How to keep your payment history when switching electric companies

Switching retail electric providers in Texas is routine. You pick a new plan, sign up, and power keeps flowing over the same wires. What does not move automatically is the story of how you paid your old company—on-time months, one late fee years ago, or a clean run that might help you avoid a deposit with someone new.

Your credit score does not tell that whole story. Many Texas households worry about deposits, credit checks, or getting a deposit back when they change companies. The good news: you can carry proof of how you actually paid, even though no single file follows you from provider to provider. This guide explains why that gap exists, what Texas rules require, and practical steps before, during, and after a switch. For the full picture on deposits and credit, start with our Texas electricity deposits hub¹.

The problem: switching companies does not switch your payment file

In deregulated parts of Texas, you buy electricity from a retail electric provider (REP). The local wires company still delivers power and reads your meter. When you change providers², ERCOT processes the switch; you typically get a confirmation mailing, a three-business-day window to cancel, and service with the new REP within about seven business days—with no intentional gap in power.

Your old REP closes your account and sends a final bill. That bill matters for your wallet and your record, but it is not the same as a portable “payment history score” every new company can see.

New providers decide whether to ask for a deposit or treat you as a low-risk customer using their own policies plus information they are allowed to collect. That may include a traditional credit report, internal records if you were their customer before, and sometimes specialty consumer reports used in the utility and telecom industry. One example is the National Consumer Telecom & Utilities Exchange (NCTUE), which, according to the Consumer Financial Protection Bureau (CFPB)³, shares information about new accounts and payment histories among many large telecom, pay TV, and utility members. A member may use that information when deciding whether you must pay a deposit.

At the same time, paying electricity on time usually does not build the credit score lenders see. The CFPB explains that most utility companies do not report regular on-time payments to the three nationwide credit bureaus. Unpaid bills sent to collections can show up on those reports. So documenting your REP payment pattern helps with deposit and enrollment decisions, not with magically fixing your FICO score. For more on that distinction, see Can paying electricity bills build credit?⁴.

Whether a new provider will waive a deposit or accept your prior history depends on that provider. Texas law sets minimum standards and record-keeping rules; it does not guarantee every REP will approve you without a deposit. Waivers tied to age, family violence certification, or other factors exist in rule, but you still need to check with your provider about what applies to your situation—our overview is at Electricity deposit waiver in Texas⁵.

What Texas requires your old provider to keep

State rules give you a backstop. Under PUCT Substantive Rule §25.478⁶, a REP may obtain payment history from any REP that served you in the previous two years or from a consumer reporting agency—but must get your authorization before contacting your prior REP.

Critically for switchers, a REP shall maintain payment history information for two years after your electric service has been terminated or disconnected, so it can provide credit history information when a former customer requests it.

The same rule describes when residential customers may be treated as having “satisfactory credit,” including if they were a customer of any REP or electric utility within the prior two years, are not delinquent, and during the last 12 consecutive months of service were not late paying a bill more than once. That standard applies in defined situations (for example, certain affiliated REP or provider-of-last-resort enrollments). Other REPs have a different menu of options and may set additional non-discriminatory methods—again, no universal pass.

If you paid a deposit, §25.478 also says a deposit must be refunded after 12 consecutive residential billings without late payments, and the refund may come as a bill credit. Leaving an provider does not erase your right to a refund or transfer of that deposit when rules are met; see How to get an electricity deposit back in Texas⁷.

Step 1: Save bills and payment confirmations as you go

Do not wait until moving day to hunt for PDFs. Each month, keep:

• Itemized bills (paper or download from the REP portal)
• Bank or card statements showing the payment posted
• Confirmation emails or autopay receipts
• Notices showing paid in full or past due status

The CFPB⁸ notes that consumer reporting companies collect data used in many decisions, and that you have rights to request reports and dispute inaccurate information. If utility-related data about you is wrong, fixing it starts with documentation. Our guide Check and fix your utility credit report (NCTUE)⁹ walks through that path; you can request specialty reports (including those covering utility accounts) using the Bureau’s list of consumer reporting companies⁸.

If you are still building a track record—thin credit or no prior REP—pair this habit with the ideas in Build electricity payment history with no credit¹⁰.

Step 2: Request a payment-history letter before you leave

Two to four weeks before your planned switch, call or message your REP and ask for written confirmation of your payment record on the account. Be specific:

• Account number and service address
• Dates of service
• Whether bills were paid by the due date (and if any late payments occurred)
• Current balance (should be zero before closure except the final cycle)

Under §25.478, they must keep history for two years after termination, but getting a letter while the account team still knows you is easier than reconstructing it later. You may need to authorize release of history to a new REP; keep a copy of any authorization you sign.

If your goal is to avoid a deposit with the next company, share that letter when you enroll—but understand approval is not guaranteed. Read Avoid an electricity deposit with payment history¹¹ and Can an electric company approve you without a deposit?¹² for realistic expectations—even strong payers sometimes face deposits; see Good credit but still charged an electricity deposit¹³.

Step 3: Pay the final bill and lock in “account closed, paid” proof

After you switch, your old REP sends a final bill covering usage through the switch date plus any closing charges allowed under your Terms of Service. Pay it by the due date and save proof:

• The final bill PDF showing zero balance or paid
• The last payment confirmation
• Any email or letter stating the account is closed and settled

If you dispute a charge, Power to Choose² directs you to the REP first, then the PUCT customer hotline if needed. Do not leave a balance on the old account; delinquency can feed specialty reports and hurt your next enrollment.

Late payments on the way out can also restart deposit clocks and refund eligibility under §25.478. If payday timing makes due dates tight, strategies in Avoid late electricity payments around payday¹⁴ may help you protect the streak you built.

Step 4: Give your new provider what they actually accept

When you sign up, ask how they evaluate credit and deposits. They may:

• Pull a traditional credit report
• Check NCTUE or similar specialty data
• Request authorization to contact your prior REP
• Offer prepaid or deposit alternatives if you do not qualify for waived security

Bring your saved bills and payment-history letter. No REP is required to accept a letter from a competitor, but many use prior REP data when authorized. Deposits, when required, must follow §25.478 limits and disclosure rules—including written information about refund policy.

You do not need to call your old REP to cancel; your new contract triggers the market switch. You do remain responsible for contract early-termination fees on the old plan if you break a fixed contract early, as Power to Choose² notes.

How WattKarma helps

Your credit score does not tell your whole story. WattKarma is building tools to help Texas customers document how they actually pay electricity bills—a payment history record and deposit refund tracking are coming soon, not live today.

Right now you can:

• Shop Texas electricity plans on WattKarma and compare contract terms before you switch
• Request help from WattKarma support if you want guidance on deposits, switching, or organizing your payment proof

When the payment record launches, it will be designed to sit alongside the steps above—not replace official bills or PUCT-mandated REP records. Until then, treat your file folder (digital or paper) as the source of truth.

Quick checklist for switchers

• Download or save each bill and payment proof while still a customer
• Request a payment-history letter before service ends
• Pay the final bill on time; keep “paid / closed” documentation
• Know that your old REP must retain history two years per Texas rule—but you should keep copies too
• Review specialty utility reports if deposits keep appearing; dispute errors with documentation
• Ask each new REP how they decide deposits; never assume a waiver

Switching providers should not mean starting from zero. Texas rules preserve REP payment data for a window after you leave, and your own records fill the gaps when companies, credit bureaus, and specialty databases tell an incomplete story. Use the deposits hub¹ to go deeper, and keep paying on time—the record you build is still yours, even when the company name on the bill changes.