Electric Companies Deposits FAQ

If you are moving to a new location the first thing to keep in mind about your electrical service is whether or not you have the choice to choose your electricity provider. If you do then you need to think about whether you are going to stay with your current provider or switch to another. If you are staying with your current provider you want to make sure and transfer your service. If you disconnect and reconnect, then they will set up a new account and may ask you for a deposit. Providers seem less likely to ask for a deposit if you are transfering service at an existing home rather than setting up new service.

Deposits have gotten to be quite high and can go as high as 1/6 of your estimated annual bill. They used to run around $100- $150 but as electricity has spiraled ever higher they have increased deposits proportionally. $250-$350 deposits are quite common these days.

There are some cases where you can avoid deposits or significantly reduce them.

• If you are 65 or older and have paid your electric bills on time you do not have to pay a deposit
• Victims of family violence do not have to pay deposits. You will need to have a form from the Texas Council on Family Violence to qualify for this.
• Some customers who qualify under the LITE UP TEXAS rate can split their deposit into 2 installments

Don't expect your electric company to work with you on this. It has been our experience that they do not bend off these rules.

 

 

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