Great Overview of the Texas Electricity Market

Posted on Posted in Fixed Rates, Texas Electricity News, Trends

This week, I ran across a fantastic article from the Wall Street Journal that talks about the Texas heat this summer (particularly in Central Texas). The article talks about why electricity bills remain high overall despite low natural gas prices resulting in cheap electricity.

Now, the reason for which the article was written a pretty good one, but that isn’t why I find this article so great. The real thing that makes this article fantastic is the details and processes it illustrates as to WHY the prices remain high. The article actually steps through a lot of things about the Texas market place that not a lot of people in Texas probably know about in regards to Texas Electricity. It touches on changes in Kilowatt per-hour prices, how the cost of natural gas is tied to prices, how increased demand (from heat and drought) forces into service older and more costlier generators to account for elevated demand, and even how drought conditions force increased consumption because of water usage. It’s a great overview of the residential Texas energy in an easy to understand nutshell. I think everyone should give this a read.

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