Rising Energy Costs In Texas And What You Need To Know To Save Money
The cost of energy is high in Texas and the rest of the country. Understanding how to battle rising energy prices is critical to controlling costs during these uncertain times. In the past, choosing a low fixed electricity rate was a simple way to save money on your utility bills. Now, you must develop a better plan since rates are nearing 15-year highs. Here are some tips for saving money on energy in Texas brought to you by EnergyPricing.com.
First Things First: Why Are Prices So High?
Although some of you might not care to know why we think it is an important concept to understand so that you can plan for the future. In Texas, most power is generated using natural gas turbine generators (see figure below).
Source: energyeducation.ca
Natural gas is ignited causing an explosion that turns a turbine. When the turbine turns it created friction and generates electricity. This process uses natural gas to produce power in a very efficient way. Because most Texas electricity is produced this way, when natural gas prices increase, the cost to generate electricity also increases. Today, natural gas prices are at 15-year highs, impacting the prices of electricity as well.
What You Can Do To Save On Energy
In addition to finding the lowest electricity prices in Texas for your home or business, there are other ways you might be able to reduce your utility costs. Consuming less electricity is another great way to ensure that your bills don’t get too high. Here are some tips for becoming more energy efficient:
- HVAC: Make sure to set your thermostats on a temperature range so that they turn on consistently and keep your home at an even temperature. One of the largest energy costs is your HVAC unit and when the AC is turned too low or the heat is turned too high and it works over time, you will use more energy.
- Lighting: Switching your old fluorescent light bulbs to LED lighting is another great way to conserve energy. LED lighting uses much less electricity than traditional light bulbs and last longer too.
- Water Heater: If your water heater is on its last legs, you might want to consider replacing it with a tankless water heater. Tankless heaters are much more energy efficient when compared to traditional tank water heaters.
Electric Rate Plan Terms
During these times of high electricity prices, it is important to consider the term of your electric contract. There is much debate over this topic and there is no correct answer. A shorter term contract is more expensive right now but does not commit you to locking in to a high price for a long period. Longer-term contracts are less expensive than short-term contracts, but you need to commit to a higher-than-normal price for several years. If you are of the opinion that prices will come down in the near future, then a short-term contract might be your best option. If you believe prices will continue to rise, then a long-term deal is right for you. If you need help deciding on the best electricity plan for your home or business, contact us today to speak with one of our energy experts.