Summer heat has no effect on electricity prices
Electricity prices in Texas continue to come down as natural gas prices steadily drop.
Today Natural gas is trading at $6.20 MMBtu and could go lower by the end of the day. We quoted a large industrial complex an electricity rate at .075 cents a kwh. Electricity prices are so low right now a business would be crazy to not sign on the dotted line for the 12 month contracts out there. The 12 month contract however is not as good as the 6 month electric contract.
Which electric term contract should I go with?
The electricÂ rate for a 6 month electricity contract is at .0695 cents a kwh for large industrial facilities. For small commercial facilities the rate looks more like .0755 cents a kwh for 6 months. These rates are better then where they have been at in over 2 years. Right now is a perfect time to extend or renew an electricity agreement. I would recommend the 12 month contract and try again next year. The terms rates go up significantly from the 12 month term. 24 month, 36 month and 48 month contracts are all much higher then the 12 month contract.