subject: Factors Influencing Texas Electricity Rates [print this page] There are a lot of factors that can influence electricity rates in Texas. Other states enjoy the benefit of hydro-electric power therefore Texas has to look for other source of electricity. Furthermore, Texas undergoes high temperatures in summer that becomes the reason why consumers turn to their air conditioners for the cooling system of the house, which essentially increases the consumption of consumers of electricity.
Aside from the source of electricity and weather, another primary reason why electricity rates are influenced is because the supply of electricity in Texas is generated from coal-powered generators. When customers increase their energy consumptions than normal perhaps secondary to weather, natural gas has to power up the back up generators to fill in the gap or the difference.
The utilization of natural gas on some occasion opens another element in the Texas electricity industry since this cause changes in the prices or rates. When the consumption of natural gas greatly increases, the extra cost shouldered by power companies is passed on the consumers hence you can expect a higher electricity bill than normal. This is just one of the factors affecting the rates of electricity in Texas.
In addition, Texas is known to have a very large population and it has a high percentage of population in the United States therefore the demand on electricity grid is essentially high. This information alone could definitely add up to the complicated change in Texas electric rates. Furthermore, the total area covered by the electricity grid is large, which contributes to the increase amount of cost in distribution of hardware and delivery systems.
The regular but necessary maintenance of the delivery systems as well as the cost of materials will greatly affect Texas electricity rates. All of these factors are present to ensure that electricity providers can continue serving and offering energy to the end users. This means that you need to consider a lot of factors to understand the market of the electrical industry.
Notice that the Texas electric rates are complicated by a network of factors that are sometimes rare and foreign to our hearing but they are essentially there.
