Texas Electricity Deposits: Do You Need to Pay One?

When you sign up for a new electricity plan in Texas, some retailers run a soft credit check and charge a deposit if your score is below their threshold. The deposit is typically $200-400, refundable after 12 months of on-time payments. But here's the thing: not every retailer requires one, and there are specific ways to avoid the deposit even with poor credit.

Who gets charged a deposit

• •New customers with no Texas electricity payment history (first apartment, moving from out of state)
• •Customers with a credit score below the retailer's threshold (typically under 600)
• •Customers with a previous disconnection on their record with any Texas REP in the last 12 months
• •Customers who refused the soft credit check entirely

How to avoid the deposit

• •Choose a prepaid electricity plan — Payless Power is the largest prepaid provider in Texas and requires zero deposit. You pay in advance, no credit check.
• •Provide a letter of credit from your previous utility (any US state) showing 12 months of on-time payments — most Texas REPs accept this as a deposit waiver.
• •Sign up with a no-deposit retailer. Several REPs (4Change, some Cirro plans) explicitly advertise no-deposit signup for customers with scores above 500.
• •Use the PUC's complaint process: if a retailer charges a deposit you think is unfair, the Texas PUC accepts free consumer complaints and investigates deposit disputes.