When Your Electricity Contract Ends: What Happens Next 2026

David signed a 12-month electricity contract at 6.2¢ per kWh. Good rate. He saved about $30 a month compared to his old rate.

Then month 13 arrived.

His bill jumped from $95 to $167. Same usage. Same apartment. Same everything. He called the supplier.

"Your promotional rate ended. You're now on our standard variable rate of 11.8 cents."

Nobody told him. Or they did, buried in a letter he threw away without reading. Either way: $72 extra. In one month.

What happens when your contract expires:

Your supplier doesn't cancel you. They move you to something worse. Usually a month-to-month variable rate that's 50-100% higher than your original contract.

Your power stays on. Your wallet takes the hit. And it keeps happening every month until you do something about it.

When your contract expires, suppliers don't cancel your service. They move you to their "default" or "holdover" rate.

This rate is designed to be expensive.

Why? Because suppliers want you to either renew (at whatever rate they set) or leave. They don't want you sitting passively on month-to-month service paying attention to competitors. So they set the default rate high enough to hurt.

How high?

In Ohio, Pennsylvania, and Massachusetts, expect 20-60% higher than competitive fixed rates. Some supplier defaults more than double what you'd pay with a new contract.

Your original rate: 6.5¢
Default rate after expiration: 11-13¢
Monthly damage on 1,000 kWh: $45-65 extra

Every month you forget is money walking out the door. Check your supplier agreement now to see what rate kicks in when your term ends.

Some suppliers don't move you to variable rates. They auto-renew your contract instead.

Sounds better, right? Automatic. Convenient. You don't have to do anything.

The catch: the renewal rate is rarely as good as your original rate. And it's almost never as good as what you'd find shopping.

How auto-renewal works:
- Your contract ends
- Supplier locks you into a new term (often 12-24 months)
- New rate may be significantly higher than your original
- You're stuck unless you pay early termination fees

Your protection:

Ohio, Pennsylvania, and Massachusetts require suppliers to disclose auto-renewal terms upfront and send advance notice before it kicks in. Most contracts include a 30-day window to cancel without penalty after auto-renewal.

But here's the truth: shopping beats auto-renewal almost every time. The rate they renew you at is the rate you accept by not paying attention.

State public utility commissions require suppliers to notify customers before contract expiration.

State-specific notification requirements: Ohio requires written notice at least 45 days before contract end. Pennsylvania requires minimum 30-day advance notice with specific disclosures. Massachusetts requires notice detailing rate/terms that apply afterward.

Notifications should include: Your contract end date. What happens automatically after expiration. Your options for renewal or switching.

Haven't received notice? If your contract ends within 60 days, contact your supplier directly. Hang onto those notices. They have the details you need when comparing new plans.

Start shopping for new electricity rates approximately 60 days before your current contract expires.

Why 60 days? You can compare offers from multiple suppliers without feeling rushed. You can lock in future rates with start dates matching your expiration—no gap or overlap. It reveals seasonal rate patterns where certain times offer better pricing.

Comparison tools by state: Ohio has Apples to Apples. Pennsylvania has PAPowerSwitch. Massachusetts has state rate comparison tools.

Important: Consider your historical usage patterns—the lowest per-kWh rate isn't always cheapest if it includes high monthly fees.

Switching before your contract ends takes less time than ordering pizza.

What you need to do: Select a new supplier and enroll in their plan. Provide your utility account number and basic information. Process takes under 10 minutes.

What you DON'T need to do: Contact your current supplier to cancel. Contact your utility company. Worry about service interruption—electricity continues uninterrupted.

Timing considerations: Time your new contract start date to align with current expiration. Enrollment takes 1-2 billing cycles to process, so enroll 30-45 days before your desired start date.

If current market rates are significantly lower than your existing contract rate, calculate whether paying early termination fees makes financial sense.

Early termination fees: They typically range from $50 to $200, depending on supplier and remaining contract length.

Calculate if switching early saves money: Multiply the rate difference by monthly usage. Multiply that by remaining contract months. Compare the result to the termination fee. If savings exceed the fee, switching early benefits you.

Important considerations: Electricity markets fluctuate—today's rates may not exist next month. Many consumers find waiting for natural expiration provides adequate savings without fee complications. Check your contract first. The math matters.

Don't let your contract expire without a plan—track your expiration date proactively.

Where to find your expiration date: Your electricity bill's supply charges section. Your supplier's online account portal. Call supplier customer service if you can't find it elsewhere.

Set up tracking: Create calendar reminders at 90 days and 60 days before expiration. Use rate comparison websites or supplier apps with automatic alerts. Keep a folder with original contract documents for reference.

Why it matters: Miss your expiration date and you could wake up paying 40% more than you should.