Natural Gas and What Electricity Prices May Do Soon

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People often ask us what the price of electricity might do. Some of our customers are quoted an attractive price like 5 or 6 cents per kilowatt-hour.

These prices are primarily affected by the price of natural gas which is why we have displayed this Henry Hub natural gas futures chart to help in our explanation.

Maybe we quote a customer some rates and the wining provider offers rates at 5.98 cent per kilowatt-hour for 12 months, one for 5.88 for 24 months, and one at 5.75 for 36 months.

It’s common for a customer to sit on the proposal and think about what to do for a few weeks. This is not always a bad idea if you have a hunch that prices will go lower.

The problem is that unless you know how to trade stocks and commodities you are dealing in a pretty speculative market.

Natural gas futures drives the cost of electricity and so each day and even an interval of a few hours will cause those prices to expire and new ones to come out.

So if a customer calls back the next day asking for a contract and natural gas futures are up that 5.98 cent price for 12 months may now be 6.25 cent per kWh for the best rate in the bunch.

A personal friend of mine I was helping had this happen to him and he had to wait 3 months until prices came back down.

He was able to get in below 6 cents and locked in a sweet deal.

One summer prices were very low and then took off and never came back down. I had several customers who wanted to wait for the drop back but it never happened.

Their contracted price they were on with the provider they were currently with expired with all of them and so they were on a month to month variable price that follows the market.

These potential customers watched the market while their expired contract went to a much higher variable price that doubled and even tripled the original quoted price they received prior to the market spiking.

When trading stocks, commodities, futures, and other investments you will find natural gas to be highly erratic and full of surprises.

The price can rise and fall by huge percentages in less than a few hours. This being said I want to offer my humble opinion on what might happen by August or September of 2013.

It looks like natural gas might make a higher low at the $3.50 resistance level and begin its bounce back up.

If this bounce continues up it will likely proceed to make a higher high. You will be able to have a confident confirmation that a higher high will be achieved if it makes up 50 % or more from the previous drop.

If it bounces back up and continues beyond 50 % of the previous move up it will likely completely correct for the rest of the prior move and have a statistically higher chance of moving even further to make a higher high.

This prediction on price is completely technical and we have not even seen a bounce at $3.50 yet so it’s a little premature to be guessing at this but I think it’s worth putting this out there so you can know how this guessing game works.

If you are waiting it out because you want to see electricity prices drop in price a significant amount more it appears to me the odds are against you and in fact we may be headed for a few months back up in price.

Comparing Texas Electricity Prices and Green Energy

When comparing Texas electricity prices you have several energy companies out there competing for your business. If these companies have to use words like green energy, environmentally friendly or quite a few other buzz words to get your business they will.

Now comparing these green energy plans is a little challenging as you have to deal with companies selling quite a few different variations of this green energy stuff.

For instance, many of these electric companies are buying biomass renewable energy credits in other states and than applying that to their dirty energy.

These electric provider in Texas than sell you clean energy but in reality you are cleaning up another state and not the state of Texas.

It’s great that at least you are doing your part for the US as a whole but wouldn’t it be nice if it helped out Texas?

The government is about to cramp down on these green energy buzz words that providers use to sell their electricity service.

Soon many packages for things as simple as baby diapers may have to remove the environmentally friendly labels from their packaging.

Texas electricity providers may not be able to call their electricity renewable energy unless it meets a high enough percentage and overall things will hopefully be a little more transparent as to what it is your buying.

In the big picture it will be easier to compare green energy providers in an apples to apples comparison and choose the lowest price.

However, this may have more to do with setting up the whole cap and trade system rules in which electricity companies and manufacturers aren’t simply no longer advertising that their products are no longer environmentally friendly. Instead, government deadlines are set for manufacturers, energy generation facilities, electricity providers, and so on to make their power plants and products meet these new green friendly and carbon neutral requirements.

A large part of the requirement will be a tax on these products and services if these power plants and so forth can’t operate as carbon neutral as required. These taxes will than go into a slush fund where the government may choose to do something completely different with this money as they did with Social Security taxes.

Electricity Rates Are Cheap Right Now

Unless you are an energy professional you probably don’t spend a great deal of time paying attention to what electricity rates are doing in your town. Some summers you may have been able to sign up at a very cheap electricity price and then the next summer prices are high again. The same type of price fluctuations happen in the winter as well. Some people spur on the misconception that electricity rates are always higher during the summer. This is not always the case it is just that there is usually more price volatility in the summer time. This price volatility can cause electricity rates to go down dramatically just as much as go up.

Winter months can be just as volatile to electricity prices. Fortunately this winter electricity prices have remained low. Even today as energy prices are up you can still lock in at a very good electricity rate. For the last several weeks prices have been coming down and looking better and better. Electricity can only come down so much and at this time we are experiencing some very good energy price levels. If you are wanting to wait until electricity rates come down even further I do not recommend this strategy. We have a good position right now to lock in for 1 – 2 years on a very good fixed electric rate.

To wait and see if prices come down even further can get you in a delimma as you probably haven’t considered the risk reward of locking in your rate compared to waiting. By waiting you can see energy prices go up 10% per week until all of a sudden only 3 weeks of waiting for electricity rates to come back down your energy prices are 30% higher. Most people eventually become scared as the price seems to be ever increasing and they buy high.

We want to encourage those wondering when to lock in to a fixed electricity price to not wait until electricity rates spike up. Go ahead and get in at a historically low level in electricity prices. You can have a predictable fixed electricity rate that will not change or as long as you decide to sign up for. You can always do a blend and extend contract later on if electricity rates dramatically decrease even further. At this time I think we are close to a bottom in energy price levels.

To begin to sign up for either residential or commercial electricity in Texas you will need to click on the “Compare Electricity Rates” link at the top of this page. For commercial rates you may contact us by clicking here.

Benbrook Texas Electricity Prices and Plans

In Benbrook Texas you can sign up for electricity rates and plans that are priced at the same price levels as providers price in the Dallas Fort Worth and North Texas region of Texas. In North Texas electricity rates and plans are cheaper than in almost every deregulated are in Texas. Each electricity provider in Benbrook Texas offers a different rate and several plans to choose from. We help sort these electricity rates and plans out from cheapest to most expensive to help an energy consumer find the best price for their electricity in Benbrook TX. The electricity comparison chart below shows electric prices for the North Texas and Benbrook TX area. Simply find the plan and company you want to sign up with and click on the “continue” link. You will then be taken to a sign up page where you can sign up online and be approved for electricity service. If you are asked for a deposit and you cannot afford to pay that deposit you can try another provider in the comparison chart until you get approved for electricity service for little or no deposit.

The latest issue that has hit the news about Benbrook electricity prices and plans has to do with with some of the prepaid electricity companies out there. Many of these companies are changing the way they talk about their product and service because prepaid has started getting a really bad name in the media and among consumers. For instance, some recent news stories have been suggesting some low-income energy consumer’s have actually died from having their electricity prematurely turned off without proper notice. This is probably a long shot but it does hit on an important point. A lot of the prepaid electricity companies have a history of turning off their bad paying customers without proper notice. If a Benbrook Texas electricity customer does not pay their bill on time it does make sense for an electric provider to eventually shut the power off but the question is when does a provider have the right to do this? Their are Public Utility Commission Rules that stipulate what notice must be provided to a customer who has not paid their electricity bill as well as how many days the customer has to pay their bill before their electricity service is turned off.  If a Benbrook Texas electricity provider disconnects an energy consumers power prematurely they can be hit with a large penalty if that customer complains to the PUCT.

If you are a low income customer and you have bad credit or no credit at all we would like to suggest a no deposit electricity plan that is not prepay or pay as you go. You previously could sign up on what was known as a no deposit plan with Bounce Energy. What Bounce did was take $125 from the customer that would be deducted on their first months electricity bill. Instead of paying a deposit with a different electricity company that you would not see for atleast 12 months you would have your $125 deducted on your first bill. If you paid your electricity bill on time the first 3 months Bounce would proactively lower your Benbrook electricity rate to their cheapest rate plan available. Since this is no longer an option be sure to ask for their best rate plan for bad or low credit score customers to make sure they consider you for a low or no deposit electricity rate plan. This plan is no longer available but we have several prepaid providrs to compare in our compare tool at the top right of this page.

Sugar Land Texas Electricity

Compare Electricity Rate Plans and Companies in Sugar Land Texas

Sugar land Texas electricity prices are the same as they are in the city of Houston Texas. When comparing and choosing a Sugar Land Texas electricity provider you want to consider what rate plan you want to get on. The most popular electricity rate plans are the fixed rate plans. Some of the top fixed electricity plans people generally choose are for 1, 2 or 3 years. Occasionally electricity consumers in Sugar Land will choose a shorter term plan like a 6 month fixed rate. Be sure to mark on your calendar when your electricity rate is set to expire. If you do not mark on your calendar and your electricity provider in Sugar land does not send you a reminder email or mailing that you need to renew you will be automatically switched to a variable electricity rate plan.

The issue of a fixed rate expiring and a Texas electricity consumers rate automatically going to a variable rate is one of the banes of the Texas deregulated electricity market. Even when using the larger electricity companies like TXU or Reliant Energy you can find yourself on a no contract variable price much higher than your fixed electricity rate. The only way to insure you do not fall over to a variable rate is to mark it down on your calendar. Sometimes those reminder emails and letters get misplaced, lost, or the provider simply never mails it out.

You can find and compare several cheap Sugar Land electricity rate plans and prices by using the comparison chart at the top of this page. Rate plans are categorized from 1 year all the way out to 3 year. The most popular electricity plans are the 6 month fixed rates and the 1 year fixed rates. Electricity Bid currently recommend locking in fir at least 1 year while electricity rates in Sugar Land Texas remain some what low from their highs.

Generally we discourage residential customers from signing up on a variable electricity contract because the price can go up and down without any warning. Some electricity companies like Bounce Energy have a price ceiling in place so the variable electricity rate can only go so high. If you do sign up on a variable electricity rate with companies like Bounce Energy you are partially protected against price spikes in the variable Texas electricity market.

There were no deposit electricity rate plans in Sugar Land but the company offering this plan has discontinued that rate plan choice. Each no deposit plan had one catch or another and some of the popular ones still available but not recommended involve prepaying for your electricity service. The best we had seen so far involved paying an initial fee of $125 that you will have applied to your first months electricity bill but this rate plan has since been discontinued. This wasn’t exactly a deposit which you would get back at the end of your electricity contract but was applied in short order on your first months bill. Also, if you paid your Sugar Land electricity bill on time that no deposit electricity rate was lowered to the lowest rate plan available. This no deposit plan that is no longer available was for those energy consumers in Texas currently in a credit crunch that couldn’t afford paying a large deposit to their electric utility. This plan was available through Bounce Energy

If you would like to compare no deposit and prepaid electric service offers please use our compare tool at the top right of this page. All of these providers service the Sugar Land area and will be able to provide prepaid service in your area.

Electricity Bid helps you find an electric rate and provider to save you money and keep life simple.

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