Electricity Rates in Texas Set to Go Up

For the last few years, predicting the rise and fall of electricity prices was a fairly simple process. If natural gas rates fell, so did electricity prices, and so on.

That could change soon, according to a recent article in the Houston Chronicle, which says that Texas state regulators will soon raise the cap on how much wholesale electric producers – power plants – can charge retail electricity providers, a charge that is sure to be passed on to the end user.

The cap is set to increase August 1, 2012, and could go up again on May 31, 2013.

Incentive for Growth

According to regulators, the real purpose of the cap increase is to spur the development of additional power plants in Texas, a crucial need made apparent by weather events that strain the electrical grid like last year’s February freeze and summer heat wave.

According to T.J. Ermoian, president of Texas Energy, “it’s becoming more and more important to understand all the factors that go into energy pricing in order to secure the best electrical contract for your needs.”

“As the energy landscape becomes more and more competitive, buying electricity in Texas will only get more complicated. Add to that Texas’ rapidly growing residential and commercial population, and the increased demand they will generate, and it’s easy to see that it’s more important than ever to make well-informed decisions when signing electrical contracts.”

To read the original article in the Houston Chronicle, click HERE.

About Texas Energy

Texas Energy is an electricity consulting firm based in Waco, Texas that helps commercial electricity customers make smart energy buying decisions. Texas Energy serves cities across the ERCOT grid, including: Abilene, Corpus Christi, Lufkin, Midland, Nacogdoches, Odessa, San Angelo, Temple, Tyler and Wichita Falls.

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