Missing a Texas electricity renewal deadline does not cut your power. Your retail electric provider automatically moves you to a month-to-month variable rate plan the day after your electricity contract end date passes, and that rate can run well above what you were paying under your fixed-rate plan.
The good news is that this is fixable, usually within a day or two. You can compare current electricity plans, pick a better rate, and switch without paying an early termination fee if you act fast. This guide breaks down what happens to your account, what your electricity bill may look like on the default rate, and the quickest way to get back on a plan that fits your budget.
What Happens After a Texas Electricity Contract Ends?
Your service stays connected, but your pricing changes. Texas electricity contracts must send a renewal notice at least 30 days before the contract end date. If you don’t act, your retail electric provider (REP) automatically shifts your account to a month-to-month variable rate the day after the fixed-rate plan expires.
That rate isn’t locked in. It can change month to month based on wholesale electricity rates, and it’s often higher than what new customers or renewal offers receive. The Public Utility Commission of Texas (PUCT) requires this notice and sets rules for how much time you have to switch electricity providers without triggering an early termination fee.
Will My Electricity Stay On If I Missed the Deadline?
Yes, your electricity stays on. Missing a renewal deadline is a pricing problem, not a service problem.
Your REP keeps billing and delivering power through the same meter, same transmission and distribution utility (TDU), and same account number. The only change is the rate structure, which switches from your fixed-rate electricity plan to a variable one that can adjust each month.
How to Find Your Contract End Date and Renewal Notice
Check your last two or three monthly electricity bills first. Your contract end date is usually printed near the account summary section, and it also appears on the Electricity Facts Label (EFL) you received when you signed up.
Providers such as TXU Energy send three separate renewal notices before your term ends, so check your email, including the spam folder, and your provider’s online account portal. Can’t find it anywhere? Call your REP directly and ask for your exact end date and current renewal offer.
What a Default Month-to-Month Variable Rate Can Do to Your Bill
Holdover rates often run higher than your original fixed-rate plan, sometimes by several cents per kWh. At 1,000 kWh a month, even a 2-cent increase adds about $20 to that bill and roughly $240 a year if you let it continue.
Variable rates can also change from one billing cycle to the next, so a bill that looks manageable in October could climb by January. To be fair, this is one of the costliest mistakes people make after a contract expires: letting the holdover rate run for months without comparing other options.
Can I Still Renew or Switch Without an Early Termination Fee?
You likely still can, depending on how much time has passed. PUCT rules allow you to switch providers without an early termination fee as long as the switch happens no earlier than 14 days before your listed contract expiration date. Many providers also offer a similar grace window shortly after the end date.
Call your REP or check your online account to confirm whether that window is still open before assuming a fee applies.
What to Check in the Electricity Facts Label Before Choosing a Plan
Read the EFL for the average price at your typical usage level, not just the headline rate. Compare the base charge, bill credits, contract length, and early termination fee on the new plan.
A renewal offer from your current REP isn’t automatically your cheapest option. It’s also worth checking prepaid vs postpaid electricity structures if you want more control over billing going forward.
Choose the Next Step and Avoid a Costly Service Problem
Your next move should be comparing your current holdover rate with other electricity plans available at your address, then scheduling a switch that lines up with your next billing cycle.
This section covers how to compare a renewal offer with outside options, keep service uninterrupted during a switch, and handle a past-due balance, disconnection notice, or extreme heat.
How to Compare a Renewal Offer With Other Available Plans
Pull your renewal offer’s rate at your typical usage level and set it next to two or three plans from different providers. Look past the advertised cents-per-kWh number and calculate the total estimated bill using your actual monthly kWh.
| Factor | Renewal Offer | Outside Plan Comparison |
|---|---|---|
| Rate type | Often fixed, sometimes variable | Varies by provider |
| Contract length | Frequently shorter (6-12 mo) | 12, 24, or 36 months available |
| Early termination fee | May be waived for loyal customers | Standard fee applies |
| Bill credits | Sometimes included | Check EFL for thresholds |
You can compare electricity rates for your address to see which plans are actually available at your ZIP code before deciding whether to renew or switch.
How to Schedule a Provider Switch Without Interrupting Service
Time the switch to start on or right after your current contract’s end date. Most new electricity providers can schedule a start date in advance, helping you avoid a gap between your old plan’s expiration and the new plan’s activation.
Your electricity stays on the whole time because the meter and TDU never change hands. Only the retail electric provider billing you changes.
Why Your TDU Does Not Change When You Change Providers
Switching REPs never changes who delivers your power. Companies such as Oncor, CenterPoint Energy, AEP Texas, and Texas-New Mexico Power own the poles, wires, and meters in your area, and that arrangement stays fixed no matter which retail electric provider bills you.
ERCOT coordinates the grid behind the scenes, but it doesn’t sell plans or set your rate.
What to Do If a Past-Due Balance Is Also Involved
Pay or arrange payment on any past-due balance before or alongside your switch. A new provider will still take over your service, but an unresolved balance with your old REP can lead to collections or affect your ability to open a new account without a deposit.
If you’re rebuilding after a rough billing stretch, options such as prepaid electricity for bad credit or asking about a deposit waiver may help you avoid a large upfront cost.
How Disconnection Notices, Payment Plans, and Reconnection Work
A disconnection notice in Texas must give you at least 10 days before service can be cut, and it cannot land on a weekend or holiday. If you’ve received one, call your REP immediately and ask about a deferred payment plan.
You qualify for one if you haven’t had more than two disconnection notices in the past year. If service is already off, paying your balance in full typically restores power within 4 to 6 hours, though a reconnection fee usually applies.
When Heat Advisories and Energy Assistance May Help
Texas restricts disconnections during extreme weather emergencies tied to National Weather Service heat advisories, so ask your REP directly whether one is in effect in your area. You may also qualify for the Comprehensive Energy Assistance Program (CEAP), which helps cover electricity costs for income-qualified households.
If a family violence situation or military move is affecting your ability to manage a deposit or account, look into a deposit waiver for family violence survivors or a military deposit waiver.
Conclusion
A missed renewal deadline switches your billing to a month-to-month variable rate, not your power off. Check your contract end date, review the EFL on any renewal offer, and confirm your switching window before assuming an early termination fee applies.
If a past-due balance or disconnection notice is part of the situation, resolve that first through a payment plan or assistance program. Once you know where you stand, you can see which plans are available in your ZIP code and lock in a rate that fits your actual usage before another billing cycle passes on the default rate.