When to Renew or Switch Electricity Plans in Texas

The short answer: start with your contract end date

Begin comparing before your current contract expires, but do not confuse shopping early with starting a new plan early. A lower advertised rate may not cover a cancellation fee or fit your usage. There is no single month that guarantees the cheapest offer for every Texas home.

This guide is for customers who can choose a retail electricity provider. Check your address eligibility before comparing offers.

Your electricity renewal checklist

1. Find the expiration date. Save your contract notice. Ask the current provider to confirm the date if it is unclear, and record any cancellation fee.
2. Gather usage, not just bill amounts. Use monthly kWh from recent bills, including summer and milder months. A plan that suits 1,000 kWh may not suit a 600-kWh month.
3. Get the renewal offer in writing. Obtain its Electricity Facts Label (EFL), which explains pricing, and Terms of Service. Compare competing offers for the same address.
4. Compare total costs. Check energy and delivery charges, recurring fees, credits and contract length. Do not add delivery charges twice if the average price already includes them.
5. Confirm the new service date. Keep the enrollment confirmation. For a normal same-address switch, arrange service through the new provider rather than requesting a separate disconnection.
6. Check the first bill. Verify the agreed plan, dates and charges and contact the provider about discrepancies.

Already have a quote? Use the renewal offer vs. switching worksheet to compare two offers on the same basis.

Choose a date that fits your contract

• Contract ending soon: compare now and confirm an eligible switch date against your notice.
• Several months remain: calculate savings over the remaining term after any cancellation fee.
• Month-to-month service: compare the current price and alternatives, then confirm the start date.
• Moving: tell your provider you are moving and ask what documents it needs. A move-in differs from switching at the same address.

Texas’s expiration rule provides a no-termination-penalty window beginning 14 days before the expiration date in the notice when a calendar end date is used. Check your actual notice and confirm scheduling with the providers. Browsing or enrolling is not necessarily the same date as the service switch. Read §25.475(e), contract expiration and renewal offers.

Is an early switch worth the cost?

These invented numbers illustrate the arithmetic; they are not electricity offers. Assume comparable all-in prices, 1,000 kWh every month and four months remaining:

• Current plan: 16¢/kWh; alternative: 14¢/kWh.
• Monthly difference: (16 − 14) ÷ 100 × 1,000 = $20.
• Four-month difference: $80.
• After a $150 cancellation fee, switching costs $70 more over that period.

Real comparisons need each month’s usage and the EFL’s fees and credits. A refundable deposit affects cash needed up front; it is not automatically a permanent cost. Future renewal prices are unknown.

Is spring or fall always cheaper?

No. Weather, fuel costs, supply and provider offers affect prices, but a seasonal pattern does not guarantee a particular retail quote. Avoid paying a known cancellation fee just to chase an assumed seasonal discount.

Compare written offers and note when you checked them. The U.S. Energy Information Administration explains electricity price drivers; those drivers do not predict your household’s renewal price.

Questions before renewing

Should I accept my current provider’s offer?

Compare its total cost and terms with alternatives first. Staying can be reasonable when the offer fits your usage and preferences; switching is not automatically cheaper.

What if my contract expires?

Read the default-renewal terms in your notice. Do not assume the old fixed price continues or the next price is necessarily several times higher. Ask for the applicable price.

Where can I compare local plans?

See Dallas electricity comparisons or Houston electricity comparisons, then check your own ZIP. For flexibility, read the short-term plan guide.