Why Do Light Companies Want Deposits?
Light companies charge deposits because you use power before you pay for it — the deposit is their insurance in case you don't. The worse your credit looks to them, the bigger deposit they'll want.
Here's the good news: Under Texas law ( PUCT Rule 25.24), if you pay on time for 12 months straight, they have to give it back. If you don't pay, they keep it.
Here's What It Comes Down To
Deposits exist because you use the power before you pay for it. The worse your credit looks to them, the bigger deposit they'll want.
How Much Will They Ask For?
It depends on your credit. Here's roughly what you're looking at:
| Your Credit | What They'll Probably Want | What They're Thinking |
|---|---|---|
| 720+ | $0 - $50 | "This person pays their bills" |
| 650 - 719 | $100 - $200 | "Probably fine, small cushion just in case" |
| 550 - 649 | $200 - $300 | "We're a little worried" |
| Below 550 | $300 - $500 | "We need real insurance here" |
Also: bigger houses with higher light bills sometimes mean bigger deposits. It's based on how much they expect you to use. PUCT Rule 25.24
What Helps You Avoid a Deposit
Most light companies do a "soft" credit check when you get started. Good news: it won't hurt your credit score. Here's what works in your favor:
Works in Your Favor
- + Credit score 650 or higher
- + You've been paying other utilities on time
- + You've lived at the same place for a while
- + Letter from your old light company saying you paid on time
What Triggers a Bigger Deposit
Here's what works against you when light companies decide on your deposit:
Works Against You
- - Credit under 600
- - You've had your lights cut off before
- - Bankruptcy or stuff in collections
- - No credit history at all (they don't know what to expect)
5 Ways to Skip the Deposit
You've got options. Here's how to get your lights on without handing over $300:
Go Pay-As-You-Go
Pay-as-you-go lights don't require deposits. Period. No credit check either. The catch: your rate's higher - usually 30-50% more than regular plans (PUCT Rate Information). But for a lot of people, that's worth it to get lights on today. Learn how prepaid lights work.
Show Them You've Been Paying Somewhere Else
If you paid your old light company (or water, or gas) on time for 12 months, ask them for a "letter of credit." Show that to the new company. A lot of them will drop or lower the deposit when they see you've got a track record. PUCT Rule 25.24
Pay a Little Each Month Instead
Some light companies let you pay $5-10/month instead of a big deposit upfront. Over a year or two, you might pay a bit more total. But if you don't have $300 right now, this keeps your lights on. See how deposit waiver programs work.
Find a Light Company That Works With You
Not every company asks for the same amount. Some light companies work with folks who've had credit issues and their deposits are way lower - sometimes just $75-150.
Have Someone Vouch For You
Some companies let someone with good credit co-sign. They're putting their name on the line - if you don't pay, they're on the hook. Big ask, but it can get you in the door.
Try the Deposit Checker — answer 3 questions and find out if you'll need a deposit.
Already Paid a Deposit? Here's How to Get It Back.
That money isn't gone. Here's how it works:
Pay your light bill on time for 12 months straight
After a year of paying on time, they have to give it back. It's the law. PUCT Rule 25.24
Look for it on your bill
They usually don't mail you a check. It shows up as a credit on your light bill.
Or when you switch companies
When you leave, they take your last bill out of the deposit and send you what's left.
Watch out: One late payment can reset the clock. You'd have to start counting 12 months all over again.
The Office of Public Utility Counsel advocates for Texas residential electricity customers and can help with deposit disputes.
Frequently Asked Questions
Why do light companies want deposits?
How much is a typical deposit in Texas?
Do I get my deposit back?
Can I get lights without paying a deposit?
Does signing up hurt my credit?
What's a letter of credit?
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).
