What Is a Deposit Waiver?
When you get started with traditional light service, most light companies require a security deposit of $200-400 if you have limited or poor credit history. This deposit is held by the light company and returned after 12 months of on-time payments.
Under PUCT Substantive Rule 25.24, Texas rules require light companies to waive this deposit for customers who meet certain criteria. This is your legal right, not a favor from the light company.
Source: PUCT Rule 25.24 - Credit Requirements and Deposits
Official Texas regulatory rules governing deposit requirements and waivers for residential electric service.
Who Qualifies for a Deposit Waiver?
Seniors (65 and older)
If you are 65 years of age or older, you cannot be required to pay a deposit.
Documentation needed:
- - Government-issued ID showing date of birth
- - Driver's license or state ID
Customers with Disabilities
If you receive disability benefits or have a documented disability, you may qualify for a deposit waiver.
Documentation needed:
- - Social Security Disability Insurance (SSDI) letter
- - Supplemental Security Income (SSI) documentation
- - Doctor's statement of disability
Government Assistance Program Participants
Participation in certain assistance programs can qualify you for a deposit waiver.
Documentation needed:
- - SNAP/Food stamps enrollment letter
- - LIHEAP assistance documentation
- - Medicaid enrollment verification
- - TANF (Temporary Assistance for Needy Families) documentation
Good Payment History
If you have 12 consecutive months of on-time payments with a Texas light company, you may qualify.
Documentation needed:
- - Letter from previous light company confirming payment history
- - Previous account number for verification
Previous Account with Same Company
If you had service with the same light company within the last 2 years and paid on time, the deposit may be waived.
Documentation needed:
- - Previous account information for the light company to verify
How to Apply for a Deposit Waiver
Choose Your Light Company
Find a traditional plan you want. Enter your ZIP code to compare rates.
Tell Them You Qualify
During the enrollment process, inform the light company you are requesting a deposit waiver under PUCT Section 25.24. Be specific about which category you qualify under.
Submit Documentation
Provide the required documents. Most light companies accept email, fax, or uploads to their online portal. Keep copies for your records.
Get Confirmation in Writing
Ask for written confirmation that your deposit waiver was approved. This protects you if there are billing disputes later.
What If You Are Denied?
If a light company wrongly denies your deposit waiver request, you have options:
- 1. Ask to speak with a supervisor and cite PUCT Section 25.24
- 2. File a complaint with the PUCT at 1-888-782-8477 or online
- 3. Try a different light company who may be more cooperative
Frequently Asked Questions
What is a deposit waiver?
A deposit waiver allows you to start light service without paying the typical $200-400 security deposit. Under Texas PUCT rules, certain groups of customers are entitled to skip the deposit requirement. PUCT
Who qualifies for a deposit waiver in Texas?
Under PUCT Section 25.24, you may qualify if you are 65 or older, have a disability, participate in low-income assistance programs (SNAP, LIHEAP, Medicaid), or have 12 months of good payment history with a Texas light company. PUCT
How do I apply for a deposit waiver?
Contact the light company you want to use and tell them you believe you qualify for a deposit waiver. They will tell you what documentation to submit. Most light companies accept documents by email, fax, or in their online portal.
What if I am denied a deposit waiver?
If you believe you were wrongly denied, you can file a complaint with the Public Utility Commission of Texas (PUCT) at 1-888-782-8477. You can also ask the light company to review your case with a supervisor. PUCT
Can I get a deposit waiver with bad credit?
Credit score alone does not disqualify you from a deposit waiver. If you meet any of the qualifying criteria (age, disability, assistance programs, or payment history), you are entitled to the waiver regardless of your credit situation.
What is the difference between a deposit waiver and prepaid lights?
A deposit waiver lets you get a traditional light plan without paying a deposit upfront. Prepaid lights require no deposit but have higher rates. If you qualify for a waiver, traditional plans will likely save you money over time.
Do Not Qualify? Consider Prepaid
If you do not meet the deposit waiver criteria, prepaid lights are another way to get power without a large upfront deposit. You will pay slightly higher rates, but you can get connected quickly with no credit check.
Learn how prepaid lights workRelated Resources
Deposit Checker Tool
Estimate what deposit you might pay.
Deposits Explained
Why deposits exist and how to avoid them.
Your Texas Rights
Full PUCT consumer protections guide.
Prepaid vs Traditional
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Bad Credit Options
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Compare Light Companies
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Consumer Advocate
I help you get your lights on when other companies say no. If you've been denied or quoted a huge deposit, I know the workarounds.
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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).
