No Deposit Electricity in Texas: PUCT Rules & Options 2026

Traditional electricity providers often require deposits of $150-$400 if you have poor credit or no credit history. But you have options in Texas.

Two paths to no-deposit electricity:

Prepaid Electricity:
- Pay for power in advance
- No deposit required, no credit check
- Balance alerts as you use power
- Service disconnects if balance hits zero
- Most flexible option for those who can't pass credit checks

Traditional Plans with Credit Workarounds:
- Some providers waive deposits with letter of credit from previous utility
- Automatic payment enrollment can eliminate deposits
- Requires documentation but gives access to competitive fixed rates

Bottom line: Prepaid is faster and easier. Traditional plans with workarounds are cheaper long-term if you qualify.

Prepaid electricity flips the traditional model. Pay first, use power, refill when low.

Getting Started:
- Sign up online or by phone—typically 10-15 minutes
- Make an initial payment ($25-$75 depending on provider)
- Service activates within 1-3 business days (same-day available from some providers)
- No credit check, no SSN required with some providers, no deposit

Ongoing Usage:
- Smart meter tracks real-time usage
- Balance decreases as you use power
- Receive alerts at low balance thresholds ($10, $5, $0)
- Add funds anytime via app, website, phone, or retail locations
- Service disconnects when balance hits $0 (no notice required in Texas for prepaid)

The Tradeoff:

You're paying for convenience and accessibility, not the lowest possible rate.

Several prepaid providers operate in Texas. Here are the major players:

Payless Power: The largest prepaid provider in Texas. Same-day service available. Multiple refill options including retail locations. Daily usage alerts. No ID required for some plans.

Pogo Energy: No contract, no late fees, no disconnect fees. Daily balance updates. Lower rates than some prepaid competitors. Good mobile app.

Now Power: No ID required for enrollment. Simple pricing. Available in most Texas markets. Quick connection times.

Acacia Energy: Focused on underserved markets. Available in Oncor, CenterPoint, and AEP territories.

Snap Energy Latino: Bilingual support. No SSN required. Strong presence in Hispanic communities.

Rates change frequently. Check current pricing before enrolling.

Texas has specific regulations about electricity deposits. Under PUCT Rule 25.24, providers must waive deposits in certain situations:

Three legal ways to waive deposit requirements:

Age 65+: Just show your ID proving you're 65 or older, and confirm no outstanding balance with a previous provider. Some providers like Champion Energy offer "Champ Silver" plans specifically for seniors 60+.

Good Payment History: Call or email your previous electricity provider and request a "letter of credit." This letter confirms you were a customer for at least 12 months, weren't delinquent, weren't late more than once in the last year, and weren't disconnected for nonpayment. Most REPs accept this in place of a deposit.

Family Violence Victim: If you're fleeing domestic violence, you can get a deposit waiver with certification from the Texas Council on Family Violence, treating medical personnel, law enforcement, or the District/County Attorney's office. PUCT Deposit Waiver Form

Other Workarounds:
- Autopay enrollment waives deposits with some providers
- LIHEAP, CEAP, or SNAP recipients may qualify for deposit exemptions
- Shop around—credit requirements vary by provider

Here's a strategy for credit-challenged customers who want to eventually get lower fixed rates:

The 12-Month Path:
1. Sign up for prepaid electricity (no credit check required)
2. Pay on time for 12 consecutive months
3. Request a letter of credit from your prepaid provider
4. Use that letter to sign up for a traditional fixed-rate plan with deposit waived

Why this works: The letter of credit proves you're a reliable customer. Most traditional providers accept this as proof of creditworthiness, even if your actual credit score is poor.

The math:
- Year 1 on prepaid: ~$2,040 at 17¢/kWh (1,000 kWh/month)
- Year 2+ on fixed: ~$1,320 at 11¢/kWh
- Annual savings after switching: $720/year

This approach treats prepaid as a stepping stone, not a permanent solution. It's worth the first-year premium to build the payment history that unlocks better rates.

Let's run the numbers on a typical Texas household using 1,000 kWh monthly:

Cost comparison (1,000 kWh/month):

Year 1 totals:
- Prepaid: $2,040
- Traditional (with deposit): $1,520 ($1,320 + $200 deposit)
- Savings with traditional: $520 in year one

Year 2+ savings: $720 annually (no deposit to pay again)

The Reality Check:
If you can't qualify for traditional service at all, prepaid is your only option. But if you can get traditional service with a deposit, the deposit usually pays for itself within 4-6 months through lower rates. Consider the deposit an investment in lower long-term costs.

Need power today? Here's how to speed up connection:

Same-Day Service Providers:
- Payless Power advertises same-day connections in many areas
- Most prepaid providers connect faster than traditional REPs
- Call early in the day for best same-day odds

Priority Connection Fees: Some providers offer priority service for $30-50 extra. Worth it if you're already without power.

Requirements for Fast Connection:
- Valid service address with working smart meter
- No switch hold on the meter (previous tenant issues)
- Payment method ready (card or bank account)
- ESI ID helps but isn't always required

What Slows Things Down:

Bottom line: If speed matters most, call Payless Power or another prepaid provider before noon on a weekday.

Prepaid electricity requires more attention than traditional plans. Here's how to avoid disconnection surprises:

Plan Exit: Switch when credit improves to save with traditional rates.

Set Up Balance Alerts: Most providers let you customize low-balance notifications. Set alerts at $20, $10, and $5 so you have time to add funds.

Track Usage Patterns: Learn your daily usage rate. If you use $5/day in summer, you know a $50 reload lasts about 10 days.

Know Disconnection Rules: In Texas, prepaid providers can disconnect without notice when balance hits $0. There's no grace period like traditional service. Stay ahead of your balance.

Plan Your Exit Strategy: If your credit improves, switch to traditional service for lower rates. Most prepaid plans have no contract, so you can leave anytime.