Electric Rates in Houston at 8 Month Low

I have had more then a few people ask me when I expect for electric rates to bottom out. Electric Service Consumers in Houston want to know if they should hold out longer and wait for rates to go lower. There is no good answer to that question. Just as it is impossible to pick a top or bottom in the stock market it is also impossible to pick a top or bottom with electric rates and the commodities market in oil and natural gas which Texas electric rates tend to follow.

Right now Houston Texas Electric rates are at an 8 month low and are sitting at afloor created back in January. It is a perfect floor to bounce off of if I have ever seen one, only speaking from a technical standpoint. If I was needing to lock into an electric rate I would lock in for 1 year or longer as rates will likely bounce off this floor and there is no telling when they may come back down. When picking Houston Electric rates you will have 3 options with Affordable Energy. They are currently offering a 1 year term, a 2 year term, and a 3 year fixed rate term. It all depends how risk averse you are but if you want to lock in near a bottom for the long term we recommend the 3 year fixed rate term.

By the way, regarding this drop in Houston Electricity rates, we called it. We have been telling people for several months that the spike in energy prices was a bubble that would soon burst. With the breaking down of Hurricane Gustav the gulf coast was spared with all their natural gas infrastructure which allowed energy and Houston electricity prices to come down even further, I think we can expect rates to come down another penny in the next few months before they come up again but this is only my estimation. Your guess could be better then mine otherwise I would be trading energy commodities.