Does your apartment electricity bill shock you each month? If you’re wondering how to save money on electric bill, you’re not alone. The average electric bill for 1 bedroom apartment in Texas ranges from $105 to $120, while the average electric bill for 2 bedroom apartment hovers around $130. Your bill can skyrocket if you overuse heating or cooling systems, which might push your electricity consumption to 2,000 kWh monthly.
The good news is that simple changes can substantially reduce your apartment’s electric bill costs. LED light bulbs alone will save you over $200 per year, since lighting accounts for 15% of your apartment’s power usage. You can save up to $200 yearly by unplugging unused appliances that drain “phantom power.” Using cold water to wash clothes will cut your costs by about $60 every year.
You’ll find how Texas electricity companies work in this piece. We’ll cover plan options, practical ways to lower electric bill in apartment, and methods to set up service without deposits if you have good credit. These strategies will help you control your energy costs, whether your average apartment electric bill seems too high or you just want to save money on utilities in an apartment. Understanding how much are utilities for an apartment can help you budget effectively and make informed decisions about your energy usage.
How electricity companies work in Texas
Texas runs a unique electricity system that affects your monthly apartment electricity bills. Smart choices about this system could save you hundreds of dollars each year on your average electric bill.
Deregulated vs. regulated markets
The Texas electricity market went through major changes in 2002 when Senate Bill 7 came into effect. This bill created a deregulated market for 85% of Texas power consumers . A single utility company used to control everything – from making electricity to selling it to customers.
The new deregulated system split these functions into three parts:
- Generation companies produce electricity
- Transmission and distribution utilities maintain the power grid
- Retail Electric Providers (REPs) sell electricity to consumers
Major cities like Houston, Dallas, Fort Worth, Plano, and Corpus Christi now operate in deregulated markets . All the same, about 15% of Texas stays regulated, where cooperatives and municipal utilities provide service .
How to choose an apartment electricity provider
Apartment residents in deregulated areas can pick from nearly 300 different utility providers . These providers offer several plan types:[3]
- Fixed-rate plans: Give price stability but might have higher original rates
- Variable-rate plans: Might offer lower rates but come with price fluctuation risks
- Indexed plans: Rates that link to publicly available indices
It’s worth mentioning that your electricity contract term doesn’t need to match your apartment lease term . Your electricity provider can’t charge an early termination fee if you move and show proof of address change.
The electricity company your apartment manager suggests might not be your best choice. These suggestions often come from deals between apartment complexes and power companies. The prices are usually higher than what you’ll find by looking around.
What is a TDSP and how it affects your bill
The Transmission and Distribution Service Provider (TDSP) or Transmission and Distribution Utility (TDU) owns and maintains the physical infrastructure. They take care of poles, wires, and meters that bring electricity to your apartment.
Your electric bill has two main parts:
- Energy charges: Based on your contract with your chosen REP
- Delivery charges: Set by your local TDSP and approved by the Public Utility Commission of Texas
These delivery charges usually have a fixed monthly fee plus a charge that changes with usage . Your REP shows these charges on your bill but doesn’t add any markup.
Texas has five main TDSPs: Oncor Electric Delivery, CenterPoint Energy, AEP Texas Central, AEP Texas North, and Texas-New Mexico Power . Whatever electricity provider you pick, your TDSP charges stay the same.
Understanding Ambit Energy plans and rates
Your apartment electricity bill can change dramatically based on the Ambit Energy plan you pick. Dallas-based Ambit Energy has offered electricity plans since 2006. These plans match different usage patterns and budgets. Understanding how much is electricity per month in an apartment can help you choose the right plan for your needs.
Fixed-rate vs. variable-rate plans
Ambit Energy gives you two main choices: fixed-rate and variable-rate plans. Fixed-rate plans let you know exactly what you’ll pay since “the energy price will not change during the term of the agreement” . You’ll need to stick with these plans through the contract period (12-36 months). Breaking the contract costs you – $199 for 12-month plans and $299 for 36-month plans.
The Lone Star Flex variable-rate plan gives you more freedom with month-to-month terms and zero cancelation fees. The catch is that “the energy price may change month over month in response to market conditions” . These plans work best if you need power temporarily, like during apartment renovations or short stays.
Ambit Energy plan comparison table
| Plan Type | Best For | Contract Length | Key Features |
| Lone Star Classic | Stability seekers | 12-24 months | Consistent rate regardless of usage |
| Free & Clear Nights | Night-time users | 12 months | Free electricity 9PM-6AM |
| Secure Savings | High-usage customers | 12-24 months | Lower fixed rates for usage over 1,000 kWh |
| Lone Star Flex | Short-term needs | Month-to-month | No commitment, variable rates |
| Summer Break | Summer-heavy users | 12-24 months | 50% discount during summer months |
How to estimate your monthly cost
Your consumption patterns play a significant role in calculating your monthly apartment electricity bill. Texas homes typically use about 1,174 kWh monthly . Ambit’s rate structure uses different rates for usage “buckets” or tiers.
Ambit’s Average Monthly Billing option helps smooth out your bills throughout the year. This option “takes the average of your last 12 months of usage to calculate your average monthly bill amount” . Your summer and winter peaks even out, though your actual usage charges stay the same.
The Electricity Facts Label (EFL) works like a “nutrition label” for energy plans . Look at it carefully before picking a plan. You’ll find pricing details for different usage levels (500, 1,000, and 2,000 kWh), contract terms, and fees that affect your total cost.
Tips to lower your electric bill in apartment
Want to cut your monthly expenses? Your apartment’s energy costs can drop with some smart energy-saving habits. Here are proven ways to reduce electric bill and keep more cash in your pocket. Learning how to lower electric bill in apartment can lead to significant savings over time.
Use smart thermostats and fans
Smart thermostats have become a game-changer for apartment living. They reduce heating and cooling costs by 10-15% and make your home more comfortable . The average American household spends nearly $900 yearly on heating and cooling—almost half their annual energy bill . These devices are worth the investment with features like smartphone control, geofencing that knows when you’re away, and the ability to learn your priorities.
On top of that, ceiling fans can improve comfort without running your AC constantly—note that fans should run clockwise in winter and counterclockwise in summer.
Switch to LED lighting
Your home’s lighting takes up about 15% of electricity use . LED light bulbs can save you around $225 in energy costs each year . Yes, it is true that LEDs use nowhere near the energy of regular bulbs—75% less—and last 25 times longer than incandescent lights . By 2035, widespread LED use could save 569 TWh yearly.
Unplug devices and use power strips
“Energy vampires” quietly drain your money. You can save 10% on monthly bills by unplugging unused appliances, according to the Department of Energy . Cable boxes, gaming consoles, TVs, microwaves, and phone chargers are the biggest culprits . Smart power strips are a great way to get around this by cutting power to devices you’re not using.
Seal windows and doors
Leaky windows and doors waste both energy and money. Simple fixes like caulking and weather-stripping pay for themselves within a year . Check for drafts or light coming through door bottoms—a door sweep can make a big difference . Proper insulation is key to energy efficiency in both 1-bedroom apartment and 2-bedroom apartment settings.
Use cold water for laundry and dishes
Heating water uses 75-90% of your washing machine’s energy . Cold water washing cuts energy use while keeping clothes from shrinking or fading . Skip pre-rinsing dishes with hot water—it wastes energy.
Adjust thermostat settings seasonally
Keep your thermostat at 68°F when you’re home during winter and 60-65°F while sleeping or away . Summer settings should be 75-78°F when you’re home and 80°F when you’re out . The Department of Energy says you can cut heating and cooling costs by 10% if you adjust your thermostat 7-10 degrees for eight hours daily . This is one of the most effective ways to save money on utilities in an apartment.
How to set up electricity in your apartment
Setting up electricity service at your new apartment needs planning ahead. You’ll want power when you move in. Most property managers won’t give you the keys without proof of electricity service . Understanding how do utilities work in apartments is crucial for a smooth move-in process.
Steps to connect electricity service
You should check your lease agreement or talk to your property manager to see if utilities are part of your rent . If you’re paying for electricity:
- Research providers serving your area (in deregulated markets)
- Compare rates and plans from different companies
- Contact your chosen provider at least three weeks before moving
- Schedule a connection date (typically your move-in day)
- Receive confirmation email with account details
Most companies can set up same-day connections Monday through Saturday if you ask before 5:00 p.m., weather permitting . You should plan ahead since weekend or end-of-month periods are usually busier.
What documents you need
To set up apartment electricity service, you’ll need:
- Full name and contact information
- Complete apartment address (including unit number)
- Desired service start date
- Social Security number (for credit check purposes)
- Proof of occupancy (typically your lease agreement)
- Valid government-issued photo ID
Setting up service online is simple now. Once your account is ready, you’ll get confirmation documents to show your property manager.
No-deposit options for good credit customers
Electricity deposits usually cost between $100-$300, which adds to your moving expenses. The good news is that providers often waive this for customers with good credit . You can avoid deposits through:
- Credit-based exemptions (providers automatically waive deposits for customers with good credit scores)
- Letter of credit from previous utility showing no more than one late payment in the past year
- Prepaid electricity plans that just need $40 to start service
- Special exemptions for seniors (over 65), military members, or those with certain medical conditions
Note that no-deposit plans might have higher rates than standard fixed-rate options.
Conclusion
Take Control of Your Apartment Electricity Costs Today
You need awareness and action to manage your apartment’s electricity costs effectively. Texas residents can choose from hundreds of providers thanks to deregulation, instead of being stuck with monopoly pricing. Ambit Energy’s plans cater to different usage patterns that match your lifestyle needs.
Simple home adjustments can lead to big savings. LED lighting alone saves about $225 every year. You can cut another 10% from your bill by unplugging devices you don’t use. Your bills will drop when you adjust your thermostat with the seasons and wash clothes in cold water. These changes won’t affect your comfort level at all.
You should plan ahead to set up your new service smoothly. Reach out to providers at least three weeks before you move and get your paperwork ready. A good credit score is valuable and could help you avoid paying deposits between $100-$300.
Lower electricity bills come from smart choices about providers and plans combined with energy-efficient habits. These small changes can save you hundreds of dollars each year. Compare plans and use these energy-saving tips to see your electricity costs drop every month. Your wallet will thank you.
FAQs
Q1. How can I reduce my apartment’s electricity bill? You can lower your electricity bill by using smart thermostats, switching to LED lighting, unplugging devices when not in use, sealing windows and doors, using cold water for laundry and dishes, and adjusting thermostat settings seasonally. These simple changes can lead to significant savings over time.
Q2. What’s the difference between fixed-rate and variable-rate electricity plans? Fixed-rate plans offer a consistent price for electricity throughout the contract term, providing stability and predictability. Variable-rate plans, on the other hand, have prices that can change monthly based on market conditions. They offer more flexibility but come with the risk of price fluctuations.
Q3. Do I need to pay a deposit to set up electricity in my apartment? Not necessarily. If you have good credit, many providers offer no-deposit options. Some alternatives include credit-based exemptions, letters of credit from previous utilities, prepaid electricity plans, or special exemptions for seniors, military members, or those with certain medical conditions.
Q4. How does deregulation affect my electricity options in Texas? Deregulation in Texas allows most consumers to choose from nearly 300 different electricity providers, offering various plan types and rates. This competition can lead to better prices and more tailored options for consumers, unlike in regulated markets where a single utility controls all aspects of electricity service.
Q5. What are utilities in an apartment? Apartment utilities typically include electricity, water, gas, internet, and sometimes trash collection. The specific utilities included can vary depending on your lease agreement and the apartment complex. It’s important to clarify which utilities are your responsibility when signing a lease.
Q6. Do you pay water bills in apartments? Whether you pay water bills in apartments depends on your specific lease agreement. Some apartments include water in the rent, while others require tenants to pay for water separately. Always check your lease or ask your landlord about water bill responsibility.
Q7. What is the average utility bill for 1-bedroom apartment? The average utility bill for a 1-bedroom apartment can vary widely depending on location, energy usage, and included utilities. However, you can expect to pay anywhere from $100 to $200 per month for all utilities combined. Energy-saving features and personal habits can significantly impact this amount.
Q8. Which bill usually accounts for the largest part of your monthly utility bill? In most cases, electricity or heating/cooling (which may be electric or gas) accounts for the largest part of your monthly utility bill. This is why focusing on energy efficiency and smart usage of your HVAC system can lead to substantial savings on your overall utility expenses.
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