Compare Energy Texas Plans, and Rates to Save

Texas Still Leads in Green Energy Sources

ERCOT forecasts a summer peak demand of 82,739 MW. And to meet this demand during AC season, ERCOT’s additional 9.1 GW power grid capacity from 2022 will be very useful. And better yet, this added capacity comes from renewable sources. This doesn’t just secure Texas’ place as the leader of green energy sources in the US. It can also reduce Texas electricity prices. 

What Green Energy Sources Mean for Dallas Consumers?

While no coal-burning plants will likely be retired in ERCOT this year, more power is generated from renewable energy than coal. In fact, in March 2022, wind power was the 2nd largest energy generation source in the US. And Texas is famously the leader in wind power.

Apart from the pride Texans can feel for environmental protection, this directly benefits consumers. Especially since ERCOT also has a battery capacity of 4,459 MW to satisfy the peak summer 2023 demand prediction. And having more supply has a great effect on prices.

Consumers in Texas may see significant price drops for electricity this summer. Plus, with the predicted fall of natural gas prices, you’ll likely find good deals as early as the Spring shoulder months.

Will We See Spring 2022 Prices Again?

Power prices more than doubled between the summer of 2021 and summer of 2022. We reached the peak in historical energy prices in September 2022. So, there is a good possibility for cheaper electricity. However, will energy prices ever return to how they used to be?

Two years ago, the average rate for a 12-month plan in Dallas was 11.2 cents per kWh. Today, the average rate is closer to 16.1 cents per kWh. Although we have seen a steady decline since the September peak, energy prices still have a ways to go before they return to normal. But for now, we’re on track to see Spring 2022 prices again.

When to Shop for Electricity in Texas

If you’re shopping for a new plan right now, it may be worth monitoring the prices before you commit. The Spring shoulder months are close, and you’ll likely find much better rates in April than you would now. Waiting a short term can mean more savings long term.

If your plan has just expired, and your current provider doesn’t offer a favorable rate, the Energy Texas Monthly variable rate is definitely worth considering. Currently, Dallas-based customers can take advantage of its 10.1 cents per kWh energy charge for 1000 kWh monthly average usage. At that rate, your monthly estimated electricity bill would be only $95. 

Switching providers to sign onto a fixed rate plan for 3 or 4 months and cancelling might not be worth it. True, the Energy Texas plan is a variable rate. But while there’s no guarantee the price will be the same next month, the current price trend still makes it a good bet.

But How to Find the Best Deals

The best way to save money on electricity is to compare the current deals and choose the best one for your household. And the best place to do that is at https://www.texaselectricityratings.com. You can view all the current electricity deals in your area, monitor the prices, and commit when you see the predicted price drops. Although the Spring Shoulder Months are still a few months away, hopefully, the wait will be worth it.

Explaining the new market charge on Your EFL

Usually, you can see the base charge, energy charge, and delivery charges listed on your Electricity Facts Label (EFL). But, you may have noticed a new “market securitization (debt) financing” charge as well. What is this “market securitization (debt) financing charge”? And how much will it cost you? Understanding all charges on your bill can help you get the best electric rate. So, let's find out!

It All Started in 2021

In February 2021, Winter Storm Uri caused a major power crisis in Texas. The storm and the subsequent outages damaged over $100 billion worth of property and led to the deaths of at least 200 Texans. 

For Texas Retail Electricity Providers (REPs), the power grid failure was a devastating business blow. Contracted to deliver electricity to overloaded lines, providers had to buy wholesale electricity at $9,000/MWH instead of the usual $32/MWH. This meant that many had to go out of business. And those who didn’t were left with a tremendous amount of debt. 

How the Market Securitization Charge Benefits Texas

In many ways, Storm Uri was a wake-up call. Sharing a grid means that the failure of some affects everyone else too. So, handling future grid emergencies better benefits everyone in Texas. That’s why the Public Utility Commission of Texas found that paying this debt off as soon as possible is in the best interest of the public. 

And so, the legislation that allowed the market securitization (debt) financing charge to be added to your bill went live in June 2021. According to House Bill 4492, Texas REPs can add this charge to their bills for the next 30 years. This is also referred to as ERCOT’s uplift charge.

With this money, REPs can pay off their debts to ERCOT quicker, and prepare for another crisis ahead of time. Adding it as a small charge to your bill spreads the costs over many years and minimizes the financial impact if a crisis like Winter Storm Uri happens again.

How Much Will This Cost You?

Since each REP owes a different share of debt to ERCOT, each provider will have unique market securitization charges. Most will charge you based on your usage.

For example, the market securitization (debt) financing charge at Energy Texas is currently 0.0563787 cents per kWh. So, if you use 1000 kWh per month as an Energy Texas customer, your market securitization charge will be 56.37 cents.

But, you’d pay a different amount depending on the provider you choose. And every provider will round this figure to the nearest cent on your bill.

Stay Informed About Texas Electricity

To shop for the best electric deals in Texas, visit www.texaselectricityratings.com. Compare current rates, read EFLs, and choose the best plan for your home. Be sure to follow our blog and use our resources to learn more about electricity in Texas.