In Texas there are good rates for residential and good rates for commercial and industrial
For 2022 the average best rate for a commercial 12 month fixed rate more than doubled due in part to the 2021 winter storm followed by the Russia and Ukraine war causing a high demand for Texas electricity generation fuel, natural gas.
August 2022: A good commercial rate per kWh in Texas is 13 cents
August 2022: A good residential rate per kWh in Texas is 16.9 cents
These rates are 12 month fixed rates. Right now significant savings can be found 24 months out on a fixed rate. A good 24 month commercial fixed rate per kWh in August of 2022 is 10.5 cents
Historically the winter storm of February of 2021 and the Russia Ukraine war created some historical price volatility
Industrial and commercial customers had larger price increases than that of residential consumers which was unusual. The situation was so bad that electric prices more than doubled compared to what it was in February of 2020; industrial electric rates increased from 5.40 cents per (kWh) in February 2020 to 12.15 cents/kWh in February 2021, and commercial electric rates increased from 7.89 cents/kWh to 16.29 cents/kWh. Residential electric rates in February 2021 were only 7% higher than it was in February 2020, it was still the highest electric rate since July 2008.
Obviously a wholesale change in electric rate prices can change the price of retail and residential electric rates. Wholesale electric rates in the Electric Reliability Council of Texas, averaged $22 per megawatthour in 2020. When Texas electric generation becomes unavailable and during strong demand for energy generation, wholesale electricity can be unimaginably high. In February 2021, wholesale electric rates remained at $9,000/MWh ERCOT price cap for about 77 hours, for the time of midnight February 15 to the A.M. of February 19.
This price volatility has made our good Texas electric rates pretty bad for the time being. We are all hoping to see a price decline in the near future. 24 and 36 month fixed electricity agreements offer the best savings right now.
Donny Eisenbach
Donny has been writing about the deregulated energy markets since early 2007. His knowledge has helped consumers lower their electricity cost.
Leave a Reply