Texas currently produces and consumes more electricity than any other state in the country. This energy consumption is due to its size, but the ample land makes it a major producer of wind power – a renewable, or green, energy source. The environmentally friendly energy created by wind power is available to many Texas residents to supply the electricity in their home or business.
Even though customers in deregulated cities routinely pay more for electricity, there is a bright spot. The gap between the average price paid for electricity between deregulated cities like Houston and regulated cities like San Antonio have dwindled to the narrowest point ever to 8.8 percent. Back in 2006, customers in deregulated cities were paying nearly 47 percent more for electricity than their counterparts in regulated cities.
There’s some smart money placing big bets on a rebound for oil. Blackstone Group LP BX, +0.75% President Hamilton “Tony” James said last month that the company was “scrambling” to invest up to $10 billion in energy companies, according to Bloomberg. Blackstone CEO Stephen Schwarzman said during the company’s earnings call on Jan. 29 that the majority of Blackstone’s energy investments were “oil-price agnostic, including energy-transportation infrastructure where we have off-take agreements, merchant power, renewables and other types of energy-oriented investing.”
Electric rates for companies vary greatly by industry and function. Although homes come in all shapes and sizes, businesses have larger variations with diverse needs – from industrial buildings to mom-and-pop businesses. In July, for example, the average business in Oregon paid 9.41 cents per kWh. With this number, we can deduce that on average companies in the state paid about $591 that month for electricity.
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).
Electricity pricing (sometimes referred to as electricity tariff or the price of electricity) varies widely from country to country and may vary significantly from locality to locality within a particular country. Many factors go into determining an electricity tariff, such as the price of power generation, government subsidies, local weather patterns, transmission and distribution infrastructure, and industry regulation. “Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid.” Some utilities are for-profit, and their prices will also include a financial return for shareholders and owners. Electricity tariffs vary by type of customer, typically by residential, commercial, and industrial connections. Electricity price forecasting is the method by which a generator, utility company, or large industrial consumer can predict the wholesale prices of electricity with reasonable accuracy. The cost to supply electricity varies minute by minute.
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.
Studies show that generally demand for electricity is driven largely by temperature. Heating demand in the winter and cooling demand (air conditioners) in the summer are what primarily drive the seasonal peaks in most regions. Heating degree days and cooling degree days help measure energy consumption by referencing the outdoor temperature above and below 65 degrees Fahrenheit, a commonly accepted baseline.
Technology that now allows smaller quantities of power to be generated closer to the end-users at prices not too much higher than grid-based power are undermining those economies of scale. More efficient turbines, for example, allow large power users like cement plants and petrochemical factories to come off the grid. Today the limiting factor for large companies to come off the grid often isn’t the efficiency of the power generation technology, but the lack of easy availability of fuel, such as gas or coal to power these turbines Even this problem is being solved by innovations like mini-liquefied natural gas projects.
Most common distribution network and generation is done with 3 phase structures, with special attention paid to the phase balancing and resulting reduction of ground current. It is true for industrial or commercial networks where most power is used in 3 phase machines, but light commercial and residential users do not have real-time phase balancing capabilities. Often this issue leads to unexpected equipment behavior or malfunctions and in extreme cases fires. For example, sensitive professional analogue or digital recording equipment must be connected to well-balanced and grounded power networks. To determine and mitigate the cost of the unbalanced electricity network, electric companies in most cases charge by demand or as a separate category for heavy unbalanced loads. A few simple techniques are available for balancing that require fast computing and real-time modeling.
You can organize and shop by pricing at YOUR individual usage level, which allows you to shop and compare energy plans based on the rates you’ll actually see appear on your bill, inclusive of taxes and hidden fees. You won’t be misled by the “teaser rates” tied with higher usage levels that many homes never experience, as their usage level never reaches that pricing tier.