounts and the first practical routines. With a calm checklist and address-specific information, electricity becomes one more settled piece of the home you are building in Dallas–Fort Worth.