What Happens When Your Texas Electricity Contract Expires
If you do nothing when your Texas electricity contract ends, your retailer automatically rolls you onto a month-to-month variable rate. This rate is almost always 2-5¢/kWh higher than the fixed rate you were on — sometimes more. At 1,200 kWh/month that's an extra $25-60/month you don't need to pay. This article explains the timeline, what the holdover rate actually is, and how to avoid it.
The holdover timeline
- •Day -45: your retailer is required to send you a contract expiration notice. Most send it by email; some also mail a physical letter. READ THIS — it contains your expiration date and the holdover rate they'll charge if you don't act.
- •Day -14: Texas law's 14-day grace window begins. You can switch to any new plan from any retailer with zero ETF from this point forward.
- •Day 0: your contract expires. If you haven't signed a new one, you're automatically on the holdover variable rate starting today.
- •Day 1+: you're now overpaying. Every day you wait costs real money. The holdover rate is NOT competitive — it's deliberately high because the retailer profits from customer inertia.
Some retailers make the holdover rate very hard to find. It's buried in the renewal notice and often not clearly labeled. Voltcheckr's contract-end reminder service emails you 60 days before your plan expires with a fresh comparison so you never accidentally roll onto the expensive variable rate.
Upload your current bill and Voltcheckr shows you when your contract expires, what the holdover rate costs, and which new plans save you the most — all in 30 seconds.
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