Texas Power Rates: What Gives?


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There are many factors involved when it comes to Texas electricity and power rates. Location is a key factor because that determines which power sources are available in that area. In some areas with hydro-power electricity, it doesn’t cost as much as those that use natural gas (which tends to be a more expensive source).

Weather is also an important factor in price. During the summer, the demand for electricity is much higher which can cause the demand to be so large that the prices shoot up. If a place is powered by hydro-power, then a rain storm could potentially make electricity costs drop. The cost of a power plant will also play a part in how much you’ll pay for electricity. Once it is built, it still needs to be maintained (which costs money).

Regulated vs. deregulated states pay different amounts for electricity usage. Deregulated states have more competition among providers, so there is usually potential for customers to save money by choosing who they want to use. Texas electricity rates vary as some areas of Texas are deregulated while others are not.  (The Austin metro area, for example, IS regulated…….)

However, there are efforts for the regulated areas to become deregulated as well. In recent years though, the rates for electricity in Texas have gone up considerably. You have to realize though, that in the places that have been deregulated, even though the prices have gone up, they could’ve gone up even more.

Since Texas has such a large population, of course the demands for electricity are going to be high. When the demand is so high that it surpasses the supply, the price will raise on that particular item or product.

Since most of the energy in Texas comes from coal or natural gas, which are non renewable resources, Texas electricity rates seem to stay at a high level compared to other states.

Consider summer in Texas. The extreme heat makes it imperative to use the air conditioners. When you have a large population who are all using their air conditioners, a lot of electricity is being utilized.

If you do live in a part of Texas in which you can choose your supplier, make sure you are informed about your choices. Look at others companies and see what they have to offer you. If you haven’t put any time or thought into this, chances are you may be paying too high Texas electricity rates. Though demand will always be high in Texas, which means the prices will be higher than other states, there are still some ways to save money. Choosing your electricity supplier is one of them.