Posted on: May 12, 2022 Posted by: Jerry D. Pfeil Comments: 0

From a technical perspective, Texas has a reliable electricity grid. Major blackouts are rare in Texas. This reliability comes at a price: electricity prices are determined by comparing demand and supply. On hot summer days, the demand is greatest when air conditioners run at maximum power.

This is why Texans have to deal with ” electricity prices” such as those in August 2019. They could also happen again in August 2020. You can avoid rate increases by switching to a long-term electricity plan with a fixed price.

The Electric Reliability Council of Texas (ERCOT) predicts that electric demand will continue rising between 2020-2025 at an annual rate of more than 1.5%. To keep up with demand, new power plants will be built. Energy efficiency programs can help offset the increase in electric load.

Summer will see consumption peaks, so ensure you have a stable energy rate.

Long-Term Energy Plans

Benefits of 24-Month Energy Plans

The Lower the Rate, the Longer the Term.

24-month contracts are more affordable than 12-month contracts for long-term electricity plans. Texas energy providers can plan and attain lower kWh prices while serving customers on a fixed-rate energy plan.

Businesses and homes must run their air conditioners to maximum capacity to stay cool in the summer heat. This causes an increase in electricity consumption which reduces the supply-demand margin, which results in higher kilowatt-hour prices. A long-term fixed-rate electricity plan can solve this problem. The kWh price remains constant regardless of the supply or demand.

Before You Commit

Before signing an electric contract, it is strongly advised to compare rate plans. These plans are affordable, but they can also be terminated early for fees. Before making a decision, take your time to read the Electricity Facts Label.

Good Credit

Quick Electricity makes it easy to select a home energy plan. Online registration takes just 5 minutes. You will need good credit to get long-term plans at low rates. Otherwise, you will be required to pay a security fee that is fully refundable after your contract ends.

Less hassle for the long-term

The best part about a long-term energy plan does not need to worry about your electricity bill for two or three more years. It’s hard enough to own a home. Take a breather!\

Texas Energy Rates Are on the Rise

Long-Term ERCOT: Texas Electric Supply and Demand 2021-2025

The Demand, Capacity and Reserves Report by ERCOT shows that the future behaviour of the electric demand and capacity is the following:

Year Demand (MW). Supply (MW). Reserve Margin

2021 76098 89250 17.3%

2022 77907 93219 19.7%

2023 79393 93648 18.0%

2024 80781 93603 15.9%

2025 81993 93563 14.1%

The outlook is positive since the reserve margin remains above the ERCOT target at 13.75%. However, summer will see higher electricity consumption and kilowatt-hour prices, which will affect anyone who does not have a fixed-rate plan.

The ERCOT projection assumes that power plants will be completed on schedule and that energy efficiency programs reach the desired results. If the situation is less favourable, the supply-demand margin can shrink, and electricity prices may rise.

 

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