Should you switch? Only if the numbers say so.
A new plan being available is not a reason to hop. Here is how to tell whether switching makes sense for your home.
Answer first: Switch when your contract has ended or ends within 14 days, when you are on a month-to-month plan, or when a plan priced at your own usage costs clearly less after any early termination fee. Stay when the fee would eat the difference, or when your current plan already fits how you use electricity.
Three questions to answer first
- What are you really paying? Take this bill’s current-period electricity charges (the energy, delivery, base-fee and credit lines for this billing period only) and divide by the kWh used in that same period. Leave out old balances, past-due amounts, deposits and prior payment adjustments. That effective rate includes delivery charges, base fees and any credit, so it is the number to compare.
- When does your contract end, and what is the fee to leave? Both are on your bill or EFL. From 14 days before the end date in your expiration notice, you can switch without the fee.
- What would a new plan cost at your usage? Compare plans at your own monthly kWh, not at a headline 1,000 kWh price. For a benchmark, see the latest dated median prices by delivery utility.
A simple way to do the math
Monthly difference × months left on your contract, minus the early termination fee. If the result is small or negative, staying is usually smarter.
Compare like with like: use current-period electricity charges at a comparable usage level for both plans. Two bill totals from different billing periods (a summer month and a winter month, or one that includes an old balance) do not by themselves show that a plan saves money.
Example only, not a quote: say another plan would cost about $18 a month less at your usage (1,200 kWh). Your current plan has a $150 cancellation fee and eight months left. Eight months × $18 is $144, less than the fee, so waiting until the 14-day window makes more sense.
Signs switching may make sense
- Your fixed-rate contract has ended and you rolled onto a month-to-month rate.
- You are inside the 14-day window before your contract end date.
- You are moving (the move itself lets you leave without an early termination fee). Here’s how to set up service at the new address.
- Your plan has a bill credit or minimum-usage rule that you keep missing, so your effective rate is high.
Signs staying may be smarter
- The early termination fee is larger than the difference over the months left.
- Your effective rate is already in line with plans at your usage.
- A cheaper-looking plan only wins at exactly 1,000 kWh, or the low price lasts just a few months.
What switching does and does not change
Switching changes the company that bills you. The delivery utility still owns the poles, wires and meter, still restores outages, and still charges its delivery fees through your provider. A standard switch usually happens on your regular meter-read date; an off-cycle switch can carry a small delivery-utility fee.
Not sure which utility delivers your power? Look up your city’s delivery utility.
Not sure where you stand? Let us read your bill and we will tell you whether to hop or stay.
Latest Texas rate medians · Moving? Start here · Who can shop
City guides: Dallas · Carrollton · Grand Prairie · Mesquite & Sunnyvale · Mid-Cities · Houston · Katy · West Texas · Lubbock · Killeen–Temple · Round Rock, Pflugerville & Hutto · Corpus Christi · Rio Grande Valley · Cross Timbers & North Central Texas · All cities
Updated Oct 18, 2026 by Power Hopper (BJW Ventures LLC d/b/a Power Hopper), a Texas electricity broker registered with the PUCT, BR260201.
Sources: 16 TAC §25.475 (contracts, early termination, expiration notices) · PUCT: Electricity FAQ · PUCT: Choosing an electric plan.
Common questions
Will my power go out if I switch electricity providers in Texas?
No. The same delivery utility keeps running the wires and the meter, so switching providers does not change your service or its reliability. Only the company that bills you changes.
When can I switch without an early termination fee?
Texas rules let you switch without an early termination fee starting 14 days before the contract end date in your expiration notice. You can also leave without a fee if you move and give a forwarding address. Month-to-month plans usually have no early termination fee.
What happens if my contract ends and I do nothing?
Your provider must send an expiration notice at least 30 days before the end date. If you take no action, you are moved to the provider’s month-to-month plan, which is often priced higher than a new fixed-rate plan.
Can I change my mind after switching?
Yes. When you switch, Texas rules give you three federal business days after you receive the new provider’s terms of service to cancel without a fee.
Is staying with my current plan OK?
Yes. Staying is a perfectly good answer when your plan still fits your usage or when an early termination fee would cost more than you could expect to gain. Power Hopper will tell you when we think staying is the better call.