Residential customers will be shielded from the high prices in the short run because of fixed-price contracts, but electric providers will eventually recoup their increased costs. Increasing demand combined with decreased supplyĪ decline in supply and an increase in demand will increase prices for any good or service traded on open markets. With electricity problems becoming an increasingly hot topic, it’s a no-brainer that additional resources are needed to strengthen the system. Each year, the population of Texas has grown by 1-2%, which might not seem like much, but that equates to a population growth of at least 300,000 people.ĭue to this growth, peak electricity demand this summer will exceed 78,000 megawatts (MW), 4,000 MW higher than in 2019.Īs a point of reference, one megawatt of electricity powers about 200 homes on a hot Texas day. It’s also no secret that Texas is booming. Generation from coal fell as coal-fired power plants were retired.Natural gas prices in the United States rose substantially over the past year and a half after many years of relatively low prices that led to a steady rise in the use of natural gas for electricity generation.In addition to record-breaking demand, the closure of power plants and delays in power supply projects could reduce electricity supply.
#TEXAS UTILITY BILLS SKYROCKET HOW TO#
It is crucial to understand the factors influencing the energy market and how to best adjust to a season that brings high temperatures, high demand, and high costs.ĮRCOT has predicted summer peak demand for years, and this year is no exception.ĮRCOT cites several factors that will test the grid. Prices are changing: What you need to knowĪccording to energy experts in Texas, multiple factors lead to difficult summers for consumers, generators, and retailers. Prices are changing: What you need to know.Then learn what you can do about them to promote energy savings. A fixed-rate plan will lock-in a natural gas price for an extended period of time, which will help you better plan your home budget.īut there are several, more mundane things that can cause a spike in your heating bill. Learn the common causes for a consistently high gas bill even in the summer. If your gas bill rose because of global events like these, one of the best ways you can manage the disruption is through a fixed-rate energy plan. If you traded your high-rise office downtown for an office upstairs in your attic, you are likely using more natural gas than in the past, from keeping a larger area of your home warm to using gas appliances more often. The pandemic likely left its mark on many energy bills, as well. Annual inflation is up 7.5 percent, the highest it’s been since 1982, and economic sanctions placed on Russia in response to the war in Ukraine have not only driven up crude oil prices, but also placed a premium on liquefied natural gas globally, as countries scramble to replace former Russian sources. Recent events, however, are also affecting energy rates. Unless you are on a budget billing plan with your gas utility that averages out your payment over 12 months, your heating bill will likely rise in the winter as you use more natural gas, and dip in the summer with the reduced need to heat your home. The answer to the question “why is my gas bill so high” often comes down to simple seasonality.
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