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How Does Prepaid Electricity Work In Texas?

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By Author: tim carter
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When deregulation of electricity happened in Texas some time ago in 2002, it resulted in numerous electricity providers entering the market. Now, a growing trend among Texans is using prepaid electricity services. Prepaid electricity in Texas is a great option to have for many residents. It can be affordable, convenient, and reliable. Texas houses one of the largest consumers of energy in the world, and therefore, the number of prepaid electricity companies are entering into this territory and looking for consumers to provide quality services too. Yet, many do not know how prepaid electricity works.

Prepaid electricity is designed to ideally save you money. Potential customers can contact a myriad of service providers such as, Direct Energy, Blu Power, Reliant, First Choice Power and state that they would like to sign up for prepaid electricity. Once they sign up with say First Choice Power, they will ask the customer to make a payment immediately to activate service. Once a payment is received by that them an account is created and, electricity is activated and turned on in most cases instantaneously for the customer’s ...
... home or place of business.

In order for a customer to remain in good standing with the prepaid electricity provider and maintain service, is to be very reliable in making payments at least one month in advance. For example, if a customer decides to secure a prepaid electricity company like FCP on November 1st, then they would need to make a payment at an estimated amount sufficient enough to cover all of November. One way that a customer can possibly estimate what their monthly usage would be is to get the rate per kilowatt hour that they charge (often rates are between 7 to 9 cents per kilowatt hour), and multiply by estimated hours of use per month. Use that figure to estimate what possible usage will be to then make a payment for the month going forward.

Dallas and Houston are the major cities where prepaid electricity providers in Texas provide their services. If a potential customer decides to give prepaid electricity a shot, then shopping around for companies with a good reputation and that charge fair rates is the key to having a positive experience with prepaid electricity in Dallas and Houston.


First Choice Power is one of the few prepaid electric providers that has a good reputation and that charge fair rates for prepaid electricity in Texas

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