Other factors causing Houston electric rates in the state of Texas and not just Houston to rise higher is the skyrocketing natural gas prices and oil prices. Power plants in Texas use natural gas in large quantities to produce our electricity and this demand has caused natural gas to rise higher and higher. Stock and energy traders are hedging against bad investments in the stock market by buying up natural gas and oil futures. This trading in energy causes additional pressure for energy prices to rise. I believe prices will dip back down somtime in 2008 but when is anybodys guess.

Although you don’t have a choice in how ERCOT penalizes Harris County Texas you do still have a choice in the electric provider you choose. We recommend Affordable Energy as a good solid residential electric provider in Houston Texas. Affordable can save you money on your Houston electric bill simply by signing up with them when your current electric agreement with perhaps TXU Energy or Reliant Energy comes up on expiration. Affordable Energy is a traditional energy company although they also offer the opportunity to sell their electricity to a few people in an MLM sales marketing business. Since Houston Affordable Energy is just about to relaunch their MLM business on May 31st 2008 you have the potential to make more money in this work from home opportunity then most people who get in at a later stage of the business life cycle when the momentum starts to die down. Think about it, you can make money on your own energy bill and reduce your electric rate as well as have your own little electricity franchise.

Most people know about Ambit Energy and Ignite Energy and how they really made it big in the Texas market. Ignite is estimated to have well over 400,000 electric customers. Ambit Energy is on target to grow at close to the same pace as Ignite. Affordable Energy in Houston is your next opportunity to get in at the ground floor of a very profitable opportunity.

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A few days ago gold spiked down $59, with it oil dropped below $100 a barrel, Soybeans, Wheat also dramatically made a free fall. One of the other commodities that came down has a very significant correlation with Houston Texas electric prices. Natural Gas also came down and with it so did commercial and residential electric rates in Houston. Residential electric prices in Houston take a little longer to respond to the market in comparison to commercial electric prices but will likely also come down if the commodities market continues to spiral down.

How Natural Gas Effected Houston Energy

Natural Gas was as high as $10.5 mmBTU when electric rates in Houston were at their 3 year highs just a few weeks ago. Now Natural Gas is around $8.5 mmBTU and is on a steady decline. If commodities continue on their downward ways then residential electric rates in Houston will be much more affordable then they were just a couple weeks ago. Texas electricity is very volatile because so much of our electricity is generated from coal and natural gas powered generation plants that use this fossil fuel commodity to create steam which then turns large electricity generating turbines.

How Do Residential Electric Rates React To Commodities?

Residential electric prices in Houston take a little bit longer to respond to the declining commodity market so you may want to sign up for a shorter term contract until April 2008. In April and May 2008 electric rates should be affordable enough to lock into a 12 month contract. Until rates respond you may want to sign up on a semi-annual energy contract.

Keeping Track With Texas Electric Rates

If you would like to follow the price of natural gas you can visit www.nymex.com where natural gas is listed as NG and is updated in real time. When natural gas is trading between 8 - 6 dollars mmBTU electric rates in Houston are usually affordable enough for most people. Atleast at 8 - 6 dollars mmBTU you will find electric rates below their historical average prices for the year. Natural Gas has a 90% correlation with Houston electric rates which will give you some idea of why we refer to natural gas as much as we do when explaining the price of Houston electricity.�

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A 3 month electric rate is much higher right now then a 6 month electric rate and a 12 month electric rate in Houston is a bit higher then a 36 month electric rate. If I were going to sign an electric contract I would go with the 12 month electric agreement and try again next year. It is just too hard to time the market although many people try. Weather is too unpredictable and natural gas is too volatile which directly effects Houston Texas electricity.

Affordable energy can be had in two ways during a high market. Installing radiant barrier in the attic of a house can reduce your electric bill up to 30%  and up to 60% if you install it in the exterior walls as well. Radiant Barrier is a cheap investment for the amount of money you can recoup in a little under a year. What this stuff does is block out 98% of the radiant heat from the sun from ever entering the house. This keeps your house cool in the summer and hot in the winter. You may have seen this new space age insulation at Lowes or Home Depot. It is kind of expensive if you buy and try to install it yourself. If you call an energy efficiency company they can buy and install it cheaper then you could just buy the material itself. For small projects you might want to just go to Lowes and Home Depot but for bigger jobs call an energy efficiency expert who specializes in Radiant Barrier technology. There is one in the East Texas area that can handle business from Tyler Texas clear to Houston Texas if necessary. The companies name is Energy Improvements.

Another way to reduce your electric rate is to lock in an electric rate with the lowest cost provider and get on an MCPE variable electric rate if you qualify. You must use atleast 1,000,000 kWh a year to qualify for MCPE which is a few cents cheaper then a fixed rate. If you do not qualify then you can bid down the electric rate by using a qualified energy consultant who can find you the lowest cost Houston electric rate in the market. There are many other ways to reduce the cost of your electricity like off grid systems such as wind turbines, and solar panels but this is outside the budgets for many and not easy to implement within city limits.

If you have questions about your Houston electric bill or an energy quote a different Houston electric provider has given you then please contact us so we can help you in making an informed consumer decision in regards to your Houston electric contract.

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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.

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I hope the warning on variable electric rate contracts has set in and made an impression because many people have been stung by this type of product. A better solution to wait out high electric prices in Houston is to sign up with an electric company on a shorter term fixed rate contract. You can sign up with Affordable Energy on a 6 month fixed rate contract at a pretty affordable price and then after the 6 months is up go back out and see if rates have come down.

Many people try to pay attention to the supposed seasonality of electric rates. The issue with this is that seasonality is already built into the electric rate. There are even futures markets that incorporate the weather predictions for the coming year in their energy contract. These futures contracts then effect real time electric rates being offered by Texas electric providers. If the summer is hotter then expected you will see electric rates go up instead of down. If the winter is colder then expected you will see electric rates in Houston go up. Weather is very unpredictable and it is weather’s unpredictableness that causes electric rates to do the unexpected. The best thing to do is go ahead and make your own hunch about what electric rates might do during the year and pick a fixed rate contract, whether it be for 6 months or 12 months. The point here is to pick something, anything, other then a variable market rate.

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If you are wanting to get on something for the short term to wait out the spike in the energy market I would suggest signing up on a 6 month electric contract. The 6 month rate is a little cheaper then the 12 month electric rate and you can try again for the 12 month fixed electric rates when prices hopefully come back down. Keep in mind that the Houston Texas energy market is the same as speculating on any number of other markets. There is really no way of predicting just when prices will come back down. It could be a very long while before we see a price drop with Houston electric rates.

If you need to sign up for a Houston residential electric rate with Affordable Energy then I would recommend the 12 month rate. This way you will not have to fool with watching the market and signing up again for a year. Hopefully the market will look better next year because right now you are stuck signing up on a high rate like everyone else. Be sure to mark it on your calendar when the Affordable energy contract is up so you can sign back up on a fixed rate term. It is important that you sign up on some type of fixed rate product before the end of your Houston electric rate contract or you will be put on a fluctuating market rate.

If you have questions about a current electric bill feel free to send us an email or give us a call. We would be happy to answer your questions and direct you to the right page if you happen to be lost out here on the world wide web.

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Who is qualified to receive a Houston electric rate discount?

If you are receiving food stamps or Medicaid then you automatically qualify for this program and will automatically be included. A problem could occur if the information you have provided the Houston Electric Provider does not match what the department of Health and Human Services Commission (HHSC) has on you. If you are not receiving aid via Medicaid or food stamps you may still apply if your total income is less than 125% of the federal poverty guideline.

When do the discounts happen?

You will have have your Houston electric bill discounted in May, June, July, August, and September of 2008 as well as May, June, July, of  August 2009. The discount will begin at the time you are approved for the program once the information has been received by the Houston electric provider. Some Houston electric companies cannot provide the needed discount in July. In this case you will be credited on your electric bill for this in August.

How do I apply for Lite-Up Texas?

You can apply for this Houston electric rate discount program by calling this number: 1-866-454-8387

You will need to provide the following information when you call:

• A Houston electric Bill
• Two months showing proof of income

The electric discount is about 12% less then what you would normally pay your Houston electric company. Some people may qualify for additional electric bill assistance. There are assistance programs are offered by TDHCA as well as many retail electric providers.  You can contact TDHCA at 1-877-399-8939 to see if you may qualify for additional assistance.

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When comparing Houston electric rates it is important to try and get as many fixed rate monthly term prices as you can. It is best to stay away from variable electric rate plans as many of these plans can be changed on whatever basis the electric company desires. For instance, if you were to lock in at Cirro Energy’s variable electric rate for 12 months you may think you have signed up on the lowest electric rate out there. If you pay closer attention to the contract you will notice that you are locking in for 12 months on a contract that can be changed for any reason. This electric rate product is not what you want to get into. The truth is that most variable electric rate plans have no term. It really makes no sense that an electric company would have you sign up on a changeable rate for a time period since it is not in your advantage. If you do sign into a variable electric rate product make sure there is no term contract and that you are allowed out of the contract with no penalty.

In comparison a fixed electric rate contract in Texas is usually bought as a natural gas commodity and then hedged. Most Houston electric companies will have a 3 month electric rate term, a 6 month, 12 month, and sometimes a 36 month and 48 month Texas energy contract. These contracts are a specified monthly term because the energy company has actually gone out to the commodities market and bought a futures contract for that time. They then hedge that investment to protect themselves against price fluctuations. Finally the Houston energy company will sell it to you as an electricity contract for one of these monthly terms. Because Texas relies on natural gas as their primary commodity when creating an electric rate product to sell the residential and commercial customers, there is actually a 90% correlation with natural gas prices and electric prices in Texas. You could actually follow what natural gas is doing to determine if the Texas electric market is up or down for the day, month, or year. This is a helpful way to see what electric rates have done once you have settled into a Texas energy contract.

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