What happens when your electricity contract ends?
When your fixed price ends and you haven't picked a new plan, your company keeps your power on with a month-to-month plan. Before that day, Texas law says it must warn you at least 3 times, in writing.
- Your end date is printed in bold, underlined type, so you can always find it.
- At least 3 written notices arrive, spread out. On plans of 12 months or more, the first one can come up to 3 months before the end.
- The last notice is due by now on plans longer than 4 months. On plans of 4 months or less, it's due 15 days before. It must show the price terms of your rollover plan.
- Your fee-free window opens. Switch on or after this day, and no cancel fee applies.
- No new plan? Month-to-month starts. You can still leave at any time with no fee.
Notices go to your billing address by mail, unless you agreed to get them by email. The envelope or email subject line must say "Contract Expiration Notice. See Enclosed." A text or a phone call can be extra, but it doesn't count as one of the 3. Check your spam folder as your end date gets close.
Your plan may end on a set date, like December 15. Or it may end at your first meter read on or after a date. Either way, the 14 days count back from the date in your notice.
Your rollover plan works like a variable rate. Our guide to fixed vs. variable rates explains the risk. Run a small business? Your last notice can come as late as 14 days before the end. Our business electricity guide covers the rest.
What does a contract expiration notice have to tell you?
Your notice must show your end date, your no-fee window and any renewal offers. The final one must also include the price label for the plan you get if you do nothing.
Your contract ends on December 15, 2026.
No early termination fee applies in the 14 days before December 15, 2026. It also lists the fee that applies before then.
Any renewal offers, where to read their terms, and the date you must act by.
The Electricity Facts Label for the plan you get if you do nothing. If it isn't enclosed, it must reach you at least 14 days before the end.
If you take no action, your service goes on under that plan.
That plan is month-to-month. You can cancel it at any time with no fee.
Example layout with a sample date. These items come from PUCT rule 16 TAC §25.475(e)(2), as amended Jan. 6, 2022. Item 2 is required only if your plan has a cancel fee.
Item 4 matters most for your wallet. It is an Electricity Facts Label for your rollover plan. Find its price per kWh at the usage closest to yours. Then compare it with the average price on your bill. On a month-to-month plan, that price can change after your first bill.
Renewal offers are up to your company. It doesn't have to make one. If it does, the notice must say how to accept and by what date. Treat an offer like any other plan, and check it against plans on Power to Choose.
You don't have to wait for the notice to see those terms. Texas rules say every contract must spell out the plan you'd roll onto. Look in the papers you got when you signed up. Your contract is the facts label, the terms of service and a sheet called Your Rights as a Customer.
Does your electricity rate go up after your contract ends?
It can, and by a lot. A month-to-month price is set by your company and can change every bill. In September 2026, one company posted a rollover price of 22.4¢ per kWh around Dallas. A fixed plan sold there in early October came to 16.6¢ at 1,000 kWh.
Bars start at zero and are drawn to scale. Gexa's sheet listed the same two prices every month from October 2025 to September 2026. It doesn't say if delivery charges are included; if they aren't, both Gexa bars would be longer. Sources: EIA, Direct Energy label, Gexa Energy price history, checked Oct 10, 2026.
Why can you see these numbers? Texas rules make each company post the current price and up to 12 months of past prices for every variable plan. It has to be on the company's website and on a toll-free phone line. Gexa Energy posts its history as a PDF. You can usually look up your own company's rollover price the same way.
Your own gap depends on how much power you use. The average Texas home used 1,096 kWh a month in 2024, says the U.S. Energy Information Administration. At that use, a 5.8¢ gap adds about $64 a month. Use more, and the gap grows.
Gexa lists a price for each area. Its rollover price ranged from 20.9¢ in Lubbock to 23.9¢ in the TNMP area. It was 22.4¢ in the Oncor area around Dallas. It was 22.9¢ in the CenterPoint area around Houston. In the two AEP Texas areas, it was 22.4¢ and 23.4¢.
Already got a big bill? Check whether your plan ended. Our guide to why your electric bill is so high covers the other causes. For what a fair price looks like today, see Texas electricity rates.
Can you switch before your contract ends without a fee?
Yes, in the last 14 days. If your switch happens no earlier than 14 days before the end date in your notice, no early termination fee applies. Leaving because you move, or leaving a month-to-month plan, is fee-free too.
What counts is the switch date, not the day you sign up. When you pick a new plan, you can ask for a set switch date. The rule says your new company must send the request that way, as your wires company's rules allow. So you can sign up a bit early and pick a date inside your window. How far ahead you can book depends on those rules, so ask.
One catch: if your home has no smart meter, a switch on a date you pick may come with a meter-read fee.
Moving? Your contract covers one address. If you move out, you don't owe the fee once you give a forwarding address and, if asked, proof. Starting power at the new place is a separate step. Our move-in guide walks you through it.
Ready to move on? Our guide to switching electricity providers covers each step.
When should you start shopping for a new plan?
Start about 30 days before your end date, when your last notice is due. Then switch in your final 14 days. Enter your end date to get your exact dates and a calendar reminder.
The 18¢ rollover price is only an example. Use the one on your final notice. If your plan ends at the first meter read on or after a date, enter that date.
- Start shopping bySun, Nov 15, 2026Your last notice is due by this date.
- Switch with no cancel fee fromTue, Dec 1, 2026Ask your new company for a switch date on or after this day.
- Fixed price endsTue, Dec 15, 2026No new plan by then? Month-to-month starts.
Rolling over at 18¢ instead of 14¢ would cost about $43.84 more a month ($526.08 a year) at 1,096 kWh.
Downloads one calendar file with 3 reminders: shop-by date, fee-free date and end date. It's made on your device and never sent anywhere.
Partner toolWe may earn a fee if you sign up. It never changes our scores.
Want to price real plans side by side? Our plan cost calculator compares up to 3 plans at your usage.
Should you renew, switch or go month-to-month?
Compare your company's renewal offer with other plans, and pick the one that costs the least at your usage. Month-to-month fits best when you only need a few months, since you can leave at any time.
- No cancel fee, ever.
- Fits a move or a home sale coming soon.
- Gives you time to shop.
- The price can change every bill.
- No advance notice is needed before a price change.
- Rollover prices can run high: 22.4¢ in our example.
Bottom line: use it to get from one plan to the next, not as your long-term plan.
Before you renew, see how your company did on our list of the best electricity companies in Texas. On our public-records formula, Champion Energy scores 96, TXU Energy 80 and Reliant 62. Weighing the two biggest names? Read TXU vs Reliant.
Your next term is a good time to try a new kind of plan. Read up first on free nights plans and no-deposit plans, since each has its own trade-offs.
How do you lock in your next plan before the end date?
Find your end date, check your real usage, and compare plans. Then sign up with a switch date in your fee-free window, and check your first bill.
- 1Find your end date
It's on every bill in bold, underlined type. Put it in the planner above and save the reminder.
- 2Get your real usage
Add up your last 12 bills, or see your history for free on Smart Meter Texas. Use your own number, not 1,000 kWh.
- 3Compare at least 3 labels
Use Power to Choose, the plan site run by the PUCT. On each label, check the price at your usage, the term and the cancel fee.
- 4Sign up with a switch date
Ask for a date on or after your fee-free date. You can still cancel the new plan within 3 federal business days of getting its terms.
- 5Check your first bill
Make sure the price matches the label you signed up for. Keep the label and terms your new company sends you.
Not sure which wires company serves your home? Our utility finder tells you. Our city guides for Arlington, Plano and Corpus Christi add local delivery charges and city taxes. If the bill itself is hard to pay, see our guide to help paying your electric bill.
Contract ending questions, answered
What happens if I do nothing when my electricity contract ends?
Your company keeps your power on and moves you to a month-to-month plan. Texas rules call it the default renewal product. Its price can change every bill, and you get its label at least 14 days before the end. You can leave it at any time with no cancel fee, so you can still shop after your end date passes.
How many notices will I get before my contract ends?
You get at least three written notices, spread across the last third of your plan. On plans longer than four months, the last one must come at least 30 days before your end date. On plans of four months or less, it must come at least 15 days before. They come by mail unless you chose email.
Can I switch before my contract ends without paying a fee?
Yes, if your switch happens no earlier than 14 days before the end date in your notice. Before that window, your plan's early termination fee can apply. Moving is the other big exception. You owe no fee if you give a forwarding address and, if asked, proof that you moved out.
Does my electricity rate go up after my contract ends?
It can. The month-to-month price is set by your company and can change every billing cycle. One example: Gexa Energy's posted rollover price in the Oncor area was 22.4 cents per kWh each month from October 2025 to September 2026. The Texas average home price in July 2026 was 15.88 cents per kWh.
What if I never got a contract expiration notice?
If your company never sent the required notices, it can't move you to month-to-month yet. Texas law says it must keep charging your fixed price until it sends them or you choose a new plan. Check your spam folder and old mail first. If your price jumped anyway, call your company, then the Public Utility Commission.
Will my electricity company renew my contract automatically?
Not into a new fixed term. If you do nothing, the rules only allow a month-to-month plan, which needs no sign-off from you. To start a new fixed-rate contract, your company must get your clear yes on a recording, an electronic record or a signed form. Renewal offers in the notice are optional.
Can I cancel a month-to-month electricity plan at any time?
Yes. Texas rules say a month-to-month contract can't have a termination fee. The default plan you roll onto must also let you cancel at any time with no fee. To leave, sign up with a new company, and it sends the switch request. You still pay for the power you used up to the switch.
How do I find my electricity contract end date?
Look at any bill. Texas rules make your company print the date your fixed-rate plan ends in bold, underlined type on every bill. Your expiration notices show it the same way. You can also ask your company for your start and end dates, and it must give them to you.
Do I have to pay an early termination fee if I move?
No, as long as you tell your company where you're going. Texas rules say a contract covers one address. If you move, you don't owe the early termination fee once you give a forwarding address and, if asked, reasonable proof that you moved out. You don't have to take the plan with you.
What do you want to do next?
Every Texas guide, by topic
Browse every guide on the Texas hub. Or see every state’s average price on our price map.
Sources and updates
Sources (16)
- Public Utility Commission of Texas, 16 TAC §25.475, General Retail Electric Provider Requirements (Cornell LII copy, amended effective Jan. 6, 2022): at least 3 written notices in the last third of a fixed-rate plan; final notice at least 30 days before the end (15 days on plans of 4 months or less, 14 days for small business); what the notice must say; no termination penalty in the 14 days before the end date; month-to-month default with no cancel fee; consent needed to renew; 12-month price history for variable plans; no fee when you move with a forwarding address. Checked Oct 10, 2026.
- Texas Legislature, Texas Utilities Code §39.112, Fixed Rate Product: the law behind the 3 notices, the 30-day and 15-day final notice, the end date on every bill, texts and calls not counting as notice, and your fixed price continuing if notice is missed. Checked Oct 10, 2026.
- Texas Legislature, H.B. 16, 87th Legislature (enrolled): the 2021 bill that set the 3-notice rule, effective Sept. 1, 2021.
- Public Utility Commission of Texas, 16 TAC §25.474, Selection of Retail Electric Provider (Cornell LII copy, amended effective March 8, 2017): 3 federal business days to cancel a switch after getting the terms; your right to ask for a set switch date; no switch fee except an out-of-cycle meter read for homes without a smart meter.
- Public Utility Commission of Texas, 16 TAC §25.479, Issuance and Format of Bills (Cornell LII copy, amended effective Jan. 6, 2022): the end date in bold, underlined type on every bill; the "average price you paid" line.
- Public Utility Commission of Texas, Choosing an Electric Plan: Power to Choose is the PUCT's plan site; customer line 1-888-782-8477 (accessed Oct. 11, 2026).
- Public Utility Commission of Texas, File a complaint: contact your provider first, then file with the PUCT. Checked Oct 10, 2026.
- Gexa Energy, ERCOT Residential Monthly Variable Price History and Terms: Gexa Rollover TX Power at 22.4¢ (Oncor), 22.9¢ (CenterPoint), 23.9¢ (TNMP) and 20.9¢ (Lubbock) per kWh, and Gexa Flex Plan at 19.9¢ (Oncor), the same each month from October 2025 to September 2026. Checked Oct 10, 2026.
- Direct Energy, Electricity Facts Label, Auto Pay Texas 24, Oncor area (dated Oct 4, 2026): 16.6¢ per kWh at 1,000 kWh, fixed for 24 months, $295 early termination fee.
- Direct Energy, Electricity Facts Label, Auto Pay Texas 12, CenterPoint area (dated Sept 30, 2026): $150 early termination fee, waived if you move.
- Direct Energy, Electricity Facts Label, Apartment Basics 12, CenterPoint area (dated Sept 30, 2026): early termination fee of $10 for each month left in the contract.
- Direct Energy, Texas residential terms of service (version 04-2022): after the term ends, a default renewal product on a monthly basis with a variable price; the agreement is the terms of service, the facts label and Your Rights as a Customer. Checked Oct 10, 2026.
- U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Texas average home price of 15.88¢ per kWh, July 2026.
- U.S. Energy Information Administration, Electric Sales, Revenue, and Average Price, Table 5A: the average Texas home used 1,096 kWh a month in 2024 (accessed Oct. 10, 2026).
- Public Utility Commission of Texas, Power to Choose: the state's official site for comparing plans and their facts labels (accessed Oct. 10, 2026).
- Smart Meter Texas, smartmetertexas.com: free access to your past electricity usage (accessed Oct. 10, 2026).
Changelog · last updated October 16, 2026 · 2 updates
- October 16, 2026: We now score 25 Texas electricity companies, so the next-step card says 25. We also pointed old links straight at their current pages, so none goes through a redirect. No prices, fees or other figures changed. We also added our new city guides, four new company reviews and the Smart Meter Texas guide to the guide map.
- October 11, 2026: Guide published: what happens when a Texas electricity contract ends, the 3-notice and 14-day rules, real rollover prices and cancel fees, your 3 choices, 5 steps, and a free contract end planner with a calendar reminder.
How to cite this page: The Day Company, "Your electricity contract is ending. Here's what to do in Texas", updated October 16, 2026, https://theday.company/tx/electricity-contract-ending.
Rule details come from PUCT rules 16 TAC §25.474, §25.475 and §25.479 and Texas Utilities Code §39.112, as posted on October 10, 2026. Plan prices and fees come from company documents dated September and October 2026, and they change often. The planner's starting numbers are examples you can change. The Day Company is not affiliated with any electric company or utility named here, and no company pays to be listed, scored or ranked.