Executives with several major Texas electric companies have all said recently that they expect Texas electric rates to rise in the near future, meaning that customers need to shop now with SaveOnEnergy.com while rates are still low.
Texas electric rates have remained low and relativity stable for the past few years, thanks to low natural gas prices, reduced demand due to the recession, and temperate weather. That changed, however, this summer with the record-breaking heat which plagued Texas for nearly two months, which sent wholesale energy prices skyrocketing.
Meanwhile, Texas electric demand is growing again as the economy recovers, putting an additional strain on the electric grid.
Finally, new federal environmental regulations threaten to shutter a significant number of power plants in Texas. This reduced generation capacity will only push the electric grid further towards a supply/demand imbalance, pushing prices higher.
Many Texas electric companies have recently reported quarterly earnings, and in doing so executives have spent the past week speaking with investors about the bleak outlook for Texas' "reserve margin" -- or how much generation is on the grid in excess of demand, which is needed to avoid rolling blackouts. Because the reserve margin is shrinking, due to the increased demand and environmental-related plant shutdowns, executives at several Texas electric suppliers said that they expect prices to increase to reflect this supply/demand imbalance, and also due to the inherent volatility that accompanies any such imbalance.
Retail electric providers, which face greater risks and credit costs from wholesale market volatility, are expected to price such risk into their retail electric rates, raising them from the current lows. Today's low electric rates are not sustainable for the long-term, several executives said.
The good news is that despite these forecasts, there has been no meaningful increase in Texas electric rates yet, and customers can still lock-in a favorable rate by shopping with SaveOnEnergy.com. Texas electric rates are still essentially at their lowest point since competition started nearly a decade ago, and are even lower than the old, monopoly rates from 2001.
So it's a great time to find a competing energy provider using SaveOnEnergy.com and to take advantage of today's low prices, which may not be around for much longer. Customers who choose a low energy rate using SaveOnEnergy.com can avoid the forecast electric rate hikes in Texas, and continue enjoying low prices made possible through competition.