Texans: Consider Locking in Electricity Prices Now – They Could Rise Soon
If you live in Texas, now might be a good time to start thinking about locking in your electricity price.
In February, both the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) told state lawmakers that there is likely not going to be enough electricity supply to meet demand this summer. It’s a problem that can hurt electricity customers in the state who wait to sign up for fixed-price plans.
“Basically, what ERCOT and the PUCT told lawmakers was that falling natural gas prices are hurting the construction of new power plants that are desperately needed to meet the electricity demand in Texas,” said Jim Head, Spark Energy Vice President of Marketing and Sales. And whenever supply fails to meet demand, the price of electricity usually increases.
“Once electricity prices rise, the only thing that electricity customers can do to help offset the increase is to use less electricity or spend money on energy efficiency improvements,” Head said. “What people should really consider doing is looking at their options for locking in their electricity price before prices have a chance to increase.”
“Top Texas Officials Warn of Power Plant Shortages,”Fort Worth Star-Telegram, Feb. 9, 2012.