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 credit history or a low score. This deposit is held by the light company and returned after 12 months of on-time payments.
Under PUCT Substantive Rule 25.478, 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 25.478 - Credit Requirements and Deposits
Official Texas regulatory rules governing deposit requirements and waivers for residential electric service.
Don't qualify for a waiver? You still have options.
Even if you don't meet PUCT waiver criteria, every light company has different credit thresholds. We check multiple companies to see if you qualify for $0 deposit anyway. Many people who don't qualify for waivers still find at least one traditional plan with no deposit. Can't promise it, but it's worth checking before paying $200-400 upfront or going to prepaid.
Who Qualifies for a Deposit Waiver?
Seniors (65 and older)
If you are 65 years of age or older and are not currently delinquent on an electric account, you cannot be required to pay a deposit.
Documentation needed:
- - Government-issued ID showing date of birth
- - Driver's license or state ID
Medically Indigent Customers
If your household income is at or below 150% of the federal poverty guidelines and a medical condition creates a hardship, you may qualify for a deposit waiver as a medically indigent customer.
Documentation needed:
- - Proof of household income at or below 150% of the federal poverty guidelines
- - Physician certification that you or a household member cannot perform 3 or more daily living activities
- - Documentation that monthly medical costs exceed 20% of household income
Family Violence Victims
If you are a certified victim of family violence, your light company must waive the deposit.
Documentation needed:
- - Certification letter from a family violence center, treating medical provider, law enforcement, or prosecutor
- - Texas Council on Family Violence certification form
Good Payment History
If you were a customer of any Texas light company in the last 2 years, are not behind on a light bill, and were late no more than once in your last 12 months of service, you may qualify.
Documentation needed:
- - Letter from previous light company confirming payment history
- - Previous account number for verification
Previous Account with a Light Company
If you had service with any Texas light company within the last 2 years, were not delinquent, and had no more than one late payment in the past 12 months, that history can be used to skip the deposit (PUCT requirement).
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 25.478. 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 25.478
- 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 25.478, you may qualify if you are 65 or older, are medically indigent, are a certified victim of family violence, 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 if credit is a concern?
Credit score alone does not disqualify you from a deposit waiver. If you meet any of the qualifying criteria (age, medical hardship, family violence, or payment history), you are entitled to the waiver no matter your credit score.
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
Calculate your expected deposit based on credit tier.
Deposits Explained
Why deposits exist and how to avoid them.
Your Texas Rights
Full PUCT consumer protections guide.
Prepaid vs Traditional
Compare your no-deposit options.
No Credit Check Options
All paths to lights with credit challenges.
Compare Light Companies
All no-deposit light companies with rates.
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).
