Electric Rates Increase in Texas

Electric Rates Increase in Texas

Texas is the state in the union that produces the most energy. Since Texas’ power market was deregulated in the 1990s, electricity rates have never increased as quickly, and this could cause sticker shock for consumers whose electricity contracts are about to expire.

HOW MUCH HAVE TEXAS’S ELECTRICITY PRICES GROWN?

According to Mitchell Sherman of The Dallas Morning News, who compared new rates offered by state power suppliers in 2022 to those consumers were offered in 2021, the average price per kilowatt-hour of electricity for Texans has climbed by 70% year over year since June 2021. Residents of the Lone Star State signing new contracts in June 2022 are paying 18.48 cents per kilowatt-hour, which is 10.5 cents more than the average rate they were paying in June 2021, according to Electricity to Choose, a website where Texas consumers can compare power plants (7.98 cents).

WHY HAVE TEXAS’S ELECTRICITY PRICES RISEN?

The costliest price ever recorded is at this new level. According to EnergyBot, energy suppliers are paying more for wholesale electricity, which raises prices. A substantial increase in natural gas prices parallels the increase in electric rates. According to ERCOT, more than 40% of the electricity that enters the Texas power grid is produced by power plants that are fueled by natural gas.

The Public Utility Commission of Texas and the Electric Reliability Council of Texas, implemented a number of modifications to laws, regulations, and market rules following Winter Storm Uri in February 2021, some of which led to higher supply costs in the state. The finalization of these reforms will result in higher fees for Texans.

Ukraine’s invasion, the February freeze’s weather-related disruptions, Hurricane Ida’s shutdown of Gulf Coast oil production, and supply shortages are other causes that have raised prices.

EFFECT OF ELECTRICITY INCREASE ON THE PEOPLE OF TEXAS

You’ll most likely have to pay more per kWh than in the past if you’re shopping for electricity. According to EnergyBot, the majority of market indicators do not anticipate rates to decrease much in the near future; in fact, rates may continue to grow.

Thus, people should expect higher rates in the next coming months in all commodities.

IS THERE ANY HELP?

Due to this eminent increase not only in electricity rate but also for other commodities, there are many choices available to Texans who need help making ends meet while taking increased energy costs into mind.

The Comprehensive Energy Assistance Program offers financial assistance to eligible households. According to the program’s website, this is a utility assistance program designed to help low-income households meet their urgent energy needs and encourage them to minimize energy expenses going forward through energy education.

The CEAP offers financial support, covering up to six or eight of the highest annual bills, depending on whether they are considered vulnerable households, to low-income elderly and/or disabled households that are “particularly exposed to the high cost of energy for home heating and cooling.”

The program also offers aid amid a crisis involving energy, bad weather, or a supply constraint. You must be a resident of Texas and in need of financial assistance with home energy bills in order to qualify for this benefit program. The yearly income must be less than $20,385 for homes with just one person, $27,465 for households with two people, and $69,945 for households with eight people.

Share this post

Leave a Reply

Your email address will not be published.


CALL (817) 513-6018