What Contributed To The Change In Texas Electricity Rates?

Electricity rates in Texas fluctuate once in a while

. Those who do not have a fixed contract take advantage of the low rates when the market demands for it. Another distinct factor of Texas is that it does not have hydro-electric power unlike many of the other states in the US. Texas is forced to find another source of power. Add to that the fact that Texas is one of states with the hottest climate, thereby needing more energy to run air conditioners.

Without hydro-power to count upon, Texas then turns to coal powered generators. A lot of Texas power grids are running in this type of source. The only problem is that when added consumption is being generated, the coal powered generator would not be able to stand up to it. When air conditioners start running, a backup source should be opened. The back up source comes in the form of natural gas.

The price of natural gas in the market influences the rate of Texas electricity in general. If natural gas goes up, then Texas resident could expect their bills to increase as well. The extra cost to supply power to Texas will always be shouldered by the end users and that is the residents and business owners in the area.

To add to the complexity of Texas power, Texas is considered as one of the most number of residents in the entire country. In line to this, the demand on the power grid of Texas is high also. Speaking of superlatives, Texas is also considered as one of the biggest states in US. It will take a lot of delivery systems and hardware to distribute power.

Texas electricity rates in Texas might be higher than in other states because of the cause described above. The more equipment it takes to distribute the power, the higher the cost of Texas electricity suppliers. The suppliers will in turn pass down the expenses to the consumers.

What the government and the residents are looking into is a more cost-efficient alternative source of energy. Environmentalists are proposing solar power since it is always sunny in Texas. Who knows, this might be the answer they are looking for in order to solve the high rate in Texas power.

by: Todd Carlos

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