Quick answer
When a Texas fixed-rate contract ends and you do not pick a new plan, your provider moves you onto a month-to-month rate that can change. You can leave it whenever you want. There is no exit fee. A switch takes a few business days and your power never goes off.
Nobody changed your plan. Your plan ended.
Your rate did not jump because of a mistake or a penalty. Your contract hit its end date, and the price attached to it ended with it.
At that point, under PUCT Rule 25.475, your provider has to keep serving you on a default month-to-month plan. That is the rate you are paying now.
The letters you probably missed
You almost certainly got notices. They look like ordinary billing mail, which is why they get thrown out.
| What the rule requires | What it means for you |
|---|---|
| Written notice before your contract ends | The letter or email from a month or two ago |
| The end date shown in bold and underlined | The one thing worth finding in that letter |
| A note that no exit fee applies in the last 14 days | Your free window to switch |
| Service continues on a month-to-month plan | What happens if you do nothing |
The rule assumes you read the notice and act. Most people find out when the bill lands.
How to tell if this is you
Check three things, in this order:
- Your contract end date. On your bill or in your online account. If it has passed, you are on the default plan.
- Your rate now against your old one. A jump with no change in usage points the same way.
- The plan name on your bill. Default plans often say month-to-month, variable or standard.
If all three line up, stop reading and start comparing plans.
What it is costing you
Skip the scary percentages. Work out your own number.
- Find the average price per kWh on your latest bill. That is what you actually paid, all in.
- Find the price on a plan you would sign, at your usage level.
- Subtract one from the other, then multiply by your monthly kWh.
For scale: Texas homes averaged 15.94 cents per kWh and used 1,309 kWh in June 2026, per U.S. Energy Information Administration data. At that usage, a 2 cent gap is about $26 a month.
How to switch, step by step
- Check there is no exit fee. Once the contract has ended, there is nothing left to exit early. The plan name on your bill will confirm it.
- Pull 12 months of usage from your account. Note your lightest and heaviest months.
- Compare plans at your real usage, using the prices at 500, 1,000 and 2,000 kWh.
- Look at the structure too: bill credits with usage levels, base charges, minimum usage fees.
- Sign up. You need your service address and your ESID, which is on your bill.
- Remember you can back out. You have three business days to cancel after you get your Terms of Service.
- Put the new end date in your calendar the day you sign. This is the step that stops it happening twice.
Your power does not go off
This worries people more than it should.
Switching providers is a paperwork change, not a physical one. The same utility keeps delivering over the same wires. Your meter stays put. Nobody comes to your house. It takes a few business days.
How to never land here again
Put your end date in your calendar the day you sign, with a reminder 60 days out.
- Treat the expiry letter as a deadline, not junk mail.
- If you are shopping late, remember the last 14 days are fee-free by rule.
- Or let someone handle the renewal for you instead of relying on memory.
That last point is why aggregation exists. In a buying pool, homes get shopped and renewed as a group, so the date is not sitting on your calendar alone. Check your ZIP code to see what applies where you live.
Frequently asked questions
What is a holdover rate?
The month-to-month plan your provider moves you to when a fixed contract ends and you have not picked a new one.
Can I switch right away?
Yes. There is no exit fee on a default month-to-month plan.
Will my power go off during the switch?
No. Your utility keeps delivering the whole time.
Is there a penalty for leaving?
Not once the contract has ended. If you are still inside a fixed term, check the exit fee on your label, and remember the last 14 days are free.
How long does a switch take?
Usually a few business days. You also have three business days to cancel after you sign.