How to Write a Deposit Waiver Letter for Your Light Company (Template Included)

Your new light company wants $300 before they’ll turn your lights on. You don’t have $300 sitting around. But you do have something that might be worth more: a history of paying your bills on time.

Texas rules allow light companies to waive a deposit if you can prove you’ve been a reliable customer. The trick is knowing how to ask, and putting it in writing so they take it seriously.

When a Deposit Waiver Letter Works

A deposit waiver letter is basically you saying: “I know my credit triggered a deposit, but here’s proof I pay my bills. Please reconsider.”

This works best when you have:

12+ months of on-time payments with a previous light company
A letter of credit from your former company (this is different from a waiver letter, but they work together)
Proof of auto-pay enrollment at your previous company
A history with the same company at a different address

It doesn’t always work. Some companies have rigid policies. But plenty of light companies have discretion, and a written request with documentation gets reviewed differently than just asking on the phone.

What Texas Law Actually Says

Under PUCT §25.24, light companies in Texas can use “satisfactory credit” to waive a deposit. Satisfactory credit includes:

A letter of credit from a previous light company showing 12 months of service with no more than one late payment
Proof that you were a customer of the same company in the last two years with good payment history
Being 65 or older and requesting service (special protections apply)

The rule doesn’t require companies to accept a waiver letter. But it gives them the authority to waive the deposit based on your history, and a well-written letter makes their decision easier. Read our deposit waivers guide for the full rundown of what qualifies.

The Template

Here’s a letter you can adapt. Replace the bracketed items with your information.

[Your Full Name] [Your Address] [City, TX ZIP] [Your Phone Number] [Your Email]

[Date]

[Light Company Name] [Their Address or “Attn: New Service Department”]

RE: Deposit Waiver Request - Account/Application #[your number if you have one]

To whom it may concern,

I recently applied for light service at [your new address] and was informed that a deposit of $[amount] is required. I’m writing to request that this deposit be waived based on my payment history.

I was a customer of [previous light company name] from [start date] to [end date] at [previous address]. During that time, I maintained my account in good standing with [no/one] late payment(s) over [number] months of service.

I have attached the following documentation:

[Letter of credit from previous light company, OR]
[12 months of billing statements showing on-time payment, OR]
[Screenshot of payment history from online account, OR]
[Other proof of reliable payment]

Under PUCT Rule 25.24, satisfactory credit history with a previous light company may serve as an alternative to a cash deposit. I respectfully request that my documented payment history be considered as satisfactory credit for the purpose of waiving or reducing the deposit requirement.

I am happy to enroll in auto-pay and/or paperless billing if that supports this request.

Thank you for your consideration. Please contact me at [phone] or [email] if you need additional information.

Sincerely, [Your Name]

How to Submit It

Different companies handle this differently:

Email is fastest. Send it to their customer service or new accounts email. Attach your supporting documents as PDFs.
Phone + follow-up. Call first to explain what you’re doing, then email the letter as a follow-up. The phone call primes them; the letter makes it official.
In-person. If the company has a local office, walk in. Having someone look at your documentation face-to-face can work in your favor.

Always keep a copy. If they deny it, you want a record of what you submitted.

What to Attach

The letter is stronger with documentation. Include at least one of these:

Best: Letter of credit from your previous company. This is the gold standard. It’s an official document confirming your payment history. See our guide on how letters of credit work for how to get one.

Good: 12 months of billing statements. Screenshots or PDFs from your previous company’s online portal showing each month’s bill and payment date.

Acceptable: Bank statements showing payments. Redact everything except the line items for your light bill payments. Shows you paid, even if it’s not from the light company directly.

Helpful extra: Auto-pay enrollment confirmation. If you had auto-pay set up at your previous company, include proof. It shows you’re systematic about paying.

What If They Say No

Not every company will waive the deposit, even with documentation. If your request gets denied:

Ask about a reduced deposit. Some companies will lower it from $300 to $150 based on partial credit history.
Ask about a deposit payment plan. Spreading $300 over 3 monthly payments of $100 is easier than paying it all upfront.
Try a different light company. Deposit requirements vary. A company that wants $300 from you might not require a deposit at all from another company. Use our deposit checker to compare.
Go prepaid. No deposit, no credit check, no letter needed. Your lights are on today. It costs more per unit, but you avoid the $200-$400 upfront hit entirely. Our how prepaid works guide explains the trade-offs.

A Few Things to Avoid

Don’t lie about your payment history. They can verify it. If your letter says “zero late payments” and they find two, you’ve lost all credibility.
Don’t get aggressive. The person reading this letter has discretion. Making their day harder doesn’t help your case.
Don’t send a generic letter without documentation. A letter by itself is just a request. Documentation makes it a case.
Don’t wait until the last minute. If you need lights on by Friday, a deposit waiver letter that takes 5-7 business days to process won’t help. Plan ahead, or go prepaid for now and submit the waiver letter to switch later.

The Smart Play

If you have good payment history with a previous light company, always try the waiver letter first. It costs you nothing but 15 minutes and a stamp (or an email). If it works, you just saved $200-$400.

If it doesn’t work, you haven’t lost anything, and prepaid gets your lights on the same day.

Start by checking what’s available at your address. Enter your ZIP at NoDepositLights.com and see which companies serve your area. Then decide whether to send a waiver letter or go straight to prepaid.

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).