Texas Light Deposit Refund: How to Get Your Money Back

If you paid a deposit to get your lights turned on, there’s money sitting with your light company right now that belongs to you. Texas law says they have to give it back once you’ve proven you pay on time. Most people never ask for it.

Here’s how to get your deposit back.

The 12-Month Rule

Under PUCT §25.24, your light company must refund your deposit after you’ve made 12 consecutive months of on-time payments. That means no late payments — not one — for a full year.

The refund should happen automatically. In reality, some companies are faster than others about processing it. If 12 months have passed and you haven’t heard anything, you need to ask.

What counts as “on-time”: Your payment is received by the due date on your bill. One late payment resets the clock back to zero. If you paid late in month 8, you’re starting over from that point.

How Much You’ll Get Back

You get the full deposit amount back, plus interest. Texas law requires light companies to pay interest on deposits at a rate set annually by the PUCT (typically around 1-3%).

So if you paid a $300 deposit, you’d get back roughly $303-$309 after a year, depending on the current interest rate. It’s not a lot of interest, but the $300 is yours.

How you get it back varies:

Credit on your bill — Most companies apply the deposit as a credit on your next bill. If your deposit was $300 and your monthly bill is $150, you’d have two months covered.
Check or direct deposit — Some companies will send you the money directly if you request it.
Final bill credit — If you’re closing your account, the deposit is applied to your final bill. Any remaining balance is refunded to you.

Step-by-Step: How to Request Your Deposit Refund

Step 1: Check your timeline

Count 12 months from when you paid the deposit. If you paid in January 2025, you’re eligible after January 2026 — assuming no late payments in that window.

Step 2: Call your light company

Call customer service and say: “I’ve completed 12 months of on-time payments and I’d like my deposit refunded per PUCT Rule 25.24.”

Mentioning the specific rule tells them you know your rights. It tends to speed things up.

Step 3: Confirm the details

Ask them to confirm:

Your deposit amount on file
Whether your 12-month on-time payment history qualifies
How and when the refund will be processed
Whether it includes the required interest

Step 4: Get it in writing

Ask for email or written confirmation of the refund amount and timeline. If anything goes sideways, you’ll want documentation.

Step 5: Follow up

If the refund doesn’t appear within the timeframe they gave you (usually 1-2 billing cycles), call again. Reference your previous call and the confirmation you received.

What If They Won’t Refund It?

If your light company refuses to return your deposit after 12 months of on-time payments, they’re violating Texas law. Here’s your escalation path:

Level 1: Ask for a supervisor

Customer service reps don’t always know the rules. Ask to speak with a supervisor and reference PUCT Rule 25.24 specifically.

Level 2: File a complaint with the PUCT

The Public Utility Commission of Texas handles complaints against light companies. You can file online, by phone, or by mail.

Online: Visit the PUCT website and use their complaint form
Phone: Call the PUCT customer assistance line
What to include: Your account number, deposit amount, dates of on-time payments, and what the company told you

The PUCT takes these complaints seriously. Most companies resolve the issue quickly once a formal complaint is filed. For more details on the complaint process, see our Texas electricity rights guide.

Level 3: Contact the Office of the Attorney General

For persistent issues, the Texas Attorney General’s consumer protection division can also assist.

Common Problems and How to Handle Them

”We don’t show a deposit on your account”

Ask them to check the account history from when you started service. Deposits are recorded at enrollment. If you have your original signup confirmation or first bill showing the deposit charge, reference it.

”You had a late payment in month 6”

If the company claims a late payment, ask for specifics: which bill, what date it was due, and what date they received your payment. Sometimes payments processed on the due date are incorrectly marked as late. If you paid through auto-pay, your bank records can prove the date.

”The deposit was forfeited”

Deposits can’t be “forfeited” under Texas law (PUCT §25.24). If the company closed your account while you still had a deposit on file, they owe you that money minus any final balance. If your account is closed and you never got the deposit back, you’re still owed it.

”We already applied it to a past-due balance”

A light company can apply your deposit to unpaid bills. But they have to notify you before doing so. If they applied it without notice, file a complaint.

Avoiding Deposits Entirely Next Time

Now that you’ve got your deposit back, here’s how to avoid paying one again:

Letter of credit: Your 12 months of on-time payments qualify you for a letter of credit. Use it when switching to a new company so they waive the deposit.
Compare companies: Different companies have different credit thresholds. Use our deposit checker to find companies that approve you with $0 down.
Prepaid as a fallback: If you ever need lights without a deposit again, prepaid plans are always available with no deposit and no credit check.

The Bottom Line

Your deposit is your money. Texas law is on your side — 12 months of on-time payments means you get it back with interest. Don’t wait for your light company to remember. Call them, reference the rule, and get what’s yours.

For a full breakdown of how deposits work in Texas, check our deposits explained guide.

Related reading:

This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).