Renew Electricity Contract in Texas

When it comes time to renew your electricity contract in Texas, everyone has a decision to make. Should I stay or should I go? Here’s a quick run-down to help your decision making when you get that renewal notice.

ElectricityPlans has an ABC rule for electricity renewals: Always Be Comparing. We recommend that you shop your electricity rate every time your contract expires. It’s easy, fast and convenient. And even if you decide to stay with your current provider, at least you know what it costs you.

When to Stay with Your Current Electricity Provider (Renew)

Here are some common reasons to stay with your current electricity provider and renew your service.

• The renewal offer is the same or less than other electricity plans in the market. Before renewing with your current electricity provider, always shop and compare rates. Make sure you’re comparing apples-to-apples by reviewing the Electricity Facts Label of any plan you’re considering.
• The benefits outweigh the costs. Maybe you’re willing to pay a little more because they always pick up the phone, have customer service located in Texas, send you weekly usage reports or support your favorite charity. That’s fine! Just understand what your loyalty costs you.
• You paid a deposit to set up your electricity service and have had more than one late payment in the last 12 months. That extra late payment means you won’t qualify for letter of good credit and a deposit waiver with a new provider. Unless you have extra cash on hand for a new deposit or your credit score has improved, you may be better off staying put.

When to Leave Your Current Electricity Provider (Shop)

Here’s when you should shop for a new electricity provider instead of renewing.

• Your renewal offer is more expensive than what they offer new customers, showing that they don’t value loyal customers.
• Other providers offer lower electricity rates. Before clicking that “renew now” button, check current offers. We advise everyone to shop and compare any renewal offer to current rates. For many people, even a 10% difference makes it worthwhile to switch providers.
• Your electricity provider is like a comfortable old shoe. You don’t remember why you picked this provider years ago, but it’s comfortable, easy and you don’t like shopping. Psst: even old shoes need replacing after a while.

How to Avoid Risk When Shopping for a New Electricity Provider

Change can be risky. And if you’ve been with the same electricity provider for years, you may be wary of switching. To avoid risk when switching:

• Select Basic Fixed Rate electricity plans. With a basic fixed rate, what you see is what you’ll pay. These plans don’t have bill credits, tiered rates or complicated structures. The simpler the plan, the closer your actual rate will be to the advertised rate.
• Pick an electricity provider with a satisfaction guarantee. A happiness guarantee of 30 to 90 days lets you switch plans (or switch away) with no early termination penalty. Check our list of providers with a satisfaction guarantee.
• Use a comparison shopping site like ElectricityPlans. We review providers on a regular basis and limit the number of providers we work with to give you a curated shopping experience.

Average Electricity Rates in Texas

• Average electricity rate in AEP Texas Central: 16.22¢ per kWh
• Average electricity rate in AEP Texas North: 17.75¢ per kWh
• Average electricity rate in CenterPoint Energy: 16.40¢ per kWh
• Average electricity rate in Lubbock Power & Light: 16.25¢ per kWh
• Average electricity rate in Oncor: 15.97¢ per kWh
• Average electricity rate in TNMP: 18.22¢ per kWh

Rates updated 02/17/2026. All prices shown at 1000 kWh.

Electricity Renewal Strategy Check List

Some Texans consider their electricity shopping and selection a matter of personal pride. Or at least worth bragging about on their neighborhood group chat. Getting the best deal on your electricity renewal takes a bit of strategy and the right tools. Plan ahead next renewal season with these tips:

1. Start shopping early, around 60 days before expiration. Sign up for electricity contract expiration reminders so you don’t forget to shop.
2. Time your renewal for pricing shoulder seasons of spring or fall, typically the best time to shop for electricity.
3. Choose your electricity contract length based on market trends, rate history and cheapest electricity rates.
4. Compare multiple electricity plans and providers using a comparison shopping tool like ElectricityPlans.com which lets you shop by zip code and usage.
5. Keep it simple. We recommend basic fixed rate electricity plans as the best option for most homes.
6. Read the Electricity Facts Label and the plan summaries.
7. Use your 3-day right of rescission if you have a change of heart after you switch. By law you have three days to get out of your new electricity contract when you switch to a new provider. This doesn’t apply when you’re renewing your contract with your current provider.

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