What Happens When Your Electricity Contract Ends Complete Guide

Understanding Electricity Contract Expiration

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

⚠️ Critical warning: Default rates after expiration can exceed your original contract price by 50% or more. 💡 Understanding what happens at expiration helps you avoid costly surprise rate increases.

What Is the Default Rate After Contract Expiration

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:

📈 Changes monthly based on wholesale market prices
💵 Costs significantly more than fixed-rate contracts
🎯 Designed to incentivize renewal or active shopping

Typical cost increases (OH, PA, MA):

💰 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.

Auto-Renewal Contracts and Your Options

Some suppliers automatically renew your contract at expiration rather than switching you to variable rates. Auto-renewal terms vary widely:

📅 Month-to-month arrangements
📅 New multi-year fixed-rate contracts
💵 Rates may differ significantly from original contract

State requirements (OH, PA, MA):

📋 Must clearly disclose auto-renewal terms in original contract
📧 Must provide advance notice before renewal occurs
⏱️ Typically offer 30-day cancellation window without penalty

💡 Tip: Shopping for a new plan often yields better rates than accepting automatic renewal terms.

Contract End Notifications You Should Receive

State public utility commissions require suppliers to notify customers before contract expiration. State-specific notification requirements:

🔴 Ohio: Written notice at least 45 days before contract end
🔵 Pennsylvania: Minimum 30-day advance notice with specific disclosures
🟣 Massachusetts: 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. Keep notification documents — they contain important rate and term information for shopping.

Why You Should Shop 60 Days Before Contract Ends

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

⏱️ Compare offers from multiple suppliers without feeling rushed
📅 Lock in future rates with start dates matching your expiration — no gap or overlap
📊 Reveals seasonal rate patterns where certain times offer better pricing

Comparison tools by state:

🔴 Ohio: Apples to Apples
🔵 Pennsylvania: PAPowerSwitch
🟣 Massachusetts: 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.

How to Switch Suppliers Before Contract Ends

Switching electricity suppliers before contract expiration is straightforward. 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
💡 Enroll 30-45 days before your desired start date

Early Termination vs Waiting for Contract End

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

💵 Typically range from $50 to $200
📊 Depends on supplier and remaining contract length

Calculate if switching early saves money:

Multiply rate difference by monthly usage
Multiply by remaining contract months
Compare result to termination fee
If savings > 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
📋 Review your specific contract terms before deciding

How to Track Your Contract Expiration Date

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
💻 Supplier's online account portal
📞 Call supplier customer service

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: Proactive tracking prevents accidentally rolling into expensive default rates that can significantly increase your electricity costs.

Frequently Asked Questions

Will my electricity be shut off when my contract ends?

No, your electricity service continues uninterrupted. Your utility company remains responsible for delivering electricity regardless of which supplier provides your generation. When contracts end, you either move to default variable rates, auto-renew, or your new supplier enrollment takes effect. Service disconnection only occurs for non-payment, never for contract expiration.

How much higher are default rates after contract expiration?

Default variable rates typically run 20% to 60% higher than competitive fixed rates available in the market. Some default rates can be more than double current market prices. The exact difference depends on current wholesale electricity costs and your supplier's pricing policies. This significant cost increase is why shopping before contract expiration matters.

Can I cancel auto-renewal after it takes effect?

Yes, auto-renewed contracts still allow cancellation, though terms vary by supplier. Most auto-renewed fixed-rate contracts include early termination fees if you cancel before the new term ends. Month-to-month auto-renewals typically allow cancellation without penalty. Check your contract or contact your supplier to understand specific cancellation terms for renewed agreements.

How far in advance can I lock in a new electricity rate?

Most suppliers allow you to enroll up to 90 days in advance of your desired start date. Some suppliers offer even longer windows. This advance enrollment lets you lock in attractive rates when you find them while timing your switch to match current contract expiration. Contact suppliers directly for their specific advance enrollment policies.

What if I miss my contract expiration date?

If you miss your contract expiration, you'll automatically move to default rates or auto-renewal depending on your contract terms. You can still shop and switch to a new supplier at any time, though you may pay the higher default rate during the one to two billing cycles the switch requires. There's no penalty for switching after contract expiration, just potentially higher costs during the transition period.

About the author

Brad Gregory

Consumer Advocate

Brad moved from California to Texas in 2009 and got confused by electricity shopping—something that didn't exist where he came from. That confusion led him to build ComparePower.com. At ElectricRates.org, he's applying the same approach to Ohio, Pennsylvania, and Massachusetts.

Energy plan comparisonCustomer experienceDeregulated electricity marketsEnergy shopping strategiesResidential rate comparison

Topics covered

contract-expiration electricity-rates rate-shopping auto-renewal default-rates switching-providers

Sources & References

PUCO - Electric Choice Rules (Public Utilities Commission of Ohio): "PUCO outlines contract expiration rules and consumer protections for electricity switching"Accessed Jan 2025
PA PUC - Shopping for Electricity (Pennsylvania Public Utility Commission): "PA PUC provides consumer guidance on electricity supplier contract terms and switching"Accessed Jan 2025

Last updated: December 10, 2025