If you’ve been thinking about shopping for a new Texas electricity provider but have been holding off because natural gas prices rise during the summer and so do electricity rates, listen up.
Now is still a good time to shop for lower electricity rates.
Yes, natural gas prices are expected to rise this summer — BUT not nearly as much in previous years. That’s all because of big glut of natural gas currently in storage. It’s at a 5 year high. Even with more generators all over the nation burning a record-setting 26 billion cubic feet per day (Bcf/d) for powerburn there’s already a record 3,000 Bcf in storage. Sure, natural gas prices have been on the move, rising from within one week from about $2.50 to $2.60/mmBTU due mainly to reduced production levels. However, prices have averaged below $3/mmBTU since January, 2015. Current monthly averages are expect to stay below $3.00/MMBtu through the end of 2016 because price levels will encourage production increases. That will help keep both natural gas and electricity prices low going into fall.
What does that mean for electricity prices? The US Energy Information Agency (EIA) states residential expects the U.S. residential retail electricity in June to average 13.0 cents/kWh and stay about the same for the rest of the year. Texas residential electricity prices are down from 11.63¢/kWh in March 2015 to 11.25¢/kWh this March. With ERCOT forecasting a “slightly greater potential for a mild summer” with slightly cooler temperatures along the Gulf, there’s a very good chance that Texas electricity rates will not vary much for the rest of the year.
So, what are you waiting for? Get out there and start shopping for the best Texas electricity deal now! You can save money by keeping an eye out promotional rates and comparing incentives or reward programs. Remember: annual average rates are expected to rise 2.5% in 2017. Snagging a low, long-term fixed rate plan might be just the ticket to saving you money.