Almost 85% of the state’s energy market is deregulated. The Public Utilities Commission (PUCT) was responsible for determining the electricity rates.īut since 2002, Texas residents have the power to choose the best energy-efficient programs that will help lower your monthly bills dramatically. They worked with the state government, were the sole energy providers. Texas energy deregulation laws, which took effect in 2002, allow the right to choose your electricity supplier.Įarlier, local utilities alone could generate and distribute power to consumers. Afternoons and early evenings see a demand for electricity, which means the energy costs may be higher at those times. Time of Use: Like seasonal highs and lows in power consumption, peak usage hours differ during a day. Financial speculation is one of the least transparent factors that can cause unexpected movements. Plant shutdowns, conversions, or re-licensing are some localized factors that affect energy rates.įinancial Speculation and Global Markets: Significant changes in the supply of oil across the world can lead to increased demand for fuel. Global rates for oil and gas can impact electric suppliers’ profits, leading to a price hike. As consumers use more electricity, this leads to increased energy rates.Ĭost of Power Generation: Cost of the fuel used, transportation, and import and exports of fuel can cause electricity price fluctuations. Weather: Heating and cooling demands in the summer and winter are more in Houston, and hence you see an increase in electricity demand.
If the fuel cost is more than the generated electricity rates, companies may make adjustments so that the system can support itself. Type of Fuel: The type of fuel (natural gas, coal, wind, etc.) used to generate electricity is different in various power plants. However, the real-time cost of electricity depends on some factors, such as: Hence, the transmission and utility distribution systems have no impact on your electricity rates.
CenterPoint Energy is the only local TDU for the Houston metro area.
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