Best 12-Month Texas Electricity Plans: One-Year Contracts

Q: What happens if I move before my 12-month contract ends?

You typically must pay the ETF to exit the contract. However: Some REPs offer transfer provisions—you can move your plan to a new Texas address within their service area without ETF. Ask about move provisions before signing. If moving out of Texas, most ETFs still apply.

Q: Should I get a 12-month plan if I might move?

Consider plans with: Lower ETFs ($150 or less) Transfer provisions If your move timeline is uncertain, a 6-month term provides more flexibility with lower exit costs. Some no-ETF plans exist at slightly higher rates—worth the premium for uncertain housing situations.

Q: How do I compare 12-month plans fairly?

Step by step: Check rates at your actual usage level (or 500, 1,000, and 2,000 kWh if uncertain) Add any base charges Multiply by 12 for annual cost Include ETF in your risk calculation Compare total annual cost at your usage —not just advertised rates which may reflect optimal bill-credit scenarios.

Quick Answer

Twelve-month plans hit the sweet spot between rate protection and flexibility. Here are the best options from 14.4 to 14.8 cents per kWh.

Why 12-Month Plans Are the Sweet Spot

Twelve-month electricity plans provide the optimal balance for most Texas households.

What you get:

A full year of rate protection against wholesale price spikes
Flexibility to shop current rates when your contract ends
Alignment with annual budgeting and typical lease terms

Current best 12-month plans: 14.4 to 14.8 cents per kWh for true flat-rate options—competitive with shorter and longer terms while providing meaningful protection.

Compare 12-Month Contracts

One year of stable pricing

12-month plans offer the best balance of rate protection and flexibility. Compare current options in your area.

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Best 12-Month Plans Compared

When evaluating 12-month plans, focus on these key factors:

Rate consistency — Avoid plans with more than 2¢ variance across usage levels
ETF structure — Look for $150-250 range, avoid $300+ penalties
Green energy — 100% renewable options available at competitive prices
Bill credits — Be cautious of plans that look cheap only at 1,000 kWh

Current best 12-month plans are shown below. Click any plan name to check availability and see exact pricing for your ZIP code.

Plans update daily. True flat-rate 12-month options typically run 14-15 cents per kWh with consistent pricing across all usage levels.

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12-Month vs 6-Month Plans

Six-month plans like True Simple 6 offer more flexibility to switch as rates change.

Current 6-month rates: 14.1-14.5 cents—comparable to 12-month options.

The tradeoff:

You must shop and switch twice as often
Each switch requires comparing plans, reading EFLs, and executing enrollment

Who should choose which:

6-month terms: If you enjoy optimizing and capturing market drops
12-month terms: If you prefer set-and-forget simplicity

For most households, the 12-month administrative convenience outweighs potential savings from more frequent shopping.

12-Month vs 24-36 Month Plans

Longer terms lock your rate further into the future but carry risks:

Current 24-month rates: 14.5-15.2 cents—often higher than 12-month options
No flexibility: Can't capture falling rates if market drops
Higher ETFs: Typically $250-350
Life changes: Job relocations, house purchases, family changes over 2-3 years

The 12-month term captures most rate protection benefits while preserving flexibility for life changes.

When to Sign a 12-Month Contract

Seasonal patterns:

Spring: Prices tend to rise as REPs price in summer demand
Fall: Best rates often appear after summer peak pricing subsides

However, timing the market rarely justifies waiting with a bad rate.

If you're on an expensive month-to-month plan or approaching contract end: Sign a competitive 12-month plan now rather than waiting for marginally better rates.

The math: The difference between a 14.5 cent plan now and a potential 14.2 cent plan in three months is $3 monthly—not worth three months of paying 18+ cents on a variable rate.

Early Termination Fee Math

Most 12-month plans carry $150-240 ETFs.

Before switching mid-contract, calculate:

(Current rate - New rate) × Monthly usage × Remaining months = Potential savings

Example:

$200 ETF
6 months remaining
1,000 kWh monthly usage
Current rate: 17 cents → New rate: 14.5 cents

Math:

Savings per month: 2.5 cents × 1,000 = $25
Total savings: $25 × 6 = $150
Net result: $150 savings - $200 ETF = $50 loss

Verdict: Wait for contract end.

Same scenario with 8 months remaining: $25 × 8 = $200. Break even.

Smart Renewal Strategy

Timeline:

Set a calendar reminder 45 days before contract ends
Shop rates at least 30 days before expiration
Lock in a new plan with a future start date

Compare your current REP's renewal offer against the market. REPs often offer retention rates to existing customers, but these aren't always competitive.

Never auto-renew without checking market rates.

The month-to-month rates REPs default to after contract end often exceed 18-20 cents—double what you'd pay with a new contract.

What to Watch For in 12-Month Plans

Checklist before signing:

Base charges: Look for plans under $10 monthly base fee (some advertise low rates but add $12-15 base charges)
Bill credits: Check rates at 500, 1,000, and 2,000 kWh—more than 2 cents variance indicates bill credits
ETF structure: Some are flat regardless of remaining term; others prorate (proration benefits you if you exit early)
Rate guarantees: Verify your rate is truly fixed for 12 months, not subject to adjustment clauses
Renewable content: If you want green energy, verify the percentage (some plans advertise "green" with only 5-10% renewable content)

Frequently Asked Questions

What happens if I move before my 12-month contract ends?

You typically must pay the ETF to exit the contract. However: Some REPs offer transfer provisions—you can move your plan to a new Texas address within their service area without ETF. Ask about move provisions before signing. If moving out of Texas, most ETFs still apply.

Can I switch to a better rate mid-contract?

Yes, but you'll pay the ETF. Calculate whether savings from the new rate over your remaining term exceed the ETF. If a significantly better rate appears (3+ cents lower), switching mid-contract can still save money despite the fee.

Why do some 12-month plans cost more than 6-month plans?

REPs price longer terms based on future wholesale price expectations.

If they expect prices to rise: 12-month rates may be higher to cover anticipated costs
If they expect stable/falling prices: 12-month rates may match or beat shorter terms

It varies by market conditions.

Should I get a 12-month plan if I might move?

Consider plans with:

Lower ETFs ($150 or less)
Transfer provisions

If your move timeline is uncertain, a 6-month term provides more flexibility with lower exit costs. Some no-ETF plans exist at slightly higher rates—worth the premium for uncertain housing situations.

How do I compare 12-month plans fairly?

Step by step:

Check rates at your actual usage level (or 500, 1,000, and 2,000 kWh if uncertain)
Add any base charges
Multiply by 12 for annual cost
Include ETF in your risk calculation

Compare total annual cost at your usage

Looking for more? Explore all our Texas Energy guides for more helpful resources.

About the author

Enri Zhulati

Consumer Advocate

Enri knows the regulations, the fine print, and the tricks some suppliers use. He's spent years learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. His goal: help people avoid the traps and find plans that save money.

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