Apartment Told You Which Light Company to Use? Know Your Rights

In deregulated Texas, your apartment complex cannot force you to use a specific light company — that’s your legal right under PUCT rules. But that doesn’t stop them from trying. During the lease signing, the office manager slides a flyer across the table and says “Here’s the light company you need to use.” Or maybe they included a “preferred energy partner” in the move-in packet. Or they told you they’ll set up your lights for you — just sign here.

Stop. You have rights here, and knowing them can save you real money.

The Rule: Nobody Can Force You to Pick a Specific Light Company

In deregulated areas of Texas (Houston, Dallas, Fort Worth, most of the state), you have the legal right to choose your own light company. Period. This is the entire point of deregulation.

Your apartment complex, landlord, or property management company cannot:

• Require you to sign up with a specific light company
• Refuse to rent to you because you chose a different company
• Charge you extra for choosing your own company
• Penalize you in any way for not using their “preferred” company
• Delay your move-in because you didn’t use their recommended company

This is Texas law, enforced by the Public Utility Commission of Texas (PUCT). If your apartment is doing any of the above, they’re breaking the rules.

What Apartments CAN Do

Here’s where it gets a little more nuanced. Apartments are allowed to:

• Recommend a company. They can give you a flyer, put a suggestion in the move-in packet, or mention a company by name. That’s fine. It’s a suggestion, not a requirement.
• Have a relationship with a company. Some apartment complexes have marketing agreements with specific light companies. The company might give the apartment a referral fee for each tenant who signs up. That’s why they push it. It’s their money, not your best interest.
• Require that lights are on by move-in day. They can require you to have active service before you get your keys. But they can’t dictate which company provides it.
• Provide “all-bills-paid” service. If your lease includes lights as part of your rent (an all-bills-paid arrangement), then the apartment chooses the company because they’re the customer, not you. You don’t get a separate light bill in this case — it’s bundled into rent.

Why Apartments Push Specific Companies

Let’s be honest about what’s happening here. When an apartment complex pushes a specific light company, it’s usually because:

1. They get a referral fee. The light company pays the apartment $25-$100 for every tenant who signs up. This is the most common reason.
2. It’s easier for them. One company, one contact, fewer questions from tenants. Property managers deal with a lot and standardizing things makes their job simpler.
3. The company offered them a deal on common-area lights. Some light companies give apartment complexes discounted rates on hallway lighting, parking lots, and offices in exchange for tenant referrals.

None of these reasons benefit you. The plan they’re pushing might be $20-$40/month more expensive than what you’d find on your own.

How Much Money You Might Be Losing

The “preferred” company an apartment recommends is often not the cheapest option. Here’s a real-world comparison:

• Apartment’s recommended plan: 15.5 cents per unit, 12-month contract, $150 early cancellation fee
• Plan you find yourself: 11.2 cents per unit, 12-month contract, $100 early cancellation fee

On 1,000 units/month of usage, that’s a difference of $43/month. Over a 12-month lease, you’d spend $516 more by using the apartment’s recommended company instead of shopping yourself.

That’s rent money. Grocery money. Real money.

What to Do When Your Apartment Pressures You

Scenario 1: They Said “You Have To Use This Company”

Say this: “I appreciate the recommendation, but I’m going to shop for my own plan. Texas law gives me the right to choose my light company, and I’d like to exercise that right.”

If they push back, you can reference PUCT rules. Apartments in deregulated areas cannot mandate your choice of light company. If they insist, file a complaint with the PUCT at 1-888-782-8477.

Scenario 2: They’re Signing You Up Without Asking

Some apartments include a clause in the lease or a separate form that authorizes them to set up lights on your behalf. Read everything before you sign. If you see language about “energy enrollment” or “utility setup,” you can cross it out or ask them to remove it.

If they already enrolled you and you didn’t authorize it, call the light company directly and cancel. Then set up service with the company of your choice. Unauthorized enrollment is called “slamming” in Texas and it’s illegal under PUCT rules.

Scenario 3: They’re Delaying Your Keys Until You Use Their Company

This is a pressure tactic, and it’s not legal in deregulated areas. You can have your lights on through any company by move-in day. If the apartment is withholding keys solely because you didn’t use their preferred company, document the interaction (email is great for this) and contact the PUCT.

Scenario 4: The Lease Has a “Preferred Provider” Clause

Some leases include language about using a specific company. In deregulated areas, this clause is not enforceable. You signed it, but you can’t waive your right to choose your light company through a lease. The PUCT has been clear on this.

That said, don’t start a war with your landlord if you can avoid it. A calm, friendly conversation about your legal right to choose usually resolves things without drama.

The Exception: Master-Metered Apartments

There’s one situation where you genuinely don’t get to choose: master-metered apartments. This is where the entire building has one meter and the landlord pays the light bill, then charges tenants based on usage or a flat fee.

If your apartment is master-metered:

• You don’t have an individual meter or ESIID for your unit
• You can’t set up your own account with a light company
• Your “light bill” comes from the landlord or a third-party billing company, not a light company
• You might pay a flat monthly fee or a per-unit charge determined by the landlord

Master-metered buildings are more common in older apartments. If you’re not sure whether your building is individually metered or master-metered, ask the leasing office. If there’s a meter for each unit (usually in a utility closet or on the building exterior), you’re individually metered and you get to choose.

How to Find the Best Plan for Your Apartment

Don’t just go with whoever the apartment recommends. Take 5 minutes:

1. Enter your ZIP code at NoDepositLights.com to see plans available at your address.
2. Compare per-unit rates across multiple companies. Sort by price, not by marketing.
3. Check for no-deposit options. If your credit isn’t great, some companies will approve you with $0 deposit while others want $300+. We show you which ones work for your situation.
4. Read the details. Look at contract length, cancellation fees, and whether the rate changes in summer.

It takes 5 minutes and can save you $500+ over the length of your lease.

Filing a Complaint

If your apartment is violating your right to choose your light company, here’s how to take action:

• Call the PUCT: 1-888-782-8477
• File online: Visit the PUCT website and submit a complaint
• Document everything: Save emails, take photos of flyers, keep notes of conversations with dates and names

The PUCT takes these complaints seriously. Apartments that repeatedly violate choice rules can face fines and enforcement action.

Bottom Line

In deregulated Texas, you choose your light company. Not your apartment. Not your landlord. Not some flyer in your move-in packet. The one exception is master-metered buildings where there’s no individual meter for your unit.

If your apartment is pushing a specific company, smile, say “thanks for the suggestion,” and then go shop for the plan that’s actually cheapest for you. Enter your ZIP and see what’s really available. The savings are worth the 5 minutes.

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Related reading:

• No Deposit Lights for Apartments in Texas
• Can My Roommate Put the Lights in Their Name?
• All Bills Paid Apartments vs Prepaid Lights: Which Actually Costs Less?

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This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).