Electricity Rates

The deregulated electricity market in Texas had its moments of ups and downs particularly during the early years and the turbulent periods of 2008. This was the time when electric rates soared high enough that it made the people think and question if switching to a deregulated energy market was really a good idea or not. As the electricity market stabilized, consumers soon realized that having the power to select retail electric providers provided its own set of benefits as well – particularly in terms of cheap electric rates.

The recent Texas electricity emergencies brought consumers anxious about the future trend for electric rates. Consumer advocates predict that the prices for electricity will definitely increase during the next couple of years unless concrete solutions are put forward to address capacity and transmission issues. The booming size of Texas in terms of population and industrial growth translate to bigger demands for electricity that the current electrical grid reserves may not be able to compensate for.

The electric rates offered by retail electric providers would also depend largely on the wholesale market and the prices of natural gas. If you’re not familiar with a deregulated energy market, retail electric providers are the Texas electric companies where people buy their electricity from. These retail electric providers on the other hand buy electricity from the wholesale market, which includes the power plants and other resources of electricity. Fluctuations in the wholesale market such as those caused by the recent drought, will definitely affect electric rates.

Consumers however, have certain options to prepare for these projected changes on electric rates. One is to work out a fixed rate plan with the electricity providers and lock in prices for the next one-year or two-year period. Another option is help reduce the grid overload by using electricity much more efficiently and follow useful tips and techniques for conserving energy. With a more stable grid, consumers can be assured of an ample supply of electricity, which will eventually affect how electric rates will be determined in the couple of years to come.