The current Texas electricity rate as of August 2022 is determined in large part based on what the natural gas spot price is doing in the “front” month.
It’s called the Henry HUB spot price and it is at $9.82 as of today. Consider that over the last year it has been as cheap as around $4 but has had a continuous trajectory up to where it is now.
Henry Hub Spot Price – 12 Month Graph
47% of Texas electricity is generated using natural gas generation. The war in the Ukraine has caused countries to need imports of Liquid Natural Gas. The U.S. has been exporting LNG to these countries and this demand has led to this increase in price for our electricity.
Any inflationary rise in the cost of your electricity rate has been disguised by the natural gas commodity rising in price. We can’t blame inflation on these high prices though but it does play a small part.
Direction on finding the current electricity rate in Texas
Go to https://www.powertochoose.org/ which is a Texas based government endorsed website. Look at just the fixed rates for 1 year. This will give you an idea about where the current rates are at right now.
There isn’t just one rate. There are over 20 retail electric providers in Texas offering rates but this website will show you where these rates price range falls.
Then I recommend coming to this natural gas commodity site: https://www.marketwatch.com/investing/future/ng.1 and look at where natural gas is comparing it to where it has been over the course of the year.
You can make a determination for yourself if it is a good time to lock in to the current electricity prices in Texas as far as where they stand.
It may be that you see the market is at a high point and may level out and come down. If you make this determination from the data you can have a “wait and see” shopping mind and possibly get into something shorter term and write out on your calendar to try again to get into a 1 or 2 year fixed electricity agreement in the near future.
L.J. has been writing about the deregulated energy markets since early 2010. His knowledge has helped consumers lower their electricity cost. Donny has taken over this user for content creation.