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Auto-renewal traps every locked-rate customer should know

Switching 101

Locked supplier contracts often re-rate to 30 percent+ above market on auto-renew. The 4 disclosure rules by state, plus how to set the renewal-window alarm.

Featured infographic

Auto-renewal rate jump at contract end

Locked rate ends → variable month-to-month at 25-45 percent above market → customer overpays until next re-shop.

Open graph image · /og/rate-trend.png

Most US energy supplier contracts auto-renew at end of term to a 'month-to-month' variable rate that prices 25 to 45 percent above market. Suppliers must disclose the auto-renewal terms before signing and notify customers 30 to 60 days before contract end (varies by state). Set a calendar alarm for 90 days before contract end. Re-shop the market and either renew with the same supplier at a fresh locked rate or switch.

Auto-renewal disclosure rules by state

PA: 30-day pre-renewal notice required. PUC enforces.

NY: 30 to 60 day notice required. PSC enforces. OH: 30 day notice. PUCO enforces.

TX: 30 day notice on EFL. PUCT enforces. Variable post-renewal rate disclosed in EFL signed at original contract.

The 90-day calendar alarm

Set a calendar alarm 90 days before contract end (visible on the original contract). Re-shop the supplier market.

Either renew with the same supplier at a fresh locked rate (request a renewal offer), or switch to a new supplier. Auto-renewal is almost never the best move.

Lock the rate before the next reset.

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Common questions

Quick answers from the editorial desk

Cancel before renewal?
Yes. Cancellation 30+ days before contract end avoids the auto-renewal. No cancellation fee within the notice window in most states.
Disclosure rules by state?
PA 30-day. NY 30-60 day. OH 30-day. TX EFL discloses at signing. All other states 30-60 day typical.
Utility role at renewal?
None. Utility continues to deliver electricity regardless of supplier change. If you do not renew or switch, default is utility supply at PTC.
Dispute auto-renewal?
File PUC complaint if the supplier did not provide required pre-renewal notice. The PUC can rescind the auto-renewal and refund overpaid amounts.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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