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.
Renew on Your Terms with GetElectricity
The renewal window is the one moment your provider has to earn your business again. Treat it like a new purchase, not an autopilot rollover.
GetElectricity connects directly to your Smart Meter Texas data to build your real 12-month usage profile, then simulates hundreds of active plans across Houston, Frisco, Round Rock, and Mesquite, so you can line up your next plan before the holdover rate kicks in.
Enter your ZIP code on GetElectricity to lock your next fixed rate before your contract expires.
What One Month of Holdover Actually Costs
The timeline above makes the holdover trap look abstract, so put dollars on it. If your fixed-rate bill runs $150 per month, the 30% to 50% holdover premium prices that same electricity at $195 to $225 — a penalty of $45 to $75 for every month you coast.
Now compare that to the cost of acting inside the §25.475 window:
- Mark June 16. In the June 30 example above, that is the day the penalty-free window opens. Shopping takes one sitting; enrolling takes minutes; the new provider handles the TDU cutover with no interruption.
- Treat the renewal letter as a starting bid. Renewal offers are frequently priced above new-customer rates, so quote the market before you accept. The gap between the renewal offer and the best new-customer fixed rate is often larger than the holdover premium you were trying to avoid by "just renewing."
- Never choose Option C by accident. A deliberate month on a variable plan while you prepare a move is a strategy. Three forgotten months at a 30% to 50% markup is a leak — on a $150 bill, that is $135 to $225 gone with nothing to show for it.
The 14-day rule exists so that procrastination — not the early termination fee — is the only thing standing between you and a better rate.
Frequently Asked Questions
What happens if I ignore my contract expiration notice?
Your provider is legally allowed to transition your account to a variable-rate holdover plan. These month-to-month rates carry no contract term, but they are typically priced 30% to 50% higher than competitive fixed-rate plans — often doubling your monthly costs overnight. PUCT regulations require your provider to send the expiration notice at least 30 days before your end date, including your current rate, the proposed renewal rate, and the default action if you do not respond.
Can I switch providers before my contract ends without paying an early termination fee?
Yes. Under PUCT rule §25.475, you can enroll in a new plan with a different provider up to 14 days before your contract's expiration date without paying an early termination fee. You can schedule the new service to begin on or slightly before your expiration date, and the new provider handles the transition directly with your local utility (TDU) — a seamless switch with no interruption in your power.
Should I just accept my provider's renewal offer?
Treat the renewal offer as a baseline, not your final choice. Renewal offers are frequently priced higher than the rates offered to new customers, so always compare them against the broader market. Locking in a 12-month or 24-month fixed contract with a new provider is the most reliable way to secure the lowest rate — especially if your contract expires in the spring or fall shoulder seasons when grid demand is low. GetElectricity sends expiration reminders 30 and 14 days out, pulls your smart meter history to show exact dollar savings of switching, and submits the transfer automatically.