Short-Term Electricity Plans in Texas: Lower Rates Without the Rollover Risk

Most Texans shopping for electricity pick a 12-, 24-, or 36-month fixed-rate plan. It feels safe: one rate, no surprises, and no need to think about electricity again for a year or more.

That safety often has a price. On October 7, 2026, the median 3-month fixed-rate plan listed in the Oncor area cost 10.4 cents per kWh at 1,000 kWh of monthly usage. The median 12-month plan cost 12.8 cents. That is a difference of about $24 a month for a home using 1,000 kWh.

So why do so few people choose short-term plans? Because they come with a real risk: the contract ends quickly, and if you do not pick a new plan in time, you can end up on a much higher rate.

This guide explains how short-term plans work, when they make sense, and how WattTrim Sentinel monitoring removes most of the hassle.

Why Short-Term Plans Can Cost Less

When a provider offers a 3-year fixed rate, it takes on 3 years of wholesale price risk. Longer contracts often carry a higher rate partly to cover that risk. A 3-month plan only has to cover a few months of market conditions, so providers can sometimes price it lower.

Here is what the market looked like on October 7, 2026, for fixed-rate plans at 1,000 kWh of monthly usage (prepaid plans excluded):

Two things stand out. First, 3-month plans were offered by 15 or more providers in each area, so this is not one unusual offer. Second, 6-month plans were not much cheaper than 12-month plans. The biggest gap was at the shortest term.

These numbers change constantly. Short-term pricing is not always lower, and the gap can shrink or flip depending on the season and the wholesale market.

What We Have Seen in the Oncor Area Since July 2026

Short-term plans were not always the cheaper choice. GridWise Audit has tracked every fixed-rate plan listed in the Oncor area each day since July 20, 2026. Here is how the median price at 1,000 kWh moved:

In mid-summer, 3-month plans were scarce. On July 20, only one provider listed one, and it cost more than the typical 12-month plan. By mid-August, more providers had added 3-month plans, and by early October 16 providers offered them in the Oncor area. The October 5 week includes Oncor's delivery charge increase, which raised every plan by about the same amount.

This is a short history, and it covers only one stretch of one year. It shows why timing matters: a short plan that ends during a period like July may leave you with fewer choices and higher prices. We will update this table as more data comes in.

Why the Advertised 12-Month Rate Can Be Misleading

About 1 in 5 twelve-month fixed-rate plans in the Oncor area uses a bill credit that applies only within a set usage range, often around 1,000 kWh. Those plans can look like the cheapest option at exactly 1,000 kWh, but cost far more in months when usage lands outside that range.

Here are median prices for plans listed on October 7, 2026:

Three-month plans almost never use bill credits (0 to 5 percent of listings since July 2026), so their advertised rate stays close to what you actually pay as usage changes from month to month. Even with credit plans left out, the median 3-month plan was about 2 to 2.5 cents per kWh lower than the median 12-month plan from mid-August through early October 2026.

Our guide to why tiered pricing and bill credits are tricky explains how these credits work.

Source: GridWise Audit daily snapshots of fixed-rate, non-prepaid Power to Choose listings in the Oncor area, July 20 to October 7, 2026. Prices include Oncor delivery charges.

The Catch: What Happens When a Short Plan Ends

When any fixed-rate contract ends in Texas and you have not chosen a new plan, your provider typically moves you to a month-to-month rate. That rate is often higher than what you were paying, and it can change every month. Our guide to what happens when a Texas electricity contract expires covers this in more detail.

Providers are required to send an expiration notice, but it is easy to miss in an inbox full of other mail. With a 12-month plan, this happens once a year. With a 3-month plan, it happens four times a year. Every missed renewal can wipe out the savings from the cheaper rate.

There are other trade-offs to know about:

• You do not know your next rate. When a 3-month plan ends, you shop the market as it is that day. If rates have gone up, your next plan may cost more.
• Timing matters. A 3-month plan that starts in March ends in June, heading into summer, when Texas homes use the most electricity. Plan when your contract will end, not just what it costs today.
• Each switch may involve a credit check or deposit. This depends on the provider and your history with them.
• Some plans have cancellation fees or are limited to new customers. Always read the Electricity Facts Label (EFL) before enrolling.

Short-term plans reward people who stay on top of their contract. That is exactly the part Sentinel is designed to handle.

How Sentinel Monitoring Helps

WattTrim Sentinel is an optional monitoring subscription that keeps watching your plan and the market after your audit is done. Here is what it does today:

1. Uses your real usage, kept up to date. With your Smart Meter Texas (SMT) authorization, Sentinel pulls your 15-minute meter data every week. Your usage profile adjusts as the seasons change, so a summer AC spike or a mild winter is reflected automatically.
2. Checks the market every day. Each morning, Sentinel runs your usage against 1,500+ active Texas plans, including energy charges, delivery charges, monthly fees, and bill credits.
3. Shows your best plan for each contract length. Your portal dashboard lists the best option for short terms (up to 6 months) and for 12, 24, and 36 months. Short-term plans are never hidden. When a short-term plan saves more than the featured 12-month option, you can see it side by side.
4. Alerts you when a better rate appears. If a plan beats what you are paying today, Sentinel emails you.
5. Reminds you before your contract ends. Add your contract end date in your portal and choose how often you want reminders. Standard alerts email you 30 days and 7 days before your end date. Enhanced alerts, built for short-term plans, email you 30, 14, 7 and 3 days before your end date. Each reminder includes a short list of your best current options, ranked by your own usage.

With Sentinel handling the tracking, a 3-month plan becomes much less risky. You get the lower rate, and you get a reminder and a fresh shortlist of plans when it is time to choose again.

Sentinel costs $4.99 a month or $44.99 a year. In the October example above, the difference between the median 3-month and 12-month plan was about $24 a month at 1,000 kWh. Your own results will depend on your usage and on the rates available when your plan ends.

A Simple Short-Term Strategy

1. Run an audit. See how short-term plans compare to longer plans for your actual usage, not a generic 1,000 kWh estimate.
2. Check the end date before you enroll. Count forward to see which month the plan will end. Be cautious about short plans that end at the start of summer.
3. Enter your contract end date in your portal and turn on Enhanced alerts. This is what lets Sentinel remind you as your renewal gets close.
4. When your contract is ending, compare again. If another short-term plan is still the better deal, take it. If longer plans have become the better value, lock in a 12-month rate.
5. Update your end date after every switch. Sentinel can only track the contract it knows about.

The goal is not to always pick the shortest plan. It is to pick the plan that costs you the least, knowing that someone is keeping an eye on the calendar.

GridWise Audit earns revenue through optional subscription services and enrollment commissions when you choose to switch through our platform. Your analysis results are never influenced by provider compensation.