Month-to-month electricity plans in Texas

It is a plan with a term of 31 days or less and no cancel fee. You can leave at any time. In return, the seller can change the price. For a home, the Commission's rule says a variable-price plan can be only a month-to-month plan.

Some sites say a month-to-month plan can still tie you to a 6 or 12-month contract. The rule says otherwise: a contract of 31 days or less cannot have a termination fee. If a plan has a fee, it is not a month-to-month plan, whatever its name says.

"No contract" is a looser phrase. On October 25, 2026, Power to Choose showed 14 plans from 3 sellers with no term at all. Open the label for each one. It must state the type of product and the term.

Plans that start as a fixed plan end up here too. When a 12-month plan runs out and you do nothing, you can be moved to a month-to-month rate. Our guide on what to do when your contract ends covers that exit.

Month-to-month wins for a short stay, and a 12-month plan wins for a long one. The tool below finds the month where they cross, and shows how high the month-to-month price can climb first.

This estimate covers energy and cancel fees only, and it cannot know a future price. Copy both prices from the Electricity Facts Labels, at the kWh closest to yours.

A 12-month plan with a cancel fee "for each month left" gets costly if you leave early. A $20 fee with 8 months left is $160. That is why the break-even month matters more than the cents.

Not sure of your kWh? Your bill shows it, and Smart Meter Texas shows your history for free.

Compare the columns row by row. A month-to-month price below the 12-month price is a first-bill price, not a lasting one.

The first three columns of the table were read from the Power to Choose list on October 25, 2026. The last column updates every day (list read October 24, 2026). They leave out prepaid and time-of-use plans. "Plain 12-month" means a 12-month fixed plan without a bill credit or usage fee flag.

Two cautions. First, the cheapest month-to-month price is a first-bill price, and on October 25, 2026, 31 of the 51 listings were only for new customers of that seller. Second, look at the "no term" column too. A plan that sounds flexible is not always the cheaper choice. Our weekly list of the cheapest plans ranks the fixed plans at your usage.

A month-to-month label shows the price for the first bill. After that, the seller can change it by the method the label states. The rule does not require a 14-day warning for a change that follows the label.

Two labels we read on Oct. 25, 2026 both show a one-month term, no termination fee, and a price that can change after the first bill. One adds a $5.00 fee for each billing period without autopay. The other points to a price history page. Open that page. It is the best way to see how the price has moved.

1. Bill 1You pay the price printed on the label.
2. Bill 2 and laterThe seller may change the price by the method on the label.
3. Every billYour bill must say how to find the price for the next one.
4. Any timeYou can leave with no fee. Give notice the way the terms say.

The rule also says each residential bill for a variable plan must tell you how to get the price that will apply on the next bill. So you can check each month. Put a reminder on your phone for the day your bill arrives.

Yes, it can be possible, but the plan type does not decide it. A deposit follows your credit and your payment history. A month-to-month plan can still ask for one. Prepaid is the plan type that works without a deposit, and it has its own trade-offs.

Texas rules let a seller waive a home deposit for people who meet one of several tests, such as good credit, age 65 or older, or a clean payment record. The cap is the greater of one-fifth of the estimated yearly bill or two months of estimated bills. Our guide to no-deposit electricity lists all six free ways to skip a deposit and compares them with prepaid.

Every label points to the seller's Terms of Service for its deposit policy. Read that line before you enroll, and ask the seller for your exact deposit in writing.

Pick one for a short, known stay. Skip one if you plan to stay a year or more, or if a price jump would break your budget.

If you are weighing this against a long term, read our guide to fixed and variable rates. It covers the risk of a price that follows the market.

A short fixed plan can give a steady price and no cancel fee. On October 25, 2026, Power to Choose listed 7 three-month fixed plans from 2 sellers with a $0 cancel fee. In the Oncor area the cheapest was 10.1¢ at 1,000 kWh.

A three-month plan is not a month-to-month plan by the rule, so check the label for the fee and for what happens at the end. Many sellers move you to a monthly rate when a short term ends. Our guide to fixed vs variable rates says why that matters.

Find your kWh, look at the label price at that use, read the three terms that matter, and sign up with a start date. Then check your first bill against the label.

1. 1
   Find your kWh.

   Use a real bill. A summer month is a better test than a spring one.

2. 2
   Look for a term of 1 month.

   On Power to Choose, a month-to-month plan shows a term of 1 month. Note the price at the kWh closest to yours.

3. 3
   Run the tool above.

   Test a price rise of 0.5 cent a month to see if the plan still wins.

4. 4
   Open the label.

   Check the cancel fee ($0), the autopay fee, the price history link and whether it is for new customers only.

5. 5
   Sign up, then keep your 3 days.

   After you get the terms, you can cancel a new plan within 3 federal business days with no fee. Our guide to switching shows the steps. Check your first bill against the label.

To see month-to-month and 12-month plans at your ZIP, use the plan finder on this page. Then bring the labels back to the tool.