Electricity rates in Texas have a complex mix of factors effecting them. Unlike many other western states, Texas does not have a lot of hydro-electric power so it has to plan to find electricity from another source. With a high population and high average temperatures all summer long, Texas has a unique energy problem that many states simply do not have to face.
The main influence in Texas electricity rates is the fact that most of the electricity in the Texas power grid is generated from coal powered generators. Natural gas prices effect power prices in Texas because the generators which kick in to add to the power available to the grid are powered by natural gas. The use of the natural gas generators adds an extra variable to the Texas electricity market, because it changes in price. As is so common in the free-market system, the consumer ends up paying the difference.
With a high population, high summer temperature and a huge amount of geography to cover the Texas power grid can be under extreme duress at certain points of the year. With a power pole every so many yards, electrical cable and wire in between and clients that may be hundreds of miles apart, Texas presents some very unique and difficult hurdles to overcome.
When you factor in those things, you can see that Texas electricity rates are effected by a complicated network of issues that are not too common. The citizens of Texas are speaking loudly in an urgent attempt to find a resolution for the difficulties, but solar power in a sunny state is going to ultimately be the answer.
Never before has the consumer had the tools at hand that we do now, so make sure to use this information to your advantage.
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