Energy Prices In Houston
Energy prices in Houston have come up again today to new historical highs making electric rates in Texas not very affordable for many people in the state. The reason electric rates have come up again has to do with a recent unexpected cold streak hitting Texas. These cold temperatures have caused the natural gas supply to fall below their expected storage surplus values. This natural gas in storage is what fuels the electric generation plants in the state of Texas which is where we get our generated electricity from.
Electric Rates In Texas
If you were to look at a graph of electric rates in Texas you would notice that electric rates can remain at their lows and highs for several months before making another move. If you are planning to hold off on locking into an electric rate be prepared to wait a few months. If you cannot wait that long I would recommend signing up on a short term contract like Affordable Energy’s 6 month electric contract.
Electricity Generated From Natural Gas
In Houston we have most of our electricity generated from natural gas power plants. If we relied more on nuclear power we would have less electric price volatility. Nuclear in combination with natural gas power plants would help to keep electric rates in line with the average electric rate in the rest of the United States. Texas still remains as one of the highest electricity priced states. The citizens in Houston pay more for their electricity then every other region in Texas. Houston consumers pay more for their electricity then those in Dallas, Wichita Falls, Alpine, San Angelo, Laredo, Tyler, and all other major cities in Texas.
Congestion In Houston
The congestion in Houston and the need to pipe in energy outside the city causes line losses and other issues. These electricity issues in Houston is part of the reason you pay a little higher price for your energy in Houston. The higher priced electricity in Houston is unlikley to come down anytime soon until we build some new nuclear power plants. We will probably see some new nuclear power plants go into effect in about 10 years in and around the Houston area. These type of power plants have to go through a very long process from planning to actual construction which can be a little frustrating for those waiting for cheaper energy.