Start/Stop/Transfer Service

Credit Requirements for Applicant/Members

The Cooperative requires each Applicant, regardless of the type of service applied for, to demonstrate and/or to establish and maintain satisfactory credit in a form and manner as may be prescribed by the Cooperative. An Applicant requesting Electric Service can establish satisfactory credit and will not be required to pay an initial deposit if a utility credit risk assessment indicates the Applicant or an entity’s owner-operator, managing partner, managing director, or other responsible Person poses an appropriate level of credit risk, in the sole discretion of the Cooperative. All Applicants requesting Electric Service who do not meet the foregoing requirements will be considered to have unsatisfactory credit, and an initial deposit is required, unless other means of satisfying the credit risk are provided by the Applicant. Other means may include an acceptable letter of credit, enrollment in the Cooperative’s Pre-Paid program, or other Cooperative-approved method.

Re-Establishment of Credit

Every Applicant who previously has been a Member of the Cooperative and whose Electric Service has been discontinued for nonpayment of bills, theft of Electric Service, Meter tampering, or bypassing of Meter will be required to  re-establish credit, which will include the payment of a deposit before Electric Service is reconnected and delivered.

Deposit Amount

Initial deposits for permanent residential Electric Service are assessed based on the creditworthiness of the Applicant. In the sole discretion of the Cooperative, Applicants with a moderate credit risk are assessed a deposit of $250, and Applicants with a high credit risk are assessed a deposit of $350. Additional deposits for permanent residential Electric Service will not exceed 1/6th of the Member’s annual billing. The total of all required deposits, initial and additional, for permanent non-residential Electric Service will not exceed the greater of 1/6th of the Applicant or Member’s estimated annual billing; or the sum of the estimated billings for the next 2 months. The Cooperative may require an Applicant or Member to pay a deposit sufficient to reasonably protect the Cooperative against the assumed risk of loss for providing any miscellaneous Electric Services such as: temporary service, seasonal service, weekend residence service, vacation residence service, security lights, street lights, Intermittent Use Facilities, or any other request for a special type of service not specifically addressed in these Tariffs.

When an Additional Deposit is Required

Deposits may be required when the average of the Member’s actual billings for the last 12 months is greater than the amount of the original estimated annual billings and a termination notice has been issued for the account within the previous 12 months; late payment of a Cooperative bill; any form of payment dishonored or returned unpaid during the last 12 months; disconnection of Electric Service for nonpayment; filing of a bankruptcy; or, an adverse letter from a utility credit risk exchange is received. The Cooperative may require that an additional deposit be paid within 10 days after the Cooperative has issued a written termination notice and requests the additional deposit. An Applicant or  Member who is required to pay a deposit may satisfy this requirement by providing a written Letter of Guaranty from another Cooperative member who has established satisfactory credit.

Use, Disposition, & Refund of Deposits

The Cooperative will pay interest on security deposits at an annual rate set by Public Utility Commission of Texas. Payment of interest is credited annually while a deposit is on file. Deposits and any unpaid accrued interest are credited to the account after the Applicant has paid bills for 12 consecutive months, is not delinquent in the payment of current bills and none of the following events or conditions exist in the Member’s account history: Electric Service disconnected for nonpayment of a bill; a payment dishonored or returned unpaid; more than 2 occasions in which a bill was delinquent; or, the Cooperative receives notice of a bankruptcy filing. Deposits and unpaid accrued interest are credited at disconnection of service in excess of unpaid balances. A transfer of service from 1 premise to another within the Cooperative’s service area is not considered a disconnection. At disconnection of service, any remaining credit balance is refunded by check. Deposits and Letters of Guaranty are held until the account meets the satisfactory credit criteria.

Because of the general content of this deposit summary, the Cooperative’s Tariff takes precedence and is the controlling document in any perceived conflicts or discrepancies between this Summary of Security Deposit Policy and the Cooperative’s Tariff.

PowerUp Pre-Paid Account

Our most popular option, Prepaid PowerUp lets members waive their deposit with our proactive, pay-as-you-go bill plan. Prepaid encourages members to monitor their usage and recharge their account as needed, making deposits a thing of the past. While no deposit is necessary, accounts need to remain in a positive balance to avoid disconnection.

$250 or Below - Letter of Credit

Are you moving to the area and are in good standing with your current electric provider? Members with a letter of credit from their current/recent electric utility can qualify for a waived deposit.

• The letter must show 2 or less late payments in the past 12 months with service no more than 2 years old.
• The letter must come directly from the previous utility on their letterhead and be addressed to Farmers Electric Cooperative.

$350 or Greater - Deferred Deposit

If your deposit amount is determined to be $350 or greater, you could qualify for our deferred deposit option. Members can split their deposit into 2 payments, with only 50% due before service begins.

Any Deposit Amount - Letter of Guaranty

Do you know a fellow member willing to help you in times of need? The Letter of Guaranty option waives your deposit when another Member guarantees to take responsibility for unpaid delinquent or final bill balance owed up to the guaranty amount.

• Possible guarantors must be in good standing with Farmers Electric Cooperative, with 12 months service and no more than 2 late payments.
• Guarantors must contact Farmers Electric Cooperative directly for eligibility.

Options for Medical & Family Violence

For information regarding deposit options for those with medical indigent circumstances or for Victims of Family Violence, please contact our Member Care team directly at (903) 455-1715 or by email. At Farmers EC, we are committed to supporting those in need, and we are here to serve our members with compassion and consideration.

Age Waiver

Members 65 years of age or older can have their deposit waived. Please contact Member Care at (903) 455-1715 to request a waiver.