If you live in the United States, you may be living in any of the four climate regions in this nation, particularly cool, hot-arid, hot-humid, and temperate. Texas residents on the other hand experience a temperate zone if they live in the upper half of the state, or a hot-humid zone if they live in the bottom half. Last year, Texas experienced one of the worst droughts in years that tested the limits and capabilities of the Texas electric grid – causing a rash of electricity emergencies and putting the state in brink of rolling blackouts.
For this coming summer, many are worried that electricity rates will pull up again and they would end paying a substantial fortune for their Texas electricity bills. In a similar manner, many are also wondering what a cool summer would mean for them and the rest of the Texas consumer communities. Contrary to what pessimists would think a cool summer can happen, even if for a brief moment just like the northern wind shift and the cool front that crossed the state during the height of the brutal summer last year – providing respite from the heat for consumers and breathing room for Texas electricity companies.
Summertime and Texas Electricity
A hot summer would mean higher demands for Texas electricity which can overshoot grid reserves, resulting to substantial increases in electricity rates and the threat of rolling blackouts lurking in the background. The higher the temperature, the higher electricity usage will be just like last year when peal demand reached 68,294 megawatts during the hottest days of summer in August. A cool summer on the other hand will give enough leeway for Texas electricity companies to properly maintain their power plant machineries and prevent them from breaking due to lack of cooling water to keep temperatures down to manageable levels.
Tips to Cool Off and Lower Your Texas Electricity Bills This Summer
A cool summer would definitely be welcome for all Texas electricity companies as well as the myriad consumers wanting to cool off this summer. But you can cool off with the following tips and actually lower your Texas electricity bills – and heed calls for conservation from the state and grid officials and prevent the possibility of rolling blackouts to hit the state.
- Exercise you power to select a provider that offers lower electricity rates. Note that the most well known providers don’t necessarily offer the best electricity rates so it would be best to shop for Texas electricity providers and get the best available out there.
- You don’t have to run your air-conditioning system day in and day out, even when there are no people around. Save hundreds of dollars by simply using a programmable thermostat that would optimize your AC settings according to outside conditions. The recommended setting for Texans is seventy-eight degrees, enough to make you feel comfortable at home.
- Clean your air conditioning units and ensure that filters are clean to keep them running at optimum and energy efficient conditions. You can also minimize usage of your air conditioning to cool off the whole house and instead use electric fans in the rooms where you stay most often.
- Choose a landscaping that would give you more shade this summer as well as funnel cool summer breezes directly towards your home. Avoid plant beds that would require you to use much water.
- Cooking indoors can generate much heat so it would be best to try grilling and cooking outdoors for that good ole Texas BBQ
- Use more natural light to brighten up your house instead of using heat generating lamps
- Air leaks and poor insulation in your home can make you consume more Texas electricity than what is necessary. Have a qualified person perform a home energy audit and get more tips on how you can make your homes more energy efficient, make it cooler during summer – and save on your Texas electricity bills.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
2011 was a tumultuous year for Texas electricity companies and consumers as the state was brought to the brink of continuous blackouts during two extreme periods of hot and cold. A deep freeze experienced earlier in February last year put electricity generation equipments out of commission and knocked down several power plants. Come August, an extremely hot summer threatened more blackouts, prompting the grid operator to make repeated calls for energy conservation.
The reserved electricity capacity in the State could not cope with the growing demands for Texas electricity from commercial, residential and industrial consumers. The margin last year was only 17 percent, pushing electricity rates up with the threat of rolling blackouts that were averted as consumers exercised their power to select their energy options and heeded calls for conservation. This year, the immediate future of Texas electricity and how it will affect electricity companies and consumers will depend on what the weather brings, particularly another threat of a piping-hot summer.
Hot Summers and Texas Electricity
With an extremely hot summer, equipment and other power plant machineries from Texas electricity companies break down from the resulting drought hot temperatures bring. Drought means lack of water, and water is the main ingredient needed to cool down the gas, nuclear and coal-fired power plants that produce Texas electricity. According to Electric Reliability Council of Texas (ERCOT), another hot summer could affect and put at risk at least 3,000 megawatts of generated electricity, which will definitely affect electricity rates and put the state in another round of rolling blackouts.
Conservation or Rolling Blackouts
According to ERCOT President Tripp Doggett during a recent State House hearing, the consumers in the State of Texas will have to make a choice between ramping up conservation efforts for Texas electricity or risk dealing with rolling blackouts if the State encounters another extremely hot and scorching summer as last year.
In 2011, ERCOT announced Texas electricity emergencies and called on the general public to exercise conservation to bring down consumption rates. Unlike other States, Texas has its own electric grid that is independent from other states, and this isolation will prove detrimental in seeking emergency capacities from neighboring grids – putting the state at a unique electricity risk.
Long Term Solutions
The ability of the Texas grid operator to keep electricity flowing smoothly across a rapidly growing state would depend on how adequate available power plants will be. However, according to ERCOT, there are no scheduled power plants of significantly large generating capacities that will come online this year. Some mileage may come from previously mothballed plants to restart operations, but aside from that no substantial capacities are expected to be added to the current margin.
Texas electricity regulators are encouraging the construction of additional power plants as long term solutions to address this capacity issue as peak demands continue to rise as the State continues to grow. Consumer groups fear that new power plants would mean higher electric rates. Environmentalists on the other hand are calling on more focused conservation measures to address the issue, pushing the Demand Response program wherein consumers will actually get paid by reducing consumption during peak hours – a program that has taken little mileage in Texas.
Another option Texas electricity commissions are looking into are making regulatory changes that would make it more convenient for wind energy generators to store large amounts of electricity in batteries. One example is the 36-megawatt battery capacity in Notrees, West Texas that is expecting completion during 2012. This and other long term solutions are being pursued by State officials and key players in the Texas electricity industry. Until then, electricity companies and consumers would have to deal with the imminent threats the coming hot summer would bring.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Are smart meters really smart?
Recently, Texas electric companies in Central Texas conducted side-by-side tests to confirm the accuracy of smart meters. These tests show that smart meters are indeed accurate compared to traditional analog meters, giving consumers more reliable information about their Texas electricity consumption and electricity rates.
As smart meters are being rolled out in various parts of the state, consumers in deregulated energy areas now have the power to choose electricity providers that will utilize smart meters for their services. Despite the negative publicity thrown against the use of smart meters from certain groups, this technology will pave the way for the future of electrical use not only in Texas and the United States, but in other parts of the world.
The “Smart” In Smart Meters
Smart meters go beyond the basic task of metering and their relationship with electricity rates and consumption. The “smart” in smart meters involves the handling and processing of data, particularly in developing better ways of doing things related to energy use. Smart meters enable consumers to monitor and control their costs in real-time for air-conditioning, heat, utility water and even natural gas.
It can and will involve other complex processes that go beyond the capabilities of traditional analog meters such as: data systems, data infrastructure, data collection, advanced meter management systems, and interconnectivity with other “smart” appliances in the home. When people are more aware of their electricity consumption, they can bring their use under control thus help bring down harmful carbon emissions.
Issues and Challenges
In some areas in the United States such as in California, consumer groups filed a class action lawsuit against their utility company, contending that their electricity bills ballooned with their use of smart meters. Investigation into these complaints indicate that there were no real issues with the smart meters’ performance nor were they responsible for the higher bills – except the fact that the smart meters indicated a more accurate figure of users’ electricity consumption, as well as variations in electricity rates which are caused by external factors.
Another issue hurled against smart meters is the supposedly health risk posed by the use of wireless technologies in smart meters used in the transmission of relevant data from the unit to the processing base stations at utility company facilities. The World Health Organization however gave the conclusion that there are no scientific evidences that point to the adverse health effects supposedly caused by wireless technologies.
Market Outlook for Smart Meters
The market outlook for smart meters looks promising, not only in the United States but in other emerging market countries as well, according to reports from Northeast Group LLC. The report indicates that the market could hit the $49 billion level by the year 2020 as these countries continue to focus in developing intelligent electricity grid systems in an effort to conserve energy, support the use of renewable energy sources, and reduce the impact of carbon emissions with the use of electricity.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Is this a good time to switch electricity providers?
In an energy deregulated market such as that in Texas, switching providers can give you the best electricity rates that will keep your monthly bills low. Not only will you have the potential to get cheap electricity rates when you take advantage of your electricity choices, you can even get lots of perks and rewards just for paying bills that you meant to pay regularly anyway.
The question that would pop out of anyone who has not yet shopped for electricity rates would be: when is the good time to switch electricity providers? There are several considerations to make first before making the switch so you can get the best deals and get the most benefits from exercising your power to select. It should start however in understanding why you need to switch electricity providers.
Why Switch Electricity Providers?
In a competitive electricity market like Texas, several different retail electric providers compete for consumers’ attention and patronage. These suppliers compete by offering different kinds of electric rates, payment schemes, and consumer incentive programs. Shopping for electricity rates and providers enables you to compare what each one has to offer, and if you find one that offers a better deal than your existing supplier, then there should be no reason why you should not switch electricity providers.
Consumers should also understand that electricity rates are determined and influenced by several other factors such as the area you live in, the overall consumption of electricity in that particular area, the electrical reserve level that can compensate for peak hours, and the time of the year. Understanding how these factors influence electricity rates can tell you when the right time to switch electricity providers is.
The Right Time to Switch
While you can switch electricity providers anytime of the year and still get big savings from shopping electricity rates and making the switch, studying when the right to switch providers should also be an important consideration you should make to get the biggest benefits. The first thing that you should know are the months that electricity rates are at their peak, and in the case of Texas, the hot days of summer and the cool nights of winter would fall under the highest rates.
Historically, electricity rates are greatly affected with extremes in weather. Texas residents experienced firsthand how the unnaturally hot summer of last year caused breakdowns in several power plants, prompting the Texas electricity grid operator to call out electricity emergency warnings. During extreme weather conditions, people tend to use more electricity than what they used to and this will put a great drain on existing reserves and a great strain on power plants struggling to keep up with the demand. With this understanding in mind, making the switch to a new electricity provider before the onset of these extreme-weather months would be the right time for doing so.
Other Considerations to Make
You should also consider other factors that would make the switch to a new electricity provider much more beneficial and one of this is choosing the right payment plan for you. If you are a permanent resident and have no plans of moving out in the near future, then choosing a fixed, long-term plan would be the best choice to make as this would lock down electricity rates to what you will agree to in your contract.
Locking in your electrical rates when you switch electricity providers would be the best choice now as forecast tells that Texas will be in for another rough and hot summer with all the promptings of electrical emergencies in the horizon. Demand for Texas electricity continues to grow and there’s no sign that this will slow down, but grid capacity continues to be a question mark in everyone’s mind – and this would surely affect electricity rates in the very near future.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Five Questions to Ask When You Shop for Electricity Rates
During the last decade, there have been several changes and evolutions in the electricity industry following both State and Federal initiatives. One of the most radical and controversial among these changes involved the restructuring of the power market into something more competitive and deregulated. Several states across the country have adopted energy deregulation, giving their consumers the power to choose providers and shop for electricity rates according to their convenience.
From the regulated monopolies of local utility companies to the deregulation of retail electric providers, energy deregulation spurred higher levels of competition among electricity companies in states like Texas that implemented such changes to the market. Although the production and transmission of electricity remains regulated and under the control of governing bodies like the Public Utility Commission of Texas, retail providers compete for consumers’ attention when they shop for electricity rates.
To gain the most benefit from your option to shop for electricity rates, one must first make several considerations and ask the following basic questions to guide them when they choose suppliers. Althoughcheap electricity rates are undoubtedly the most common reason why a consumer would switch electric provider, there are other things to consider that you should include in the selection process.
Do I live in an energy deregulated market?
The power t0 choose retail electric providers is logically available only to states that have a deregulated energy market. But not all areas in a particular state have a competitive market. In the case of Texas, some cities like Austin and San Antonio do not have electricity competition available yet, although major cities like Houston, Dallas, and Forth Worth have deregulated markets.
Am I satisfied with my current Texas electricity provider?
Before you decide to shop for electricity rates and make a switch to another electricity provider, you must first ask yourself if you are not satisfied with your current one. As mentioned earlier, the price of electricity should not be the only reason for making the switch as there are other tangible and intangible benefits that you can get from one supplier that you will not get from another.
Do I have an existing contract with my current electricity provider?
As simple as this may seem, you should check if you are bound by whatever contract you may have with your current retail electricity provider before allocating the resources to shop for electricity rates and new providers. If your current contract is about to expire and you feel that you are not satisfied with your current supplier, then by all means start with the selection process and get the best deals available.
What terms would give me the most benefit: fixed-rate or variable-rate terms?
There are several terms of services and payment schemes that you should consider when you shop for electricity rates. Depending on your needs and lifestyle, you can choose between and long-term fixed-rate plan that can lock in you electricity rates for a specified period of time, or you can opt for a variable rate plan that would depend on what the overall electricity market dictates.
Are Green Energy options of interest to me?
Ready to go green? You can do so by choosing a retail electric provider that sells electricity coming from alternative energy resources like solar and wind – forms of renewable energy that is slowly making a dent in the Texas electricity market. Participating in a green energy plan like this allows you to give your part in the battle for climate change and offset its negative effects by using green energy.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Save Money by Switching Texas Commercial Electricity Providers
One of the biggest benefits consumers get from the deregulated Texas electricity industry aside from their power to choose electric providers is that they can enjoy cheap electricity and competitive commercial electricity rates. In fact, Texas consumers enjoy the 3rd cheapest rates in the country and this is due to the price caps placed on wholesale electricity. To give you a better figure, the wholesale price cap currently sits at only $3000 per MWh which is lower compared to other states and five times lower than the $12,500 per MWh market cap employed in Australia.
To get the full benefits and save lots of money from your electric bills, business owners can exercise their advantage and switch commercial electricity providers. These providers compete for your business and are utilizing various ways to gain your trust and eventually work with them as the power provider for your business or commercial establishments. However, shopping for commercial electricity providers can be a complicated task, particularly true if you have little understanding of how things work in the Texas electricity industry and how you can compute for all the charges and rates and come up with the final dollar figure that you have to pay for.
Shop for Texas Commercial Electricity Providers
There are more than a hundred retail electric providers competing as your commercial electricity provider. Going through this maze can be a daunting task if you want to strike out on this road on your own. You need to go through all the details required for you to switch providers, as well as understand the complex jumble of applicable fees, electric rates and payment plans – a very time consuming and tedious activity can cost you substantial amounts of money if not done properly.
One of the good things in a deregulated Texas electricity market however is the emergence of consolidators, aggregators or brokerage companies that help simplify the shopping experience for your business. These companies can do the market evaluation for you, even providing you with a customized analysis that takes into account the commercial electricity provider’s energy rates, your historical electricity usages, and other pertinent fees and charges in your desired plans and come up with a package that you can use in the selection process.
Where to Start
Working with a licensed energy aggregator or brokerage company to help you in shopping for a commercial electricity provider can assure that you are doing the selection process right and come out with the best choice that will give you the highest overall benefits. You can make the selection and purchasing process online through the brokerage or aggregator company’s website and they will take care of the rest. In this way, you don’t need to go through all the hassle of negotiations and focus on what you should do best – running your business.
When choosing a brokerage company, select one that works and maintains a non-agency relationship with several commercial electricity providers. These companies have already screened these companies from among the several retail electric providers all competing against each other for your business. They can work as your energy consultant and help you get the best and cheapest commercial electricity rates as possible.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Dallas electricity providers as well as other Texas electricity utilities in the state won a temporary victory as U.S. Federal appeals court recently issued a delay order to the January implementation of the new EPA Cross-State Air Pollution Rule. The decision was made after state legislators, the Texas electric grid operator and several other sectors of Texas society challenged the new ruling, pointing out the lack of time and resources for electric utilities to meet demands as well as the apparent threat to power capacity with the closing down of non-compliant power plants.
The new EPA rule aims to address the threat to human health brought about by the downwind pollution coming from the emissions of old, coal-fired power plants identified from 27 states across the country including Texas. The new rule also includes new standards for mercury, sulfur dioxide, and other toxic pollutants from electric plant smokestacks. Dallas electricity providers and other power generators across Texas and other affected states indicated that there is no enough time for them to meet the redesign, installation and upgrading of these power plants, not to mention the enormous costs such upgrades would entail.
Dallas electricity providers and other Texas electric companies challenged the new EPA rule pointing out that the government agency relied in faulty assumptions regarding the impact of this new rule to the state when the EPA included Texas in the list of affected areas. These companies claimed that they were given no opportunities to provide their inputs regarding the matter, forcing them to shut down power plants that could not be upgraded in time.
Loss of Texas Electricity Grid Capacity
In a survey conducted by the Associated Press among 55 power plant operators, it was estimated that at least 32 power plants will be forced to shut down unless they comply with the new EPA emission rules. Most of these plants are coal-fired while others are antiquated units that would require large amount of capitalization to be upgraded. The survey also pointed out that 36 more power plants will be shutdown when all the EPA rules have taken effect by 2014-2015 – equivalent to 14.7 gigawatts, enough to provide 11 million households with electricity.
One gigawatt is 1,000 megawatts of electricity, enough for Dallas electricity providers to power hundreds of thousands. Closing down coal-fired plants will definitely affect not only Dallas but the whole Texas electricity grid in terms of capacity. With the ever increasing demand for electricity in the state, compounded by high temperature levels during summer, the state will not have enough excess capacity to prevent rolling blackouts should peak demand increase beyond current levels.
Loss of Texas Jobs
Dallas-based Luminant Generation Company was among the first Dallas electricity providers that announced that they will not be able to meet the new EPA requirements and will be forced to shut down at least three lignite coal mines and power plants, losing up to 1,300 megawatts of capacity. The company will also be forced to cut 500 jobs from the plants and mines should the new EPA rule take effect during January.
The U.S. Federal appeal court stay order gives Dallas electricity providers some respite and time to make changes to their power plants for them to meet the new rules. However, although many Texas electricity providers and the grid operator announced plans for power plant upgrades, there are no certainties given yet if these projects will push through.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Business Electric Rates and the Looming Texas Electricity Crisis
The announcements from ERCOT, the Texas state electrical grid operator, of a potential Texas electricity crisis and the occurrence of rolling blackouts during the next summer cycle has raised several mixed reactions from different sectors. Many saw the threat as real and blame the shutting down of old power plants in compliance with new EPA environmental rules. Others remain skeptical that there is indeed a looming electricity crisis and could be resolved by increasing consumer and business electric rates.
The real issue behind this predicament is capacity and in an energy-only deregulated Texas electricity market there was a lack of incentives for electric companies to build new power plants due to lower price caps. To incentivize Texas electric companies to build new power plants and address the potential threat of power shortages and rolling blackouts, the Texas Public Utility Commission is considering raising the price caps for wholesale Texas electricity.
This will give electric utilities guaranteed additional payments as incentives for building new power plants. However, many are apprehensive as the raised prices will be passed along to consumers through higher residential and business electric rates.
The Texas Energy Only Market
The state went for an Energy-Only system after the Texas electricity market was deregulated back in 1999 and had plenty of excess capacity, making residential and business electric rates affected only by market forces and not dictated by legislators and politicians. In this system, the power plant operators are only paid for the power they supply, and this price is dictated by the price caps set for wholesale power.
This is different from a capacity market wherein the generating Texas electric companies are paid an additional flat amount above the whole price, giving power plant operators an incentive and the means to recoup the cost of building new power plant generators. Texas is not the only market with an energy-only system as countries like Australia adopt the same practice.
The difference however is that Australia has wholesale market price caps that are five times higher than Texas and this price difference is enough incentive for electric companies to build new power plants. With this lack of incentives, not enough new power plants have been built and the capacity margins in the state continued to shrink while demand continued to expand.
Raising the Market Price Cap
The deregulated energy market in Texas not only gave consumers the power to choose their electric options but also allowed consumers to enjoy cheap electricity and competitive business electric rates – the 3rd cheapest rates in the country. The wholesale price cap is also at the low end and currently sits a $3000 per MWh, far from the $12,500 per MWh market cap in Australia.
To address the issue, the Texas Public Utility Commission is working on raising the current price cap to $4000 or even up to $6000, to give new investors incentives to look into building new power plants as profitable ventures in Texas. However, there are concerns that these increases may not be high enough to incentivize electric companies to invest in a new multibillion dollar power plant facility.
There are other less drastic means that the Public Utility Commission is initiating to address the looming electricity crisis that will come to the state as early as next summer. One thing is for sure though – there will be higher residential and business electric rates that consumers will absorb to ensure that homes and business will have enough electric juice to run through the cold winters and the scorching heat of the Texas summer.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Texas Electricity Reserves: Grim Outlook for Electric Companies in Texas
It will be a grim outlook for electric companies in Texas as they will be caught in a “power” play between keeping the fires burning in old power plants and keep Texas electricity reserves at safe levels, and complying with new environmental rules imposed by the Environmental Protection Agency (EPA). Unlike water or gas, electricity is not stored but generated as needed and the shutting down of antiquated power plants will have serious implications on the state’s generating capacity.
In a latest assessment by the North American Electric Reliability Corporation (NERC), significant concerns were raised regarding the lack of Texas electricity reserves by next summer and that electric companies in Texas may not have enough generating capacity to meet demand by the year 2013. What complicates things is the fact that the Electric Reliability Council of Texas (ERCOT) grid is isolated from the emergency power supply systems from other states and can be cut off – a catastrophic event in the making that should be addressed now.
Capacity Assessments
ERCOT is targeting at least 13.75 percent Texas electricity reserve levels to ensure continued grid operation even during high temperature scenarios similar to what was experienced last summer. This reserve may be enough for electric companies in Texas to sustain increase in usage from consumers as well as generator outages and breakdowns.
However, the latest biannual assessment released by the grid operator for the next 10 years projects reserve margins to be only at 12 percent, or 2,600 megawatts less for the peak seasons in upcoming summers of 2012 and 2013. This lower projection was assessed after higher load forecasts were announced, compounded by additional announcements from electric companies in Texas planning to shut down several outdated power plants.
Power Play
The US Department of Energy recently stated that it has the legal authority backed by the Federal Power Act to require the continued operation of power plants during energy emergencies to keep the grid capacity safely above the projected demand. This puts electric companies in Texas in a dilemma as many plans to shut down coal-fired power plants to comply with the new EPA rule – compliance to either federal ruling would mean defiance against the other.
What this imply is that when electric companies in Texas keep the power plants running to prevent rolling blackouts from occurring, they would be penalized for environmental violations. ERCOT’s forecasts however indicate that rolling blackouts is not a theory but an upcoming possibility and will come to reality the moment power generating units are idled or shutdown.
ERCOT however reported that it would not put electric companies in Texas to be in position that would break the law by asking them to continue operating power plants to ensure grid reliability. The EPA on the other hand insist that generators need not close down power plants to comply with the new rule but instead should switch fuels, purchase emissions allowances, and boost pollution controls.
With ERCOT’s forecast putting a grim outlook for Texas electricity reserves in the coming periods, legislations are currently being drafted by Texas lawmakers that aim to protect power plants from lawsuits from breaking environmental laws by continuing operation as a response to Department of Energy orders. Experts on Environmental and Natural Resource Law stated that the EPA can waive compliance for electric companies in Texas and would do so according to the needs of the state.
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The Time to Shop for Texas Electricity Rates is Now
In a deregulated energy market such as what is implemented in Texas and one of the main things people who have the power to choose energy options would like to know what would be the best time when they would shop for Texas electricity rates. As experienced over the last few years, the best period to shop would be during the winter months when historically Texas electricity rates were at their lowest and by locking in these rates in a long-term fixed rate plan, consumers would definitely get big savings.
Now, recent events and projected scenarios in the Texas electricity landscape are affirming the wisdom in shopping for Texas electricity rates now. Many residents will definitely remember the rash of electrical emergencies announced by ERCOT during the height of last summer’s heat wave that placed the state in a brink of rolling blackouts due to lack of capacity. Demand shoot up as consumers turned on their air conditioning at full power to combat the heat, almost eating up Texas electricity reserves prompting the electric grid operator to declare emergencies.
The same problem is foreseen the next time summer comes around unless additional capacities are realized. However, the cold winter conditions in the coming months are also projected to affect overall Texas electricity capacity. So, before all these projections commence and eventually affecting supply, it would be wise to be proactive and start to shop Texas electricity rates.
Threats in Texas Electricity Supply
When the extreme winter conditions start to hit the state, it is projected that Texas electricity demand will shoot up to 60,000 megawatts. This is higher than the 54,000 peak demand that current grid capacities can supply during normal weather conditions. Current overall generating capacity is at 64,000 megawatts which could dip down to only 57,000 when extreme weather conditions strike.
This is further aggravated by the looming changes in clean air policies announced by the EPA, which could dip generating capacities further as old coal-fired power plants will most likely be shut down. With these developments, Texas electricity capacities may not be enough to maintain the 13.75 percent margin required during extreme weather conditions. There are over 59,000 megawatts of capacity under review and unless these additional capacities are realized, residents could be facing a serious threat to the Texas Electricity supply in the horizon.
The Ideal Time to Shop for Texas Electricity Rates
With these projected scarcity in supply that the state could potentially encounter in the coming months, it is expected that electric companies will increase Texas electricity rates to recoup their losses in revenues. What this implies is that consumers should not wait for the full impact on winter to shop for Texas electricity but should make their move now – before Texas electricity rates shoot up.
Texas residents should start looking around the marketplace and start shopping for Texas electricity rates while they are still low. The next step would be to lock in these rates for a long term plan, preferably for a 12-month period as indicators point to potentially much higher rates not only in the coming winter season, but is projected to roll over to the subsequent months as well.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
