Consumers in Houston, Dallas, Fort Worth and Corpus Christi were promised bargains on electricity when the Texas Legislature deregulated the electricity market. But 16 years later they're still paying more for electricity than their counterparts in cities Texas lawmakers exempted from deregulation such as Austin and San Antonio, according to the Texas Coalition for Affordable Power which analyzed federal electricity pricing data.
2of 3Cattle roam on a mesa near Iraan, Texas on the site of the Desert Sky Wind Farm. According to website Desert Sky Wind Farm® is a 160.5-megawatt (160,500-kilowatt) wind power generation facility located near the far West Texas town of Iraan, in Pecos County. The site includes 107 turbines, each rated at 1.5 megawatts (1,500 kilowatts) spread over a 15-square-mile area on Indian Mesa.Photo: John Davenport, Staff / San Antonio Express-News
Partha Krishnamurthy, a marketing professor at the University of Houston, said he suspects that many people may be unaware they’re paying more than they need to for electricity, putting their bills on autopay and forgetting about the rates they pay. Most people don’t go to the trouble of changing banks, jobs or their electricity providers, for that matter, unless there are problems.
Electric bills for customers in the Houston area can more than double in summer months, mainly because air conditioning. Not coincidentally, electric rates also rise in the summer months because of this increase in demand. The most dramatic rate increases occur in month-to-month plans, but electric rates do increase across the board for all fixed-rate contract lengths.
Oncor, the state’s largest distribution utility which covers Dallas, Fort Worth and much of North Texas, has already agreed to pass all of the millions of dollars of expected tax savings along to consumers. Oncor agreed to pass the savings along to customers as part of a rate review which is a formal process in which the PUC reviews the appropriateness of rates being charged by the utility. No exact details have been determined with respect to how the savings will be passed along. The rate review was actually completed before the tax reform bill was passed but there was a commitment in principle to passing along the savings. It’s not yet know exactly how much Oncor will save from the lower corporate tax rates but with a $245 million tax bill in 2017 future saving are likely to be in the tens of millions of dollars.
Knowing how much electricity you use each month is important to finding the cheapest electricity plan. For Houstonians, usage is typically the lowest in the winter and highest in the summer. Your specific usage levels can be determined by simply looking back at previous electric bills and finding the kWh used. To avoid electric bill surprises during the peak summer months, you’ll need to accurately know your peak electricity usage which typically occurs in August.
Switching your energy provider online through our website is quick, easy and hassle-free. Don’t miss out on saving money through our price comparison service simply because you think it will be a long, drawn-out process. The whole thing need not take over ten minutes and by doing so you could be saving hundreds of pounds a year with a cheaper electricity supplier.
CenterPoint Intelligent Energy Solutions LLC, IES, which manages TrueCost, is not the same legal entity as CenterPoint Energy Resources Corp. (CERC) or CenterPoint Energy Houston Electric, LLC (CEHE), nor is IES regulated by the Railroad Commission of Texas or the Public Utility Commission of Texas. You do not have to buy products or services from IES in order to continue to receive quality regulated services from CERC or CEHE.
Texas deregulated most of the state's electricity markets in 2002, a move aimed at lowering electricity costs by letting consumers choose their own electric power providers and their own plans. Some parts of Texas continued to be regulated, including those whose power is proved by municipally-owned utilities, electric cooperatives and investor-owned utilities that operate outside the state's primary power grid.
When you use our rate comparison process, providers know that they are competing to win your business. Consequently, they offer cheap electric rates in hopes of becoming your new Texas electricity company. This benefits both you and the provider you select. You receive a cheap electric rate and the plan of your choice, and the provider adds another satisfied customer.
Utility companies are responsible for transmission and delivery of electricity even in energy deregulated parts of Texas and should be contacted in the event of a power outage. Your retail energy supplier may provide you competitive electric rates or exceptional customer service, but they cannot repair power lines or restore your service. In the case of an emergency, contact:
Using an average of 1,063 kWh of power each month, Houston’s energy consumption rates exceed the national average by over 100 kWh. As a city however, it does manage to maintain a lower monthly energy charge than the rest of the US, incurring an average fee of $99 in comparison to the $112 national monthly average. To further save on their plans each month, residents can choose from a selection of Texas-based energy suppliers and service plans.