Lower Electric Rates in Laredo, Texas

laredo texas electricity pricesLower electric rates all across the state of Texas are making the residents of Laredo, Texas very happy.

Instead of having to pay outrageous prices for electricity, customers are seeing lower bills every month. The reason behind the lower rates – dropping prices of natural gas. You may wonder what natural gas prices have to do with electricity.

Natural gas is used at the power plants that generate your electricity. When the prices of natural gas are high, the increase passes on to the customer. When the prices are low, the savings are passed on to the customer. This means you save money every month.

The next time you look at your Laredo, Texas electric bill, take the time to appreciate the savings. You can save even more money by switching your electric service provider. Competing providers offer various prices on the cost per kWh. You can use our comparison chart to compare the rates. Our chart takes only a few seconds to provide you with a list of Laredo, Texas service providers. In just a few minutes, you can be on your way to saving even more money on your already lowered electric bill.

All you need to do is type in your zip code and view the results. You are never obligated to switch service providers and our comparison chart is free to use. We only want to ensure that you are aware of the other providers and the potential savings. Regardless of whether you switch Laredo, Texas providers, try our comparison chart. Compare the rates with your own eyes and make an informed decision.

Our site offers a comparison of traditional Laredo Texas electric companies and no deposit electricity suppliers. You can see rates with all fees bundled into the rates. If you have questions regarding the comparison chart please call us at 1-800-971-4020

Natural Gas and a Barrel of Oil Disconnect in Price Correlation

Last week we saw a complete separation of the correlation in price among natural gas and oil. Last summer (2008) there was a strict correlation as both natural gas and oil reached historic price levels with gas above $13 mmBtu and oil above $140 a barrel. This summer (2009) natural gas falls below $3 mmBtu and oil is traveling above $74 a barrel. Why are we reporting on natural gas price on an electricity rate site? Texas electricity has a 90% correlation with natural gas because 40% of our power generation comes from natural gas. Our peak demand load relies on natural gas in storage which means Texas can have volatile price swings especially in the summer when air conditioners get cranked on. The challenge is in keeping enough natural gas in storage to meet this peak demand. Right now we have plenty in storage which is why natural gas and electricity price continue to travel down. When natural gas price in Texas travel down it is a sure bet that electricity rates will follow.

Oil is not dependent on what natural gas price do but last summer with a little different as there were some powerful factors causing any fuel commodity to go up in price. Many blame it on investment banks using commodities as a kind of hedge against bad security investments. Others believe that investment banks who have interests in the raw materials of natural gas and oil were at the same time heavily advertising investment in commodities as an investment product. The conspiracy was that since these banks had interests in the raw materials they had a stronger incentive in selling the commodities similar to how they would sell securities to their investors. Anyone who bought at the top of the market lost any gains as the prices fell hard in just a few months. For those who were brave enough to hold on until even now we are about half way back up in oil price from the record $140 high. Natural gas prices however are still way down from their $13 mmBtu prices of last summer 2008.

Now is a perfect time for electricity consumers to lock into a term fixed electric rate while prices are low. Longer term contracts will cost you more because of the way these prices are based on the commodities futures markets. If you have to pay %10 more to sign a 3 year fixed electricity rate contract over a 1 year contract it is worth as you are locking in near a bottom. This will allow you to take advantage of getting in at the bottom of the Texas electricity market. Most people however prefer to go with the “cheapest price” which would be a 6 month or 1 year term although a year from now the argument could be made that electricity rates are unlikely to remain this low which would force you to renew at a higher price than even what the 3 year rates are currently showing. Because of this situation we are going with a 3 year fixed rate recommendation for our customers on which electricity rate contract to pick.

You can compare electricity rates in your area by clicking on the compare link above if you need to compare residential electricity prices in Texas. If you need a commercial Texas electricity rate comparison just click on our contact link above.

Natural Gas Prices and Texas Electricity

In Texas we rely on natural gas steam run power plants to produce our electricity. Much of our peak demand relies on natural gas in storage. We have limited capacity in salt domes across the state of Texas to store the natural gas and meet demand especially if demand is unexpected. That is why when we have a hotter then expected summer many times electric rates go up as supply is not able to meet the demand of all those Texas homes turning on their air conditioners full blast. There is about a 90% correlation with natural gas and Texas electricity so you can easily track why electric rates are so high right now by viewing natural gas price charts over the last year. You can keep daily track of it by viewing the symbol NG price on www.nymex.com. When NG is up Texas electric rates go up.

Bloomberg Quote on Natural Gas in Texas, June 27 2008

Moderate temperatures forecast for Texas and Florida will help curtail electricity demand. Those two states rely on gas- fired power plants to meet increased electricity requirements when hot weather increases air-conditioner use.

Hotter weather typically curbs the expansion of storage by increasing demand from gas-fired power plants for electricity to run air conditioners.

“There’s very little excessive heat” across the nation, said Jim Rouiller, senior energy meteorologist for Planalytics Inc. of Wayne, Pennsylvania.

Champion Energy offers a low 12 month rate as Natural Gas travels down

Champion Energy

Affordable Texas Electricity for residential electric service consumers.
Save 30% off of what most Texas energy companies are charging.

Low Residential rates following Natural Gas movement down

During 2007 we saw electric rates travel down with natural gas prices all the way up to January 1st 2008. Not but a few days after the 1st electric rates spiked up to their mid level historical average from the previous 12 months. Electric rates are still relatively low and a 12 month contract still makes good economical sense.

Champion Energy Residential Electricity

Champion Energy has made quite a swing down with their Texas residential electricity rate. Startex Power has come down even further and does not charge a monthly service fee unless you are using under 500 kWh a month. Most residential energy consumers use over 500 kWh. You can learn more about the cheapest electric provider in Texas by clicking here. Energy has become competitive among the residential electricity providers as many new companies enter the market. On power to choose we see over 40 Retail Electric Providers all offering a different branded product with its own little gimmick to sway you into signing up on their service. There are several hundred different electric rate products but in order to establish some benchmarks when comparing it is best to stick with a fixed rate electric product that doesn’t change during the term of the energy contract.

Residential Electricity Choices

There is the “Market Tracker” with TXU, the “Green Earth” plan with Green Mountain Energy, the Reliant “Power Tracker” and several other branded products to hook you in one way or another. The plans each have their merit but many consumers just want to know, “what is the cheapest plan?” If these Retail Electric companies just sell you the energy while you still receive your power from TXU or Centerpoint Energy as you always have then why not find the cheapest electric company and just go with them?

Going with the cheapest electric provider

I like this kind of logic myself and would start off by recommending you stay away from TXU and Reliant at this time as their products are not very competitive next to the competition. They rely a lot on their big names and it seems to be working. That means they do not have very much incentive to go lower or offer you a lower rate if for instance your contract comes up for renewal.

What is Champion Energy’s Residential Electric Rate?

Champion Energy has a 12 month rate that is 11.6 cents as of August (as of January 27 2008 they are now at 11.1 cents kWh)(Natural gas now trading around $9 – $10 raising Champion’s 12 month fixed electric rate to 12.6 cents kWh as of April 3 2008). The rate came down a lot due to Natural Gas trading around $6 MMBtu. This Natural Gas closing price is not typical and so locking in for atleast 12 months could be a wise choice for a household. They charge a $4.95 monthly service fee which for a house that uses 1500 kwh a month would bring the average electric rate up to around 11.93 cents kwh. This is still very low next to the other competitive providers and you can count on very good customer service, accurate billing and over 100 years of business knowledge in the industry. As of February 2009 electric rates have changed again and Startex Power currently has a better offer on several different fixed rates with no monthly service fee. You can learn more about the cheapest Texas electric rate by clicking here.

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