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What if my Texas electricity contract expires?

Your end date is a decision point. Check what happens if you do nothing, which notices to expect and how to prepare your next plan.

By Voltcheckr Research · Published Aug 5, 2026 · Updated Oct 23, 2026 · 7 min read

What changed: Updated the Home and comparison links to our residential homepage.

The short answer

When a Texas fixed-rate electricity contract expires and you do nothing, your provider moves you to a month-to-month plan. Its price can change each billing cycle, and you can cancel it any time without a fee. Expect at least three written notices, and switch no earlier than 14 days before the stated end date to avoid an early termination fee.

  • Every bill on a fixed-rate plan shows the date the fixed rate expires, in bold, underlined type.
  • On a contract longer than four months, the final notice comes at least 30 days before the end date.
  • The month-to-month plan's Electricity Facts Label comes with the final notice, or at least 14 days before the end date.
  • Your provider needs your consent to start a new fixed-rate term. Only the month-to-month plan starts without it.

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On this page
  1. 1. What happens if you do nothing
  2. 2. The notices your provider must send
  3. 3. Your timeline, counted back from the end date
  4. 4. Why your rate can jump after the contract ends
  5. 5. Your end date and the early termination fee
  6. 6. What to do before your contract expires
  7. 7. Questions
  8. 8. Sources

What happens if you do nothing

If you take no action after the final notice, your provider must keep serving you on a default renewal plan: a month-to-month plan you can cancel at any time without a fee. Its price may change between billing cycles, under terms the rule says must be easy for the average customer to understand.1

Your power stays on. In Houston, CenterPoint keeps delivering it whichever provider you choose, and the provider you choose sends the bill.1,6,7

If your contract names a calendar end date, your provider may bill the contract price through the first meter read on or after that date.1

A new fixed-rate term is different. Your provider needs your consent for it, through a new enrollment or a recorded, electronic or written authorization. Only the month-to-month default plan starts without your consent.1

The notices your provider must send

On a fixed-rate plan, your provider must send at least three written notices of the expiration date, spread through the last third of the contract. On a contract of 12 months or longer, the first may come up to three months before the end date.1

On a contract longer than four months, the final notice must come at least 30 days before the end date. On four months or less, it must come at least 15 days before. Notices go by mail to your billing address unless you chose to receive them electronically.1,4

Your contract expiration notice

  • Expiration date
  • Early termination statement
  • Renewal offers
  • The month-to-month plan's EFL
  • Month-to-month statement
  1. Expiration date

    In bold, underlined type. The 14-day window counts back from this date.

  2. Early termination statement

    If your contract has a termination fee, it says when no termination penalty applies and describes any fee that applies before then.

  3. Renewal offers

    Any offers your provider chooses to make, where to find their terms and EFLs, what to do and the deadline.

  4. The month-to-month plan's EFL

    With the final notice, or a line saying how and when it will come.

  5. Month-to-month statement

    The final notice says the default plan is month-to-month and can be cancelled at any time with no fee.

Your contract expiration notice, line by line

Your timeline, counted back from the end date

The rule's day counts become dates once you know your end date. This table applies them to an example: a 12-month fixed-rate contract with a calendar end date of June 30, 2027.1

Example: on a contract ending June 30, 2027, the final notice is due by May 31

WhenExample dateWhat the rule says
The last third of the contractFrom Mar 1, 2027At least three notices come within this period
30 days beforeMay 31, 2027The last day for the final notice
14 days beforeJun 16, 2027A switch from here on carries no early termination fee. The month-to-month plan's EFL is due by now
The end dateJun 30, 2027The contract price may run to the first meter read on or after this date
If you take no actionAfter Jun 30, 2027The month-to-month plan, which you can cancel at any time without a fee
Example only, not your contract. Our arithmetic: the day counts in 16 TAC §25.475(e) and (c)(3)(C), counted back from a sample end date. Read Oct 5, 2026.

Your own notices can arrive on other days within these limits. Count from the expiration date printed in your notice, not from this example.

Why your rate can jump after the contract ends

The month-to-month plan has its own price, set out in its own Electricity Facts Label, so it can differ from your old fixed rate. The PUCT calls it a month-to-month variable rate plan, and its price may change from one billing cycle to the next.1,5

Its EFL, like every EFL, shows the average price at 500, 1,000 and 2,000 kWh a month. On a variable plan, that price is for the first billing cycle, and the EFL must state in bold type that later prices can change.1

On a variable price plan, each bill must tell you how to find the price that will apply on your next bill. Your provider must also give the current price and one year of price history on its website and by phone.1

If your bill has already jumped, our Houston high-bill guide, listed under Keep reading, covers the other causes to check.

Your end date and the early termination fee

Where to find your contract end date

Every bill on a fixed-rate plan shows the date the fixed rate expires, in bold, underlined type. Each expiration notice shows it the same way.1,2

Your provider must give you the contract's start and end dates on request. The end date is either a calendar date or the first meter read on or after a calendar date. Your Terms of Service must also say that a month-to-month default plan follows if you take no action.1

The early termination fee and the 14-day window

If your plan has an early termination fee, its EFL and Terms of Service state it. A switch no earlier than 14 days before the expiration date in your notice carries no early termination fee.1,4

If your end date is the first meter read on or after a date, the 14 days count back from that date. A switch before the window opens can bring the fee your notice and EFL describe.1

What to do before your contract expires

  1. Find your end date

    It is in bold, underlined type on your bill. Count back 14 days to find when a switch carries no early termination fee.

  2. Open every notice

    Read the renewal offers, their deadline, and the EFL of the month-to-month plan you would move to.

  3. Compare offers at your usage

    Set each offer's EFL beside the month-to-month plan's, and compare them at the kWh on your own bills.

  4. Sign up once the window opens

    Power to Choose says a switch happens within seven business days. Signing up as the 14-day window opens leaves about two weeks before the end date.

  5. Let the new provider handle the switch

    Sign up with the new provider, which handles the switch. ERCOT mails you a confirmation, and you do not need to call your old provider.

  6. Know your way back

    You can cancel a switch without penalty within three federal business days after receiving the new provider's Terms of Service.

To stay with your provider instead, accept a renewal offer by the deadline in your notice. If a notice never came, your provider must keep serving you under your fixed contract's terms until it sends the required notice or you choose another plan.1,3,6,7

Questions

What happens if I do nothing when my electricity contract expires in Texas?

Your provider moves you to a month-to-month plan. Its price can change from one billing cycle to the next, you can cancel it at any time without a fee, and your power stays on.

Will my electricity rate go up when my fixed-rate contract expires?

It can change. The month-to-month plan has its own price. Its EFL, which comes with your final notice, shows the price for the first billing cycle, and later prices can change. Compare it with other offers before your end date.

Can my provider renew me into a new fixed-rate contract without asking?

No. A new term needs your consent, through an enrollment or a recorded, electronic or written authorization. Only the month-to-month default plan starts without it.

What if I never received an expiration notice?

Your provider must keep serving you under your fixed contract's terms until it sends the required notice or you choose another plan. If your provider does not resolve it, call the PUCT's Office of Consumer Assistance at 1-888-782-8477.

Do I pay an early termination fee if I switch before my contract ends?

Not if the switch is no earlier than 14 days before the expiration date in your notice. Before that window, the fee stated in your EFL and Terms of Service can apply.

Sources

  1. 16 TAC §25.475, Retail Electric Provider Requirements and Disclosures (PUCT), read Oct 5, 2026
  2. 16 TAC §25.479, Issuance and Format of Bills (PUCT), read Oct 5, 2026
  3. 16 TAC §25.474, Selection of Retail Electric Provider (PUCT), read Oct 5, 2026
  4. PUCT, Electricity FAQs, read Oct 5, 2026
  5. PUCT, Understanding your bill, read Oct 5, 2026
  6. Power to Choose (a PUCT website), FAQ, read Oct 5, 2026
  7. CenterPoint, Start Service, read Oct 5, 2026
  8. PUCT, Office of Consumer Assistance, read Oct 5, 2026

How we research

Voltcheckr Research writes each guide from primary sources: the PUCT's rules, the utility's tariff and federal data. Every source is listed above with the day it was read. AI tools help draft each guide; every fact is checked against its source and the guide is approved before it is published. Voltcheckr LLC is a PUCT-registered broker, registration BR260102, with no affiliated supplier.

Found an error? Email support@voltcheckr.com and we correct it with a note on the page. See how we are paid.

Questions? Call (469) 708-9311

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