If there is a power outage and the grid goes down—whether due to storms, equipment failure, or scheduled maintenance—all customers served by that grid lose power, regardless of whether they are on a prepaid or postpaid plan. Prepaid electricity behaves the same as traditional service in these situations. Because no electricity is flowing during an outage, prepaid customers are not billed for usage. However, any fixed fees, taxes, or daily charges still apply as they normally would.
The reason both types of plans, month-to-month prepaid plans and traditional post paid plans, act the same way is how energy delivery is structured in Texas. The state’s deregulated electricity market separates the functions of:
Energy Supply & Retail Billing (REP): Managed by the Retail Electric Provider you choose. This is the company that manages prepaid or postpaid accounts, billing, pricing, and customer service.
Transmission & Distribution (TDU): Handled by a regulated utility (the “wires company”) that owns and maintains the poles, lines, transformers, and grid infrastructure. The TDU—not the REP—is responsible for restoring power after outages.
Because TDU handles grid repair, it follows a standard restoration protocol. One that prioritizes safety and restoring service to the largest number of customers first. This means the flow of power is often staggered, and neighbors may see electricity return at different times depending on which circuits or tap lines they are connected to.
Bottom line: Power outages are controlled by the grid, not your billing plan. Keeping a small balance in your prepaid account helps ensure your service comes back on as soon as the power is restored.