Texas Electric: Taking a Closer Look at the No-Deposit Electric Service Plans

by admin on April 20, 2010

If you have less than ideal credit, you will have to pay a deposit to get a Texas electricity account. This can range from a few hundred dollars on up to close to a thousand. But, there are options. One of them is a guaranteed, no-deposit electric service plan.

With this type of plan, you don’t pay a deposit. But, you DO pay a higher electricity service rate for a set period of time. Then, if you’ve paid on time, your rate is gradually lowered to a cheaper rate.

A Note about No-Deposit Electric Service Plans

Most energy experts say that the best way to go is to save up and pay a deposit if you have to. This way, you avoid having to pay more for electricity from the beginning. But if you do go with a no-deposit electric service plan, be sure to choose a stable Texas energy company. Following is why.

Why Conventional Texas Electricity Companies Are the Way to Go

Since the electricity market in Texas was deregulated, a lot of new energy companies have cropped up. And if you’re on a no-deposit electric service plan with a newer, less stable company and they go out of business, you might have to sign on with what’s known as a provider of last resort (a POLR).

When an electric company goes out of business, the Public Utility Commission of Texas takes over their consumer accounts and assigns them to a POLR. This can be any company qualified under Texas law to be an electricity supplier. The unfortunate thing for customers is, there’s no guarantee that you will get the same rate you had with your last electricity company. This can leave you paying even more.

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