Here’s what your electricity provider doesn’t want you to know: they’ve designed the entire system around hoping you’ll forget to switch.
Your contract expires. They roll you onto a rate that’s 40% higher. They send you a “renewal offer” that looks like a deal but is still worse than what new customers get. They’re betting on your inertia, your busy schedule, and your assumption that comparing plans is too complicated to bother with.
The Texas electricity industry makes millions every year from customers who switch at the wrong time, or don’t switch at all. You don’t have to be one of them.
The Contract Expiration Trap
The single most important date on your electricity account is when your contract ends. Not because you need to do something special—but because your provider is counting on you to do nothing.
Most Texas electricity plans are fixed-rate contracts lasting 6-36 months. When that contract ends, one of two things happens:
- You get moved to a month-to-month rate — usually 2-3x higher than your locked rate
- You auto-renew into a new contract — often at a worse rate than what’s available to new customers
Both scenarios benefit your provider. Neither benefits you. The only winning move is to shop for a new plan 2-4 weeks before your contract ends and switch seamlessly—before they can profit from your inaction.
How to Find Your Contract End Date
Check your most recent bill—there should be a notice if you’re within 30-60 days of contract expiration. You can also:
- Log into your provider’s account portal
- Call customer service and ask
- Check your original contract documents
Put this date in your calendar with a reminder 30 days before. Future you will thank present you.
Early Termination Fees: The Hidden Cost of Bad Timing
Leave a fixed-rate contract early and you’ll pay an Early Termination Fee (ETF). These typically run:
- $50-150 flat fee for shorter contracts
- $15-20 per remaining month for longer contracts
So if you’re 8 months into a 24-month contract with a $20/month ETF, you’re looking at $320 to switch early. Ouch.
When an ETF Might Be Worth It
Sometimes paying the fee makes financial sense. Run the numbers:
Say your current rate is 15 cents/kWh and you find a plan at 10 cents/kWh. You use 1,500 kWh/month. That’s $75/month in savings. If your ETF is $200, you break even in about 3 months.
But here’s the catch: rates fluctuate. That 10-cent rate might not exist in a few months. You’re betting on the market, and the market doesn’t always cooperate.
The ETF-Free Window
Texas law requires providers to let you switch without penalty during the last 14 days of your contract. This is your sweet spot. Start shopping 30 days out, lock in a rate, and schedule the switch for that 14-day window.
Some providers also waive ETFs if you’re moving to an address they don’t serve. Moving out of Texas? You’re probably free to switch.
Seasonal Rate Patterns
Electricity rates in Texas follow predictable seasonal patterns. Understanding them helps you time your switch.
Winter (December-February): Lowest Rates
Demand drops when nobody’s running AC. Providers compete for new customers. This is often the cheapest time to lock in a rate.
Best strategy: Sign a longer contract (12-24 months) in winter to lock in low rates through the summer. Major providers like TXU Energy and Reliant Energy offer competitive winter rates on long-term contracts.
Spring (March-May): Still Good
Rates start climbing as providers anticipate summer demand, but deals are still available. This is your last chance for competitive rates before the heat arrives.
Summer (June-August): Highest Rates
ERCOT (the Texas grid operator) is working hard to keep the lights on. Everyone’s AC is blasting. Rates spike.
Worst time to shop: If your contract ends in July, you’re stuck choosing from the most expensive options. Plan ahead to avoid this. Learn more about seasonal patterns in our guide on when Texas electricity rates go up.
Fall (September-November): Rates Drop
As temperatures cool, rates follow. Another good window for shopping, though not quite as good as winter.
The Move-In Timing Question
Moving to a new address? You need electricity on day one. Here’s the timeline:
7+ days before move-in: Shop around and pick a provider. Most can set up service with several days’ notice.
3-7 days before: You might pay rush fees or have fewer options. Some providers won’t accommodate short timelines.
Same day: You’re calling whoever will turn on the lights. Expect to pay more and choose from worse plans.
The lesson: Don’t leave electricity setup until the last minute. Shop early, schedule your start date, and you’ll get better rates with less stress.
What About Month-to-Month Plans?
Month-to-month (variable rate) plans have no contract, so no ETF worries. You can switch anytime.
The tradeoff: higher rates. Variable plans typically cost 2-5 cents more per kWh than equivalent fixed-rate plans. For most people, the flexibility isn’t worth the premium.
When month-to-month makes sense:
- You’re planning to move in a few months
- You want to watch the market and lock in when rates drop
- You’re between permanent addresses
Some providers like Frontier Utilities offer prepaid plans that work similarly—no long-term commitment, but you pay a premium for flexibility. See our full list of best month-to-month providers or learn about prepaid vs traditional electricity options.
The “Switch and Save” Trap
You’ll see ads claiming you can switch anytime and save. Sometimes that’s true. Often it’s not.
What they don’t mention:
- Your current rate might actually be competitive
- The advertised rate might not include all fees
- Switching costs (including your time) have value
Before switching mid-contract, do the math:
- Calculate your total remaining contract cost at your current rate
- Add the ETF
- Compare to the total cost of the new plan over the same period
- Factor in any signup bonuses or incentives
If the new plan isn’t clearly cheaper after all that, staying put might be the smart move.
How to Actually Make the Switch
Once you’ve found a better plan at the right time:
- Sign up with the new provider: They’ll handle everything
- Provide your current account number and ESI ID (on your bill)
- Choose your switch date: Within your ETF-free window if applicable
- Confirm with your old provider: You shouldn’t have to call, but it doesn’t hurt to verify
The switch happens automatically at midnight on your chosen date. Your power stays on the whole time—you won’t notice anything except a different logo on your next bill.
Timing Checklist
Here’s your action plan:
- Find your contract end date right now
- Set a calendar reminder for 30 days before
- Check rates seasonally, even if you’re not switching
- Compare your current average price per kWh to what’s available
- When you’re in your 14-day window, pull the trigger
Time your switch right and you’ll save money without the headache. Time it wrong and you’re either paying ETFs, overpaying on variable rates, or stuck with whatever’s available in peak summer.
For more on understanding what you’re actually paying, check out our guide on how to read your electricity bill. And when you’re ready to compare providers, see our head-to-head provider comparisons to find the right fit. Start with popular matchups like TXU vs Reliant or Gexa vs Frontier.