When Your Electricity Contract Ends: What Happens Next 2026

Electricity supply contracts have defined end dates, typically ranging from 6 to 36 months from enrollment.

What happens at expiration: Your relationship with your supplier changes automatically based on contract terms. Most suppliers send notification 30-60 days before expiration. Your utility remains responsible for delivering electricity—no service interruption occurs.

Critical warning: Default rates after expiration can exceed your original contract price by 50% or more.

Knowing what happens when your contract runs out keeps you from getting blindsided by higher bills.

After your fixed-rate contract expires, most suppliers automatically move you to a month-to-month variable rate (default or holdover rate).

Why default rates are typically expensive: They change monthly based on wholesale market prices. They cost significantly more than fixed-rate contracts. And suppliers set them high on purpose to push you into shopping or renewing.

Typical cost increases (OH, PA, MA): Expect 20% to 60% higher than competitive fixed rates—some default rates more than double market prices.

Tip: Check your supplier agreement to see exactly what rate structure applies after your fixed term ends.

Some suppliers automatically renew your contract at expiration rather than switching you to variable rates.

Auto-renewal terms vary widely: Some are month-to-month arrangements, others are new multi-year fixed-rate contracts. Rates may differ significantly from your original contract.

State requirements (OH, PA, MA): Suppliers must clearly disclose auto-renewal terms in the original contract. They must provide advance notice before renewal occurs. Most offer a 30-day cancellation window without penalty.

Tip: Shopping around almost always beats whatever the auto-renewal offers.

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.