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Moving to Austin? How to Switch Electric and Gas Utilities

by | Mar 21, 2022 | Educational, Featured, Guide, Moving Guides

Austin is the capital of Texas and lies slap-bang in the middle of the Lone Star State.

Austin is a big city, with a population of just under 1 million in 2020, making it one of the state’s major cities. However, Houston, San Antonio, and Dallas have far more residents.

But what it lacks in numbers, it makes up for in personality. Austinites will tell you that they love to “keep Austin weird.” So let’s take a look at the kooky and the practical elements that make this central Texas city such an attractive place for your new home.

Why Moving to Austin Is a Great Idea

The city of Austin, divided in two by the Colorado River, offers a wonderful blend of live music, food, nightlife, and outdoor activities.

Movers take note — the weather is excellent, with an average of 229 sunny days to enjoy every year. Even the winter months are mild, and you can enjoy an active outdoor lifestyle in the Austin area all year round.

Real estate is slightly above the national average by 2%, but overall, Austinites enjoy lower living costs than the U.S. average. Much of this saving comes from more affordable groceries and energy bills.

At Amigo Energy, electricity is our specialty, which is why we’ll focus on switching utilities before exploring the many amazing benefits of moving to Austin.

How Do Utilities Work in Austin, Texas?

Austin has a special relationship with energy. Texas has a deregulated energy market, which means different things in different areas.

For electricity, some 85% of Texan residents enjoy deregulation and choose their electricity supplier. Austin has a mix of private and public electricity suppliers.

If you’re moving to Austin or anywhere in Texas, you can check if you have a deregulated ZIP code by searching with the Powertochoose.org electric plan finder (more on this later). If the website shows you various price plans, you live in a deregulated area and you can choose your electric company.

Should your ZIP code not be in a deregulated area, Austin Energy is a publicly-owned utility that will provide your electrical power. Austin Energy is a member of ERCOT, Texas’ independent grid operator.

For natural gas, deregulation allows companies to bid to provide gas services in different areas. Crucially, homeowners and tenants in residential properties cannot choose their gas provider. A utility or municipality supplies gas to residential properties. Deregulation only applies to businesses and gas transportation.

Texas Gas Service is the state’s third-largest natural gas distribution company. It supplies natural gas to Austin, El Paso, and other areas. You need to contact Texas Gas Service if your new Austin home has natural gas or you wish to connect to natural gas.

Other natural gas suppliers to residential homes include Atmos Energy in Texas’ north and panhandle, and CenterPoint Energy in much of eastern Texas. The Austin Chamber of Commerce lists all natural gas providers in Texas.

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What Do I Need To Do To Set Up Utilities in Austin, Texas?

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Anyone moving from outside the Austin area needs to follow three simple steps.

The first and most important step is to contact your current gas and electricity suppliers several weeks before moving to Austin. You need to let them know your moving date, settle any outstanding bills, and arrange for your contract to end. You must check for any early termination fees, too.

For natural gas, contact Texas Gas Service. You can set up an account online or call them. They will walk you through the stages and require your personal details such as your new address and moving-in date, email address, and proof of identification.

Texas Gas Service offers various payment methods, including autopay, online, over the phone, via a mobile app, or mail.

For electricity, your next move depends on whether your home is in a regulated Austin Energy area. If yes, contact Austin Energy and find out how to set up an account with them.

For people whose homes are in a deregulated area, you can start to shop around and look for the best electricity company for you. You must select an electric company; otherwise the Public Utility Commission of Texas (PUC or PUCT) will assign you one.

What Types of Electricity Deals Are Available in Austin?

Electric companies advertise rates in cents per kilowatt-hour (kWh). For those who can choose, there are three pricing options available in Austin: fixed-rate, variable-rate, and indexed rates.

  • Variable-rate plans: Electric rates (kWh) fluctuate depending on market conditions, and prices can go up as well as down.
  • Fixed-rate plans: You pay the same kWh rate for the length of the contract.
  • Indexed rate: These are rare and operate like variable-rate plans — however, a publicly available index forms the price basis, not electricity companies.

A fixed-rate deal’s kWh prices are often higher than the other two plan types, generally speaking.

What Is a Good Rate Per kWh in Austin, Texas?

To give some context, the U.S. national average residential electricity price in 2021 was 13.72 cents per kWh. In November 2021, the U.S. average residential price was 14.12 cents per kWh compared to 12.18 cents per kWh in Texas.

Austin Energy offers fixed prices and rewards people with lower electricity use. This price layering is to encourage energy-saving lifestyles that can help reduce emissions in the battle against climate change.

Every Austin Energy customer pays a flat $10 monthly charge. Energy usage is then added on top, based on one of five price tiers — for reference, the average U.S. home’s electricity use is around 1,000 kWh.

(Prices correct on February 28, 2022, and subject to change without notice).

  • Tier 1: 0-500 kWh costs 2.80 cents per kWh
  • Tier 2: 501-1,000 kWh costs 5.83 cents per kWh
  • Tier 3: 1,000 – 1,500 kWh costs 7.81 cents per kWh
  • Tier 4: 1,501 – 2,500 kWh costs 9.31 cents per kWh
  • Tier 5: > 2,500 kWh costs 10.81 cents per kWh

You pay higher prices for electricity as you use more energy.

How Do I Know Which Austin Electricity Deal Suits Me Best?

Moving to Austin | Shopping Imagesource

If you’re a bargain shopper, you are probably on the lookout for the lowest price. But with electricity, the lowest kWh price doesn’t always mean the best value for you and your home.

Think about how and when you use energy at home. Ask your current electricity provider to furnish you with a monthly breakdown of your last year’s bills. Perhaps you are a heavy weekend user, so you might want a plan with lower prices on those days.

Others like the security of a fixed price, knowing they are paying the same rate whenever they use electricity. Air conditioning aficionados know the importance of a reasonable kWh price.

Also, think about your new home. Are you moving to a large house from a smaller apartment? The bills may be very different. Ask your realtor for the approximate energy usage levels in your new home so you can take an informed search for an electricity supplier.

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How Do I Find a Supplier in Austin, Texas?

It’s simple to find electricity suppliers in Austin. The Public Utility Commission of Texas (PUC or PUCT) designed Powertochoose.org to display offers from PUCT-registered companies. The site avoids private price comparison websites.

Pro tip: Read our Power to Choose guide for more useful tips.

How Do I Choose an Electricity Supplier in Austin?

You should have the following information available before using Powertochoose.org.

  • The ZIP code of your new abode.
  • Your approximate energy usage in kWh per month for your current and new home.
  • Whether you prefer a fixed- or variable-rate contract and the length of the contract you want.
  • If you want eco-friendly options like a renewable energy plan.

Your ZIP code search often returns several dozen possible deals. The website lets you filter these by rate type, prices, energy usage levels, contract length, renewable energy percentage, and customer reviews.

Try with 1,000 kWh and play around with the settings. Read the offer’s conditions and apply them to your circumstances — is a 36-month option with a $200 early termination fee suitable for you if you plan to move home in 12 months?

Once you get the hang of the website, narrow down your search. Then, read the most critical part of the contract: the Electricity Facts Label (EFL).

Why Should I Read the Electricity Facts Labels (EFLs)?

Electricity Facts Labels (EFLs) provide the details that lie behind deals. Every offer and EFL must include deposits, cancellation fees, and other charges. The fine print can often reveal hidden costs that make the initial low kWh price seem less appealing.

Keep an eye out for:

  • Payment methods — some methods may require additional fees.
  • Early termination fees — know what you’ll pay if you break the contract early.
  • Contract length — is it suitable for your situation?
  • Hidden charges — items like “general charges” can pump up the costs.
  • Required credit checks — you might have to pay for your own, or provide an extra deposit to the company. Consider a prepaid plan without long-term commitment to avoid these.

Offers that include a minimum usage require extra vigilance. Electricity companies offer lower kWh rates to significant energy users. If you fail to use the agreed monthly minimum, you may be charged a much higher rate for all your electricity. Minimum usage contracts may suit people who know exactly how much electricity they use and when.

Can I Set up Gas and Electricity Before I Move In?

Yes, you can set up your utilities before moving to Austin.

  • Gas customers must contact Texas Gas Service.
  • Electricity customers in regulated areas must contact Austin Energy.
  • Electricity customers in deregulated areas must choose an electric company or be assigned one by the Public Utility Commission of Texas.

Remember, new customers need to open utility accounts. People moving within Austin, from one regulated electricity area to another, can call Austin Energy to transfer their contract to their new Austin address.

What Happens If You Don’t Set Up Electricity?

People who don’t set up electricity accounts before moving to Austin may find moving day turns into a bit of a nightmare. There will most likely be no power at your new home and possibly no heating.

While dealing with the boxes and unpacking, you’ll then need to contact Austin Energy (if applicable) or start searching online for electric companies. Many people move on weekends, and while some companies can turn the lights on the same day, even on weekends, they may not operate in your ZIP code. Many companies don’t offer this service or take a few days to complete checks before switching on your power.

If you do not cancel or transfer your utility bills, you may end up paying someone else’s bills in your old home. The best advice is to plan ahead.

Can You Do Electrical Work Without a License in Austin, Texas?

Texas’ official advice is that anyone who carries out electrical work must be licensed, but Austin and Texas regulations do allow you to carry out basic electrical work on your own home. Any alterations must be within your capabilities and must not require a professional electrician.

Read more about exemptions. Remember, electricity is dangerous and potentially lethal, so always contact a professional if you have any doubts about the work.

More Information About Moving to Austin

Moving to Austin | Musician Plays Piano Photosource

You now know how to set up utilities before moving to Austin. But moving homes is not just about sorting your utilities (although you’ll be grateful to have them taken care of in your new place). Let’s look at Austin in more detail and see what it offers, from music to employment opportunities to housing.

Is Austin the Live Music Capital of the World?

Austin certainly has a buzzing music scene, with more than 250 live music venues. It counts two world-famous musical festivals on its setlist, too; South by Southwest (SXSW) and Austin City Limits.

The city also hosts the annual ATX Television Festival, celebrating the television industry through public screenings, interviews, and discussions.

What’s Austin Like for Outdoor Activities?

Austin residents are blessed with a plethora of fantastic outdoor spaces.

To the northwest of the city in Hill Country lies Lake Travis, a reservoir where people enjoy fishing, boating, jet skiing, diving, and more activities.

Closer to the city is the 351-acre Zilker Park, with picnic sites, botanical gardens, and outdoor theater. Bathers love Barton Springs, a spring-fed pool with year-round average temperatures of around 68 degrees Fahrenheit (20 degrees Celsius).

Smack-bang in the center of Austin is Lady Bird Lake, a reservoir fed by the Colorado River. Locals come here for hiking, biking, and kayaking.

Does Austin Have an Exciting Food Scene?

Texans know that Austin is the place to go for Tex-Mex, but the city offers much more. That’s why it consistently ranks highly in national foodie reviews.

Breakfast tacos remain a firm favorite, and the burgeoning food truck scene offers something for every palette. Is New York the U.S. coffee capital? Check this coffee shop guide, which may tempt you to change your thinking. It covers many Austin neighborhoods, from East Austin, South Austin, North Austin, and more.

The South Congress neighborhood serves up Austin-original eateries and live music. Get there for dusk in summer, and you can watch the bats from the world’s largest urban bat colony emerge from the Congress Avenue Bridge.

Wine connoisseurs can easily visit nearby San Antonio wineries in the Texas Hill Country. In total, there are more than nine million acres of vineyards here, making the wine region the second-largest viticultural area in the United States.

Who Are the Major Employers in the Austin Area?

The tech industry loves Austin’s talented workers. With more than half of Austinites holding a bachelor’s degree or higher, it’s easy to see why Austin has an attractive job market.

Dell has its base near Round Rock, and Apple is close to finishing its new Austin campus. Once open, the Apple site could house up to 15,000 workers, making it second only to its Cupertino base in California in terms of employee numbers.

Indeed, Austin now rivals Silicon Valley with its own tech scene, Silicon Hills. The area comprises thousands of high-tech companies that overlook the city from a hilly perch to the west. Those tech company opportunities are a boon for young professionals looking to relocate to an exciting city like Austin.

Other major employers in the Austin area include IBM Corp, Ascension Seton Healthcare, and the University of Texas at Austin.

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What Is the Average Cost of Living in Austin?

Austinites enjoy slightly lower living costs than the U.S. average. You may also find more dollars in your pocket upon moving to Austin because Texans don’t pay any income tax. The state generates income from taxes on sales, real estate, and corporations instead.

That’s excellent news for workers, especially when you consider that in 2019, the median household income in Austin was $71,576, compared to $69,560 nationally

The housing market is expensive in Austin, with higher home prices than the rest of the Lone Star state.

To give an idea, in February 2022, real estate site Realtor gave the following median home prices. Bear in mind that these prices are subject to change and can fluctuate.

  • Austin: $580,000, or $326 per square foot
  • Dallas: $398,000, or $225 per square foot
  • Houston: $325,000, or $167 per square foot
  • New York City: $859,000, or $919 per square foot

The Austin-San Antonio corridor — green belt land that separates these two cities — has been identified as a significant population growth area. North Austin’s Georgetown and Cedar Park regions will both experience a projected 40% rise in people living there by 2030. If you’ve thought about moving to Austin, get in quick!

What Does It Mean To Keep Austin Weird?

Moving to Austin | Man with Melon on Headsource

There’s a lot of fun in the Austinite character, so much so that the city started advertising its weirdness as a positive to business and people.

In 2000, a radio call-in show put community college librarian Red Wassenich live on air during a fundraiser. Wassenich told the presenter he was donating to “help keep Austin weird.”

Businesses and residents adopted the phrase as their own, and it stuck. Don’t be surprised to see it emblazoned on anything from T-shirts to shop fronts.

What Type of Public Transportation Is There in Austin?

People using public transportation in Austin have two choices: bus or rail.

The Capital Metro bus system has more than 2,300 bus stops covering 542 square miles of the city and surrounding area. The Metro Rail train system backs up the bus network, with nine stations along 32 miles of track between Leander and downtown Austin.

Now You Are Prepared for Moving to Austin, Texas

Texans are rightly proud of their state and will undoubtedly welcome movers with open arms. There’s a lot to discover and it’s easy to get wrapped up in planning nights out and cultural visits before dealing with the mundane, like a utility bill.

The best advice for moving to Austin is to be prepared. And thanks to your research leading you to this guide, you already are. If learning about Austin has piqued your interest in other Texas cities, don’t fret; we have moving guides for Dallas, Houston, San Antonio, and an overall guide to Texas.

Whether you want to keep it weird, join a tech startup or enjoy fine food and weather, Austin has all this and much more to offer.

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