Category: Switching

Everything you need to know about switching electricity providers and energy plans in Texas.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Electricity Contract Expiration Guide

Are you feeling a bit anxious because your electricity contract in Texas is about to expire?

You’re not alone. Many Texans are in the same situation, unsure of the next steps and worried about potential cost increases.

But what if I told you this could be a golden opportunity for savings?

TLDR: This article is your guide to managing your electricity contract expiration in Texas.

I’ll explain why you should consider switching providers, how ComparePower can assist you in the process, and why you should start comparing providers today.

By following this guide, you can navigate your contract expiration smoothly and potentially save money on your electricity bill.

Understanding Your Electricity Contract Expiration

In Texas, Retail Electric Providers (REPs) must notify you at least 30 days before your contract expires.

This gives you time to review their renewal offer, compare other options, and decide whether switching providers could benefit you.

However, the process can seem daunting and confusing, especially if you’re worried about early termination charges or finding a new provider that fits your needs.

What Happens if I Don’t Switch Providers?

If you stick with your current provider out of convenience or fear of change, you might pay more than necessary.

When you’re nearing the end of your electricity contract in Texas and haven’t chosen a new plan or provider, there’s no need to worry about your power being shut off.

Instead, your current provider will typically place you on what’s known as a “holdover” rate.

A holdover rate is a variable rate your provider will charge you once your contract expires and until you sign a new contract or switch providers.

This rate can be higher than what you paid under your contract, as it often reflects current market conditions.

While being on a holdover rate ensures your electricity service continues uninterrupted, it’s usually a good idea to shop for a new contract or provider as soon as possible.

This is because holdover rates can be more expensive and change from month to month, making your electricity bill unpredictable.

Switching to Savings on ComparePower

Comparing providers and plans can seem time-consuming and complex, adding to your stress, but don’t worry.

This is where ComparePower comes in. Here you can compare rates and plans from different providers in one place.

We provide clear and detailed information about each plan, helping you make an informed decision with confidence and ease.

When is the best time to switch electricity providers in Texas?

You can switch providers without incurring an early termination charge if the switch is no earlier than 14 days before the contract expiration date provided in the notice.

If you switch before this period, you may have to pay an early termination fee.

What happens to my electricity service when I switch providers?

If you switch providers, your electricity service will continue uninterrupted.

Your new provider will start supplying your electricity once your current contract ends.

Ready to get started? We’ve prepared a comprehensive guide on how to switch energy companies for you. It’s your roadmap to a smooth and hassle-free switch.

Compare Electric Rates & Save👇

Compare and Switch Today

Don’t let your contract expiration date catch you off guard. Compare electricity providers today with ComparePower, and switch to savings.

Remember, the power to choose is in your hands. Make the most of it with ComparePower.

You can avoid an early termination charge if you switch providers no earlier than 14 days before your contract expiration date. However, if you switch before this period, you may have to pay an early termination fee.

When choosing a new provider, consider factors such as the rates they offer, the terms of their contracts, their customer service reputation, and whether their plans fit your energy usage habits.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Published on January 31, 2023

TLDR: Maximize winter energy savings by using your home’s historical kWh usage to find the best energy plan. Comparing energy plans with your electricity usage can lead to lower energy bills and more informed decision-making. Learning energy-saving tips and regularly reviewing your plan can also help reduce costs.

Maximizing winter energy savings

Winter months can bring great joy with the festive season, but they can also be harsh on your wallet due to increased energy consumption. Heating homes and offices can consume a lot of energy and significantly increases energy bills. With energy prices constantly fluctuating, finding an energy plan that fits your usage and budget is more important than ever. This is where your historical kWh usage comes in.

Understanding historical kWh usage

A kilowatt-hour is a unit of energy used to measure electricity consumption. Your historical kWh usage data records how much energy you have consumed over a specific period, typically one year. This data lets you find the perfect energy plan by comparing energy plans according to how you use electricity.

To access your historical kWh usage data, check your monthly energy bills or log into your energy provider’s account dashboard. Understanding this data is important in finding an energy plan that fits your usage and reduces energy bills.

How to use historical kWh usage to find the perfect energy plan

Comparing Texas electricity rates based on your historical kWh usage is easy. Start by collecting your historical kWh usage data monthly for one year. Enter your usage history on ComparePower’s historical usage calculator. Compare plan prices based on your historical kWh usage.

Comparing energy plans with your historical kWh ensures that you select a plan that fits your consumption pattern, reduces energy bills, and helps you make an informed decision based on your actual usage rather than just an estimated average.

Check out this short 2-minute video to learn how shopping with your usage works on ComparePower.

What length plan should I choose?

A common question we get when switching is the term length of the contract.

Is it best to choose a 12, 24, or 36-month plan? The length of your energy plan depends on your individual needs and preferences.

A 12-month plan offers stability, predictability, and the flexibility to shop again in 12 months.

A 24-month plan provides a longer period of stability in energy rates, but you may miss out on lower energy bills if rates go down.

A 36-month plan offers the longest period of rate stability. This term is ideal if you find a rate you like and prefer to lock that in for an extended period.

It can be difficult to predict electricity prices as supply and demand, fuel prices, government regulations, and weather conditions influence them. The energy market is highly dynamic and constantly changes, making it challenging to predict future prices accurately.

Ultimately, assessing your energy needs and considering the current market rates is best before deciding on a plan length. You may also want to consider the plan’s flexibility and the penalty fees for early termination.

When can I switch providers?

While you can switch electricity plans at any time, it is important to note that some providers may charge an early termination fee (ETF) if you end your contract before the end of the term.

The ETF is designed to compensate the provider for any losses they may incur from ending the contract early.

Before switching plans, be sure to review the terms and conditions of your current contract and consider the ETF fees involved.

In some cases, the potential savings from switching to a new plan may outweigh the ETF fees, so it’s important to do the math and weigh your options carefully. You can quickly do the math with ComparePower by plugging in your kWh usage and letting us crunch the numbers for you.

It is also worth noting that some providers may offer ETF-free plans, so be sure to consider all your options and choose the plan that best meets your needs and budget.

Starting service for a new home

If you don’t have access to the previous usage history for your new home, you can estimate your electricity usage. You can also ask the previous landlord for a copy of their kWh usage history for 12 months.

Tips to maximize savings this winter

Aside from finding the perfect energy plan, several other tips can help you maximize your energy savings this winter.

First, familiarize yourself with the different types of energy plans and rates available. There are fixed-rate, variable-rate, and prepaid plans, each with advantages and disadvantages.

Conserving energy and reducing usage during winter is another way to reduce energy bills. Simple changes, such as lowering your thermostat, sealing drafty windows, and using energy-efficient lighting, can help you save electricity.

Finally, it’s important to regularly review and adjust your energy plan to ensure you are always getting the best deal.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

If you’re reading this, your electricity provider in Texas likely went out of business, and you are now with another provider known as a Provider of Last Resort or POLR.

Here is what you need to know to make an informed energy decision for your household.

POLR transitions usually default to variable market rates, also called holdover rates.

Your Provider of Last Resort could honor your previous rate with your former electric company, but that is not guaranteed. Check the details of your new contract to find out exactly what you are paying.

In most cases, you are paying the Provider of Last Resort an expensive holdover rate.

Holdover rates are subject to changes in market conditions and are significantly higher than those for a fixed-rate contract.

Switch providers on ComparePower to a fixed-rate plan that will be easier to budget and cheaper than a holdover rate.

Get a fixed-rate contract with a low rate in minutes.

What is a Provider of Last Resort, or POLR?

POLR service, or Provider of Last Resort, is a safety net for you when your preferred retail electric provider (REP) cannot maintain service. 

Instead of utilities providing backup electric service to customers, the POLR structure requires competitive REPs to fill the service gap if any REP exits the market.

This temporary service should be used only in exceptional circumstances, such as when a REP goes out of business.

The Public Utility Commission of Texas (PUC) appoints certified REPs to provide POLR service in each service region every two years.

Large REPs must participate as POLRs, and smaller providers may volunteer.

Find a low rate and switch energy providers instantly.

What are my options if my electric provider goes out of business?

Getting dumped to a POLR is not ideal. There’s no getting around that, but you can now find a great new rate for your home.

You do not have to stay with your provider of last resort. You can choose your provider on ComparePower.

Shop with your usage, compare pricing for your home, and checkout with the right plan in as little as five minutes.

We’ll show you all-inclusive pricing, so you know exactly what your bills will look like.

Find plans that match your needs and avoid all the gimmicks that providers throw at you.

Will my power go out?

There is no interruption of power during a POLR transition. If you are in good standing, which means you’ve paid your electricity bills on time, your utility company will continue to deliver power to your home.

When do you get POLR electric service?

Retail energy is a high-risk commodity business, and REPs must purchase electricity ahead of time to support electricity demand.

If a REP has not purchased enough electricity to serve their customers, they are forced to purchase real-time electricity to meet their customer’s needs.

And if the Electricity Reliability Council of Texas (ERCOT) views the upcoming market prices as risky, they may demand more collateral from your REP to cover the costs.

If your REP cannot cover the costs of real-time electricity or put up enough collateral, they can quickly go out of business, and you’ll be placed on a POLR plan.

This is precisely what happened after Winter Storm Uri when demand skyrocketed, and real-time electricity prices hit all-time highs.

Who is your Provider of Last Resort?

The PUCT determines the Texas POLR list and updates it every two years.

The largest providers are required to serve as a POLR, and smaller providers may choose to take part to share the burden.

Current POLR providers are listed below by delivery area:

– Oncor: TXU Energy
– Centerpoint: Reliant Energy
– TNMP: TXU Energy
– AEP: TXU Energy

How does POLR electric service work?

If you end up on a POLR plan, don’t worry. The POLR system was implemented to keep your lights on so you won’t be stuck in the dark.

The first thing that will happen is that you’ll be notified that your electricity service has been transferred to a POLR.

You’ll receive a notice from the PUCT letting you know that your REP is no longer servicing your home, and soon your POLR will send information about the plan you are being placed on.

Your contract with your former REP will be terminated, and your contract details will likely not be carried over.

Any payment or billing arrangements on your old electricity plans, such as average billing or Auto Pay, are also terminated.

The new POLR plan you are placed on will be month-to-month with no contract and will have a variable rate.

This means that the cost of your electricity will change each month and can be extremely expensive.

If you are hearing warning bells going off, you are right to assume that you don’t want to stay on a POLR plan for long.

The good news is that you can shop for a new electricity plan without any penalties.

When you’re transferred to a POLR, you have 15 days to switch to another plan with that POLR, or you can shop to find the best rate for your home.

Don’t wait. Switch providers here in as little as 5 minutes and enjoy savings on your energy bill month after month.

Search for a low electricity rate and enroll online in minutes.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

How electricity contract renewals work in Texas

You do not have to renew your energy contract with your electricity provider.

You can choose another provider and switch to a cheaper rate. We’ll show you how in this short guide.

If your electricity contract is about to expire, shop the market before renewing your contract.

Rates usually go up at renewal time. Providers offer low introductory rates to attract and acquire new customers.

Once you sign up and establish a service, many providers count on the fact that you won’t bother switching providers at renewal time to raise your rate, making it more profitable.

You may leave money on the table by accepting your provider’s renewal offer without comparing competing plans and rates.

Renew or switch

It’s important to understand that you cannot continue with the same contract or price and must either accept the new offer (and a new contract) or switch to a different provider. 

While you can turn off the lights and replace all your bulbs and appliances with energy-efficient ones, finding a lower rate is the fastest way to save money.

We’ll show you how to compare your provider’s renewal offer to competing energy plans based on your home’s annual historical electricity usage profile.

Comparing energy plans with your home’s historical usage is the best way to beat the gimmicks and save money on your electricity bill month after month.

Renewing could end up costing you more

The choice is yours in Texas. You can renew, switch providers, or do nothing at all.

Shopping for electricity in Texas can be confusing. Choosing the right electricity plan can be difficult, especially if you don’t know or remember how.

We get it. Nothing is more frustrating than trying to solve a problem you don’t understand. It’s like playing a game, and you don’t know the rules.

It’s okay if you don’t know the rules. We’ll help you with that. Our mission is to help all Texans win the game of electricity.

If you’re reading this, likely, you haven’t thought about electricity in a year or more, so if you feel confused or frustrated, you’re not alone. We’re here to help you beat them at their own game.

Before you give up and accept your provider’s renewal offer, remember that the offer is not a continuation of service at the same price.

You will not be paying the same rate by renewing with your provider. The renewal offer is an entirely new contract with a new rate.

Don’t overpay for electricity. Join the millions of Texans who switch and save on their electricity bills yearly with ComparePower.

When your contract is nearing its end, we’ll give you all the details and a step-by-step plan to find the best electricity and rate for your home.

Let’s start by breaking down your provider’s renewal offer.

Renewal offers are rarely your best option

When your contract ends, your electricity provider will send you a renewal offer with the details of your new contract and your new electricity rate.

Texas law requires providers to send you a renewal notice at least 30 days before your contract expires.

However, you will likely start getting phone calls and renewal offers up to 60 days, sometimes three months before your contract expires.  

It is generally not a good idea to renew your contract for three or six months.

Early renewal offers rarely have lower rates than what you are paying now. 

It is impossible to predict the rate of electricity in the future. Market rates may be lower closer to the expiration of your contract. 

Schedule a reminder here instead, and we’ll remind you when it’s time to shop and switch.

You have 14 days before the end of your contract to switch providers without penalty in Texas.

The two-week window is a good time to look for deals and compare rates. 

Electricity companies are not on your side. Like any company, electric retailers operate on profit.

If you pay more for electricity, they will take it. Therefore, pay attention to the details of your renewal offer when your contract expires. 

If you don’t shop around, you are stuck with a handful of energy plans offered by one company whose job is to take as much money as possible rather than provide you with the lowest rate.

There is no guarantee of savings. You do not keep the same rate when you renew your energy contract. It is not an extension of your contract.

Even if your provider offers you the same rate on your renewal, competitive market rates might be even lower. You won’t know unless you take some time to shop and compare plans with your home’s usage history.

How do you compare your renewal offer?

Generally speaking, there is no easy way to compare your provider’s renewal offer with market prices.

Renewal offers and all electricity plans in Texas are required to advertise prices for three usage levels: 500, 1000, and 2000 kWh.

The price for usage outside those three reference points is unknown to you. You won’t pay the advertised rate unless you consume precisely 500, 1000, or 2000 kWh per month.

When you shop for a plan based on the advertised prices for 500, 1000, or 2000 kWh, you may choose an unsuitable plan for your home’s complete annual energy usage pattern.

Seasonal weather influences how much energy you use each month. During the winter and summer months, you will use more kWh because the temperature outside requires more heating or cooling.

Due to the seasonal differences in kWh usage, comparing plans based on the three advertised usage points is impossible.

A great way to overpay for electricity is to shop at the advertised price; Texas electricity companies have used this strategy since the state deregulated its energy market.

Find out what you’ll pay, not what is advertised. 

You only pay the advertised price if you use the same electricity. 

Electricity is the same. No matter where you buy it from, it’s the same energy. So why pay more for it when you can get it for less? 

Avoid overpaying. There is no need to give more of your hard-earned money to the electric company when you can beat them at their own game.

How to compare renewal offers

First, find your historical usage history.  You can access your historical usage by logging into your provider’s account dashboard.

Each provider has a different dashboard, but they all provide a way to view and download your usage online.

Ideally, you should get at least 12 months of usage or as many months as you have kWh usage. 

Use the historical usage calculator below to enter your monthly usage.

After entering your usage, click on Compare Rates, then enter your zip code.

Your home’s specific usage profile should be entered now so that the next screen looks like the one below (except with your home’s specific annual usage profile).

Electricity Usage Calculator

Now you can review the total annual cost of the plans on the ComparePower marketplace based on 12 months of your home’s historical usage profile. 

This is how much you will pay for your electricity for an entire year of usage if you choose any of the plans on ComparePower. 

To find out if you are getting a better deal, you will need to look up your electricity billing statements and add up the amounts for the past 12 months. 

You should switch if the total annual cost you paid your provider exceeds the lowest cost plan on ComparePower. 

Click “Check Availability,” and you’ll be on your way to a cheaper energy plan within five minutes, confident you’re getting a great deal.

We’ll even remind you when your contract expires so you can come back and save year after year.

Switch and save

The cheapest prices are only available to new customers. When you enrolled with your current provider, you may have been lured by a low introductory rate that is only available to new customers.

When you are nearing the end of your current contract, switching electricity providers to a plan with a lower rate is your best bet for saving money on your next power bill.

Do your homework. Texas electricity rates can change frequently, so research before enrolling in a plan. 

Compare energy plans and prices. If you’re looking for the lowest electric rates to save money, take your time to review and compare prices from competing providers. 

For maximum savings, shop with your home’s usage history and our historical usage calculator.

Comparing energy plans in Texas based on your usage history is the best way to save money.

Do not let your contract lapse. Inaction is by far the most costly. As soon as your contract expires, you’re put on a holdover rate that fluctuates based on market conditions, causing unexpectedly high electricity bills.

By letting your contract expire without taking action, you may end up overpaying for electricity. Schedule a reminder, and we’ll notify you when it’s time to switch and save.

If your electricity contract expires, your power will not go out. You will continue to receive power from your current provider, but at a high rate called a holdover rate.

Holdover rates are variable market rates and are expensive and unpredictable. The majority of Texas consumers choose a fixed-rate plan.

You are entering into a legal contract. Remember that a contract, whether you opt to renew or switch, is a legal contract between you and your energy retailer. 

You can change your mind. You can cancel an electricity contract with no penalty within three days in Texas by contacting the provider directly. 

Cancellations are possible anytime, but there may be an early termination fee if you switch providers before your term is due. Be sure to read your contract and understand the cancellation rules.

Confused about why this is so important?

Other considerations:

In addition to the price, consider features that may be important to you when comparing different electricity plans. Here are some additional considerations when shopping for a new energy plan.

Contract term: Most electricity contracts are 6-12-24 months. The length of your lease does not have to match the length of your electricity contract. Because energy contracts in Texas can be canceled when moving, you can pick the term length that offers the best price.

Rate type: Most Texas consumers prefer a predictable, fixed-rate electricity plan over a variable rate.

Features: Some plans include 100% Green, Free Nights & Weekends, or a free Nest Thermostat. 

Price: The best electricity plan or rate is often determined by the price per kWh and your home’s kWh usage. Learn how to switch energy providers in Texas.

Deposits: Your credit score and utility payment history determine whether a deposit is required. A deposit might not be required from some ComparePower providers, so pick a plan and enroll for service. 

If a deposit is required, we check our marketplace to see if other providers won’t require one from you. You can easily see the deposit requirements for all providers with just one order. You can save a lot of time and frustration finding a no-deposit plan on ComparePower. Want to avoid deposits and credit checks altogether? Go Prepaid here.

Learn how to get no-deposit lights in Texas.

To recap, switching is easy—10 minutes of your time can save you hundreds of dollars a year on your electric bill. You do not even have to call and cancel service with your existing provider. Switch on ComparePower, and we’ll handle it all for you.

Ready to save time and money on your electricity bill?

Frequently Asked Questions

Who has the best energy rates in Texas?

Texas has no single electricity provider known for the most competitive rates. In Texas, the price of your energy depends on how much energy you use each month. Shop electricity plans with your home’s annual usage profile to find a low rate and avoid gimmicks. Enter your home’s historical usage on, and you’ll be on your way to savings in minutes.

What is the best month to renew your electricity?

In general, the cheapest times of the year for electricity are during the spring and fall months when there is less demand for electricity. Do not let your contract expire before switching providers. Doing so can be costly. can help you find the best rate with your home’s annual usage profile. It is the best way to shop for electricity in Texas if saving time and money is essential.

What is a good rate for electricity in Texas?

Texans paid an average of 12.56 cents per kilowatt-hour in 2021. You can find rates on ComparePower that are much less than the Texas average when you shop with your home’s historical usage profile. The best way to shop energy plans and save money is by using your historical usage profile on

When can you switch electricity providers in Texas without penalty?

In Texas, you have 14 days before your contract expiration date to shop the market and switch to a new provider without penalty.

Will my new energy provider cancel my old contract?

Yes, ensure you’re within your 14-day grace period to avoid any early termination penalties. Then, enroll for electricity service with a new provider on, and we’ll handle the break-up call for you.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Say bye-bye to surprise electricity bills

You may be on the wrong plan if your electricity bill is higher than average. You can save money by switching to a new plan that better fits your usage.

Learn how to switch & save 👉

In Texas, you can choose an electricity plan that fits your lifestyle and a rate that fits your budget.

You’re in the right place if you’re facing a high electric bill. 

Learn why your bill spiked, how to get it back under control, and how to save on it month after month without surprises.

If you are facing a hefty electricity bill, one of the best ways to lower your bill is to switch your electric provider with your home’s annual historical usage. While that might sound difficult, it is not.

You can do it with ComparePower in minutes. We make switching to savings easy for millions of Texans like you every year.

Find out if you’re overpaying

The average retail price for residential electricity in Texas is 14.46 ¢/kWh per kilowatt-hour (kWh), according to the U.S. Energy Information Administration.

Find the average price you paid on your electricity bill. You are paying more than the average Texan if it is higher than 14.46 ¢/kWh per kilowatt-hour. 

Why am I overpaying?

You may be paying more than necessary because the plan you picked is not ideal for your home’s usage. 

Even if you are paying the Texas average rate, you may still be leaving money on the table. 

How can you find out? Do a quick rate check.

Start by entering your zip code on this page, then select “All Plans” on the next screen when you are asked, “How would you like to shop?”

This will take you directly to the plans listing marketplace.

From there, enter your previous month’s usage. Your monthly usage is on your electricity bill in kilowatt-hours (kWh). 

Find your usage on your bill and enter the kWh usage from your bill in the “Your Home” tab on ComparePower (see screenshot for clarity)

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Once you have entered your usage, scroll down to the first plan listing. For example, let’s assume your usage last month was 1,524 kWh. 

Plans are sorted from lowest to highest price. This is a great way to spot-check the rate on your electricity bill with what’s available on the market to see if you are overpaying.

In the example below, the electricity plan with the lowest rate is the Power of Credit 12 by New Power Texas, with a rate of 11.2 cents per kWh for exactly 1,524 kWh.

If the average kWh rate on your bill is higher than the rate you see on ComparePower, it may be time to switch providers. 


Pro Tip: Ensure you are not already in a contract with your provider before switching.

Switching before your contract expires can lead to an early termination fee. 

In Texas, you have a 14-day grace period to shop plans and rates and switch providers without penalty.

Stuck in a contract?

If you’re under a contract with your electricity provider, you must assess whether switching will save you money in the long run (even if you pay the early termination fee).

You will need to shop plans by entering 12 months of usage history.

You can find your historical usage by logging into your provider’s account dashboard. 

Every provider has a different-looking dashboard, but they all have an area where you can view and download your usage monthly. 

Getting as many months of usage as possible with a full 12 months is ideal. 

Next, enter your monthly usage on ComparePower’s historical usage calculator.

kWh usage pricing calculator

Input as many months of usage history as possible, then click “Compare Rates.”

If you can’t find your usage history, you can still compare rates by home size by entering your zip code at the top of this page.

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Next, look at the plans’ total annual cost based on 12 months of historical usage. 

This is the total amount you will pay for the electricity for an entire year of service based on your home’s exact historical usage profile. 

Next, add how much you have paid your electricity company for the same usage. 

You will need to find all your electricity billing statements and add the amounts to see what your plan currently costs you for an entire year of service. 

You can find all your past billing statements by logging into your provider’s online portal. 

Now add your early termination fee to that amount. 

It is time to switch if the total is more than the total annual cost on ComparePower. 

Simply click on check availability, and you’ll be on your way to a cheaper rate plan in 5 minutes. 

Getting out of a contract 

To get out of an electricity contract without an early termination fee, you must move out. 

The scenario is common when couples divorce, a household member is called to military service, or a roommate moves out.

If you live in a household with two or more people, you can cancel your electricity contract and have someone else take over in their name with another provider. 

Another household member can then place a move-in order on ComparePower for the same address with a new provider.  Make sure to select “move-in” as the order type at checkout. 

Call your electric provider to request that service be turned off and canceled by a specific date due to moving out. This is how you prevent service interruption and get the bill out of your name.

Some providers may require proof, such as a forwarding address for your last bill, but you are not required to provide one.

There will be a new provider servicing your home, and the electricity bill will no longer be in your name but in the name of the other household member. 

This is not meant as a way to avoid paying your bills. You should always pay your electric bill to remain in good standing with the electric company and enjoy low rates without upfront deposits. 

Switching providers without paying your bill can damage your credit and eventually cost you a higher rate or an upfront deposit. 

If you take all the steps above and decide that you would rather wait to switch when your contract is near its expiration, you can schedule a reminder here. 

Simply enter your email, zip code, and contract end date, and we’ll send you a reminder email when it’s time to switch. 

Remember that the electricity companies are not your friend. They want to make as much money as possible from you and are not afraid of using sneaky tactics. 

If you think that you received a high bill, take the time to check into your plan details and make sure you’re not on a holdover rate or renewal that isn’t right for you.

How to lower your electric bill

This short 2-minute video will show you how to find your best plan on ComparePower.

Why has my electric bill increased?

Several factors can contribute to an increase in your electricity bill. These are the most common reasons for a high electric bill.

– Usage changed due to extreme weather.
– Moved into a new home and chose the wrong plan.
– Renewed on a more expensive plan.
– Switched to another provider plan that costs more.
– Your contract expired, and you’re on a holdover rate.
– Usage changed due to a faulty appliance.

Choosing the right energy provider and plan can seem daunting, but it doesn’t have to be. You can easily find the right plan for your home’s usage in minutes on ComparePower.

Your energy usage changed

Of all the reasons your bill may have spiked, an increase in your monthly usage is likely the most common.

A spike in your energy usage may result in a higher bill. For example, you’ll use more energy if you have a full house during the holidays and school vacations.

Seasonality can also cause your energy usage to be higher than usual. A hot summer and a cold winter in Texas can cause usage spikes.

Take a look at your monthly usage. Log in to your electricity provider account and check your usage reports. 

Most Texas providers have a dashboard where you can review your usage monthly.

If you have a smart meter — most Texas homes do — then you can check your usage in 15-minute intervals on Smart Meter Texas.

It is unlikely that your smart meter read is incorrect, but you can validate it by reviewing your usage on Smart Meter Texas.

Smart Meter Texas, endorsed by the Texas Public Utility Commission, stores daily, monthly, and 15-minute interval energy data collected by smart electric meters (commonly referred to as “smart meters”) and provides secure access to that data to Texas residents.

You can rule out errors in your electricity meter reading if the usage on your bill matches the usage on Smart Meter Texas.

You have a faulty appliance

Unreliable appliances, such as a leaking water heater, can lead to a high electric bill.

You should perform a pre-season cooling-system checkup in the spring, and a heating-system checkup in the fall, to avoid system failure and higher-than-average bills.

You recently moved into a new home

If you recently moved into a new home and transferred your electricity service, your energy consumption may have changed, resulting in higher bills.

Similarly, if you recently moved into a new home and chose a new provider plan, you may have picked a plan that does not accommodate your new home’s energy usage.

You recently switched to a different provider

If you recently switched your provider, you may have chosen a new plan that is not optimal for your home’s usage profile.

Learn to shop for the right plan with your home’s usage profile.

You recently renewed your electricity plan

The renewal offer from your provider is rarely your best option in terms of price.

It is essential to understand that a renewal offer is a new contract with a new rate, not a continuation of your expiring contract. 

The new contract includes the details of your new electricity rate, often higher than what you’ve been paying. 

In Texas, providers are required to send renewal notices at least 30 days before a contract expires. Still, you can expect to begin receiving renewal offers as early as 60 days and sometimes three months before your contract’s expiration.

Renewing your contract for three or six months is seldom a wise decision. Early renewal offers rarely have lower rates than what you currently pay. 

Since it is impossible to predict the electricity rate in the future, you might find that market rates are lower closer to your contract’s expiration date. 

In Texas, you can change providers without penalty up to 14 days before the end of your contract. You can use this time to compare rates and shop around.

To save money on your energy bill, compare your provider’s renewal offer with competitors’ plans and rates. Ten minutes can save you hundreds of dollars. 

Your contract has expired

When your electricity contract expires, and you don’t renew with your provider or switch to another, you are placed on a variable “holdover” rate. 

Holdover rates are unpredictable as they can vary with market conditions. Therefore, if your contract has expired, it is time to act. 

The best way to save is to shop with your home’s unique usage profile on ComparePower and switch providers. 
Switching providers is easy and only takes a few minutes, but it can save you hundreds of dollars a year. 

You have a tiered-rate energy plan or one with usage credits.

A tiered rate electricity plan discloses the price you’ll pay for exactly 500, 1,000, and 2,000 kWh usage per month. It is not a range. 

If you’re not careful, using a kilowatt above or below those usage points can lead to dramatic changes in cost.

After Texas deregulated its energy sector in the early 2000s, the Public Utility Commission of Texas (PUCT) required retail electricity providers to disclose rates at three usage levels: 500, 1,000, and 2,000 kilowatt-hours (kWh).

This enabled electricity providers to advertise incredibly low rates at exactly 500, 1000, or 2000 kWh usage. 

Known as teaser rates, these cheap and eye-catching rates entice shoppers with prices that are too good to be true.

Almost no one uses precisely 500, 1000, or 2000 kWh monthly.

While it’s possible to consume, on average, 1000 kWh of electricity each month, your usage will fluctuate dramatically from one month to the next month, especially during summer in Texas. 

There are tiered rate plans where the rate per kilowatt-hour can increase as much as 20 cents or more if customers exceed 1,000 kWh per month – even by one kilowatt.

Consequently, you will likely pay much more than anticipated when choosing an energy plan with a tiered rate structure.

How can you tell if a plan has a tiered-rate structure and is suitable for your home?
There are various tiered energy rates, including flat fees and credits based on specific kWh usage or a combination.

To determine if a rate seems too good to be true, look at the plan’s electricity facts label (EFL) and carefully review it.

Bill credits are another way electricity companies advertise cheap rates. 
Energy companies trick consumers into thinking they are getting a super-low rate by including a steep discount (called a usage credit) at exactly 500, 1000, or 2000 kWh of usage.

Like tiered-rate plans, you only get the discount at a specific usage point or range. For example, if you use between 1,000 – 2,000 kWh per month. 

Anything outside of the specified rate of the range will cost you more. 

Tiered or usage credit plans can work to your advantage. When you shop and compare plans with your home’s historical usage profile, a tiered or usage credit plan might be right for you. 

You won’t have to worry about tiers and credits on ComparePower. Enter your usage history, and we’ll do the math to calculate your best plan and rate. No tricks or gimmicks. 

Learn to shop for the right plan with your home’s usage profile 👉

How to lower high electric bill FAQs

How can I reduce my electric bill?

The best way to reduce your electricity bill is to ensure that your energy plan is ideal for the usage profile of your home. Enter your home’s historical usage on to find the right plan for your home in minutes.

What is a typical electric bill in Texas?

According to the U.S. Energy Information Administration, the average retail price of residential electricity in Texas is 14.46 ¢/kWh. If the typical Texan uses 1,132 kWh/month on average, at 14.46 ¢/kWh, the electric bill would be around $163.66.

Why are energy bills rising?

The price increase is due to the steep rise in wholesale gas prices, which directly impacts electricity production costs.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Switch Holds in Texas

In Texas, there’s a little obstacle known as a “switch hold” that might get in the way of you changing your electricity provider.

This temporary barrier on your electric meter is typically slapped on when there’s an unpaid balance on your account or if you haven’t met certain obligations with your current retail electric provider.

You’ll have to settle the score with your current provider to lift that pesky switch hold. That means paying off any outstanding balance or fulfilling the requirements.

Let’s say you’re moving into a new home with an existing switch hold. Don’t worry. There’s a way out! Fill out a New Occupant Statement (NOS) and gather supporting documents to prove your new residency.

This might include a signed lease, a notarized affidavit from your landlord, closing documents, a certificate of occupancy, or a recent utility bill from a different address in your name.

This information lets you verify your new residency and kick that switch hold to the curb!

What is a switch hold?

A switch hold is a measure the electricity provider takes to prevent customers from switching to another provider before settling their past-due bill.

This hold is placed by the Retail Electric Provider (REP) and is typically put in place when a customer has a past-due balance and has failed to fulfill a payment agreement.

How do you get a switch hold?

A switch hold prevents attempts to switch providers. If you cannot pay your electricity bill, your electric company may offer a deferred payment plan, enabling you to pay the outstanding balance in installments.

When entering such an agreement, the electric company can impose a switch hold on your meter to prevent you from changing providers to evade the due balance.

Additionally, a switch hold may be placed if your utility company detects meter tampering at your location.

Interfering with your Transmission and Distribution Utility meter is illegal and can result in a switch hold being applied.

How to get electric lights with a switch hold?

A switch hold will remain in effect until your electric company informs the utility company that all payment obligations, including any back-billings and meter repair charges resulting from tampering (if applicable), have been fulfilled.

If your service has been disconnected due to non-payment, you must settle your outstanding balance with your current provider to restore your electricity.

Can I switch electricity companies if I owe money? 

In Texas, you can switch electricity providers even if you have an outstanding balance, provided no switch hold is already in place.

If your electricity is disconnected due to non-payment, contact your current provider and request a payment plan to gradually pay off the outstanding balance.

Agreeing to a payment plan, you acknowledge that a switch hold will be placed on your service address.

Do not enter into a payment agreement with your electric company to avoid a switch hold. Instead, try to pay your bill in full if possible.

If you lack the funds, consider paying your bill and switching to a prepaid company through ComparePower.

Failing to pay your electricity bill may negatively impact your credit, making it more difficult to secure electricity when needed.

How to remove a switch hold? 

A switch hold can be lifted by settling any outstanding balance with your electricity company. After paying the balance in full, removing the switch hold may take up to 72 hours.

For new occupants facing a switch hold, you can have it removed by reaching out to the electricity company you want to establish services with and completing a New Occupant Statement (NOS).

The NOS must be accompanied by at least one of the following supporting documents:
– A copy of the signed lease
– A notarized affidavit from the landlord
– Closing documents
– Certificate of Occupancy; or
– A utility bill in the customer’s name, dated within the last two months, from a different address

Can utilities be shut off right now in Texas?

The Texas Public Utility Commission has lifted a moratorium on utility disconnections.

How can I get help paying my electric bill in Texas?

Electricity providers may assist low-income customers. To qualify, you must be enrolled in the Supplemental Nutrition Assistance Program (SNAP) or receive Medicaid benefits, and the participant’s name must be listed on the electric bill.

Contact your electricity provider to determine if they participate in such programs and offer low-income benefits.

Texas Energy Companies

Sign up, learn more, or view current rates.

Energy CompaniesPhone Number
4Change Energy888-250-2215
Amigo Energy866-993-4445
Cirro Energy866-965-5600
Direct Energy866-285-4447
Discount Power866-996-1740
Flagship Power866-747-7111
Frontier Utilities866-280-3131
Gexa Energy888-688-8460
Green Mountain866-983-4770
Just Energy866-985-2820
New Power Texas888-316-0697
Payless Power855-854-8490
Pulse Power888-317-1431
TXU Energy866-370-2440
Tara Energy877-599-2580
power to choose
Save Time & Money

No Deposit Lights

Save time searching the internet and calling Texas electric companies for no-deposit offers. Compare electricity rates and find no-deposit lights instantly online ⤵️

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

How to Switch Electric Companies

Are you stuck with high electricity bills, at the end of your electricity contract, or considering a renewal offer?

You’re not alone. Many Texans face these challenges every day, but there’s good news. You have the power to switch your electricity company today.

This guide will walk you through the process step-by-step, so you’ll be ready to make the switch and potentially save on your energy bills.

If you’re ready to switch electric companies, follow these steps:

Total Time: 10 minutes

  1. Enter Your Zip Code
    Setup new electricity service 2

    Begin by entering your zip code on our website. This ensures we can provide accurate and relevant options specific to your location.

  2. Gather Your Historical Electricity Usage
    Reconnect you lights today with no deposit

    Before you switch, you should understand your historical electricity usage. This information is usually on your electricity bills, but you can also find it on Smart Meter Texas. Knowing your usage will help you choose a plan that fits your needs.

  3. Compare Electric Plans
    Compare Electricity Prices Head to Head

    Enter your usage data on ComparePower to compare plans in your area with prices for your home. Remember, the cheapest plan isn’t always right for your home.

  4. Choose a New Plan
    Know what to expect on your bill

    Consider your electricity usage, budget, and any other specific needs you have. Then, choose a plan that fits those needs.

  5. Make the Switch
    Setup new electricity service

    You can make the switch online in as little as five minutes. The new company will handle the transition, and there’s no interruption in service.


  • Your Address
  • Drivers License
  • Social Security Number


  • A desktop, laptop, tablet or mobile phone with internet access.

Materials: ComparePower is all you need to switch electricity providers in Texas.

This 2-minute video explains what you need to know to switch with confidence ⤵️

Shopping Considerations

Once you’re familiar with the steps, let’s dive into some shopping considerations to help you make an informed decision:

  • Understand Your Usage: Before shopping, understand your current electricity usage. This information is available on your electricity bills, or you can find it by creating an account on Smart Meter Texas. Knowing your usage will help you choose a plan that fits your needs.
  • Compare Rates: Rates can vary significantly between providers. Compare rates from different providers in your area.
  • Plan Type: There are several types of electricity plans, including fixed-rate, variable-rate, and prepaid. Consider which type best suits your lifestyle and budget.
  • Contract Length: Pay attention to the contract length. Some plans may require a commitment for a certain period, usually 12, 24, or 36 months. Make sure you’re comfortable with the contract length before signing up.
  • Early Termination Fees: Some plans may charge an early termination fee if you switch providers before your contract ends. Be sure to check if this applies to the plan you’re considering.
  • Additional Fees: Be sure to read the fine print. Some plans may include additional fees, such as monthly service fees or minimum usage fees.
  • Rewards or Incentives: Some providers offer rewards or incentives, such as bill credits, free nights, and weekends. Consider whether these benefits add value to the plan.

Switch Electric Companies with ComparePower

Ready to make the switch? ComparePower is here to help. With our comparison tool, you can find the best electricity provider for your needs. Don’t wait. Start saving on your energy bills today.

Switch electric companies today.

Common Questions About Switching

Is it safe to switch electric companies?

You might wonder, is switching electric companies safe? The answer is yes. The Public Utility Commission of Texas regulates the process, ensuring your rights are protected. Plus, there’s no interruption in service when you switch.

What happens if I don’t switch electricity providers?

If you don’t switch at the end of your contract, your current company will transfer you to a holdover rate. Holdover rates are variable and change each month. They are usually expensive, and you could face a high bill before you know it.

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Any product or company names, marks, or logos shown on this page are the property of their respective owners. ComparePower is an unaffiliated, independent marketplace. Get unbiased, accurate information backed by our commitment to editorial integrity.

Many people are in a contract and are wondering how to get out of it.

Others want a reminder to shop on ComparePower when their contract is closed.

If you’re already in a contract, we can help you. Enter your details below, and we’ll remind you when to switch.

Mailchimp in contract

Are you switching providers?

By Texas law, you can switch out of your contract up to 14 days early of your contract end date without penalty.

And many providers on ComparePower will let you lock the rates you see today for a start date of 60-90 days in the future.

Review your bill to determine when your contract ends. You may need to call your energy provider to find out if it’s not listed on your bill.

Do not renew or sign another contract with your current provider without shopping on ComparePower.

You can usually get a much better deal if you switch.

We often get promotional rates for customers not already with a specific provider – meaning you will likely need to switch providers to get these deals.

Switching electricity providers is easy and shouldn’t stop you from switching for savings.

Are you moving soon?

If you are moving, you can also terminate your contract without penalty. You do not have to transfer your current rate plan to your new home.

Energy companies will try to get you to transfer your service instead of canceling, but they cannot force you.

So, shop your options when you move before simply transferring service. Moving is perfect for getting out of a bad electricity rate plan!

Should you cancel your current electricity contract early?

If you’re in a contract that doesn’t end soon, find out what fees you’d be subject to for switching early.

Sometimes the savings you can find on ComparePower can more than offset the cancellation cost.

It may be worthwhile to cancel your current contract, pay the cancellation fees, and enroll in a plan where the savings make up for the cost of terminating your contract.

Contact us here if you need help.

We can remind you when it’s time to shop.

Do you want us to remind you when your contract ends so that you can find a better deal?

Use the form, and we will notify you of the best rates when your contract ends.

Be careful not to renew or sign another contract with your current provider without first checking ComparePower to shop across numerous providers.

You will likely find a better deal by switching companies than by renewing with your current company.