Prepaid and no-deposit electricity in Texas — what it costs and how to skip the deposit (November 2026)
If a provider asks for a deposit you can't pay, there are two ways forward: a prepaid plan, which by Texas rule needs no deposit, or a regular plan with the deposit waived because you meet one of the state's credit tests. The second usually costs much less. This guide uses the Public Utility Commission of Texas (PUCT) rules and Power to Choose prices as of November 3, 2026.
How prepaid works in Texas
Under the PUCT's prepaid rule (16 TAC §25.498):
- No security deposit. A provider may not require one for prepaid service. It may ask for a starting balance of up to $75 to begin or reconnect service.
- Disconnection threshold. The provider can start disconnection when your balance falls below a disconnection balance of up to $10, and it must warn you 1 to 7 days before your balance is expected to reach it.
- Protected times. It may not disconnect you for a low balance on a weekend day, while its payment methods are unavailable, or during an extreme weather emergency in your county. If your balance is $50 or more negative during an extreme weather emergency, you can ask for a deferred payment plan within one business day after it ends.
- English or Spanish: your usage-and-payment summaries and payment confirmations must come in either language, at your choice. Moving from prepaid to a regular (postpaid) plan has no fee, though a regular plan may then ask for a deposit; an early termination fee in your contract can still apply.
What prepaid costs right now
Prepaid plans are few, and we keep them out of our default ranking. On November 3, 2026, Power to Choose listed them in five areas, each from only two providers:
| Area | Prepaid plans | Median prepaid price at 1,000 kWh | Median of all plans listed | Extra per year at 1,000 kWh/month |
|---|---|---|---|---|
| AEP Texas Central | 7 | 16.4¢ | 11.9¢ | about $540 |
| AEP Texas North | 5 | 16.4¢ | 12.7¢ | about $444 |
| CenterPoint (Houston) | 6 | 16.7¢ | 13.0¢ | about $444 |
| Oncor (Dallas–Fort Worth) | 5 | 17.2¢ | 13.1¢ | about $492 |
| TNMP | 6 | 18.5¢ | 14.7¢ | about $456 |
The extra cost is the median price gap times 12,000 kWh, an estimate before taxes. Lubbock had no prepaid plans listed.
How to skip a deposit on a regular plan
The PUCT credit rule (16 TAC §25.478) lists ways you may be treated as having satisfactory credit — tell the provider which one applies before you pay a deposit:
- Payment history: you were a customer of any Texas provider or utility in the last two years, you are not behind on that account, and in the last 12 months in a row you paid late no more than once. A statement or letter from your old provider can show this.
- Credit rating: a satisfactory rating from a consumer reporting agency.
- Age 65 or older, and not behind on any electric account.
- Victim of family violence, certified by a letter developed by the Texas Council on Family Violence.
If a deposit is still required, it is capped at the greater of one-fifth of your estimated yearly bill or two months of estimated bills, and the provider must pay interest on it.
Next step
Compare regular plans on your own usage — our pages rank every plan by its 12-month cost, with bill credits counted month by month: Oncor, CenterPoint, AEP Texas Central, AEP Texas North, TNMP. Moving? See setting up electricity when you move.
This is general information about PUCT rules, not legal advice. Your provider's terms of service and Electricity Facts Label govern your plan.
Questions
Do prepaid electricity plans in Texas require a deposit?
No. Texas rules (16 TAC §25.498) bar a provider from requiring a security deposit for prepaid service. It can ask for a starting balance of up to $75 and can start disconnection when your balance falls below $10, after warning you 1 to 7 days ahead.
Is prepaid electricity more expensive?
On November 3, 2026 it usually did. The median prepaid plan cost 16.4–18.5¢ per kWh at 1,000 kWh a month, against a median of 11.9–14.7¢ for all plans listed in the same area — about $440 to $540 more a year at 1,000 kWh a month.
How can I avoid a deposit without going prepaid?
Texas rules list ways to show satisfactory credit instead of paying a deposit, including a good payment history with a previous provider (12 months with no more than one late payment, within the last two years), a satisfactory credit rating, being 65 or older and not behind on an electric bill, and being certified as a victim of family violence. Ask the provider before you pay a deposit.
Sources
- 16 TAC §25.498, Prepaid Service (effective January 6, 2022) — Public Utility Commission of Texas
- 16 TAC §25.478, Credit Requirements and Deposits — Public Utility Commission of Texas
- Power to Choose plan export (imported November 3, 2026) — Public Utility Commission of Texas
General information as of Nov 4, 2026, not legal or financial advice. PUCT rules (16 TAC Chapter 25), your contract and the provider's Electricity Facts Label control; check the current rule text and your own documents.
