Electric companies buy longer-term contracts so they can hedge their risks when they’re selling long-term electricity plans. Just a week ago, it looked as if wholesale prices would be as high as Texas has seen in the past 15 years, said Ned Ross, director of governmental affairs for Direct Energy, the third biggest seller of electricity in Texas, behind No. 1 NRG and No. 2 TXU. Future prices have retreated recently, but companies buying power for August are still paying at least double what they paid a year ago, according to data from the Electric Reliability Council of Texas, or ERCOT, which oversees the state’s power markets.
Patrick Mays, an engineer for an oil and gas company in Houston, recently went shopping for a new electricity plan and found that the best deal available would cost about 55 percent more than what he’s paying, boosting his average rate to 9.5 cents per kilowatt hour from 6.1 cents under his expiring 12-month contract. The power bills for his 2,000-square foot home will climb an average of $30 a month over the year, he said, but he will take the brunt of the rate increase during the hot summer when he estimates his monthly bill will top out at $186, nearly double the $95 he paid last year.
As the largest city in Texas, Houston has a lot to offer – great shopping, out-of-this-world attractions, theaters, museums, a world-class culinary scene and more. At TXU Energy, we love being part of this diverse and exciting city. We’ve been providing Houston electricity for years – offering straightforward pricing and great plans designed to fit your household’s needs. It’s what’s made us the #1 choice for Texas electricity service.
CenterPoint Energy, a company that offers natural gas in six states and electricity to all of Houston, services the city and greater area. There are various choices for energy providers in Houston, and Choose Energy has partnered with some of the best. Customers have selections among trusted providers such as Reliant Energy, Direct Energy and TriEagle Energy.
On the one hand, long-term, fixed-rate (contract) plans offer stability in pricing. If energy supply costs suddenly go up in your area, you won’t be left paying more than what you bargained for. You’ll have peace-of-mind. If you want to switch out of your contract before it ends with a lower cost plan, you’ll likely face a cancellation fee (early termination fee).