What Happens When a Texas Electricity Contract Expires
When a Texas electricity contract expires, your lights stay on - but your wallet may not be so lucky. If you have not arranged a new plan, your provider moves you to a month-to-month, variable-rate product (sometimes called a holdover or default product). These rates are frequently double or triple your previous fixed rate, and the provider can adjust them every billing cycle. A household can see costs climb significantly in a single billing period simply because an expiration date slipped by unnoticed.
Under Public Utility Commission of Texas (PUCT) rules, your Retail Electric Provider must send a written expiration notice at least 30 days before the contract ends. The notice explains your options, including any renewal offer and the product that applies if you do nothing. Residential customers can usually switch without a cancellation fee during the final 14 days of a contract - so review that notice and compare plans before the end date.
The four stages of a contract transition
Use this checklist to avoid last-minute decisions and an unintended rollover.
30 or more days before expiration: find the date and gather your data
Look at your latest bill, online account, or expiration notice for the exact contract end date. Save the notice and review the renewal offer, including its term length, base charges, delivery charges, bill credits, and any usage thresholds.
This is also the best time to download your Smart Meter usage history. Do not compare plans only at the standard 500, 1,000, or 2,000 kWh examples. Your household may use much more electricity during a Texas summer and far less during spring or fall. If hot-weather bills are a concern, these summer electricity tips for Texas can help reduce consumption while you evaluate plan options.
Start comparing plans now - you can browse providers serving your area to see current offerings. Confirm the proposed start date before enrolling. A new provider can schedule service to begin when the old contract ends, so you normally do not need to wait for the expiration day.
14 days before expiration: the no-ETF switch window
Texas residential customers may switch providers without an early termination fee when the new service start date is no earlier than 14 days before the existing contract's expiration date. This protection lets you arrange a seamless transition near the end of a fixed-term contract.
The timing matters. The rule is tied to the scheduled start date for the new service, not simply the day you submit an enrollment. Check the dates in your enrollment confirmation. If the planned start date falls outside the window, your current provider may assess the early termination fee specified in your contract.
If a better plan is available before that window opens, do the math rather than assuming you must wait. WattTrim's ETF break-even analysis estimates whether projected savings from a new plan could outweigh an early termination fee. It is a comparison tool, not a guarantee - actual bills depend on your usage and the plan's terms.
Expiration day: confirm the transition
On the expiration date, either your renewed plan or your new provider's plan should take effect. Electricity delivery is continuous: the local utility continues maintaining poles, wires, and meters while the Retail Electric Provider handles your retail plan and billing.
Check your email for enrollment confirmations and your next bill for the plan name, service dates, and charges. If you scheduled a change and it did not occur as expected, contact the new provider promptly. You can also use the PUCT's customer resources if you need help understanding your rights.
After rollover: act promptly, but do not panic
If the account has already rolled to a month-to-month product, you can generally leave without a cancellation fee because you are no longer in a fixed-term contract. Review the current product's terms, compare alternatives, and choose a start date that works for your household.
A month-to-month plan can be useful as a short bridge while you compare options. Still, it is wise to avoid treating it as a long-term default without checking the current rate. Set a calendar reminder for the next billing cycle so the decision does not get lost.
How to choose your next Texas electricity plan
A renewal offer is convenient, but it is only one option. Compare it with other plans based on the features that affect your bill:
- Your monthly and seasonal usage: Test a plan against a full year of interval or monthly usage with WattTrim, especially your highest summer months.
- Rate structure: Check whether the plan is fixed, variable, indexed, time-of-use, or includes bill credits and minimum-use fees. Our guide to fixed vs. variable rate plans explains the tradeoffs.
- Electricity Facts Label: Review the energy charge, base charge, TDU delivery charges, and the estimated average price at multiple usage levels.
For a practical walkthrough of enrollment and timing, see our guide to switching electricity providers in Texas.
Frequently asked questions
Will my power be shut off when my electricity contract expires?
No. Contract expiration alone does not interrupt electricity delivery. Your provider generally moves the account to a month-to-month product unless you renew or switch, and the local TDU continues delivering power.
Can I switch electricity providers before my contract ends without a fee?
Usually, yes, if the new service start date is within 14 days of your current contract's expiration date. Verify the dates and your contract terms before enrolling. Outside that window, an early termination fee may apply, though an ETF break-even analysis can help assess whether switching sooner makes financial sense.
What is a holdover or default electricity rate?
It is the month-to-month product that may apply after a fixed-term plan ends without a renewal or switch. It can have a different price structure than your former plan and may change over time, so review the Electricity Facts Label and your monthly bill.
Compare your current plan against 1,500+ options across all 6 Texas TDU service areas, including exclusive broker-negotiated rates not found on PowerToChoose.org. Always free.WattTrim's plan rankings are based solely on your actual usage data. Provider compensation never influences your results.
WattTrim LLC is a registered Texas Electricity Broker, PUCT License No. BR260145.
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