The basis of electricity price structures varies between states and regions, largely dependent on whether an area is deregulated or not. In areas not yet deregulated, industrial customers pay less than residential and commercial customers, but if you are in Texas, where electricity is deregulated, you can check out various companies before you make your choice, and lock in a good rate.
If you have a small business or a home, your actual rate for electricity will depend largely on how much you use. The prices may also be different based on the electricity sources. Coal provides cheap rates, but it is not the most environmentally friendly power source. Gas and oil are next cheapest, followed by wind, nuclear and solar, which in most areas is the most expensive, according to EIA.gov.
The costs are not always high for renewable energy, unless there are not many sources available that reach the grid. The best electricity price can reflect the fact that conventional power plants are usually tied in more closely to the infrastructure of the power companies in a given area.
In Texas, where many areas have deregulated power companies, the prices are largely determined by supply and demand. If you are displeased with the cost or customer service of your current electric utility company, you can switch when your contract expires.
Be sure to investigate all the aspects of obtaining power from a new utility company before you make a change. Some companies offer attractive introductory rates that may increase steeply after the introductory period is over. Besides electricity price, you also want a company with a record of good customer service, in case you do need it.
The demand for power in Texas is driven in large part by the weather. The hot summers have high demand for power to run air conditioning, while milder winters do not require as much power to heat homes and businesses.
Some areas of the country, like the Pacific Northwest, depend in large part on hydroelectric dams for their power. In Texas, electricity is generated from many sources, all the way from fossil fuels to renewable resources like solar and wind.
Another important aspect to consider, in addition to the electricity price of a company you are considering, is the number of outages their customers experience. It will affect the total power that can be sent to the grid at any given time. Select a company with a good record for infrequent outages, in addition to quality service and good prices.
Quickly compare and shop Texas electric rates for your home or business from various energy providers.