How to get electricity turned on without paying a deposit upfront
Texas electric companies can require a deposit before connecting service, but you have the right to refuse it and request a payment plan instead. If you meet certain conditions — mainly that you have no recent history of unpaid utility bills — you can get power connected without putting money down. The process varies by company, but the basic path is the same: contact your chosen retailer, ask specifically about no-deposit options, and be ready to show proof of income or employment.
The deposit itself is not a fee. It is money held as security against future non-payment, and the company must return it after 12 months of on-time payments. Because it is refundable, many people assume they have to pay it. You do not. Texas utilities are required by the Public Utility Commission to offer an alternative if you meet their credit standards.
Key Takeaways
- You can request a payment plan instead of a deposit if you have no unpaid utility bills in the past two years and can show current income.
- Texas has two types of electric markets: deregulated areas where you choose your retailer, and regulated areas served by a single utility company.
- Your proof of income can be a recent pay stub, a letter from your employer, or proof of unemployment or disability benefits.
- If a company denies your no-deposit request, you can file a complaint with the Public Utility Commission of Texas, which oversees these rules.
Deregulated versus regulated areas in Texas
Where you live determines which company you contact and what options are available. In deregulated areas — mainly around Dallas, Houston, Austin, and San Antonio — you choose your electric retailer from a list of companies. These retailers compete for your business and often have different deposit policies. Some waive deposits for customers with acceptable credit or income. Others require them across the board.
In regulated areas, a single utility company serves your region. These are companies like Oncor, CenterPoint, or AEP. You cannot choose your provider, but the company is still bound by Public Utility Commission rules about deposits and payment plans. If you live in a regulated area, contact your local utility directly.
To find out which type of area you are in, enter your zip code on the Public Utility Commission website or call your city's utility office. This step takes five minutes and saves you from calling the wrong company.
What you need to prove you do not need a deposit
Electric companies use a simple test: Do you have a history of paying utility bills on time? If yes, you can skip the deposit. If you have never had a utility account, or if your last account was closed due to non-payment, the company will ask for proof that you can pay going forward.
Acceptable proof of income includes a recent pay stub (usually from the last 30 days), a letter from your employer on company letterhead, or documentation of unemployment benefits, disability payments, or Social Security. Some companies also accept a lease showing you have paid rent on time. The company will tell you what form they accept when you call.
If you have a co-signer with good credit and income, some retailers will accept that instead. The co-signer does not have to live with you, but they are responsible if you do not pay.
Steps to request service without a deposit
Start by identifying your retailer or utility company. If you are in a deregulated area, visit the Public Utility Commission's website or call 888-782-8477 to get a list of retailers serving your address. If you are in a regulated area, search online for your city plus "electric utility" — the company name will appear immediately.
Call the company and say you want to open an account. When they mention a deposit, say: "I would like to request a payment plan instead. I have no unpaid utility bills in the past two years and can provide proof of income." Do not volunteer information about past problems. Let them ask. If they ask about a previous account, be honest but brief.
Have your proof of income ready when you call. The company may ask for your Social Security number, driver's license number, and current address. They will also need to know your move-in date. Service is usually connected within one to three business days if you are approved.
What happens if the company says no
If a retailer or utility company denies your request and requires a deposit, you have the right to file a complaint with the Public Utility Commission. The company must provide you with a written reason for the denial. Keep that letter — you will need it for your complaint.
File your complaint on the Public Utility Commission website or by calling 888-782-8477. Explain that you requested a payment plan, were denied, and believe the denial violated commission rules. The commission will contact the company and ask them to justify their decision. This process takes several weeks, so it is not a fast fix, but it creates a record and often prompts the company to reconsider.
If you cannot wait for that process and need power immediately, you can pay the deposit and request a refund later. After 12 months of on-time payments, the company must return the deposit with interest (usually around 5 percent annually). Send a written request to the company's billing department and keep a copy for your records.
Payment plans and what they actually cost
A payment plan means you pay your bill in full each month, with no deposit held. There is no extra fee for the plan itself. However, some companies charge a higher rate if you do not set up automatic payments, or they may require you to pay a small connection fee (usually $15 to $50) when service starts. Ask about these fees before you agree to the plan.
If you fall behind on payments under a payment plan, the company can disconnect your service. You will then need to pay the full amount owed plus a reconnection fee (typically $50 to $100) to get power restored. This is why the company asks for proof of income — they want to know you can actually pay the bill each month.
Frequently Asked Questions
Can I get electricity without a deposit if I have bad credit?
Credit score alone does not determine whether you get a deposit. The company cares whether you have unpaid utility bills. If you have no history of unpaid utilities, you can request a payment plan even with low credit. If you do have unpaid bills, you will likely need to pay a deposit or find a co-signer.
What if I just moved to Texas and have no utility history here?
No Texas utility history is not the same as a bad history. Call the company and explain you are new to the state. Bring proof of income and ask for a payment plan. Many companies will approve this. If they refuse, ask what specific reason they are giving — it should be documented in writing.
Do I have to choose a specific retailer in a deregulated area?
You choose which retailer to use, but you do not have to. If you do not pick one, your local utility company will assign you a default retailer. That retailer may have different deposit policies than others. It is worth calling two or three retailers to compare their no-deposit options before you decide.
How long does it take to get connected if I do not pay a deposit?
If you are approved for a payment plan, service usually starts within one to three business days. If the company needs to verify your income or employment, it may take longer. Ask for a specific date when you call, and confirm it the day before your move-in.
Can the company raise my rates if I do not pay a deposit?
No. Your rate is the same whether you pay a deposit or use a payment plan. The only difference is the security arrangement. Rates are set by the Public Utility Commission for regulated utilities and by market competition for retailers in deregulated areas.