Quick answer
A Texas provider can ask for a deposit if you do not meet its credit criteria, but the rules set out several ways to avoid one. Being a customer of any Texas provider in the last two years with a clean record is one of them. Being 65 or over and not behind on a bill is another. A deposit is refundable, and the amount is capped by rule.
Why a deposit gets asked for at all
Electricity is one of the few things you use first and pay for later. A deposit is the provider’s backstop if that bill goes unpaid.
The rules for residential customers sit in PUCT Substantive Rule 25.478. It does two useful things for you. It lets a provider ask for a deposit, and it also sets out the ways you can show you do not need one.
Four ways to show satisfactory credit
Under Rule 25.478, you can be treated as having satisfactory credit if any of these apply.
| Route | What it means |
|---|---|
| Recent service history | You were a customer of any Texas provider or electric utility in the last two years, are not behind on that account, and were late no more than once in your last 12 months of service |
| Credit rating | You have a satisfactory rating from a consumer reporting agency |
| Age 65 or over | You are 65 or older and not currently behind on an electricity account |
| Provider’s own criteria | A provider may add its own extra ways to qualify, beyond the ones in the rule |
The first one catches most people and almost nobody thinks to mention it. If you had power in your own name in Texas in the last two years and paid on time, say so during enrolment.
The rule also contains protections for survivors of family violence and for low-income households meeting a certified income test. If either applies to you, ask the provider directly what documentation it needs.
How much can they ask for?
The rule caps it. Providers cannot name any figure they like, and the deposit is refundable, not a fee.
Two things worth doing:
- Ask the provider to state the deposit amount and how it was calculated, in writing.
- Ask when it is refunded and whether it earns interest. Rule 25.478 covers both, and the answer should not be vague.
If a provider will not put the figure and the refund conditions in writing, that alone tells you something.
If you still get asked
You have more room than it feels like at the time.
- Quote your own history. Two years, clean record, same state. Ask them to check it against the rule’s criteria.
- Ask about instalments. The rules recognise that paying a deposit in one lump is not always possible.
- Try another provider. Criteria vary, because providers are allowed to add their own routes to qualify.
- Ask about a guarantor. Another customer with good standing can sometimes guarantee your account instead.
Prepaid is an option, not a bargain
Prepaid plans skip the deposit. That is their appeal, and for a household that needs power on this week it can be the right call.
Be clear about the trade-off. You pay in advance, your balance runs down as you use power, and service can be interrupted when it empties. The cost per unit is often higher than a comparable fixed plan.
If you go prepaid to get through a tight month, set yourself a date to revisit it rather than staying on it for a year by default.
When the meter, not you, is the problem
Sometimes a deposit is not the blocker at all. A switch-hold can sit on a meter because of an unpaid balance or a tampering issue tied to that address, often from a previous occupant.
If an enrolment is refused and nothing about your own record explains it, ask directly whether there is a switch-hold on the address. It is a different problem with a different fix, and it is not resolved by paying a deposit to a new provider.
Frequently asked questions
Can I get electricity in Texas with bad credit?
Often yes. A credit score is only one of the ways to qualify. Recent Texas service history with a clean payment record is another.
How much is an electricity deposit in Texas?
It varies by provider and is capped by PUCT Rule 25.478. Ask for the figure and the calculation in writing.
Do I get the deposit back?
Yes. A deposit is refundable under the conditions set out in the rule, unlike a fee.
Is prepaid electricity cheaper?
Usually not per unit. It avoids a deposit and gives you control over spend, but the rate is often higher than a comparable fixed plan.
What is a switch-hold?
A block on the meter, usually tied to an unpaid balance or tampering at that address. Ask whether one exists if your enrolment is refused.