No Deposit Electricity: Your Options and Which Rules Apply

A deposit protects a company against unpaid bills. It is more likely to be asked of people with no payment history, a recent late payment or a low credit rating. It is not a fee. It is held, often with interest, and returned or credited when you meet the company's conditions.

1. Show a good payment record. A recent history of on-time payment with another electric company can count as satisfactory credit.
2. Provide a credit rating. Some companies accept a satisfactory credit report in place of a deposit.
3. Ask about waivers. Age and certain hardship situations qualify for a waiver under some rules.
4. Offer a guarantee. Some rules let a household use a written letter of guarantee instead of cash.
5. Choose a plan without a deposit. Prepaid service avoids one where it is offered.
6. Ask about payment arrangements. Some companies let you pay a deposit over time.

• "Is a deposit required for my account, and what is the amount?"
• "What are the ways to avoid it, and what proof do you accept?"
• "Can I pay it in parts, or use a letter of guarantee?"
• "How and when is the deposit returned, and is interest paid?"

Ask for the answers in writing. If you are refused and you think the rules were not followed, your state regulator takes complaints.

Texas sets a limit on the size of a deposit, a list of ways to show satisfactory credit and a refund rule, and it bars deposits for prepaid service. Read the details in no deposit electricity in Texas. The idea is the same elsewhere, but amounts and conditions differ.

Your regulator's rules decide what a utility can ask. Find yours below.