Texas · month-to-month electricity

Month-to-month electricity in Texas: how no-contract plans work

A month-to-month plan lets you cancel any billing cycle with no early-termination fee — but in Texas that almost always means a variable rate that can change every month. Here's how it really works, who it's right for, and the trade-offs to weigh.

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Written and reviewed by the Base Power team · Last updated May 27, 2026

The short version

In Texas, a month-to-month electricity plan has no fixed term: it renews each billing cycle and you can switch or cancel anytime with no early-termination fee (that's required by PUCT rule). The catch is that month-to-month and variable-rate are effectively the same thing here — the per-kWh price can move every cycle, and there's no regulatory cap, so summer rates can spike. Month-to-month is great for short-term flexibility (renters, movers, between-contract bridges) but is usually more expensive over time than a comparable fixed plan, and the advertised teaser rate often applies to the first cycle only.

How it works in Texas

What month-to-month electricity means here

In the roughly 85% of Texas with retail choice, your TDU (Oncor, CenterPoint, AEP Texas, or TNMP) owns the wires and sets regulated delivery charges that are passed through identically no matter which provider you pick. Your retail provider sets the energy rate and the plan structure. A month-to-month plan is one such product: a one-month agreement that auto-renews with no term commitment and no early-termination fee. By PUCT rule (16 TAC §25.475), month-to-month products cannot carry a cancellation penalty — that's exactly why they're the “leave anytime” option.

Here's the part shoppers miss: in Texas, “month-to-month” and “variable-rate” are used almost interchangeably. Nearly every month-to-month plan is variable, meaning the per-kWh energy price can change every billing cycle at the provider's discretion, and there's no regulatory cap on it. The low rate you see advertised typically applies only to the first cycle. You're trading price certainty for flexibility.

A very common way Texans end up on month-to-month is by default. When a fixed-term contract expires and you do nothing, your provider rolls you onto a month-to-month “default renewal product” — a holdover variable rate that's cancelable anytime but is frequently priced well above competitive fixed offers. PUCT rules require at least three written expiration notices in the final third of your contract (the last about 30 days out), so the takeaway is simple: read the expiration notice and shop before your contract lapses.

The details

How month-to-month plans really behave

The flexibility is real, but so are the trade-offs. Here's what actually governs a no-contract plan in Texas.

No fixed term, no ETF

The agreement renews each billing cycle and you can switch or cancel anytime. PUCT §25.475 prohibits an early-termination fee on a month-to-month product — that's the defining benefit.

Almost always variable

The per-kWh price can change every cycle at the provider's discretion, and the advertised rate usually applies only to the first cycle. “Month-to-month” and “variable-rate” mean essentially the same thing in Texas.

No rate cap

There's no regulatory ceiling on a competitive variable rate, so summer prices can spike to roughly 20–30¢/kWh or more in tight market conditions.

The holdover trap

When a fixed contract expires and you do nothing, you're moved to a month-to-month “default renewal product” — cancelable anytime, but frequently among the priciest options on the market.

Usually pricier than fixed

Across a year, month-to-month variable plans typically run higher than a comparable 12-month fixed plan; you pay a premium for flexibility. For context, EIA put the average Texas residential rate at 16.39¢/kWh in March 2026.

Switching is penalty-free

A standard switch takes a few business days with no interruption, and you can move from month-to-month to a fixed plan anytime — useful as a short bridge between contracts.

Credit check vs. prepaid

Traditional (postpaid) month-to-month plans may still run a credit check and require a deposit; prepaid / pay-as-you-go plans deliver the no-contract flexibility with no deposit and no credit check.

Delivery charges don't change

The regulated TDU delivery portion of your bill (~25–40%) is identical across providers and plan types — it's passed through regardless of whether your plan is fixed or month-to-month.

Is it right for you?

Who month-to-month is right for

Renters & short leases

People on leases under 6–12 months who don't want to be locked into a 12–24 month term.

Movers & sellers

People moving soon or selling a home who need power for only a few weeks or months.

Snowbirds & temporary stays

Seasonal residents, travel nurses, contract workers, and students in temporary housing.

Between-contract bridges

People whose fixed contract just expired and who need a no-commitment bridge while they shop for a new fixed plan.

Myth vs. fact

Month-to-month myths, corrected

“Month-to-month is automatically cheaper.”

Usually the opposite — you pay a premium for flexibility, and the teaser rate typically resets after the first cycle. Over a year, a comparable fixed plan is often cheaper.
“No contract means my rate is locked.”

No term also means no rate guarantee. A month-to-month/variable rate can move every billing cycle, with no cap.
“When my contract expires, my rate stays the same.”

No — you're rolled onto a month-to-month “default renewal” (holdover) variable rate that's often much higher. Shop before your contract lapses.
“I should go month-to-month because I'm moving.”

Not necessarily — most fixed contracts waive the early-termination fee if you show proof of a move, so a fixed plan can be both cheaper and penalty-free for movers.
“No contract means no fees at all.”

There can still be base or minimum-usage charges, and prepaid plans require an upfront funding amount (not a deposit).

Where Base fits

Where Base fits (and where it doesn't)

Let's be straight: Base is not a month-to-month or no-contract variable plan. Base Power Company (Base Texas REP, LLC; PUCT #10338) sells a fixed-rate energy plan on a multi-year term — Base advertises a 36-month plan — which is the opposite of a variable month-to-month product. If your hard requirement is to literally switch or cancel every month, Base isn't that plan, and a prepaid or variable plan (compare them on PowerToChoose.org) is the honest answer.

But most people who search for month-to-month don't actually want to switch monthly — they want to avoid feeling trapped, escape teaser-rate resets and bill-credit gimmicks, and have a predictable bill. That's the trade Base is built for: one flat energy rate from 8¢/kWh plus pass-through TDU delivery (no markup) and a flat monthly membership, with a risk-free trial window up front and no teaser that resets in month two. Base will also help cover part of your current provider's early-termination fee when you switch (see the current offer for the amount).

Two honest caveats so there are no surprises: after the trial, standard fixed-term terms apply and an early-termination fee may apply if you leave mid-term (except where Texas law waives it, such as moving out of the service area). And because Base's offering centers on a home battery, an installed battery is governed by a separate, long-term agreement — so “risk-free trial” applies to the energy plan, not an open-ended exit from the battery. Review the EFL, Terms of Service, and Your Rights as a Customer before deciding.

For context, the average Texas residential rate was about 16.39¢/kWh (EIA, March 2026). Base's energy rate starts at 8¢/kWh plus pass-through delivery and a flat $19–$29/mo membership — exact pricing is on the EFL.

Frequently asked questions

A month-to-month plan is a retail electric provider offer with no fixed contract term: the agreement renews each billing cycle and you can switch or cancel any month with no early-termination fee. In Texas this is almost always a variable-rate plan, which means the per-kWh energy price can change every billing cycle based on market conditions. You're trading rate certainty for flexibility. Texas law (PUCT 16 TAC §25.475) specifically prohibits a termination fee on month-to-month products, which is why “leave anytime” is the core benefit.

Usually no. Despite the flexibility, month-to-month (variable) plans typically run higher than a comparable 12-month fixed plan, and the low advertised rate often applies only to the first cycle. Texas variable rates can spike in summer, and there's no regulatory cap. For context, the EIA put the average Texas residential rate at 16.39¢/kWh in March 2026. Month-to-month can occasionally win during mild spring/fall months, but if you'll be at one address for a year or more, a fixed plan is usually the cheaper, more predictable choice.

No. By PUCT rule (16 TAC §25.475), a month-to-month product cannot carry a termination fee or penalty — that's what makes it month-to-month. You can switch providers or cancel any billing cycle. The early-termination fees people worry about come from fixed-term contracts, not month-to-month plans. (Separately, when you switch, some providers — Base among them — will help cover part of your old provider's early-termination fee.)

If you do nothing, your provider automatically moves you to a “default renewal product” — a month-to-month variable rate you can cancel anytime, but one that's frequently priced well above competitive fixed offers. To prevent surprises, §25.475 requires your provider to send at least three written expiration notices during the final third of your contract, with the last arriving about 30 days before it ends. The takeaway: read the expiration notice and shop a new plan before the old one lapses, or you'll likely default to a pricey holdover rate.

It depends on the type. Traditional postpaid month-to-month plans may still run a credit check and can require a deposit if your credit is weak. If you want to avoid both, prepaid (pay-as-you-go) plans give you the same no-contract, cancel-anytime flexibility with no deposit and no credit check — you fund the account up front and draw it down as you use power, with low-balance alerts. Prepaid is a common choice for renters, movers, and credit-cautious households.

Not in the literal sense. Base (Base Texas REP, LLC; PUCT #10338) is a fixed-rate provider — its energy plan is a flat rate (from 8¢/kWh plus pass-through TDU delivery and a flat monthly membership) on a multi-year term, not a variable month-to-month product. But Base is built around what most month-to-month shoppers actually want: a predictable flat rate with no teaser-rate resets or bill-credit gimmicks, a risk-free trial up front, and help covering part of your current provider's early-termination fee when you switch. Note that Base's offering centers on a home battery, which is governed by a separate long-term agreement. If your only requirement is to switch providers every month, Base isn't that; if you want freedom from rate volatility and gimmicks, it's worth comparing — review the EFL/Terms and PowerToChoose.org before deciding.

Keep exploring

Base Texas REP, LLC — PUCT License #10338. The Base Energy plan is a fixed-rate, multi-year term with a risk-free trial; after the trial, standard plan terms apply and an early-termination fee may apply except where waived by law (e.g., moving out of the service area). An installed home battery is governed by a separate long-term agreement. See the Electricity Facts Label, Terms of Service, and Your Rights as a Customer for full terms. Compare plans at PowerToChoose.org.

You can obtain important standardized information that will allow you to compare this product with other offers. Contact Base Power at 512-518-1009 or basepowercompany.com.

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Sources

Plan documents: Electricity Facts Label (EFL) · Terms of Service & Your Rights as a Customer. Products and pricing are offered to qualified customers in Texas only.