Let’s Look at the Numbers…
Texans in the past years have experienced relatively low rates, but it is looking to consistently go up in the next few years. Increasing costs in natural gas and power supplies struggling to keep up with rising demand look to be the reason. In 2019, the Department of Energy reported prices increased 4.1 percent in the past two years. Residential electric bills in Texas increased by 17% and averaged $134 in February 2021 compared with $115 in February 2020.
The strenuous weather in February exposed major issues in the power structure. Natural gas pipelines and wind turbines froze up in Texas, causing a loss in supply of electricity, meanwhile the demand remained high, causing wholesale prices to shoot up. Although the drastic increase in wholesale prices was short-term, the impact on the state’s electrical infrastructure will be felt for decades.
Electric Reliability Council of Texas (ERCOT) claims that there will be record high prices during the summer months for electricity customers. The shutdowns of three of the state’s largest coal-fired generating plants have driven the state’s power reserves down to their lowest in more than ten years.
Secure Your Electricity Rates
By going solar, property owners will be able to consume the electricity their solar panels produce. They are able to purchase a large enough solar panel system, they would never need to pay an electric bill again. However, the more frugal homeowners should check out getting a system large enough to at least hedge the increasing rates.
Solar Edge Pros offers systems of various sizes, on the roof, with a carport, even on the ground. We also provide different loan options so our clients can pay the same price for electricity for years. Learn more about how Solar Panels generate electricity by clicking here.
Sources:
20, sparkenergy March. “Texas Electricity Rates Expected to Increase.” Spark Energy, 14 Mar. 2019, www.sparkenergy.com/texas-electricity-rates-to-increase/.
Buckley, Kyra. “Here’s What To Expect From Your Next Electricity Bill In Texas.” Houston Public Media, 3 Mar. 2021, www.houstonpublicmedia.org/articles/news/energy-environment/2021/02/22/391956/heres-what-to-expect-for-your-next-electricity-bill/.
Pisani, Joseph. “Why Some Texans Are Getting Sky-High Energy Bills.” AP NEWS, Associated Press, 22 Feb. 2021, apnews.com/article/texas-high-electric-bills-explained-aa77ff97be48bf2c8fabfdc2e4a6d08c.
Sixel, L.M. “Texas Electricity Rates Climbing Higher than U.S. Average.” Chron, Houston Chronicle, 27 Aug. 2019, www.chron.com/business/energy/article/Texas-electricity-rates-climbing-higher-than-U-S-14380252.php.
“State Agency’s Failure May Cause Electricity Rates to Rise.” Spectrumlocalnews.com, spectrumlocalnews.com/tx/san-antonio/news/2021/02/16/state-agency-s-failure-may-cause-electricity-rates-to-rise.
“Texas Electricity Prices Expected to Skyrocket in 2021.” ComparePower, 2 Apr. 2021, comparepower.com/texas-electricity-prices/.
“U.S. Energy Information Administration – EIA – Independent Statistics and Analysis.” Average Texas Electricity Prices Were Higher in February 2021 Due to a Severe Winter Storm – Today in Energy – U.S. Energy Information Administration (EIA), www.eia.gov/todayinenergy/detail.php?id=47876.
“U.S. Energy Information Administration – EIA – Independent Statistics and Analysis.” Short-Term Energy Outlook – U.S. Energy Information Administration (EIA), www.eia.gov/outlooks/steo/report/electricity.php.
“U.S. Energy Information Administration – EIA – Independent Statistics and Analysis.” Short-Term Energy Outlook – U.S. Energy Information Administration (EIA), www.eia.gov/outlooks/steo/report/summerElectricity.php.
