Natural gas as most people know by now is what drives electricity prices in Texas. Well natural gas is on its way up again. Some people are saying that electric rates are already out of the price trend down and will continue up clear through the summer. I am a little on the sidelines as I think that it will be a bumpy up and down time this summer with electricity rates staying in the 7 – 8 cents kWh range. Texas electric rates have been as low as 5 cents a kWh the last few months which makes it hard to bite the bullet and lock in now that electricity rates are back up to 6 – 7 cents kWh. The problem is that if this is a new price trend you may not see electricity rates back down to 5 cents a kWh for a year or longer. It is almost impossible to catch the bottom of a price trend and so getting in close to the bottom is always something I recommend. If you would like to begin the process of shopping for the cheapest commercial electric provider in Texas then please click here to contact us.
I want to explain again that these are commercial electric prices and do not have the TDSP charges included. This is not to be misleading as commercial electric rates do not include TDSP charges initially because every business pays a different TDSP charge. Residential Texas electric rates are usually an all in rate that includes all fees and charges including the TDSP charges. The reason a residential rate is a total bundled rate is because a retail electric provider can average what most homes use in TDSP charges and make that a fixed charge that they bundle in with the “energy only” charge. For instance, if you go out to the state’s website www.powertochoose.com you will see that they list residential electric rates from different retail electric providers as a total bundled rate that includes the TDSP charges. If you attempt to shop commercial electric rates you will always initially be quoted an “energy only” rate that does not contain the TDSP charges because the retail electric provider will need to pull your historical electric usage to give you an accurate estimate of what you can expect to pay in TDSP charges.
A few Texas electricity companies from time to time will sneak on to the powertochoose website and will offer a residential electricity rate that does not bundle in the TDSP charges. At first it may seem that this is an honest mistake but when calling the electricity company and signing up for residential service the sales person will also fail to mention or disclose that their will be additional TDSP charges. Be careful when comparing and browsing electricity rates in power to choose as more then a few different times we have seen false rates on their site. If you need to sign up for the cheapest electric rate in Texas from a reputable electric provider we have the best deals listed on the top left on this page. Feel free to click on the “sign up now” link next to the fixed rate term you want and you can learn more and continue from there.