$40 Texas Pay-As-You-Go Lights
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Pay-As-You-Go Electric Service: What You Need to Know
Table of Contents
- What is Pay-As-You-Go Electric Service?
- Is Pay-As-You-Go Power Right for You?
- Key Questions to Consider
- Starting Pay-As-You-Go Service
- Billing and Usage
- Fees
- Payment Assistance
- Critical/Chronic Care Customers
- Communication of Important Notices
- Avoiding Disconnection
- Reconnecting Service
- Deferred Payment Plans
- Cost of Pay-As-You-Go Service
What is Pay-As-You-Go Electric Service?
Pay-As-You-Go electric service allows you to purchase electricity before you use it. With pay-as-you-go service, a Retail Electric Provider (REP) enables you to pay upfront, helping you manage your payments and electricity usage effectively.
Is Pay-As-You-Go Power Right for You?
Consider the following before signing up for pay-as-you-go electric service:
- AMS Meter Requirement: You need an AMS or Digital meter.
- Timely Prepayments: Your service depends on prepaying on time.
- Disconnection Threshold: If your balance falls below the disconnection balance (not exceeding $10), your service will be disconnected with little notice.
- Electronic Notices: You must be able to receive notices via text, email, phone, or other electronic methods.
- No Monthly Bill: You won’t receive a monthly bill.
Key Questions to Consider
- Do you prefer to pay-as-you-go?
- Do you prefer not to pay a deposit?
- Are you okay with not receiving a monthly paper bill?
- Do you want to monitor and reduce your energy usage?
- Do you want to split costs with roommates?
Starting Pay-As-You-Go Service
- Choose a REP: Select a Retail Electric Provider.
- Contact the REP: Initiate the service by contacting the REP.
- Establish an Electricity Connection Balance: To start pay-as-you-go electricity service, a Retail Electric Provider (REP) will require a connection balance payment to establish a positive balance. Unlike traditional services that require a deposit, pay-as-you-go electricity services need a connection balance of $40 to provide and maintain your electric service.
Billing and Usage
- No Monthly Bill: Pay-As-You-Go customers do not receive monthly bills. Instead, you will get electronic communications from your REP about your remaining balance.
- Summary of Usage and Payment (SUP): You can request an SUP for up to twelve months, showing usage, charges, average service price, and payments by month. The SUP is downloadable and printable for free via email, with possible fees for paper copies.
Fees
Fees vary by REP. Check the Terms of Service (TOS) or contract documents for details. For prepaid pay-as-you-go products, the Prepaid Disclosure Statement (PDS) provides information on fees and charges.
Payment Assistance
Some assistance agencies may not offer bill payment assistance for prepaid services. Verify eligibility for energy or payment assistance with relevant programs before signing up.
Critical/Chronic Care Customers
Pay-As-You-Go service is unavailable for critical care or chronic condition residential customers.
Communication of Important Notices
REPs must send crucial time-sensitive notices such as balance notifications, disconnection warnings, and payment confirmations via standard mail. The PDS will detail how your REP communicates these notices.Avoiding Disconnection
- Maintain Positive Balance: Keep your account balance above the disconnection balance to avoid service interruptions. A disconnection balance can be up to $10.
- Low Balance Notifications: You will be notified one to seven days before your balance is expected to fall below the disconnection threshold. Quick depletion can lead to disconnection within a day after notification.
Reconnecting Service
If disconnected, you must pay off any negative balance before reconnecting. After correcting the balance, make a payment to establish a new connection balance. Service typically resumes within two hours of resolving the disconnection reasons. Detailed reconnection balance and payment verification requirements are in the PDS.Deferred Payment Plans
Deferred payment plans are available in specific situations:- Negative balance of $50+ during an extreme weather event or declared disaster.
- Under-billing of $50+ by your REP.
- A switch-hold may apply until the deferred plan is paid in full, preventing service switch to another provider. Disconnection requires at least one day’s notice after breaking the deferred payment plan.
Cost of Pay-As-You-Go Service
The price per kWh varies by REP. Prepayments buy a dollar amount of electricity rather than a specific kWh amount. Costs depend on usage and REP rates. Most prepaid pay-as-you-go products are variable or indexed rate products, meaning the price per kWh can change daily. For detailed rate information, check the Electricity Facts Label (EFL) and Power to Choose website.
For more details, consult your Prepaid Disclosure Statement (PDS) and Terms of Service (TOS).