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Texas Energy News and Dallas TX Electricity Rates

Sep 10

Texas Energy News and Dallas TX Electricity Rates

DALLAS, TEXAS - September 10, 2022 - Texas Electricity Ratings

Constantly Rising Electricity Rates in Dallas

DFW-area residents are feeling the effects of the rising cost of electricity. According to the latest study from Texas energy specialists, we should expect even more problems.

Analysts predict that Texas' already sky-high electricity rates will rise even further.

The price of new electricity contracts has been rising recently. Due to a number of factors, the cost of electricity in Texas this summer and beyond may be the highest it has ever been.

According to ERCOT, 46% of Texas's electricity grid is powered by natural gas. In the United States, the cost of natural gas has increased by a factor of three. Fighting in Ukraine has been a major contributor to Europe's continued instability. In the United States, natural gas costs are anticipated to grow as a result of rising demand in Europe.

Meanwhile, the temperature has been above average for the past two weeks. Increases in wholesale electricity prices are a result of excessive demand during the hot Texas summers.

But wait, there's a lot more where that came from!

"70% possibility of 14-21 (hurricane) storms forming this year," says NOAA, with as many as ten of those storms having the capacity to develop into hurricanes. Three to six of these storms could develop into hurricanes. The National Oceanic and Atmospheric Administration (NOAA) forecasts an above-average hurricane season. August and September are the height of hurricane season.

Power companies are proceeding cautiously since the energy market shows no signs of stabilizing.

The Futures market is also indicating that price increases will soon level off.
Electricity futures prices on the wholesale market are much lower than expected for the coming month and the next two years.

In the wholesale electricity market, rates are typically quoted for 12, 24, and 36 months in advance. The only thing that may possibly change these prices is the price of natural gas, which might remain stable or increase.

The price of natural gas can have far-reaching effects.

Natural gas is almost entirely reliant on to fulfill the additional demand for energy during peak consumption times like the warmest days of the summer.

To this end, the cost of natural gas is a major factor in determining the cost of power.

Retail electricity providers in Texas are adjusting their pricing to account for the rising cost of natural gas.

Customers who prepared for the future six months ago by signing multi-year contracts at 8 or 9 cents per kWh should rest easy.

In the current market, residential rates can range from 15 cents to 18 cents for customers who are not locked into a contract or whose current contract is expiring.

As a result of the lack of financial incentive, several service providers have ceased accepting new consumers.

Price pressure in the market has made it significantly more challenging to negotiate a fair price for a 12-month term than it is for a 24- or 36-month one.

Without a contract, customers of an energy provider must now decide whether to continue making periodic payments for service in the hopes that prices will drop over the next 12 to 24 months, or whether to go ahead and lock in the significantly higher rates for longer durations.

Price fluctuations are primarily due to the current volatility in wholesale prices of natural gas. We don't anticipate a significant price drop until circumstances in Europe calm down.

Visit TexasElectricityRatings.com to compare Dallas electricity rates from the best Texas energy providers.

 Texas Energy News and Dallas TX Electricity Rates

Texas Electricity Ratings - Dallas, Texas

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