Timing matters when renewing your electricity contract in Texas. Rates rise and fall throughout the year, depending on factors such as demand, weather, market conditions, and more. If your renewal date is coming up, knowing when to lock in a new rate can make a big difference in your monthly bill. Let’s uncover the best time to renew your electricity contract in Texas and why timing is everything.
Electricity prices in most of Texas don’t stay the same year-round. Because most of the state has a deregulated energy market, electricity rates fluctuate with changes in supply, demand, and weather. When the grid is under pressure—like during a heat wave or cold front—prices climb. When demand eases, they drop. These patterns repeat every year, and understanding them can help you renew your contract at the right moment.
Summer is the most expensive time for electricity in Texas. As air conditioners work around the clock, grid demand surges and prices rise across the state. Winter isn’t as intense, but it can still bring price spikes when severe weather hits. During Winter Storm Uri in 2021, for example, energy prices skyrocketed as power generation struggled to keep up with demand. These high-demand periods highlight why waiting for calmer conditions can help you get lower rates.
In general, the worst months to renew your electricity contract in Texas include:
Spring and fall are the best times to shop for or renew an electricity plan. Mild weather means fewer people are running their heating or cooling systems, and lower grid demand often leads to cheaper rates. Retail electricity providers (REPs) tend to compete more aggressively during these seasons by offering attractive short- and long-term contracts to gain new customers. This makes spring and fall the sweet spot for locking in a stable, lower price before temperatures start to climb or drop again.
Weather conditions can vary every year, but the best months to renew your electricity contract in Texas are generally:
Renewing your electricity contract doesn’t have to be stressful or expensive. Taking a proactive approach helps you avoid getting stuck with a high variable-rate plan or paying more than necessary. The key is to plan ahead and choose the right contract length. With a little preparation, you can position your next renewal for long-term savings instead of short-term surprises.
Start comparing electricity plans about 90 to 60 days before your contract ends. This gives you time to review your options and avoid being automatically rolled into a higher variable-rate plan. With most REPs, you can lock in a rate 60 days before your contract ends, and some providers allow you to do it 90 days in advance. Early shopping may help you take advantage of competitive pricing and secure a fixed-rate plan before seasonal rates shift.
If your contract expires in the middle of summer or winter, consider choosing a shorter-term electricity plan. This lets you move your next renewal into spring or fall, when rates are typically lower. Over time, aligning your renewal cycle with low-demand seasons can consistently save you money.
Breaking out of a high-cost renewal cycle takes strategy. Here are a few ways to do it:
Before renewing, review your past electricity bills to understand how much energy (kilowatt-hours) you typically use each month. Some plans charge different rates depending on usage thresholds, so knowing your average consumption helps you pick the right contract length and plan type. This simple step can prevent unexpected costs and ensure your next plan fits your household’s energy habits.
Your electricity contract term determines how long your rate is locked in and when your next renewal date falls. Choosing the right term length balances stability, flexibility, and savings potential so you can manage your electricity expenses with confidence year-round.
A 12-month electricity plan offers predictability and simplicity. It covers all four seasons and balances the highs and lows of energy demand throughout the year. For many Texans, this provides a steady, manageable rate and an easy annual renewal cycle. However, your renewal could land in the middle of summer, which may limit your ability to secure lower off-peak pricing.
Short-term plans can help you adjust your renewal timing. If your contract ends during a high-cost season, a 3- or 6-month plan can move your next renewal into spring or fall when rates are usually lower. For example, signing a 3-month plan in June means your next renewal would fall in September, when rates often trend downward.
If you find a competitive rate during spring or fall, locking it in for 24 to 36 months can be a great choice. Longer contracts may protect you from the overall rise in electricity prices and save you the effort of shopping for new plans each year. This approach works best when rates are favorable and you value long-term stability over short-term flexibility.
A slightly higher off-peak rate can still lead to better savings if it positions your future renewals during lower-cost periods. When comparing plans, it can be a good idea to look at the total annualized cost rather than just the monthly rate.
Once you’ve found a favorable rate, it’s important to act quickly. Electricity prices can change without warning, especially as demand rises.
When rates are especially competitive in spring or fall, committing to a 12- to 36-month fixed-rate plan can pay off. Longer contracts provide consistent pricing and protect you from potential increases tied to natural gas costs or higher grid demand.
Texas law allows you to switch electricity providers during the final 14 days of your contract without paying an ETF. This gives you the opportunity to secure a better rate before your current plan expires.
The Texas electricity market is crowded with options, and comparing plans can feel overwhelming. Power Wizard makes it simple to find plans that align with your goals, preferences, and energy usage. The platform gives you the tools to filter, sort, and compare available plans so you can make a confident choice that fits your household’s needs. Pop your ZIP code into our smart comparison tool now to get started!
Electricity rates in Texas are usually lowest in the spring and fall. From March through May and again from September through November, temperatures are milder, and statewide energy demand drops. This lower demand often leads to more competitive pricing and better contract offers from retail electricity providers.
Yes. Texas law allows you to switch electricity providers within the final 14 days of your contract without paying an early termination fee (ETF). ETFs are also waived if you’re switching because you’re moving. However, you can lock in a cheaper rate 60 to 90 days before your contract ends.
It depends on your timing and goals. A short-term contract can help you move your renewal into a lower-cost season if your current plan ends during peak demand. A long-term contract is a better choice when you find a competitive rate in spring or fall because it locks in that lower price for a longer period.
Running a business in Texas means managing plenty of expenses, and electricity is one you can’t afford to overlook. Wi...
For many Texans, short-term electricity plans sound appealing because they offer flexibility. A three- or six-month cont...
Electricity providers in Texas are getting creative with ways to help you save. Many plans now include incentives like b...
