Fixed vs variable electricity plans in Texas
A fixed-rate plan keeps your energy price the same for the whole contract, though pass-through delivery charges can still change. A variable plan can change every month. Most people want fixed. The big trap is the end of the contract: if you don't pick a new plan, you may roll onto a pricier one.
Power to Choose is the state's official, free plan-comparison site run by the PUCT. We don't get paid when you click.
When a fixed plan is the calmer choice
A fixed energy rate is easier to budget. The tradeoff is the contract: leaving early can mean an early termination fee, which is printed on the EFL and in the terms of service.
Fixed does not freeze the delivery charge. That piece is regulated and can change even while your energy rate stays put.
When a variable plan can fit
A variable plan can make sense for a short stay, when you don't want a long contract. It can also change every month, including during a hot summer. If you will not watch it, a fixed plan is the simpler default.
What happens when the contract ends
For a fixed-rate product, PUCT rule 25.475 requires at least three written notices of the expiration date, sent during the last third of the contract. For a contract longer than four months, the final notice must be at least 30 days before the end date. The rule text is here: https://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.475/25.475.pdf
If you don't pick a new plan, you can roll onto whatever product the terms describe. Read that section before you assume the old price continues.
Related pages
Questions
Can a fixed rate ever go up?
The energy rate in a fixed contract stays the same for the term. Pass-through delivery charges are separate and can still change because the utility's regulated charges can change.
What is an early termination fee?
It is the fee in the contract for leaving before the end date. The amount is plan-specific. Read it on the EFL and in the terms of service. This site does not publish a universal fee.
What happens when my contract ends?
If you don't choose a new plan, the provider can move you to the renewal product described in your contract. That product can cost more. Shop before the end date.
Is variable ever a good idea?
It can be, for a short stay or if you are willing to watch the price and switch. For most households who want a steady bill, a fixed plan is the simpler choice.
How much notice does my provider give before the contract ends?
PUCT rule 25.475 requires at least three written notices for a fixed-rate product, during the last third of the contract. If the contract is longer than four months, the final notice must be at least 30 days before expiration. If it is four months or shorter, the final notice must be at least 15 days before expiration: https://www.puc.texas.gov/agency/rulesnlaws/subrules/electric/25.475/25.475.pdf
Power to Choose is the state's official, free plan-comparison site run by the PUCT. We don't get paid when you click.
Sources
- PUCT substantive rule 25.475, contract expiration noticesChecked October 12, 2026
- Power to ChooseChecked October 12, 2026
- ERCOT retail market overview, November 2025Checked October 12, 2026