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The Time to Shop for Texas Electricity Rates is Now

December 20, 2011

In a deregulated energy market such as what is implemented in Texas and one of the main things people who have the power to choose energy options would like to know what would be the best time when they would shop for Texas electricity rates. As experienced over the last few years, the best period to shop would be during the winter months when historically Texas electricity rates were at their lowest and by locking in these rates in a long-term fixed rate plan, consumers would definitely get big savings.

Now, recent events and projected scenarios in the Texas electricity landscape are affirming the wisdom in shopping for Texas electricity rates now. Many residents will definitely remember the rash of electrical emergencies announced by ERCOT during the height of last summer’s heat wave that placed the state in a brink of rolling blackouts due to lack of capacity. Demand shoot up as consumers turned on their air conditioning at full power to combat the heat, almost eating up Texas electricity reserves prompting the electric grid operator to declare emergencies.

The same problem is foreseen the next time summer comes around unless additional capacities are realized. However, the cold winter conditions in the coming months are also projected to affect overall Texas electricity capacity. So, before all these projections commence and eventually affecting supply, it would be wise to be proactive and start to shop Texas electricity rates.    

Threats in Texas Electricity Supply

When the extreme winter conditions start to hit the state, it is projected that Texas electricity demand will shoot up to 60,000 megawatts. This is higher than the 54,000 peak demand that current grid capacities can supply during normal weather conditions. Current overall generating capacity is at 64,000 megawatts which could dip down to only 57,000 when extreme weather conditions strike.

This is further aggravated by the looming changes in clean air policies announced by the EPA, which could dip generating capacities further as old coal-fired power plants will most likely be shut down. With these developments, Texas electricity capacities may not be enough to maintain the 13.75 percent margin required during extreme weather conditions. There are over 59,000 megawatts of capacity under review and unless these additional capacities are realized, residents could be facing a serious threat to the Texas Electricity supply in the horizon.

The Ideal Time to Shop for Texas Electricity Rates 

With these projected scarcity in supply that the state could potentially encounter in the coming months, it is expected that electric companies will increase Texas electricity rates to recoup their losses in revenues. What this implies is that consumers should not wait for the full impact on winter to shop for Texas electricity but should make their move now – before Texas electricity rates shoot up.

Texas residents should start looking around the marketplace and start shopping for Texas electricity rates while they are still low. The next step would be to lock in these rates for a long term plan, preferably for a 12-month period as indicators point to potentially much higher rates not only in the coming winter season, but is projected to roll over to the subsequent months as well.

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