The record temperatures in Texas which have pushed customers to use their air conditioners non-stop mean customers need to check the energy rate they are currently paying for electricity, and make sure they are saving as much money as possible by shopping for the lowest electric rate.
With several Texas cities continuing to see records broken for consecutive days with 100-degree heat, customers' electric bills for July and early August usage are going to skyrocket. While customers can't change their past bills, they can shop for a lower electric rate going forward, to make sure they are still taking advantage of the low electric rates for shopping customers in the market.
Record power demands, which have prompted calls for conservation and even the interruption of large industrial customers under demand-response programs by the Electric Reliability Council of Texas, have sent wholesale power prices soaring to the price cap of $3,000 per megawatt-hour repeatedly over the last two weeks. That works out about a retail price of $3 per kilowatt-hour, while the lowest electric rates in Texas are about 8 cents per kilowatt-hour.
In other words, wholesale electric prices in Texas have spiked 3700% versus the lowest retail rates. Unless customers ensure that they are with an electric provider that protects them from these price spikes, customers could face a double-whammy on their bills -- both higher charges due to increased usage from the heat and higher charges due to a pass-through of higher wholesale electric costs.
Many customers in Texas continue to pay 12 cents per kilowatt-hour, or more, for electricity, even though electric prices for customers who shop around are up to 33% lower than these rates.
Such savings, which are available at just a few clicks of the mouse, can help blunt the impact from customers' spiked power usage during the heat wave going forward, and help customers realize price savings to offset their increased usage.