Texas electricity rates are independent from the rest of the county because Texas has its own electricity grid. Here is everything you need to know to compare electric rates in Texas.
Compare Electric Rates Texas
ERCOT, the name of the electric grid in Texas, is its own entity. Unlike many of the electric grids in the rest of the country that span multiple states, Texas is on its own. Because ERCOT operates independently from other electricity grids, it follows it own rules. These rules have an impact on your Texas electric rates. We’re here to break it down for your and explain how Texas power rates really work!
How Is Electricity Generated in Texas?
Great question! The majority of Texas electricity is generated from natural gas. Because natural gas is a by product of oil drilling, there is so much oil drilling going on in Texas, the state has plenty of it. In fact, just about half of all electricity generation in Texas comes from natural gas (see figure below from the Texas Comptroller’s website). The other main sources of electricity generation in Texas are Wind and Coal. Because Texas electricity rates are so heavily tied to natural gas, when natural gas prices are low, Texas electricity rates are low – and visa versa.
No Capacity Charges
Most electric rates throughout the U.S. have three major components: electricity, transmission, and capacity. Refer to this article here for more information on how those charges affect your rate. In Texas, the capacity charges do not exist. In fact, customers in Texas simply pay for the price of the electricity and the transmission cost to get it to their local utility company. Texas electricity rates are often less expensive when compared to other states for this reason. For more information on the lowest Texas electricity rates, please visit our Texas electric shopping page by clicking here!
Texas is Truly Deregulated
Unlike other deregulated states where local utility companies still offer a supply rate, in Texas customers must choose an energy supplier. Due to this fact, the Texas market is much more competitive and provides customers with less expensive rates. If you’re looking to save money on your electric rates in Texas, you’ve come to the right spot. We are Texas power rate specialists! For more information on the lowest Texas electricity rates, please visit our Texas electric shopping page by clicking here!