Month-to-Month Electricity Plans in Texas (2026)

Consumer Advocate · 7+ years in energy markets

Published January 15, 2025 Updated January 3, 2026

Energy market veteran focused on making electricity shopping simple and transparent.

Quick Answer

Month-to-month electricity plans cost 10-20% more than fixed-rate plans but offer total flexibility—no contracts, no cancellation fees, leave anytime. Best for renters with uncertain lease terms, people selling homes, or anyone who hates being locked in. Current no-contract rates in Texas range from 12-18¢/kWh depending on provider and season. For most Texans who'll stay 12+ months, fixed-rate plans save more money.

Current No-Contract Plans

Real-time rates from Texas electricity providers • No commitment required

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Find No-Contract Plans in Your Area

Enter your ZIP code to see month-to-month electricity options from multiple providers.

Who Needs Month-to-Month Electricity?

Let's be real: most Texans are better off with a fixed-rate plan. You'll save money and get price stability. But there are specific situations where month-to-month makes sense:

✓ Short-Term Renters (6 months or less)

If you're not sure how long you'll stay, a $150-$200 early termination fee can wipe out any savings from a cheaper fixed rate. Month-to-month lets you leave penalty-free.

✓ Selling Your Home

If your house is on the market and could sell any month, a no-contract plan means you won't pay termination fees when you close.

✓ Temporary Texas Residents

Traveling nurses, contract workers, students with summer internships—anyone here for a defined short period benefits from no-contract flexibility.

✓ Between Homes

Staying with family while house hunting? In a temporary apartment? Month-to-month covers the gap without locking you in.

✓ Market Timing Optimists

Some people use variable rates strategically—riding low spring/fall prices, then switching to fixed before summer. This works but requires attention and discipline.

Reality check: If you know you'll be at your address for 12+ months, a fixed-rate plan will almost always save you money compared to month-to-month. The flexibility premium costs you $100-$300/year on average.

The True Cost of Flexibility

Month-to-month plans typically run 2-3¢/kWh higher than comparable fixed-rate plans. Here's what that means in real dollars:

Monthly Usage	Fixed Rate (10¢)	Variable Rate (12.5¢)	Annual Premium
1,000 kWh	$100/mo	$125/mo	+$300/year
1,500 kWh	$150/mo	$187/mo	+$444/year
2,000 kWh	$200/mo	$250/mo	+$600/year

The math: If an early termination fee is $150, you'd need to leave before 6 months for month-to-month to break even. Stay longer than 6 months? Fixed-rate wins.

The Variable Rate Rollercoaster

Month-to-month plans are tied to ERCOT wholesale electricity prices. When demand spikes, so does your rate. Here's what a typical year looks like:

Spring (Mar-May) 9-11¢/kWh Low demand, mild weather

Summer (Jun-Sep) 15-22¢/kWh Peak AC usage, highest prices

Fall (Oct-Nov) 9-11¢/kWh Low demand, mild weather

Winter (Dec-Feb) 11-14¢/kWh Heating demand, moderate prices

⚠️ Extreme Weather Warning

During extreme events like Winter Storm Uri (2021), some variable-rate customers saw rates spike to $1+/kWh—bills of $5,000+ for a single week. While regulators have added protections since then, variable rates still carry weather risk that fixed rates eliminate.

Pro tip: If you're on a variable rate, switch to fixed before June. You can always switch back to variable in the fall when prices drop.

Providers With Good Month-to-Month Options

Most Texas REPs offer variable/month-to-month plans. Here are providers known for competitive no-contract rates:

Frontier Utilities

Known for flexible terms and straightforward variable plans. Good for people who want simple, no-contract options without lots of complexity.

Best for: Short-term residents who want predictable terms

Gexa Energy

Competitive variable rates with 100% renewable options available. Backed by NextEra Energy (largest renewable company in the world).

Best for: Eco-conscious customers who want flexibility + green energy

Cirro Energy

Budget-focused with straightforward variable plans. Part of NRG Energy family but typically cheaper than Reliant.

Best for: Price-conscious customers who want no-contract simplicity

Payless Power (Prepaid)

Not traditional month-to-month, but daily flexibility with no contract, no credit check, and no deposit. Pay-as-you-go model.

Best for: Those who can't pass credit checks or want maximum flexibility

Compare them all: Enter your ZIP code above to see current month-to-month rates from every provider in your area.

Should You Go Fixed or Variable?

Choose Month-to-Month If...

✓ You'll be at your address less than 6 months
✓ Your lease term is uncertain or month-to-month
✓ You're selling your home and could move any time
✓ You hate contracts on principle
✓ You want to time the market (and you'll actually pay attention)

Choose Fixed Rate If...

✓ You'll stay 12+ months
✓ You want predictable monthly bills
✓ You don't want to worry about summer price spikes
✓ You prefer set-it-and-forget-it
✓ You want the lowest overall annual cost

The Hybrid Strategy

Some savvy Texans use variable rates during spring/fall (when prices are lowest) and switch to short-term fixed contracts before summer. This requires attention and timing but can save money if you're disciplined. Set a calendar reminder for May to lock in summer rates.

See All Your Options

Compare month-to-month AND fixed-rate plans side-by-side. Find the best fit for your situation.

Frequently Asked Questions

Are month-to-month electricity plans more expensive?

Yes, month-to-month (variable) plans typically cost 10-20% more than 12-month fixed plans—often 2-3¢/kWh higher. You're paying a premium for flexibility. However, during low-demand periods (spring and fall), variable rates can occasionally dip below fixed rates. The trade-off is predictability: fixed rates protect you from summer price spikes that can push variable rates above 20¢/kWh.

What is the difference between month-to-month and variable rate plans?

Month-to-month and variable rate are essentially the same thing in Texas. Both mean no contract, no cancellation fee, and rates that can change monthly based on wholesale electricity prices. Some providers call them "variable," others call them "month-to-month" or "no-contract." The key is checking if there's a minimum term or early termination fee—true month-to-month plans have neither.

Can I switch from month-to-month to a fixed plan anytime?

Yes, you can switch from a month-to-month plan to any other plan at any time with no penalty. That's the main advantage—you're never locked in. If you find a great fixed-rate deal, you can switch immediately. Your new plan typically starts within 1-2 business days, and there's no "double billing" gap.

Which Texas electricity companies offer month-to-month plans?

Most major Texas electricity providers offer month-to-month options, including TXU Energy, Reliant, Gexa Energy, Frontier Utilities, and Cirro Energy. Prepaid providers like Payless Power and Prepaid Lights also offer daily/weekly flexibility without contracts. Smaller REPs often have competitive no-contract rates since they're trying to attract customers who don't want long-term commitments.

Is month-to-month electricity good for renters?

Month-to-month electricity is excellent for renters who aren't sure how long they'll stay. If your lease is 6 months or uncertain, a no-contract plan means you can cancel without paying a $150-$200 early termination fee when you move. However, if you know you'll be there 12+ months, a fixed-rate plan will likely save you money overall.

Do month-to-month plans require a credit check?

Most traditional month-to-month plans still require a credit check and may require a deposit for customers with poor credit. If you want to skip the credit check entirely, look at prepaid electricity plans—they function similarly to month-to-month (no contract, leave anytime) but require no credit check and no deposit.

How much do Texas variable electricity rates change?

Texas variable rates can fluctuate significantly—from as low as 8-9¢/kWh in mild spring/fall months to 18-22¢/kWh during peak summer demand (July-August). The swings depend on ERCOT wholesale market prices, natural gas costs, and grid demand. During extreme weather events (like Winter Storm Uri), variable rates can spike dramatically, which is why many Texans prefer fixed rates for stability.

Are there any fees with month-to-month electricity plans?

Month-to-month plans should have NO early termination fee—that's the point. However, watch out for monthly service fees ($5-$15), minimum usage fees (if you use less than a threshold), and rate changes without notice. Always read the Electricity Facts Label (EFL) to understand all fees before signing up.

When is the best time to be on a variable rate in Texas?

Spring (March-May) and fall (October-November) are typically the best times for variable rates in Texas, when mild weather reduces electricity demand and wholesale prices drop. The worst time is summer (June-September) when high AC usage drives rates up. If you're on variable, consider switching to fixed before summer hits.

Can I get green energy with a month-to-month plan?

Yes, several Texas providers offer 100% renewable month-to-month plans. Green Mountain Energy, for example, has variable-rate green energy options. Gexa Energy also offers renewable no-contract plans. Expect to pay a small premium (0.5-1¢/kWh more) for green energy compared to standard variable plans.

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Since 2009, the team at ElectricRates.org has helped over 5 million energy consumers find better electricity rates. Supplier information comes from state regulators, company filings, and documented customer feedback. Read the editorial standards & see our methodology.