If you have been trying to keep up with what the price of Texas electricity has been doing this year we have a helpful graph below that shows just exactly how Texas energy prices has been trending this year as of November 2 2008. This graph shown below is actually a natural gas graph but because there is a 90% correlation with natural gas and Texas electricity rates it provides an accurate representation of what electric rates have done as well as giving an indication of the current trend.
If you can see from the graph, natural gas has broken a support level and may trend down further to as low as $4 mmBtu. If natural gas continues to go this direction we could see Texas residential electric rates as low as 7 – 8 cents kWh for a 1 year term and commercial electric rates as low as 3 – 4 cents kWh. This prediction is no guarantee that electric rates will hit these levels but an old trading adage that works well in this scenario is, “the trend is your friend”. If you are currently not on a contract it is still recommended that you lock into some type of rate so you are not put on a high fluctuating variable rate. There are MCPE rates for commercial businesses that work well if you have the wait and see attitude. An Electricity Bid energy consultant would be happy to explain MCPE in more detail if you would like to learn more about this option. Feel free to call us at 1-800-971-4020. If you are a residential electric service customer in Texas you can lock in to a 1 month, 3 month, 6 month or 1 year fixed rate if you are also in the wait and see mentality. Since it is impossible to pick a bottom on a trend I would recommend going with a long term fixed rate if you are risk averse. If you are ok with taking a chance then by all means sign a short term fixed rate and check back to see if electric rates in Texas have dropped even further. The graph below serves as a reference point for those undecided on what they should do. This graph is a very close almost exact example of what Texas electricity prices have done all year.