Your old rate is gone. The replacement costs 2–3× more.
When a business electricity contract ends and you do nothing, you don't keep your old rate. You roll onto the supplier's default — priced for their benefit, not yours. Here's exactly what happens, and how to fix it before the next bill.
What “expired” actually means
Your fixed-rate contract was a deal: a set price for a set time. When the time runs out without a new deal, the supplier doesn't extend the courtesy. You drop onto what the industry calls a holdover rate — sometimes labeled variable, month-to-month, or default service.
Here's the part that stings: suppliers themselves warn that holdover rates can run two to three times your old fixed rate. It has a nickname in the business — the “rack rate”: the maximum price they can legally charge you. And every month you sit on it, that difference goes straight to their bottom line. One broker put it bluntly: doing nothing is the costliest decision a business can make.
Where you land, market by market
The default has a different name everywhere, but it's the same trap:
Pennsylvania
PECO, PPL, Duquesne Light
You fall back to your utility's Price to Compare — a default rate that adjusts periodically with zero price protection.
Ohio
AEP Ohio, Duke, FirstEnergy
You land on the Standard Service Offer (SSO), repriced through PUCO-overseen auctions. It can look fine one period and jump the next.
Texas
Oncor, CenterPoint, AEP Texas
Your provider moves you to a holdover or month-to-month variable plan — the most exposed position in an energy-only market famous for price spikes.
New England
Eversource, National Grid, Unitil
You revert to basic service, repriced every few months. In a region with winter gas constraints, that's the most expensive way to buy electricity over time.
The renewal timeline that protects you
The businesses that overpay all share one trait: they shopped the week their contract died. Here's the timeline that keeps the leverage on your side:
180–120 days out
Pull 12 months of bills. Find your exact end date and early termination fee. This is the diagnosis phase.
120–90 days out
Get competing bids from multiple suppliers against your real usage — not teaser rates. This is where a broker earns their keep.
90–30 days out
Negotiate term length and rate type, then sign. Fixed rates for budget certainty; the market rewards early shoppers.
Under 30 days
You're in the danger zone — sign the best available fixed rate now rather than rolling to holdover. Don't let it lapse.
Don't know when your contract ends? We'll find out in one business day.
Upload your bill. We'll tell you your exact end date, what you're paying now, and what your renewal should cost — free, no obligation. If your rate is already fair, we'll tell you that too.
Get My Free Bill ReviewContract questions, answered straight
What happens when my business electricity contract expires?
You don't keep your old rate. Your account rolls onto the supplier's default — usually a variable holdover rate or your utility's default service rate. Suppliers themselves warn these holdover rates can run two to three times your old fixed rate. The meter keeps spinning; only the price changes, and it changes against you.
How far in advance should I shop before my contract ends?
Start 4–6 months out. That gives time to pull 12 months of bills, get competing bids from multiple suppliers, and negotiate — instead of panic-signing whatever's offered the week your contract dies. The 60–90 day window before expiration is the minimum; earlier is better.
Can I switch suppliers before my contract ends?
Yes, but check your early termination fee first — it's in your contract's fine print. Sometimes the fee is small enough that switching early to a much lower fixed rate still saves money. Send us your contract and we'll do that math for you.
Will my power be interrupted if I switch?
No. Your utility — PECO, Oncor, AEP Ohio, Eversource, whoever delivers your power — keeps delivering it and fixing outages no matter who supplies it. Switching changes the supply line on your bill and nothing else.
What is a holdover rate?
The rate your supplier charges after your fixed contract ends and you haven't signed a new one. It's typically variable, it moves with the market, and it's priced for the supplier's benefit, not yours. Industry folks call it the 'rack rate' — the maximum price they can legally charge you.