Texas Energy News and San Angelo TX Electricity Rates
Texas Energy News and San Angelo TX Electricity Rates
SAN ANGELO, TEXAS - September 10, 2022 - Texas Electricity Ratings
There Is No Relief in Sight for San Angelo's Soaring Electricity Prices
In the Concho Valley, residents are feeling the pinch of the rising cost of gasoline. According to research conducted by energy analysts in the Lone Star State, we are in for more hardships.
Analysts predict that Texas' already sky-high electricity rates will rise even further.
There has been a recent spike in the price of new contracts from electricity suppliers. Due to a confluence of factors, this summer and possibly beyond could be the most expensive for power in Texas' history.
According to ERCOT, natural gas is used to power 46% of Texas' system. Within the United States, the price of natural gas has increased by a factor of three. As a result of the conflict in Ukraine, things have not improved across Europe. Price increases for natural gas in the United States are likely as a result of rising demand in Europe.
Meanwhile, the temperature has been above average for the past two weeks. High electricity consumption during the hot Texas summer months causes wholesale electricity rates to rise.
Still, there's more where that came from.
According to NOAA's forecasts, there is a "70% possibility of 14-21 (hurricane) storms forming this year, with as many as ten potentially becoming hurricanes. Anywhere from three to six of these storms have the potential to develop into hurricanes. There will be more hurricanes than usual this year, according to NOAA. The months of August and September are prime time for hurricanes.
Electricity providers are proceeding with extreme caution at the moment because of market volatility in the energy sector.
An immediate reduction in price increases is also indicated by the Futures market.
The futures market for wholesale power is substantially lower than expected next month, looking ahead two years.
The wholesale cost of electricity is typically quoted in 12-, 24-, and 36-month increments. These costs are unlikely to change if the price of natural gas remains stable or rises.
The price of natural gas affects every aspect of life.
Natural gas is almost entirely relied upon to meet the increased demand for electricity at times of peak usage, such as the hottest days of summer.
Moreover, the cost of natural gas is a major factor in the cost of power for these reasons.
Providers of electricity in Texas are taking into account both the current high cost of natural gas and the potential for further, substantial price hikes.
Those customers who were foresighted enough to lock in a multi-year contract for 8 or 9 cents per kWh as recently as six months ago should relax for the time being.
In the current market, residential rates range from 15 cents to 18 cents for customers who are either not locked into a contract or whose current one is expiring.
Due to the lack of financial reward, many service providers have halted accepting new customers.
Currently, the pricing pressure makes it much more challenging to secure a fair rate on a 12-month term than on a 24- or 36-month contract.
Customers without an energy contract must now decide whether to continue paying as they go for service in the hopes that prices will drop over the next 12 to 24 months, or whether to go ahead and lock in the significantly higher rates for longer durations.
The current volatility in natural gas wholesale prices is the primary cause of the price ambiguity. There won't be much of a drop in prices very soon, at least not until things calm down in Europe.
Visit TexasElectricityRatings.com to compare San Angelo electricity rates from all of Texas' leading electricity suppliers in one convenient place.
Texas Energy News and San Angelo TX Electricity Rates
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