A few days ago, I received an email from my electric company. The subject line mentioned a contract expiration notice, so I opened it without much thought, but I paused when I saw the renewal rates.

They were definitely higher than what I'm currently paying. So, I spent this weekend comparing electric plans with a cup of coffee by my side.

To get straight to the point, if your contract ends in the fall, you should definitely compare options instead of just letting it renew automatically. Let me break down the reasons one by one.

First, let's talk about the structure of the Texas electric market. In most areas of Dallas, Oncor manages the power lines and meters, and we choose a retail electric company to contract with on top of that.

This means that no matter which company you choose, the electricity comes through the same lines. The only things that change are the rate structures and contract terms, so the more you compare, the more you can save.

So why is fall the ideal time? In the summer, demand for electricity spikes due to air conditioning, causing wholesale prices to fluctuate. However, as we move into fall, demand decreases, and retail companies tend to offer competitive fixed rates.

Many electric comparison sites and retail companies also point to spring and fall, especially around October, as good times to sign contracts. Of course, market conditions vary each year, so you can't guarantee that it will always be cheaper.

Still, it seems clear that you have more options than if you rushed to sign a contract in the heat of August. Plus, if you lock in a 12-month contract in the fall, your next expiration will also be in the fall, allowing you to choose again at a good time.

There's one important regulation you need to know. According to Texas Public Utility Commission (PUCT) rules, electric companies must send contract expiration notices to residential customers at least 30 days and no more than 60 days before expiration.

Additionally, if you switch to another company starting 14 days before the expiration date, you won't incur an early termination fee. I didn't know this and once waited until the expiration date itself.

If you do nothing and let the expiration date pass, you typically switch to a month-to-month variable rate. This rate is often higher than fixed plans, so even a month or two of neglect can lead to accumulating losses.

Now, let's talk about how to compare. The first place to go is the official comparison site operated by PUCT, Power to Choose. Just enter your zip code, and you'll see a list of plans available in your area.

However, you shouldn't just trust the cheapest option that appears at the top of the list. Most people, including myself, get caught by this.

Each plan comes with an Electricity Facts Label, abbreviated as EFL. This document shows the average rates for using 500, 1,000, and 2,000 kWh per month.

The key is your actual usage. You need to check your usage over the past 12 months on your electric bill or the electric company app and compare it to the rate that corresponds to your usage level.

Be especially cautious with bill credit plans. They offer credits based on specific usage levels, like exactly 1,000 kWh, making the rates look significantly lower within that range.

However, if you don't meet that threshold during months when usage typically drops, like in fall or spring, the credits disappear, and your rates can actually spike. For households with fluctuating usage, a simple fixed rate without credits is often more comfortable.

It's also good to know about delivery fees. Oncor's delivery fee changed to a fixed $4.06 per month plus $0.061196 per kWh starting June 1, 2026.

Calculating this, if you use 1,000 kWh in a month, the delivery fee alone is $65.26. This part remains the same no matter which company you choose, so you need to check if this amount is included in the EFL rate to avoid confusion.

Honestly, I was a bit surprised by the numbers. It made me realize that the only thing I can choose is the energy rate, so I need to be thorough in that area.

There are a few more items to look at in the EFL. You should check how much the early termination fee is, if there are fees for not meeting minimum usage, and whether the rates are fixed or variable.

You also need to consider the contract duration. A 12-month contract means your next expiration will come around in the fall again, while a longer 24-month contract reduces your opportunities to compare.

To summarize the steps I took this time: I checked the expiration date in the expiration notice email.

Then, I pulled my usage data from the past year and calculated the average. I filtered for fixed rates with a 12-month term on Power to Choose and narrowed it down to three candidates.

Finally, I downloaded the EFLs for the three plans and noted the rates and fee conditions side by side. I also included the renewal offer from my current company in the same table.

I've heard that if you call your current company and mention the offers from others, you might get a better rate. Since there's nothing to lose, it's worth asking.

However, if you're pressured to sign up quickly through phone sales or door-to-door visits, take a moment to pause. It's safest to get the EFL directly and review it before signing a contract.

If it were me, I would set a date within 14 days of expiration and switch to a 12-month fixed rate without bill credits. A predictable bill is much better than complicated conditions.

Comparing electric rates can actually be done in just a couple of hours. If you receive an expiration email this fall, don't just ignore it—make sure to open it and take a look.