The holdover trap

When your Texas electricity contract ends, your provider has to keep serving you — but at whatever rate they want. These “month-to-month” or “holdover” rates are almost always the most expensive plan that provider offers.

The average holdover rate in Texas is 16.8¢/kWh. The average fixed-rate plan is 11.4¢/kWh. That gap costs a typical household about $340/year.

Your 15-minute checklist

  1. Find your contract end date. Look for your most recent “Your Electricity Facts” letter or the renewal notice that arrives 60 days before expiration.
  2. Pull your 12-month usage. Log into your provider’s portal and note your monthly kWh total.
  3. Run our comparison. Enter your ZIP and average usage. Sort by total monthly cost.
  4. Pick a 12- or 24-month plan with your target usage tier.
  5. Enroll before your current plan expires — switching is seamless, no service interruption.

Timing matters

Providers run their best offers in March–May (before summer demand) and October–November (after summer). If your contract ends in July or August, you can still switch — but you’ll pay more than if you’d locked in during the shoulder season.