Last Year at This Time Where Were Electricity Prices?

If anyone was around in Texas last year during this time you probably remember having to pay one of the highest electricity bills you have ever had to pay in history. If you were already locked into a rate with a provider you were one of the smart ones who were protected during this volatile time. I saw a First Choice Power bill over 30 cents per kWh. I saw a few other Texas electric provider bills in the 24 cent per kWh range. Most Texas electricity companies were advertising fixed rates in the 16 cents per kWh range as can be seen in this historical chart: http://blog.electricitybid.com/index.php/2008/05/05/may-2008-houston-residential-electric-rate-comparison

The summer is the hottest time of the year and people begin cranking on that AC unit around May. Many people use double or triple their electric usage during this time. If you were using 2,500 kWh a month at this time and were paying 24 cents a kWh then you might have had a bill that totaled $600. First Choice Power customers may have had an electricity bill that was quite a bit higher. Several energy providers had sold unhedged power to their customers but were selling it as a fixed electric rate. National Power and Riverway Power were a couple of energy companies that did this and attempted to raise their fixed price on their customers when fuel prices went up. These providers no longer operate in Texas.  Some electric companies that were selling fixed energy prices without hedging eventually sold out to companies that had enough capital to take on the weak providers customers, honor the rate they charged and then hedged the energy they sold at a better time in the market.

Oil Prices from May 2008 to May 2009

Oil Prices from May 2008 to May 2009

Texas electricity rates have been coming down the last few months but have been toying with going back up for the past two weeks. These electric rates are down as of today but if you have read the news lately, a barrel of oil is considering going above $60 a barrel. Last year oil was hitting $100 a barrel and went as high as $140 before it tanked back down close to where it is today. We could be in for another disaster scenario this year considering how volatile energy prices can be. No one can accurately predict what energy prices will do but one thing we can say, electricity rates look pretty cheap right now when you compare them to last years prices at this time. You may wonder why we bring up the price of oil when talking about electricity. Oil and natural gas has a pretty strong correlation with electricity prices in Texas which is why we use the oil chart to compare. For instance last year a 1 year electric rate at this time was around 16 cents a kWh. This year you can lock in a 1 year rate around 10 cents a kWh. Now look at the oil chart to the left to see how oil prices were much higher last year then what prices look like today.

Right now a 1 year fixed electricity rate looks like the best rate. When you go out on a longer term fixed contract you will pay about 10% more but for the risk averse this could be worth it. By locking in for 2 or even 3 years you get in at a decent rate and avoid the volatile swings in electricity and fuel prices. When oil and natural gas commodities go up in price so does electricity. To avoid these volatile commodity price swings you should lock into something even if just for a year. You can compare the cheapest available residential electric rates by looking at the top left of this page in the side bar. We have the cheapest offers available there.

If you need a commercial Texas electric rate then please click on our contact link in the navigation bar at the top of this page and send us your information. A commercial energy consultant will call you right back.

Richardson Electric Rates in Comparison to TXU Energy

When choosing a Richardson electric rate you want to make sure you are signing up with a reputable Richardson energy company that does not have a track record for adding in hidden fees and charges. A residential Richardson energy provider should bundle all fees and charges in their electric rate they are advertising. If the rate is not bundled they should list any additional fees right below the electric rate being advertised so there is no question about what you are agreeing to. There is nothing that I hate more then to be tricked by a US company. We have enough regulations and rules to prevent an energy company from deceiving a customer but Richardson electricity companies will still do this from time to time. Not all Richardson electric providers are dishonest or expensive. We have a comparison of rates from multiple Richardson electric companies below. We also have Reliant and TXU Energy in our electricity comparison chart below.

TXU and Reliant No Longer the Price Leaders

You may notice in this May 2009 Richardson Texas electricity rate chart that TXU Energy and Reliant Energy have very expensive electric rates in comparison to the cheapest providers at the top. You may also see that Trickster Electric Company (name withheld be legal) has a cheap rate but we do not recommend them at this time as we continue to receive an excessive amount of complaints from their customers saying their electric rate is much higher once you receive an electric bill from them.

April 2009 Dallas Residential Electric Rates

We have gone back to check Dallas Texas electricity rates for the month of April 2009 to see where the electric providers fall in line on their prices. Some Dallas energy providers have prices that are several cents cheaper then some of the larger electric companies like TXU and Reliant. One of the reasons we put this list together is so that Dallas energy consumers can see that there are much better offers available for Dallas electricity service then what TXU Energy has to offer. For instance, checking the rates TXU Energy is offering as of today, April 17 2009, we see that they have a 1 year fixed rate listed at 13.8 cents a kWh. The cheapest available 12 month offer in the chart is for 9.4 cents per kWh with Champion Energy.

You can see updated current rates by using the compare tool at the top right.

April 2009 Houston Electricity Rates

We have compiled a list of some of the best and worst residential electricity rates in the Houston Texas area. You will find this detailed list below. The best Houston electric rate at this time is with Champion Energy. Reliant Energy and TXU Energy again remain at near the bottom of this list. Trickster Electric Company is near the top although we have received several complaints that Trickster raises the electric rate through TDSP related charges once the customer gets the electricity bill. Because of this we want to warn customers about the potential of Trickster’s (name withheld by legal) electric rate being higher then what it appears. If you are one of Trickster’s customers that thought you were going to be charged one rate but once you received the energy bill were charged a much higher energy price then please feel free to comment below. Read below from one of our readers and a customer of Trickster (name withheld by legal):

Stay away!! 9.7 cent plan kept going up 13,14 and finally to 16 cents!!! Ridiculous!!

Trickster Energy (name withheld by legal) is a rip off. SIgn up for .12 kilowatt, but have been billed up to .17/kw. Also the customer service is horrible. Stay away !!

If TXU Energy or Reliant Energy called asking you to renew at an electric rate several cents higher then where the market is currently at we recommend checking out our recommended Houston electric providers on the top left of this page. All fees and charges are disclosed.

March 2009 Dallas Electric Rates

Dallas electric rates have come down quite a bit from where they were at just a few months ago. We are looking at fresh lows that we haven’t seen but a couple times before since Texas deregulated. If you are trying to time the market as to when to lock in electricity rates for your home or apartment in Dallas Texas then now is a very good time to do it. The 1 year fixed electric rate is currently the most popular term. The 24 month and 36 month fixed electricity rate terms are more expensive but they act as insurance in case rates come way up during that time. Most Dallas residence still decide on the 1 year electric rate term as the 24 month and 36 month fixed rate terms are a few cents higher and for most people the higher price doesn’t justify locking in for that long. You can compare the cheapest to most expensive electricity prices in Dallas below. You will notice TXU and Reliant Energy are currently a couple of the highest priced electric companies.

Snapshot of Historical Dallas Residential Electric Rates for March 2009

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