Energy field notes / Contract timing
Business electricity contract renewal: what happens when it ends
When a business electricity contract ends in Texas and nothing new is in place, a small commercial account moves onto the provider's month-to-month default product, whose price can change every billing cycle. The way to avoid that is to know the end date, read the expiration notice, and compare the next term early: a new contract can be set up to start the day the current one ends. Here is what the rules require, what to check, and when to act.
By Wire & Watt Published Updated
Find the dates that matter.
Start with your current supply agreement and any renewal notice. Look for the contract end date, the notice requirements and the date any new terms take effect. A bill’s payment due date is a separate deadline.
If the end date is unclear, ask the current supplier to confirm it in writing. Keep that answer with the agreement. For a restaurant, put the meter or service address beside the date so it cannot be confused with another location.
You can review before the contract ends.
You do not need to wait until the last day to ask about your next contract. Where available, suppliers can quote a future start. That lets you compare an offer for the next term while the existing agreement continues.
A future-start comparison
Current agreement
Keep its existing end date.
Review the next term
Compare offers for the right start.
New agreement
Starts on the agreed date.
Check the proposed start against your existing obligation before signing. Arranging a future contract does not remove an early termination charge or notice requirement in the current one. We review the timing with you; the available window depends on your location and supplier.
Read the renewal section before choosing.
Some agreements have renewal or rollover provisions. Depending on the contract and market, taking no action may mean a default or variable price. A variable price can move up or down; it is not a promise of a lower bill.
Ask the supplier what applies after expiry, how the price is set and what notice is needed. A fixed supply rate can help with budgeting, but the total bill still depends on usage and other charges. Compare the rate structure and the terms together.
In Texas the rules are written down for small commercial customers (peak demand under 50 kW in any 12-month period). The provider must send a written expiration notice at least 14 days before a fixed-rate contract ends; no termination penalty applies in the 14 days before the expiration date; and if you take no action it must keep serving you on a month-to-month default renewal product you can leave at any time without a fee, at a price that may vary between billing cycles (Public Utility Commission of Texas Substantive Rule 25.475(e)). Larger accounts follow the holdover terms in their own contract, so read that section.
A supplier change, where available, concerns the supply agreement. Your local utility continues delivering power and handling outages. Confirm the actual start arrangement before treating a signed offer as completed enrollment.
What to have ready for a review.
- Every page of a recent electricity bill, including usage and charge details.
- The current agreement or renewal notice, with its end date and notice terms.
- The intended start date and whether the business will stay at the same address.
- Any planned changes to hours, equipment or occupancy that could change usage.
- The offers you already have, including their terms and what each rate includes.
If the bill is elsewhere, you can start with your business ZIP and email. We send a private link so you can add it later. Confirmed quotes require the complete bill and a service-address check.
Keep a renewal record for every location.
For a restaurant group, use a separate row for each service address: supplier, meter reference, end date, notice requirement and person responsible. A group can have different dates and agreements even when it uses the same supplier.
Mark a renewal complete only when the selected contract and start date have been confirmed. Keep sites that are still waiting on a bill or an answer visible in the same record. When offers arrive, use our business electricity quote checklist to compare them on the same basis.
Common questions
- What happens if my business electricity contract expires?
- For a small commercial account in Texas (peak demand under 50 kW), the provider must keep serving you on a month-to-month default renewal product that you can leave at any time without a fee; its price may change between billing cycles (Substantive Rule 25.475(e)(2)(A)). Larger accounts follow the holdover terms written in their own contract.
- How much notice must my provider give before the contract ends?
- At least 14 days for a small commercial customer, in writing, stating the expiration date and that no termination penalty applies in the 14 days before it (25.475(e)(1)(A)(iii) and (e)(2)(C)). If the notice is not given, the provider must keep serving you on the fixed-rate terms until it is.
- Can I leave a fixed-rate electricity contract early without a fee?
- In the final 14 days before it expires, yes, if you are a small commercial customer, and at any time if the business moves and gives a forwarding address (25.475(c)(2)(C)). Otherwise the contract's early termination fee applies, which is why a new contract is usually set up to start when the current one ends.
- Can I sign a new contract before my current one ends?
- Where available, yes. Suppliers can quote a contract that starts on a future date, so you can compare the next term while the current agreement continues. It does not remove an early termination charge or notice requirement in the current contract.
- Where do I find my contract end date?
- In your supply agreement or renewal notice. If it is unclear, ask your current supplier to confirm it in writing, and keep that answer with the agreement.
- What do I need for a renewal review?
- Every page of a recent bill, the current agreement or renewal notice with its end date and notice terms, the intended start date, and any planned changes to hours, equipment or occupancy.
Sources and scope
Supplier explanations support the general contract and billing points in this guide. Your own agreement and service location determine the terms that apply to you.
Wire & Watt wrote this guide from the sources below. No supplier or utility paid for it or reviewed it. The supplier a business chooses pays us, never the business: how we’re paid.
- Texas PUC Substantive Rule 25.475: retail electric provider requirements and disclosures to residential and small commercial customers (effective Jan. 6, 2022) (opens in a new tab)
- Texas PUC Substantive Rule 25.471(d)(11): definition of a small commercial customer (opens in a new tab)
- Constellation: business contract renewal (opens in a new tab)
- Constellation: business energy and contract FAQs (opens in a new tab)