July 2018 data, the latest available, show that the average U.S. price – 13.12 cents per kilowatt hour (kWh) – was down 0.7% compared with a year ago. If you live in Louisiana, you pay the lowest average residential electricity rates of any state in the country – 9.37 cents per kWh. The next lowest rate is in Washington, where residents pay an average of 9.79 cents per kWh.
Even though customers in deregulated Texas markets routinely pay more for electricity, there is a bright spot. The gap between the average price paid for electricity between deregulated and regulated market has shrunk to 8.8 percent. In 2006, customers in deregulated cities were paying nearly 47 percent more for electricity than their counterparts in regulated cities.
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.
Why are so many African power utilities effectively bankrupt? For one thing, they are incredibly inefficient. Efficiency can be improved by proper metering, investing in the system to reduce losses, improving collections and being able to cut off non-payers. This last one being easier if there is up-to-date metering and certain big players like government departments and military installations are also forced to obey the rules. These operational improvements and efficiencies will improve the supply of power but will not go far enough.
Where should you shop for electricity? Houstonians have the power to choose from an overwhelming variety of energy suppliers, plans, and options. If you live in the Houston metro area and your local electric utility is CenterPoint, over 50 different retail electricity providers currently offer electricity plans in your area. Each of these electricity providers offer sites, tools, and information on how to switch plans and providers. However, their information is often filled with electricity rates that are difficult to compare because of things like introductory rates, bill credits, narrow usage levels, unexpected fees, and legalese buried in the EFLs. Fortunately, Houston homes and businesses have electricity shopping options that make the process much simpler.
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.    
After Senate Bill 7 went into effect in January 2002, nearly 6 million power customers became eligible to choose their energy supplier. That number has grown through the years. By deregulating the state’s energy market, the Texas Senate gave constituents the power to choose. The process of energy deregulation in Texas dismantled the utilities’ monopoly over the electric market and encouraged customers to explore their energy options.
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