Back to Insights

Navigating Texas Electricity Contract Renewals and Expirations

May 7, 2026Get Electricity StaffElectricity Guide

Navigating Texas Electricity Contract Renewals and Expirations

In the Texas deregulated electricity market, fixed-rate plans offer stability, shielding you from wholesale market spikes for 12 to 36 months. However, that stability has a firm end date.

When your contract expires, you enter a critical window where your choices will determine your utility expenses for the coming year.

If you do nothing, your retail electric provider (REP) is legally allowed to transition your account to a variable-rate plan, often doubling your monthly costs overnight.

In this guide, we will outline exactly how contract expirations work under Texas rules, explain the "14-day penalty-free switch window," and show you how to find the best renewal rates using GetElectricity.

1. The Expiration Notice: Don't Ignore It

Public Utility Commission of Texas (PUCT) regulations require retail electric providers to send you a contract expiration notice at least 30 days before your contract end date.

This notice must include:

  • The exact date your current contract terminates.
  • The current rate you are paying and the proposed new rate if you choose to renew.
  • The default action if you do not respond (which is almost always transitioning your account to a variable-rate holdover plan).

[!WARNING] The Holdover Trap: If you ignore the notice, your plan rolls onto a month-to-month variable rate. These holdover rates carry no contract term, but they are typically priced 30% to 50% higher than competitive fixed-rate plans.

2. The 14-Day Switch Rule: Switch Without Penalty

Many Texas consumers believe they must wait until the exact day their contract ends to switch providers, fearing they will be assessed an early termination fee (ETF).

Under PUCT rule §25.475, you have a legal grace period:

[!IMPORTANT] The 14-Day Window: You can enroll in a new plan with a different provider up to 14 days prior to your contract's expiration date without paying an early termination fee.

When you select a new provider during this window, you can schedule the new service to begin on or slightly before your expiration date. The new provider will handle the transition directly with the local utility (TDU), ensuring a seamless switch with no interruption in your power.

Visualizing the Renewal: Expiration Timeline

Here is the step-by-step timeline of how a contract expiration works and when you should take action, using a hypothetical contract end date of June 30:

3. Evaluating Your Options

When your contract is expiring, you have three primary paths:

Option A: Accept the Renewal Offer

Your current provider will offer a new fixed-rate term. While convenient, renewal offers are frequently priced higher than the rates offered to new customers. Always treat the renewal offer as a baseline, not your final choice.

Option B: Switch to a New Fixed-Rate Plan

Locking in a 12-month or 24-month fixed contract with a new provider is the most reliable way to secure the lowest market rate. This option is highly recommended if your contract expires in the spring or fall shoulder seasons when overall grid demand is low.

Option C: Transition to a Month-to-Month Plan

If you plan to move within a few weeks, rolling onto a month-to-month plan temporarily may make sense because it carries no cancellation fees. However, this is a costly long-term strategy.

Simplify Your Expiration Planning with GetElectricity

GetElectricity takes the stress out of managing contract endings:

  • Automatic Expiration Reminders: Upload your current plan details to our dashboard, and we will send you alerts 30 days and 14 days before your contract expires, ensuring you never roll onto holdover rates.
  • Usage-Matched Rate Audits: We pull your historical smart meter usage to compare your current renewal offer against competing market rates, showing you the exact dollar savings of switching.
  • Hassle-Free Switching: Once you choose a new plan on GetElectricity, we submit the transfer requests to your new provider automatically—no break-up calls required.

Don't let your electricity contract roll over at high rates. Find a competitive fixed rate on GetElectricity today.