Why Are Electricity Prices Higher in Some Parts of Texas?

Electricity Prices Higher in Some Parts of Texas

Electric bills are one of those unavoidable monthly expenses that, like it or not, are still necessary. If you want to have power, you have to pay for it! Did you know, however, that electricity prices vary greatly throughout the country? It’s true! Depending on where you live, you could be paying much more for your electricity than someone in another state. When you think about it, electricity isn’t the only expense that can cost more or less depending on your location. The cost of living, which includes everything from housing to food costs, fluctuates based on area as well. Certain cities and/or states just have higher costs based on a variety of economical factors. If you live in the great state of Texas, whether you’re a lifelong resident or a recent transplant, you may be asking yourself, why is electricity so expensive in Texas? We will help you get to the root of this power problem and determine just why it is that Texas’ electricity price is so high in some areas.

Deregulated Vs. Regulated Areas

Certain areas in Texas are deregulated when it comes to electricity, while other areas are designated as regulated areas. Just what does this terminology mean? Let’s take a look:

  • Deregulated areas are those in which consumers can take their pick of which power provider they choose to use. This gives customers the freedom to shop around for electricity companies that offer rates and/or packages that fit into their monthly budgets. Here, competition in the energy market can encourage companies to provide competitive rates and packages to influence customers to choose them as their sole energy provider.
  • Regulated areas are those where consumers do not have the same freedom when it comes to selecting their electricity providers. Instead, one provider usually takes on all of the customers in the area. This is known as a monopoly. As a result, customers often have difficulty fitting the monthly expense into their particular budget—but they have no choice. These providers do not have to bend to customers’ financial needs. In these areas, including Texas, are those in which electricity is more expensive. These companies are not without someone watching over their policies and procedures, though. The company covers the entire value chain with oversight from a public regulator. The regulator makes sure that power is generated, sent to the grid, and reaches customers. Regulated markets are most dominant in the majority of the Southeast, Northwest, and most of the West Coast (excluding California).
  • Partially regulated markets are yet another type of option states may be running. For example, California is a partially regulated energy market. This means that both a monopoly and power provider choice are options, depending on where you live within the state.

Record-Setting Temps Are Breaking the Bank

It’s no secret that this summer has been hotter than usual. As with just about everything in 2020, this could put more stress on Americans than they’re accustomed to—particularly, their wallets. According to the Electric Reliability Council of Texas (ERCOT), which manages 90% of Texas’s energy grid, consumers are experiencing record high prices as the state’s electrical grid is stressed during these recent scorching summer months. The cost increase is projected to be at least a 15-cent increase per Kilowatt-hour or more, which is how energy costs are calculated. At first glance, 15 cents may not sound like a large sum, but it adds up quickly as the hours tick by. What other factors have contributed to this spike in Texan power prices? The fact that three major coal-fired generating plants have closed has only added to the increased costs. As an immediate result of this shutdown, the state’s power reserves have been driven down to their lowest point in approximately ten years. Other factors include the temporary shutdowns and delays in natural gas projects, as well as wind power projects. All of these unexpected shutdowns and delays have contributed to the overall uptick in electricity expenses in Texas.

Benefits of PrePaid Lights

If you live in a deregulated area of Texas, you should look into taking advantage of a prepaid electricity option. Prepaid Lights is an excellent option and cost-savvy provider of energy for Texas residents. You can choose from a variety of plans to suit your individual electric needs. The “pay as you go” option ensures you’ll never get in over your head, and you can monitor your usage on a daily or monthly basis. When you can easily track your habits (you can even download the app and check from your phone—how convenient is that?!) you can see what areas to cut down your usage in, saving you money on next month’s bill. It’s also super easy to get started—depending on your zip code, you may be able to get connected in as little as two hours.

Worried about your credit score? Don’t be. You don’t need to be worried about qualifying with your current credit score. Prepaid Lights offers connectivity with no credit check, deposit, or SSN required—equaling quick enrollment without unnecessary intrusion into your privacy! With over 30 years of experience delivering Texas residents with unmatched customer service, PrePaid Lights is an energy provider you know you can trust. Even during these uncertain times, PrePaid Lights is here to help.

When you’re researching everything they have to offer, don’t forget to check out Prepaid Lights’ COVID-19 relief program here https://prepaidlights.net/covid-19-electricity-relief-plan-in-texas/ to see if you qualify for deferred electricity payments or direct financial relief from the government. For more information on PrePaid Lights and all that they offer, reach out to a customer service representative today, or visit https://prepaidlights.net/. They’re here to help you get started on a path to perfectly-priced lights and prepaid electricity usage that won’t break your bank.

Disclaimer: © September 2020 PayGO Distributors, LLC. This is an advertisement for prepaid electric service from PayGO Distributors, LLC., an independent energy sales organization. Energy services are provided by Young Energy, LLC DBA Payless Power REP#10110 and Brooklet Energy Distribution, LLC DBAs Acacia Energy, Snap Energy Latino, and Now Power REP#10137. There is a minimum required payment to establish a connection. Call for more information on minimum required payments, balances, and specific terms of service and promotional details. Utility fees may also apply and may increase the total amount that you pay. Offers subject to termination or change without notice. Se habla Español.

* Rates quoted are at 2,000 kWh per the Electricity Facts Label for Oncor. Please check EFL for your effective rate.

** Order must be placed online before 4pm CST. Meter must not be subject to a switch hold.

(866) 491-2623 | (844) 611-0388