Do Texas electricity rates vary throughout the year?
As any Texan who pays utility bills knows, electricity is more expensive in the summer. Even on a fixed rate electricity plan, the monthly expense increases because of higher usage. Wholesale energy prices also increase in the summer months. Demand increases and power plants work around the clock to supply Texans with the energy they summon to their air conditioners, refrigerators, and other appliances. As the summer drags on, Houston electricity customers impatiently wait for fall temperatures and the lower electricity bills that the season of football, cardigan sweaters, and pumpkin-spice-everything brings.
Most of the year, Texas electricity prices increase and decrease along with the outdoor temperature. Extreme temperatures in either direction increase energy demand. While winter prices are high, summer prices are astronomically high. Meanwhile, moderate temperatures during fall and spring keep prices relatively low.
When is the best time to change Houston electricity plans?
If your home’s electricity plan is about to expire, you have a significant choice to make. Do you lock in a price now, or do you ride out the summer on a month-to-month arrangement to secure a lower price in the fall when prices come down?
This year is a little different than most others. August is usually Texas’s hottest month and therefore has the highest electricity prices of the year. However, energy prices are actually lower than they were earlier in the summer, and they’re roughly one cent per kilowatt-hour lower than last August. Mild temperatures have kept prices low, and experts predict electricity prices will stay low if the current weather trend continues.
Cheap energy plans available right now
For some Houston electricity customers, the thought of riding the waves of summer electricity prices sends shivers down their spines all the way to their wallets. If you want to lock in a fixed rate electricity plan, retail providers have some cheap plans available right now.
For low usage customers, the Solarize 36 plan from Chariot Energy offers an average rate of 9.2 cents per kWh at 500 kWh of usage. Low usage customers tend to pay a higher average rate than moderate and high usage customers because of monthly charges assessed by TDUs and some retail electricity providers.
Moderate usage customers will find the best price with the Texas Saver 12 plan from Pulse Power. The plan’s substantial bill credit at 1,000 kWh makes this plan’s low price possible. Customers at this usage pay an average rate of 7.0 cents per kWh.
No one has a crystal ball for what electricity prices will be in the fall. Experts can venture well-informed guesses, but no one knows for sure. You may be able to get a better price in the fall, but the prices are very good right now. Regarding when to sign up for an electricity plan, the choice is yours.
You have the power to choose your electricity company
Texans have the right to choose power providers who service their homes. Companies compete for your business. Competition drives down prices, so customers can pick the retail provider that gives the best customer service for the best price.
How to switch electricity providers
Texas Electricity Ratings is the ultimate resource for selecting a Houston electricity plan. Whether you shop now or wait for fall, the tools and information here give you the confidence to select at Texas electricity plan that will meet your needs. Switching Houston electricity provider is fast and easy at https://www.texaselectricityratings.com.