The Basics
Prepaid Electricity
Pay-as-you-go lights in Texas work like prepaid phone service — you add money to your account before using power. Your balance decreases daily based on actual usage. Pay-as-you-go plans require no deposit, no credit check, and offer same-day activation. When your balance runs low, you add more money to keep your lights on. Regulated by PUCT Rule 25.498.
Source: PUCT Rule 25.498
How It Works
You put money in your account first, then use the power. Your balance goes down each day based on what you actually use. When you're running low, you top off your account and keep going.
Why No Deposit?
With regular plans, you use the power first and pay later. That's why they want a deposit - they're nervous you might not pay. With pay-as-you-go, you've already paid before you use it. No risk for them, no deposit for you.
Before you commit to prepaid, check if you qualify for traditional.
Prepaid rates are typically 30-50% higher than traditional plans. We check multiple light companies to see if you qualify for $0 deposit on a traditional plan with better rates. Many people with credit challenges find at least one option. Can't promise it'll work, but it saves you $80-100/month if it does. And if you can't qualify? Prepaid is always there.
What You Pay
To Get Started: $40-75
This covers a one-time connection fee (~$5-15) plus your starting balance (~$25-60). Your $30-75 startup fee is not a deposit—it's credit that goes straight toward your lights.
Your Rate: 12-20 cents per unit
Pay-as-you-go rates run higher than regular plans (which are 8-12 cents). That's the trade-off for skipping the deposit and the credit check. For a lot of folks, that trade-off makes sense. PUCT Rate Information
Daily Fee: $0-2/day
Some light companies charge a small daily fee on top of what you use. Ask about this before you pick a plan - it adds up over a month.
Try the Prepaid Calculator — put in your balance and see how many days it'll last.
Related: Tips to save on prepaid
What Happens If You Run Out of Money?
When your prepaid balance hits zero, your lights get cut off — usually the next morning. No grace period like with regular plans.
You'll get a warning first, though: Texas law ( PUCT Rule 25.498) says light companies have to warn you when your balance drops below $15 (most companies set alerts at $10-20).
To get back on: Add more money and your lights come back on, usually within a few hours. No reconnection fee with most companies.
When Pay-As-You-Go Makes Sense
Pay-As-You-Go Makes Sense If:
- ✓ You need lights today and don't have $200-400 for a deposit
- ✓ Your credit's been through some things
- ✓ You want to stay in control of what you spend
- ✓ You're working on getting back on your feet
- ✓ You only need lights for a few months
When Pay-As-You-Go Doesn't Make Sense
A Regular Plan Might Be Better If:
- → Your credit's in decent shape (650+, you'll qualify for $0 deposit and save $80-100/month)
- → You can afford the $200-400 deposit now (you get it back after 12 months with interest)
- → You want the cheapest possible light bill (traditional plans save $960-1,200/year)
- → You don't want to monitor your balance daily (traditional plans bill monthly after usage)
Consumer Advocate
I cut through the BS. Light companies hide their real rates in the fine print. I show you what you'll actually pay.
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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).
