If your Texas electricity contract ends this month, act now. Your service stays on automatically, but your provider will likely move you to a month-to-month variable rate that can run 30 to 50 percent higher than what you’re paying today. Most plans also include a short window near the end of the term when you can switch to a new provider without paying an early termination fee.
The smart move is to compare current electricity plans for your address before the switch date arrives, not after your first inflated bill lands. Texas electricity customers who wait until the new rate appears on their statement often pay more for at least one billing cycle while they scramble to fix it.
That extra cost adds up fast, and it’s avoidable with a little planning before your contract end date.
What Happens When Your Fixed Term Expires
Nothing shuts off when a fixed-rate plan reaches its contract expiration date. Your electricity keeps flowing, but your pricing usually changes for the worse unless you choose a new plan first.
Will My Electricity Service Stay On?
Yes. Ending a Texas electricity contract does not trigger a disconnection. The retail electric provider automatically enrolls you in a new pricing arrangement so service continues without interruption.
The risk isn’t losing power. It’s paying a much higher rate for electricity you’re already using.
What Is a Holdover or Default Variable Rate?
When a fixed-rate plan expires without renewal, most providers move the account to a default variable rate, sometimes called a holdover rate. This is a month-to-month variable-rate plan with no fixed term and no locked price.
The provider can adjust this rate monthly, and it often sits well above both your old locked rate and current new-customer offers. Some providers set holdover pricing 15 to 25 percent above their advertised rates for new sign-ups.
There’s no contract to break if you leave a holdover rate, since it isn’t a fixed term.
What Must the Contract-Expiration Notice Tell Me?
Your provider is required to send a contract-expiration notice before your term ends. Under PUCT rules, this renewal notice must disclose:
- Your current contract end date.
- The rate and terms you’ll move to if you take no action.
- Any renewal offers available to you.
- How to switch providers if you don’t want to renew or roll over.
Read this notice as soon as it arrives. It’s your clearest signal that the clock is running.
How the 14-Day Switching Window Works
Most Texas electricity contracts include an ETF-free window, commonly around 14 days before the contract end date, when you can switch to a new provider without paying an early termination fee. This window exists so customers aren’t locked into their current plan right before it converts to a holdover rate.
Check your Terms of Service or Electricity Facts Label (EFL) to confirm your plan’s exact switching window. Not every provider uses the same number of days, and the Public Utility Commission of Texas (PUCT) sets minimum standards rather than one fixed rule for every contract.
Where to Find the Exact End Date and Plan Terms
Your contract end date appears on your monthly electricity bill, inside your online account portal, and on the original Electricity Facts Label you received at enrollment. If you can’t locate it, call your provider directly and ask them to confirm the date along with your current renewal offer.
Don’t estimate this date from memory. Contract terms and start dates can shift slightly if you’ve moved, added a rider, or renewed once already.
How to Select and Schedule Your Next Electricity Plan
Choosing your next plan means comparing your renewal offer against the wider Texas electricity market, checking the Electricity Facts Label for pricing details, and timing the switch so it lines up with your contract end date. The goal is a smooth transition with no gap in service and no accidental holdover charges.
Compare the Renewal Offer With Plans at Your Address
Your provider’s renewal offer is rarely the cheapest option available. Retail electric providers count on inertia, and renewal rates are often priced 15 to 25 percent above what the same company offers brand-new customers in the same ZIP code.
Pull up current electricity rates for your address and compare them with your renewal offer line by line. Wholesale electricity prices shift with ERCOT grid conditions and the season, so a rate that looked competitive six months ago may not be anymore.
Providers like TXU Energy, Reliant, Direct Energy, Gexa, and Rhythm publish new offers regularly, and Power to Choose lets you browse plans available in deregulated areas of Texas.
To see current options for your address, you can compare available Texas electricity plans and check pricing before your contract switches over.
Read the EFL Before Comparing Rate per kWh
The Electricity Facts Label (EFL) is the document that tells you what a plan actually costs, not just the headline number in an ad. Every EFL breaks down the rate per kWh at set usage levels, typically 500, 1,000, and 2,000 kWh, along with base charges and TDU delivery fees.
Compare the EFL for any new plan with your smart meter’s average monthly usage from your last few bills. A rate that looks low at 2,000 kWh can look very different at 500 kWh once base charges are factored in.
Check for Bill Credits, Minimum-Usage Fees, and Other Pricing Cliffs
Some plans advertise a low average rate that only applies if you hit a specific bill credit threshold. Miss that usage level by even a small margin, and the effective rate can jump sharply.
Watch for these before signing:
- Minimum-usage fees charged when consumption falls below a set kWh level.
- Bill credits that apply only within a narrow usage range.
- Time-of-use pricing that assumes you can shift usage to off-peak hours.
Match these conditions against your household’s real usage pattern, not the example used in the ad.
Choose a Term Length That Fits Your Move or Renewal Timeline
Term length should match how long you plan to stay at the property. If you’re renewing at your current address for the long term, a 12 – or 24-month fixed-rate plan locks in price certainty and saves you from repeating this process every few months.
If you expect to move soon, a shorter term or month-to-month variable-rate plan avoids paying an early termination fee (ETF) when you leave. ETFs on Texas electricity contracts commonly run between $100 and $300, so check this figure against your expected move date before committing to a longer term.
How to Switch Without Interrupting Service
Switching providers before your contract end date doesn’t require a service gap. The new retail electric provider coordinates with your TDU (Transmission and Distribution Utility) to schedule the switch for the same day your old plan ends, based on your next scheduled meter read.
Steps to follow:
- Confirm your exact contract end date from your bill or online account.
- Compare plans and select a new one at least a few days before that date.
- Enroll with the new provider and give them your ZIP code and service address.
- Confirm the switch date lines up with your current contract’s expiration.
No physical equipment changes hands. The same meter and TDU infrastructure keep delivering electricity regardless of which retail provider bills you.
If you’re ready to see what’s available now, you can compare electricity rates for your address in a few minutes.
What to Do If You Have Already Rolled Over
If you’re already on a holdover or default variable rate, you can switch to a new plan at any time without an early termination fee, since holdover rates carry no fixed term. There’s no reason to wait for a “better” moment.
Compare current plans right away, since every additional month on a holdover rate adds to the higher cost. At 1,000 kWh of monthly usage, even a difference of 2 to 3 cents per kWh between your holdover rate and a new fixed-rate plan adds up to $20 to $30 in unnecessary charges every month.
Once you find a plan that fits your usage, enroll directly and set the new service to start as soon as your TDU’s next available switch date allows. You can check current electricity offers to compare rates before another billing cycle passes.
Conclusion
A Texas electricity contract ending this month doesn’t put your power at risk, but it does put your bill at risk if you let it roll onto a default variable rate. Watch for your contract-expiration notice, confirm your exact end date, and use your plan’s ETF-free window to switch without a penalty.
Compare your renewal offer with current market rates, read the EFL for the plan you’re considering, and match the term length to how long you plan to stay at the property. Whether your contract is about to expire or has already rolled over, the fastest way to stop overpaying is to line up a new plan now, not after the higher rate shows up on your statement.