How Multifamily Owners Can Find the Best Deal on Power with Compare Power
Electricity is one of the quietest line items in a multifamily budget, and one of the most overlooked. Most owners assume their tenants cover it, or that the rate is whatever the rate is. But on a 200 or 300-unit property, the difference between a good power contract and a bad one can be real money every month, and there's even a way to turn it into a new revenue stream.
On this episode, Old Capital's James Eng sits down with Ryan Rekieta, who leads the multifamily practice at Compare Power, to break down how Texas electricity actually works, what owners should be paying, and how to stop leaving money on the table.
Here's what they covered.
How Compare Power started
Compare Power was founded about 17 years ago to solve a very Texas problem. The founder, Brad, had just moved in from California and, for the first time in his life, had to choose an electric provider just to get the lights on in his apartment.
With an engineering background, he pulled up a spreadsheet, mapped out all the suppliers and plans, and quickly realized how confusing the whole thing was for a normal person who just wants their power turned on. So he built Compare Power to do the shopping for you. Today the platform compares over 17 electric suppliers in Texas and more than 100 plans based on your location, and it has enrolled roughly 3 million Texans in their electric plans.
Ryan joined at the beginning of the year to build out the multifamily side, and it has grown fast. His background spans software sales and real estate data (he spent four years at CREXi before this), so he knows the owner and broker world well.
Supplier vs utility: the misconception that costs owners money
The single most useful thing Ryan explained is the difference between your supplier and your utility, because most people get this wrong.
The supplier is simply who you buy your electricity from: TXU, Reliant, Just Energy, and so on. The utility is the company that actually owns the wires and delivers the power. In North Texas that's Oncor, and in Houston it's CenterPoint. No matter which supplier you pick, the electricity itself is identical, and the same utility flips the switch.
"The utility company, they're the ones actually flipping the switch and turning the lights on," Ryan said. "It really does not matter much who the supplier is at the end of the day, which is a common misconception."
The practical upshot: switching suppliers is easy. Unlike changing property management companies, which is a major operational headache, changing your electricity supplier is nearly seamless. The power never goes off, and nothing about the service changes. You're just paying a different, hopefully lower, rate.
The three layers of electricity in an apartment deal
Owners often say, "My tenants pay the electric bill, so this doesn't apply to me." Ryan pushed back on that. In a multifamily property, there are actually three separate layers of electricity, and owners are on the hook for at least two of them.
Common areas. Your lobby, pool, maintenance buildings, and shared spaces all draw power, and the property pays for it.
Vacancies. You still have to keep the lights and AC on in vacant units so they don't sit dark and hot. This is handled through what's called a CSA, or Continuing Service Agreement.
Resident units. Unless it's an all-bills-paid property, residents choose their own provider for their unit.
Compare Power covers all three. For the common areas and CSAs, which usually go hand in hand, you send them last month's bill and the date your current contract is up, and they shop it.
What owners are actually paying, and the target
Commercial electricity pricing works differently from residential. It's based on your total usage, and the rates move constantly.
"It is a lot like the stock market," Ryan said. "Each day on commercial electricity, those prices change."
He's seen a wide range. On the low end, rates around 6.8 cents per kilowatt hour. On the high end, one operator didn't realize their contract had expired and rolled to month-to-month, and they were paying 23 cents per kilowatt hour on an all-bills-paid complex. Compare Power was able to save them a significant amount.
His rule of thumb for today's market: "Right now you want to stay under eight." Common areas might run around 7 cents, with CSAs and vacancies slightly higher at around 7.5 cents, since those are priced a little differently.
James shared a personal example that shows how big the gap can be. On his own home, his existing provider offered a renewal around 17 cents per kilowatt hour. When he checked Compare Power, the best plans were 10 to 11 cents. Same electricity, dramatically different price.
Contracts and the fine print
Multifamily power contracts are typically three years, though they can be shorter or longer. And like a loan, they come with penalties for leaving early.
"They usually do have early termination fees," Ryan said, comparing them to the prepayment penalties owners know from lending. One nuance worth knowing: CSAs (the vacancy coverage) are often available month-to-month, so you can get out of those quickly. Suppliers usually try to tie your CSA to your main commercial plan, but you don't have to. You can run a different provider for your CSA than for your common areas if it saves money.
Turn a tenant expense into a revenue stream
This is the part most owners have never thought about. That third layer, residents choosing their own provider, is usually treated as "not my problem." Ryan argues it's actually a missed opportunity.
When a resident is approved for their lease, the leasing office typically tells them to go online and set up power somewhere. That moment, Ryan said, is the perfect place to insert Compare Power. Using a trackable link or QR code for each property, the new resident gets sent to Compare Power, which shops for their best rate and plan, and then pays a revenue share back to the property for the referral.
"They get the best rate, they get to save money so they can still pay rent to you each month," Ryan said. "But then you also get a revenue share on the back end, because you were our source of that referral."
He contrasted this with programs run by individual suppliers, which lock tenants into one company's plans. With Compare Power, the tenant keeps the full range of options and the best price, and the owner still earns on the referral. It's a rare setup where the resident wins and the owner wins at the same time.
Beyond electricity: gas, storage, and a utility concierge
Compare Power's reach isn't limited to apartments. "Anywhere that there is a meter, we cover," Ryan said. That includes self-storage facilities, RV parks, and other commercial properties, which many multifamily owners also happen to own.
A few other useful notes:
Timing matters. Electricity prices in Texas are seasonal, and shopping during the brutal summer months can put you at a pricing disadvantage. Part of the value is knowing when to shop.
Gas. Natural gas is usually a single regulated option in Texas, so there's less room to shop unless you have properties in other deregulated states, but they can still take a look.
Utility concierge. In Texas, Compare Power also offers a full concierge with vetted vendors, so tenants or owners can get help setting up internet, renters insurance, and home security, on top of the electric plan.
How to get a quick check on your bill
The process to see if you're overpaying is simple. Send Ryan your most recent bill and a copy of your current contract, and he'll review whether you can beat your current rate and when the best time to shop again is. He handles multifamily owners personally to make sure the supplier relationships are leveraged fully.
You can reach him at ryan.rekieta@comparepower.com.
Key Takeaways
You pay for more power than you think. Common areas and vacant-unit coverage (CSAs) are on the owner, even when residents pay their own units.
Supplier vs utility is the key concept. The utility (Oncor, CenterPoint) delivers identical power no matter which supplier you choose, so switching for a better rate is easy and risk-free.
Know your target. Commercial rates move daily like the stock market. Right now, aim to stay under 8 cents per kilowatt hour, and watch for contracts that roll to expensive month-to-month rates.
Mind the contract. Multifamily power deals are usually 3 years with early termination fees, though CSAs are often month-to-month.
Turn power into revenue. A resident referral link or QR code lets tenants get the best rate while the property earns a revenue share on every move-in.
Anywhere with a meter counts. Self-storage, RV parks, gas, and utility concierge services are all fair game.
The bottom line
Electricity is easy to ignore until you realize how much a bad contract quietly costs, or how much a smart setup can earn. As Ryan showed, the same power delivered by the same utility can range from 8 cents to 23 cents depending on nothing more than who's paying attention. For multifamily owners squeezed on every expense line right now, this is one of the easier wins available, and it can even become a new source of income.
Thinking about your next multifamily deal and how the numbers pencil out, expenses included? The Old Capital team can help you size it up. Reach out at oldcapitallending.com