No Deposit Electricity in Texas

Two ways to skip the deposit: prepaid or postpaid

Prepaid (pay-as-you-go). You pay before you use electricity. Texas rules prohibit a security deposit on prepaid service. Instead, the provider can ask for a connection balance of up to $75 for a home, plus any applicable utility (TDU) fees. That money is your balance for electricity you use, not a deposit held back. There is no monthly bill. You get balance updates by text, email or app, and you top up as you go.

Postpaid without a deposit. On a regular monthly-bill plan, a provider may ask for a deposit if you can't show satisfactory credit. You can avoid it if you meet one of the PUCT criteria, such as being 65 or older and not delinquent on any electric account. See the section on postpaid deposits below.

Which fits you? Prepaid suits you if you have no credit history, want same-day service, or prefer to control spending day by day. Postpaid suits you if you qualify for a waiver and want a fixed rate on a monthly bill.

How to get no-deposit electricity

1. Confirm your area has retail choice. Most Texans in the ERCOT grid choose their provider. Areas served by a city-owned utility or an electric cooperative usually have one local utility instead. Austin (Austin Energy) and San Antonio (CPS Energy) are served by city-owned utilities that have not opted into retail choice. Lubbock Power & Light opted in during 2024.
2. Check for a smart meter. Prepaid service requires an advanced ("smart") meter. Most homes in deregulated areas have one.
3. Compare plans and read the EFL and PDS. Look at the price at your real monthly usage, the connection balance, and any fees.
4. Enroll and fund your account. Pay the connection balance (up to $75) plus any utility fees. Providers explain on enrollment which payment methods activate service fastest.
5. Get connected. Some providers offer same-day connection Monday–Saturday if you enroll and pay before their evening cutoff (often 6 p.m. Central for move-ins). This depends on your utility and meter.

What prepaid electricity really costs

• Connection balance: Up to $75 for a home, set by PUCT rule. This is prepaid electricity, not a fee.
• Utility (TDU) fees: Your provider can collect these before starting service, so your first payment may be more than $75.
• Price cap: A prepaid plan for a home cannot charge more than the Provider of Last Resort (POLR) price in your area at 500, 1,000 and 2,000 kWh. That is a ceiling, not a guarantee of a low price, so compare.
• Fees: Each provider's PDS must list its non-recurring fees, payment fees and the balance at which service can be disconnected (no more than $10 for a home).
• Leftover money: When you leave, the provider must refund any unused balance within 10 business days after your final bill and meter read.

Your protections on prepaid service

• You must get a low-balance warning at least 1 day and no more than 7 days before your balance is expected to hit the disconnection level.
• Providers cannot start a disconnection for low balance on a weekend day, or during an extreme weather emergency in your county.
• Balance notices and payment confirmations must be in English or Spanish, whichever you choose.
• Switching from prepaid to postpaid, or to another provider, carries no switching fee. An early termination fee may still apply if your plan has one.
• Prepaid is not available if someone in your home is a critical care or chronic condition customer registered with the utility. Choose a postpaid plan in that case.
• Some energy assistance agencies may not help with prepaid accounts. Check first if you rely on bill assistance.

No deposit on a postpaid plan

Under PUCT rule §25.478, any provider must treat you as having satisfactory credit, with no deposit required, if: - you are 65 or older and not currently delinquent on any electric account, or - you have a family violence certification letter (Texas Council on Family Violence form).

With the affiliated provider or Provider of Last Resort, you can also qualify through a good payment history: you were an electric customer in the past two years, you aren't delinquent, and you were late no more than once in your last 12 months. A satisfactory credit report or medical-indigence status also qualifies, and those providers must offer a written letter of guarantee instead of cash. Other providers may set additional ways to qualify. Ask before you pay.

If you do pay a deposit, the rule caps it at the greater of one-fifth of your estimated annual bill or two months of estimated bills. It earns interest, and it must be refunded after 12 consecutive on-time monthly bills.

No-deposit electricity by city

• No deposit electricity in Houston
• No deposit electricity in Dallas
• Prepaid electricity in Texas
• Ver en español: Luz sin depósito en Texas

Frequently asked questions