Learn how a Deferred Payment Plan works for Southern Federal Power customers, including upfront payments, installments, switch-holds and monthly bills.
If you are having trouble paying a past-due electricity balance, a Deferred Payment Plan may give you more time to pay. Commonly called a DPP, this type of agreement divides an eligible past-due balance into scheduled payments.
A Deferred Payment Plan does not reduce or forgive what you owe. It also does not change the due dates of new electricity bills. Customers must make their DPP installments while continuing to pay new monthly bills on time.
This article provides a general overview of Southern Federal Power’s current DPP process. Eligibility, payment amounts and due dates depend on the customer’s account and circumstances. The signed payment agreement controls the terms of an individual DPP.
What Is a Deferred Payment Plan?
A Deferred Payment Plan is an agreement between a customer and a Retail Electric Provider that allows an eligible past-due balance to be paid over time instead of all at once.
The agreement identifies:
- The past-due amount covered by the plan
- The initial payment required
- The amount of each installment
- The due date of each installment
- Important conditions the customer must follow
The Public Utility Commission of Texas, or PUCT, establishes rules concerning deferred payment plans. A REP may also offer payment arrangements based on its policies and the customer’s account history.
How Does a Southern Federal Power DPP Work?
Under Southern Federal Power’s current Deferred Payment Plan agreement, the customer makes an initial payment when the agreement is created. The remaining eligible past-due balance is divided into scheduled installments.
Key features of the Southern Federal agreement include:
- The initial payment must be at least 35% of the outstanding balance.
- The remaining balance may be divided into as many as five installments.
- There is no additional fee simply for entering the agreement.
- A switch-hold is placed on the ESI ID associated with the account.
- The deferred balance must be paid before another payment agreement can be considered.
- New monthly electricity bills must still be paid by their regular due dates.
These are Southern Federal Power’s current agreement terms. The exact schedule provided to a customer may depend on the balance, eligibility and account circumstances.
Is an Initial Payment Required?
Yes. Southern Federal Power’s DPP currently requires an initial payment of at least 35% of the outstanding balance. The initial payment is due when the agreement is created.
The payment agreement will show the amount due upfront and the amounts and due dates of the remaining installments. Review these figures before accepting the agreement and make sure the schedule is manageable alongside future electricity bills.
What Could a DPP Payment Schedule Look Like?
Consider a hypothetical customer with a past-due balance of $400. This example is for education only and is not an actual payment offer.
- Past-due balance: $400
- Initial payment at 35%: $140
- Remaining deferred balance: $260
- Five equal installments: $52 each
In this example, the customer would pay $140 when creating the agreement and then make five $52 installments on the dates listed in the DPP.
The customer would also continue receiving regular electricity bills. Those new bills would be separate from the $52 DPP installments and would remain due on their normal dates.
Actual payment schedules may differ. Always follow the amounts and dates in your Southern Federal Power agreement.
Do I Still Have to Pay My Regular Electricity Bill?
Yes. This is the most important part of a Deferred Payment Plan to understand.
A DPP applies to the past-due balance identified in the agreement. It does not postpone future electricity charges or change the due date of a regular monthly bill.
During the agreement, a customer generally has two payment responsibilities:
- Pay each DPP installment by its listed due date.
- Pay each new monthly electricity bill by its regular due date.
Paying only the DPP installment is not enough. Paying only the new monthly bill is also not enough. Missing either required payment can place the account at risk of disconnection for nonpayment.
What Is a Switch-Hold?
A switch-hold is a restriction placed on the ESI ID for the service address. It prevents the account from being transferred to another Retail Electric Provider while the qualifying deferred balance remains unpaid.
The ESI ID, or Electric Service Identifier, is the unique number used to identify the electricity service location. A switch-hold applies to that service identifier, not just a provider’s internal account number.
Southern Federal Power’s DPP agreement states that the switch-hold will be removed after the final payment on the past-due amount is processed. Customers should allow time for the payment and removal request to be processed before attempting to switch providers.
The PUCT provides additional information about switch-holds and Deferred Payment Plans.
Can I Switch Electricity Providers While on a DPP?
Generally, no. When a DPP switch-hold is active, the customer cannot transfer the service address to another REP until the deferred payment obligations are satisfied and the hold is removed.
Paying the current monthly bill does not remove a switch-hold if a deferred balance remains. The applicable DPP balance must be paid according to the agreement.
If you believe a switch-hold was placed on your address for another person’s account, contact the provider handling your enrollment. You may be asked to provide documents showing that you are a new occupant and are not responsible for the previous customer’s balance.
What Happens If I Miss a DPP Payment?
Missing an installment can break the agreement. Under Southern Federal Power’s DPP terms, failure to make a required payment on time can result in a disconnection request and additional applicable fees.
If the account is disconnected for nonpayment after the agreement is broken, the remaining past-due balance and applicable fees may have to be paid in full before service can be restored.
Do not wait until after a payment deadline to ask for help. Contact Southern Federal Power as soon as you believe you may not be able to make an installment or regular monthly payment. Contacting customer service does not automatically change the agreement, but it allows the account to be reviewed before the situation progresses.
Will My DPP Balance Appear on My Monthly Bill?
Southern Federal Power’s agreement states that payment-agreement balances are not displayed on the regular monthly electricity statement.
Keep a copy of the signed DPP and its installment schedule. Customers can contact Southern Federal Power for the current deferred balance and upcoming installment dates at no charge.
When making a payment through MySoFed.com, select the appropriate installment-payment option. This helps ensure the payment is submitted as intended.
Can I Pay a Deferred Balance Early?
Customers may contact Southern Federal Power to request the current payoff amount and discuss paying the remaining deferred balance. Once the full DPP balance is paid and processed, the switch-hold can be removed.
Confirm that the payment has posted and the hold has been removed before attempting to change providers.
How Do I Request a Deferred Payment Plan?
Contact Southern Federal Power customer service as early as possible. A DPP is not automatically available for every balance or account, and eligibility requirements may apply.
Before agreeing to a plan, ask:
- How much is required upfront?
- How many installments will there be?
- What are the installment due dates?
- When is the next regular monthly bill due?
- Will a switch-hold be placed on the ESI ID?
- What happens if a payment is late?
Customers experiencing financial hardship may also review the PUCT’s information about help paying an electricity bill.
How Do I Contact Southern Federal Power?
Southern Federal Power, LLC
5858 Westheimer Road, Suite 707
Houston, Texas 77057
Customer service: 1-844-644-0474
Hours: Monday through Friday, 8 a.m. to 6 p.m. Central Time
Website: SouthernFederal.com
Account portal: MySoFed.com
PUCT certificate: 10264
For more information about deposits, billing disputes, disconnection protections and other customer protections, read Your Rights as a Texas Electricity Customer.
Frequently Asked Questions
Does a Deferred Payment Plan forgive part of my electricity balance?
No. A DPP provides additional time to pay an eligible past-due balance, but it does not reduce or forgive the amount owed.
Does a DPP change the due date of my monthly bill?
No. Regular monthly bills remain due on their normal dates. DPP installments are an additional payment responsibility.
How much is required upfront for a Southern Federal Power DPP?
Southern Federal Power’s current agreement requires an initial payment of at least 35% of the outstanding balance.
How many installments can a Southern Federal DPP include?
The current agreement allows a maximum of five installments after the initial payment. The customer’s agreement will list the actual number, amounts and due dates.
Can I change electricity providers while on a DPP?
An active DPP switch-hold generally prevents the service address from being transferred to another provider until the deferred balance is satisfied and the hold is removed.
What should I do if I cannot make a payment?
Contact Southern Federal Power immediately, preferably before the payment due date. Do not assume that calling automatically extends or changes the agreement.
This article is a general educational overview and is not legal advice. Deferred Payment Plan eligibility, amounts and payment terms are determined by the customer’s individual agreement, current Southern Federal Power policies and applicable PUCT rules.