The best time to switch electricity providers in Texas is the last 14 days before your current contract ends. Texas rules let you switch inside that window with no early termination fee, and switching then also stops you from rolling onto a month-to-month holdover rate that often runs 5 to 10 cents per kWh higher than what you were paying. If you are moving, the timing is different but just as forgiving: a move usually cancels the fee entirely. Everything else is a judgment call, and sometimes the right answer is to wait.
Here is how to find your end date, read the fee fine print, and pick the moment that saves the most money.
The 14-day window is the sweet spot
Under Public Utility Commission of Texas (PUCT) rules, a retail electric provider cannot charge an early termination fee if you switch within 14 days of your contract's expiration date (PUCT Substantive Rule 25.475). That single rule is the reason the end of your contract is the cheapest time to move.
Miss the window in the other direction, and a different rule costs you. When a fixed-rate contract expires and you do nothing, the provider moves you to a default month-to-month plan, sometimes called a holdover or default renewal product. These rates float with the wholesale market and are rarely competitive. A household paying 13 cents per kWh on a fixed plan can land on a holdover rate of 18 to 22 cents per kWh without a single notice going unread. On the Texas average home usage of about 1,200 kWh a month (EIA), that gap is roughly $60 to $108 a month, or $720 to $1,296 a year.
So the target is narrow but clear: shop early, line up the next plan, and start service the day your current contract ends.
When does my electricity contract end?
Three ways to find your exact date, fastest first:
- Read your contract expiration notice. PUCT rules require your provider to send a written notice before a fixed-rate contract ends, in at least one bill or separate notice in the final 30 to 60 days. It states the expiration date and the rate you roll to if you do nothing.
- Check your Electricity Facts Label (EFL). Every plan has one. It lists the term length (12 months, 24 months, 36 months) and the early termination fee. Pair the term with your start date to get the end date.
- Log in or call. Your online account shows the contract end date. If it does not, the provider's support line will confirm it. Texas providers are required to disclose it.
Write the date down and set a reminder 30 days out. Thirty days is enough time to compare plans and schedule a switch without rushing into the first offer you see.
Early termination fees, and when they actually apply
An early termination fee (ETF) in Texas is a charge for leaving a fixed-rate contract before it ends. Most sit between $150 and $295. Some are a flat amount. Others are calculated per remaining month, for example $20 for each month left on the term.
The fee only matters if you leave early. It does not apply when:
- You switch within 14 days of the contract's expiration date.
- You are on a month-to-month or variable plan with no fixed term. These can be canceled anytime with no ETF.
- You move out of the service address and cannot take the plan with you (covered below).
The math worth doing: if a new plan saves you more than the ETF over the time remaining on your contract, breaking early can still pay off. A $150 fee is worth eating if a new rate saves you $40 a month and you have eight months left, because $320 in savings beats the $150 penalty. But if you have two months left, wait for the window.
Switching when moving is the easy case
Moving is the one time the calendar does not control you. When you move out of your service address, Texas providers generally waive the early termination fee, because you are ending service for a reason outside the contract's terms, not jumping to a competitor.
To keep the fee off your final bill:
- Tell your provider you are moving, not switching, and give a forwarding address.
- Provide proof if asked. A lease, closing document, or forwarding address usually satisfies it.
- Do not simply stop paying. Request a move-out and a final bill so the account closes cleanly.
One caution: the waiver covers the move itself. If you sign a new contract at your new address and then break that one early, the normal ETF rules apply again. Read the EFL for the new plan before you sign.
Does the season matter?
Somewhat, and less than most people assume. Wholesale prices in the ERCOT market tend to be highest in summer, when air-conditioning demand peaks, and during winter cold snaps that spike natural gas prices. Retail fixed rates often follow, so plans signed in the milder spring and fall shoulder months can carry slightly lower prices.
But chasing the season is a weak strategy compared to controlling your contract timing. A 12-month fixed rate locks your price regardless of what summer does to the wholesale market. The bigger risk is not the month you sign, it is signing a long contract during a price spike. If rates are clearly elevated, a shorter 6 to 12 month term keeps you from being locked into a high price, and lets you re-shop sooner.
When NOT to switch
Switching is not always the move. Hold off when:
- You are mid-contract with months to go and a real ETF. Unless the savings clearly beat the fee, stay put until the 14-day window.
- Your current rate is already competitive. If you are paying 12 to 13 cents per kWh on a fixed plan and new offers are landing in the same range, switching buys you paperwork, not savings. Compare the all-in price on the EFL, not the advertised teaser rate.
- You cannot verify the new plan's real cost. A headline rate that depends on a single usage level (often 1,000 or 2,000 kWh) can cost far more at your actual usage. Read the EFL's price at 500, 1,000, and 2,000 kWh before committing.
- You have an unpaid balance. Settle it first. A switch does not erase what you owe, and an unpaid bill can complicate enrollment.
Credibility is the whole point of shopping well. The goal is a lower bill, not a switch for its own sake.
How to switch at the right time
- Find your contract end date and set a reminder 30 days out.
- Pull your last 12 months of usage from your current bill or online account.
- Compare plans on total cost at your real usage, using the EFL price, not the marketing rate.
- Enroll so the new plan starts the day your current contract ends. No deposit, no service interruption, and the meter stays the same.
- Keep the confirmation. The new provider handles the switch with your local utility; you do not need to call to cancel the old one.
Do this inside the 14-day window and you pay no penalty, skip the holdover rate, and lock your next price on your terms.
Quick answers
When is the best time to switch electricity providers in Texas? The last 14 days before your contract expires. PUCT rules waive the early termination fee in that window, and switching then prevents you from rolling onto a higher month-to-month holdover rate.
How do I find out when my electricity contract ends? Check the contract expiration notice your provider must send in the final 30 to 60 days, read the term on your Electricity Facts Label, or log in to your account. Providers are required to disclose the end date.
How much is an early termination fee in Texas? Most run $150 to $295, either flat or charged per remaining month. The fee is waived if you switch within 14 days of expiration or if you move and cannot take the plan with you.
Can I switch electricity providers when I move without a fee? Yes. Moving out of your service address generally waives the early termination fee. Tell your provider you are moving, give a forwarding address, and request a final bill so the account closes cleanly.