You fund an account with an initial balance (e.g., $50). As you use electricity, the cost is deducted from your balance daily. You receive text or email alerts when your balance runs low.

If your balance hits zero, your power is disconnected remotely via your smart meter until you add more funds.

Prepaid plans typically charge significantly higher per-kWh rates than standard fixed-rate contracts. They also frequently include daily administrative fees.

While they are useful for short-term situations or rebuilding credit, they are generally the most expensive way to buy electricity in Texas over the long term.