Texas Holdover Rate: What It Would Cost You on Your Usage

A holdover rate is the month-to-month price your provider charges after a fixed contract ends without a renewal or switch. What it costs you depends on the rate and on how much power you use, especially in summer. The clearest way to see the cost is to price your own usage at the holdover rate and compare it with the plans you could switch to.

For the basics of contract expiration, including the expiration notice, the 14-day no-fee window, and what happens on expiration day, read what happens when a Texas electricity contract expires on GridWise Audit. This article focuses on the next question: what would staying put actually cost your household?

Why a Holdover Rate Hits Some Homes Harder

Two homes on the same holdover rate can see very different bills. The rate is applied to every kWh you use, so the more power you use, the bigger the gap between the holdover rate and a competitive fixed plan.

Timing matters too. A contract that ends in late spring can roll you onto a holdover rate right before your highest-usage months. A small difference in cents per kWh becomes a large difference in dollars when summer cooling pushes usage up.

Holdover rates can also change from one billing cycle to the next, so last month's price is not a promise for next month.

Step 1: Find the Rate You Would Be Moved To

Your provider's expiration notice describes the product that applies if you do nothing. You can also find the current month-to-month price on your provider's Electricity Facts Label for that product, or on your bill if you have already rolled over.

Write down the energy charge and any monthly base charge. Delivery charges from your TDU apply either way, so they matter less for this comparison.

Step 2: Price Your Own Usage, Not a Sample Home

Sample prices at 500, 1,000, and 2,000 kWh are useful for comparing labels, but they are not your bill. Your Smart Meter data shows how much power you used each month over the past year.

A simple way to estimate the cost of staying is to take your usage for the coming months, using the same months from last year, and multiply by the holdover rate, plus any base charge. Then do the same for a competitive plan. The difference is roughly what holdover would cost you over that stretch.

Step 3: Compare It With Plans Ranked on Your Usage

The free WattTrim audit does the comparison side for you. It pulls your 15-minute interval data from Smart Meter Texas, prices available plans against your real usage, and ranks them by estimated annual cost. It also shows your current plan's effective rate, meaning your total bill divided by the kWh you used, which makes it easy to see how far a holdover rate sits above your best options.

These figures are estimates based on your past usage and the plan terms on file. Your actual bill depends on your future usage and the plan's terms.

If You Are Already on a Holdover Rate

You can generally leave a month-to-month product without a cancellation fee, because you are no longer in a fixed-term contract. That makes this a good time to compare, not a reason to panic.

A month-to-month plan can work as a short bridge while you choose. The risk is letting it become the long-term default without checking the price. Run your audit, pick a plan that fits your usage, and choose a start date that works for you.

Not Letting It Happen Next Time

The free audit is a one-time comparison. WattTrim Sentinel is an optional subscription, $4.99 per month or $44.99 per year, that keeps tracking after the audit. It alerts you before your contract renewal window so you can line up a new plan ahead of time, and it flags when your current plan is no longer competitive.