If you are moving out of a home before its fixed-rate electricity contract ends, the early-termination fee printed on the Electricity Facts Label can look alarming. The good news is that Texas has a specific customer-protection rule for genuine relocations.
The plain-English answer
Your retail electricity contract is limited to the service location named in the contract. If you move away, you are not required to carry that contract to another address. Your provider may ask for evidence of the move, but it must not assess an early-termination fee because of the relocation when you provide a forwarding address and, if requested, reasonable evidence that you no longer occupy the old location.
What to do before you move
- Contact your retail electricity provider. Use the company name on the electricity portion of your bill—not Oncor, CenterPoint, AEP Texas, TNMP, or another delivery utility.
- Say that you are ending service because you are relocating. Give the actual move-out date and ask the provider to process the cancellation under its relocation policy.
- Provide a forwarding address. Texas rules specifically identify this as part of the protection.
- Ask what evidence is required. The rule permits a provider to request reasonable evidence that you moved and no longer occupy the contracted address. Providers may have different documentation procedures.
- Keep written confirmation. Save the chat, email, confirmation number, and any documents submitted until the final bill shows no early-termination fee.
- Pay the final legitimate charges. The relocation protection concerns the termination fee; you still owe for electricity used and other valid charges through the service end date.
What this rule does—and does not—mean
- It applies to a genuine move from the contracted service address. It is not a general penalty-free way to change plans while remaining in the same home.
- You do not have to transfer the old contract. You can shop for a plan that fits the usage, delivery utility, and timing at the new address.
- The provider may verify the relocation. Do not assume a phone call alone completes the process; follow the provider’s instructions.
- Timing matters. Contact the provider before the move when possible so you know its accepted proof and avoid an unnecessary billing dispute.
Shopping for the new address?
Compare Texas electricity plans using the ZIP code and realistic usage for your next home.
Frequently asked questions
Do I have to pay an electricity early-termination fee if I move?
Under the PUCT customer-protection rule, the provider must not assess an early-termination fee because of your relocation when you supply a forwarding address and, if requested, reasonable evidence that you no longer occupy the contracted service location.
Can my provider ask for proof that I moved?
Yes. The Texas rule allows the provider to require evidence that you are moving to another location. Ask which documents it accepts and keep a copy of what you submit.
Do I have to take the old contract to my new address?
No. The contract is limited to its specified service location, and the rule says a customer who moves is not obligated to continue it at another location.
Primary source: Public Utility Commission of Texas, 16 Texas Administrative Code §25.475(c)(2)(C), Customer Protection Rules for Retail Electric Service. Read the official rule (PDF). This article provides general consumer information, not legal advice. Confirm the required cancellation steps with your provider.