December has seen Texas electric rates come way down. The reason the market has dropped to where it is at has to do with about 7 different variables and many other factors that are not easily discernable. Take a look at a graph showing what 12 month commercial term rates have done over the last year. This graph has the TDSP charges unbundled from the “energy only” rate but show the same thing residential rates are doing as well. We had a mild summer that drove prices down and we are now hitting the winter months. If you are wondering if you should lock in to an electric rate then you  tell me. The graph shows lows for commercial energy at 7.8 cents and there appears to be a support line here. If this is a support line then you can expect another bounce off of this. Since people will be heating their homes soon I would predict electric rates are about to head right back up. Natural Gas heating does indeed affect electric rates because Texas generates their electricity primarily using natural gas. So when everyone turns on their heating and we have our electricity going we often see electric rates go higher. If we have a mild winter then energy rates could come down. There are quite a few more variables that affect the energy rates in Texas but this is enough to explain what could happen.

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