Energy rates are affected by a lot of factors. The source of energy does not come from hydro-electric power since this source is nowhere to be found due to the weather and terrain of the state. Energy has to come from other sources that will efficiently be provided for in Texas such as natural gas and solar power. Both alternatives are proven to be effective both in the physical and financial aspects.
One of the main factors that affect Texas energy rates is the usage of coal powered generators. The Texas power grid is connected to the coal powered generator that is required to be continuously monitored to avoid any malfunction. In Texas, warm climate causes a surge of energy consumption due to the usage of air conditioners. When the energy consumption becomes higher than normal, back up generators are needed.
When back up natural gas generators are used, it would add extra cost to the Texas electricity market. The more back up needed, the higher the rate will get. The energy providers have no other way to compensate the expense of using so many generators than to pass it to the end consumers.
Aside from the high rate of energy consumption during the summer months, the fact that Texas has one of the largest populations in the whole United States of America contribute to the high demand on the electric grid. The more people need energy, the higher the grids and the more generators are needed. There is a high demand of energy providers here that is why electricity for business in Texas is thriving.
Another reason why
electricity in Texas do incur high rate is that there is a large area to cover. There are more hardware and delivery systems to take care of. Maintenance of equipment will also be shouldered by the consumers as an end effect.
Most of the variables that affect the rates of
electricity in Texas are applicable to the state only. A lot of energy providers are looking for ways to be able to provide cheap electricity rates to attract more clients and to stay on top of the competition. Solar power is also being looked into as a more permanent solution.