No-deposit electricity in Texas: how it actually works
Texas providers can ask for a deposit if your credit or payment history is thin. You can often skip it with a good payment record or a letter from your last provider. Prepaid plans usually need no deposit but cost more to get wrong. Read the EFL before you choose either way.
Power to Choose is the state's official, free plan-comparison site run by the PUCT. We don't get paid when you click.
Why deposits exist
If a provider requires a deposit, PUCT rule 25.475 says the terms of service must describe when they ask, how the amount is determined, and that interest is paid at the rate the commission approves. The same rule points to a letter of guarantee as an alternative under the credit rule: https://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.475/25.475.pdf
This page does not list a dollar amount. The amount is plan-specific and has to come from the provider's terms, not from us.
Ways to avoid one
A solid payment history, or a letter from your previous provider, is the usual path the rules describe. Ask the provider what they accept before you agree to a deposit. The terms have to explain the conditions.
Prepaid plans
A prepaid plan takes payment ahead of time instead of a traditional deposit. If the balance runs out, service can be disconnected. The timing is in that plan's terms of service. Read those, and read the EFL.
On 2026-10-12, a Power to Choose search for ZIP 77002 included plans marked prepaid. Look for that marking in the results, and still read the EFL. The official site is https://www.powertochoose.org
Related pages
Questions
Do all providers require a deposit?
No. Some ask only if credit or payment history is thin. The terms of service have to say when a deposit is triggered if the provider uses one.
How do I get my deposit back?
The terms of service have to explain the conditions for a refund, and interest is paid at the commission-approved rate. See PUCT rule 25.475: https://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.475/25.475.pdf
Is a prepaid plan the same as no deposit?
Not quite. Prepaid plans usually skip a traditional deposit because you pay ahead. You can still be disconnected if the balance runs out. Read the terms.
Can a provider check my credit?
Yes. Providers can use credit or payment history when they decide whether to ask for a deposit. The terms have to describe that condition.
What if I can't pay a deposit?
Ask about a letter of guarantee or another option the terms allow, or look at prepaid plans and read them carefully. PUCT consumer help is here: https://www.puc.texas.gov/consumer-help/electricity/
Power to Choose is the state's official, free plan-comparison site run by the PUCT. We don't get paid when you click.
Sources
- PUCT substantive rule 25.475, deposits and disclosuresChecked October 12, 2026
- PUCT electricity consumer helpChecked October 12, 2026
- Power to Choose (ZIP 77002 included prepaid plans on the review date)Checked October 12, 2026