A Texas electricity renewal notice means your contract is ending soon, and your provider wants you to choose a new rate before the old one runs out. The clock usually starts about two to three months before your contract expiration date. How you respond determines whether you keep a predictable rate or slide onto a pricier month-to-month plan.
This notice is not junk mail, and it is definitely not something to toss into the “deal with it later” pile. Texas law requires your retail electricity provider to warn you before your rate changes, but the renewal offer inside that envelope is rarely the cheapest option on the market.
Knowing what the notice must legally include, when to act, and how to compare the offer with other electricity plans puts you back in control of your bill. Otherwise, your Texas electricity contract may renew on autopilot while your wallet takes the hit.
What the Notice Means and When to Act
A contract expiration notice tells you that your fixed-rate electricity plan is ending and explains what happens next. Your retail electricity provider (REP) must send it under state law, explain your contract end date, and describe what you’ll pay if you do nothing.
Why Your Retail Electricity Provider Sends Contract Expiration Notices
State law requires REPs to send at least three written notices before a fixed-rate plan expires. The notices go out during the final third of your contract term and are spaced apart so you have time to respond.
Each notice must include specific details. Under Texas Utilities Code Section 39.112, the mailed notice must say “Contract Expiration Notice. See Enclosed.” on the outside of the envelope, describe any early termination fees, and list renewal offers along with instructions for getting the full contract terms.
If the notice comes attached to your bill, it must appear on a separate page rather than being buried in the fine print.
How to Find Your Contract End Date and Current Plan Terms
Your contract end date is printed in bold and underlined text on every billing statement. That requirement is set by law, so you shouldn’t have to play detective.
You can also find it by:
- Logging into your provider’s online account portal.
- Checking your original Electricity Facts Label (EFL) from enrollment.
- Calling your provider’s customer service line directly.
Pull up your current rate, contract length, and any early termination fee before comparing anything else. You’ll need those numbers to figure out whether a new offer is truly better.
What Happens If You Do Not Renew or Choose a New Plan
If you ignore the notice, your provider automatically moves you to a default month-to-month variable-rate plan. Texas law requires this default plan to have no cancellation fee, so you can leave whenever you want.
The catch is the price. Default variable rates are typically higher than what you’d get by actively choosing a new fixed-rate electricity plan, and they can move up or down with the market. This is sometimes called the “holdover rate,” and it’s meant to be a safety net, not a great long-term deal.
How the 14-Day Early Termination Fee Exception Works
Most fixed-rate contracts include an early termination fee if you leave before the contract ends. Once your provider sends the final expiration notice, though, a short window opens in which you can switch without paying that fee.
Generally, you can cancel or switch providers within about 14 days of your contract’s end date without triggering an early termination fee. This window exists so you aren’t financially trapped between the old contract and a new one.
Confirm the exact dates in your provider’s notice, since the timing can vary slightly by contract.
How to Compare a Renewal Offer With Other Plans
A renewal offer is only one of the electricity plans available at your address, and it is rarely the lowest-cost choice. Comparing it properly means checking the EFL, matching prices to your actual electricity usage, and confirming that your TDU territory and ZIP code match the quote.
Renew With Your Current Provider or Switch Electricity Providers?
Renewing keeps things simple, but switching electricity providers often saves more money. Your current REP already has your account and payment history, so a renewal offer can feel like the obvious path.
On the flip side, providers count on customer inertia. Renewal rates are frequently higher than what a new customer could get from the same company or a competitor.
Before deciding, pull two or three competing offers using your ZIP code and compare them side by side with the renewal offer. If a Texas electricity provider’s new-customer rate beats your renewal rate by a meaningful margin, switching usually wins, even after the minor hassle of setting up a new account.
| Factor | Renew With Current Provider | Switch Providers |
|---|---|---|
| Setup effort | Minimal | Moderate |
| Rate competitiveness | Often average to above-market | Frequently lower for new customers |
| Loyalty discounts | Rare | Sign-up promotions common |
| Service continuity | No gap | No gap if timed correctly |
| Early termination fee | Not applicable | Waived in 14-day window |
How to Compare Electricity Rates at Your Actual Usage Level
Match every quoted rate to your real monthly electricity usage, not the plan’s advertised average. Texas electricity rates are usually shown at 500 kWh, 1,000 kWh, and 2,000 kWh usage levels, and the cheapest-looking plan at one level can be the most expensive at another.
Pull your last 12 months of energy bills or check your usage history in your provider’s app. If you average 1,200 kWh in summer and 600 kWh in winter, compare renewal and competing offers at both levels, not just one.
Which EFL Terms Can Change the Cost of a Renewal Plan?
The Electricity Facts Label reveals the details that determine whether a renewal offer is actually a good deal. Every legitimate offer comes with an EFL listing the energy charge, base charge, TDU delivery charges, and any bill credit thresholds.
Check these specific items:
- Whether the advertised rate depends on hitting a specific usage level for a bill credit.
- The base charge, and whether it’s higher than your current plan’s.
- Contract length and whether it matches what you actually want.
- The early termination fee for the new term.
- Whether it’s a fixed-rate electricity plan or a variable one.
A renewal offer with a lower headline rate but a new $9.95 monthly base charge can cost more for a low-usage household. Read the EFL before comparing anything else.
How to Schedule a Switch Without Interrupting Service
Time your switch to your existing contract end date to avoid any lapse in electricity. Because Texas uses a shared grid managed by ERCOT and a separate transmission and distribution utility (TDU) that maintains the physical wires, switching REPs usually doesn’t require a new service line or a technician visit.
Submit your new provider’s enrollment a few days before your old contract expires. The new REP coordinates with the TDU to switch your account on your meter without interrupting service. If you compare electricity rates for your address, you can line up the switch date with your provider during signup.
Why ZIP Code, TDU Territory, and Contract Length Matter
Plan pricing and availability are tied to your ZIP code and TDU territory, so a rate advertised statewide may not apply to your address. Oncor, CenterPoint Energy, AEP Texas, and Texas-New Mexico Power all charge different delivery rates, and those charges are included in your total bill no matter which REP you choose.
Contract length matters, too. A 12-month plan locks in a rate through next year’s summer demand spike, while a 24-month or 36-month plan protects you longer but can make an early exit more costly.
Match the contract length to how long you expect to stay at the property before committing to a renewal or a new provider. To see current pricing for your specific address, compare available Texas electricity plans rather than relying on the renewal offer alone.
Conclusion
A renewal notice is a deadline, not a decision made for you. Your provider must legally warn you before your rate changes, but the offer inside that letter is only a starting point, not necessarily the best price available.
Check your contract end date, pull your usage history, and read the EFL before you sign anything. Whether you renew or switch, compare the numbers with your actual electricity usage and confirm the plan fits your ZIP code and TDU territory.
Taking those few steps before your current contract ends helps keep your electricity bill predictable. Otherwise, you could wind up on a default variable rate you never chose.