Back to The Power Lab

Don’t Let Your Electricity Plan Expire

By Tiffany Reynolds

In Texas, many of us can choose our electricity provider. But the danger comes when we let our electricity plan expire. We’ve all been there when we get that shocking bill.

The most common plans we can sign up for are contracts that last 3, 6, 12, 24, or 36 months. But did you know that once these contracts are up, the electricity provider is required to place you on a variable rate? The provider will try to renew you a new plan while they are placing you on a variable plan. The provider can change the rate at their discretion in a variable plan. This is why many Texans have crazy electricity bills and don’t know why.

It’s important to note your contract end date so you can choose a new plan or a new provider. Otherwise, you might pay the price.

Let us find you the best plan in seconds and start saving.

How do electricity contracts work in Texas?

In the deregulated parts of Texas, we can choose any electricity plan. Each plan has a contract designating the rate for electricity and how long the contract is valid, the term. The rate of electricity varies based on the term length. An electricity plan term that includes two summers and one winter will most likely be more expensive than a term with two winters and one summer. Sometimes plans are only valid for 3 months, other times, 36 months. You can see the plan length upfront when making a choice. Most electricity plans with a term length will include an Early Termination Fee to get out of that contract.

When the electricity plan expires, it’s important to choose a new plan or a new provider before the electricity provider moves you to a “variable rate.” A variable rate is a price that changes month to month based on the provider’s decision. A variable-rate plan does not have limits on how much a provider can charge you. Also, variable plans do not require the provider to proactively tell you how much they are going to charge you. You only find out after you have received your invoice.

Electricity providers hope that you never notice when your contract ends, and they can slowly increase the price on you, one bill at a time. Most of an electricity provider’s profits come from customers on variable rates.

How does a plan expire?

Every electricity plan contract expires. Your electricity provider is required to notify you of your expiration date. In addition, the expiration date is always located on your monthly bill. Understanding when your plan is expiring is important. This is your notification to start shopping for your next electricity plan. You have to ensure you are aware of the date that you electricity plan expires and move to a new plan before it expires.

How do I stop a plan from expiring?

You can’t. Your current electricity provider will try to renew your current electricity plan. We recommend always shopping the renewal offer before accepting it. You can always use Power Wizard’s rate monitor to see if the renewal offer is competitive within the Texas electricity market.

Switch to a new provider rather than renewing

Power Wizard has found that switching to a new provider will usually give you a better rate than staying with your current provider. Electricity providers are always competing for more customers, so you’re more likely to find a special price or deal with a new provider. Most electricity providers have special offers for new customers compared to the plans offered to current customers.

How to switch without an Early Termination Fee (ETF)

You are legally allowed to cancel your electricity plan without an ETF in two situations:

  • You are moving – just provide your lease or new home contract with your move out date
  • You switch providers within the last 14 days of your current contract.

How to choose a new plan

The electricity market is flooded with plans and providers (hundreds!) and it can be overwhelming trying to pick one that’s best for you. When your electricity plan expires, make sure you find the right one for you.

Everyone uses electricity differently. The best electricity plan for you is going to be a different plan than your neighbor’s. It all comes down to your home and how much electricity you use per month.

Providers offer different prices depending on how much energy you use. (We know, it’s complicated). To put it simply, each plan has a different price listed based on an average of 500, 1000, or 2000 kilowatts. If you typically use 1500 kWh in your home, you’ll need a plan with the best price of that usage. That’s where Power Wizard can help.

Our TruPrice tool takes your home’s actual electricity usage (we look at the historical energy usage too) and compares it to the electricity plans available on the market. This is what makes us different from every other tool that compares electricity plans. We find the best plan with the best prices for YOUR home. Ready to find the best plan available right now? Use TruPrice.

Let us find you the best plan in seconds and start saving.

What about Power to Choose?

Power to Choose is free, but there’s a hidden cost to you. Power to Choose does not use your real electricity usage like PowerWizard’s TruPrice does to determine the best electricity plan for you. Everyone uses electricity differently. Power to Choose will show you the prices of an electricity plan, but they don’t tell you if it is the right plan for you. You may end up paying more if you pick the wrong plan. When your electricity plan expires, use Power Wizard’s TruPrice tool to find the right plan for you.

Power Wizard’s TruPrice finds the best electricity rate for you

Are you ready to truly find the best plan on the market for you? Our TruPrice tool does all the work in just seconds so you don’t have to guess anymore. No more overpaying for electricity. No more surprising, shocking bills. Get started today! It’s time to stop overpaying.

Let us find you the best plan in seconds and start saving.

More From the Power Wizard Blog

  • Shop Texas Electricity

    Early termination fees (ETFs): What they are and how they work

    You may encounter different service contracts when choosing an electricity provider. A key feature to consider in an energy service subscription is the timeframe of service contract. The contract can be for an extended period of time for both prepaid or postpaid electricity plans. The ideal length of the contract may depend on where you […]

    View Article
  • Shop Texas Electricity

    Common energy scams to be aware of

    Finding the right energy plan can be challenging. There are numerous electricity providers in Texas’s deregulated energy market, each of which offers several plans. The choice can be overwhelming, especially when comparing all of your options yourself. With Power Wizard, you don’t have to do it alone. We’ll do the hard work of comparing plans […]

    View Article
  • Shop Texas Electricity

    9 Electricity Safety Tips for Your Home

    Keeping your home and your home’s occupants safe from electrical injury is a matter of taking safety precautions. Such as making sure electrical fixtures and components are installed and used properly, being safe around water, and calling an electrician if anything needs to be installed or repaired. Check out these electricity safety tips. What Is […]

    View Article
  • Shop Texas Electricity

    How to compare electricity providers in Texas

    Whether you’re a newcomer to shopping for electricity providers in Texas or are looking to make a switch, the task can be daunting. After all, to get the best deal for your household, you’ll need to compare electricity providers. This process involves comparing price, contract terms, and energy options. Feeling nervous? Don’t! Many online tools, […]

    View Article
  • Shop Texas Electricity

    Variables That Can Affect Texas Electricity Prices

    Just like the costs of gasoline or food, electricity prices are influenced by several economic and environmental factors. In Texas, severe weather, energy regulations, and available supply are among just a few of the variables that influence the price of electricity for residential consumers. Meanwhile, the deregulation of the electricity market in Texas means that […]

    View Article
  • Shop Texas Electricity

    How energy brokers can help you save

    At these difficult times, we are all looking for ways to lower our cost of living and adapt to the changing economy. Electricity plays a critical role in daily living and contributes significantly to our utility expenses. That’s why identifying the ideal energy plan to reduce energy expenses is one of the top priorities. Several […]

    View Article
  • Shop Texas Electricity

    Your guide to understanding the Texas electricity facts label

    One of the top benefits of living in Texas’ deregulated electricity market is having options. Instead of one or two energy providers, you can choose from dozens. Moreover, you can also select from many of the energy plans a retail energy provider offers. Have you heard of the Texas electricity facts label? Don’t worry, we’ll […]

    View Article
  • Shop Texas Electricity

    The Best Energy-Efficient Products for Your Home

    Becoming more energy-efficient at home is not just about cutting back on energy use, though that’s an essential element. Energy efficiency is also about maximizing how you use energy within different spaces. It should be your top concern, whether you’re looking to purchase a new home or searching for ways to revamp your existing abode. […]

    View Article