Texas Energy News and Corpus Christi TX Electricity Rates
Texas Energy News and Corpus Christi TX Electricity Rates
CORPUS CHRISTI, TEXAS - September 10, 2022 - Texas Electricity Ratings
Corpus Christi Electricity Rates Have Risen Significantly, With No Relief in sight
Corpus Christi TX -- High natural gas prices are putting a strain on Corpus Christi-area pocketbooks. Texas energy analysts have found that there are more problems ahead.
Analysts believe that Texas homeowners will soon experience the worst electricity rates in 13 years.
New contracts for electricity are being offered at prices that are near record highs by electricity providers. The perfect storm of conditions is converging that could lead to this summer being the most expensive for electricity in Texas history.
ERCOT reports that 46 percent of Texas' power grid is powered by natural gas. The war in Ukraine has caused natural gas prices to triple in the U.S. US natural gas prices will fall because of the demand to import more European natural gas.
As we have seen in the past two weeks, the heat is much higher than usual. Texas' hot summer days drive up electricity consumption. With high demand, wholesale electricity prices are pushing upwards.
But wait, there's more.
NOAA expects "a 70% chance" of 14-21 hurricane-type storms this year. As many as ten could potentially become hurricanes. One to six of these storms could develop into major hurricanes. "NOAA reports that this year's hurricane season will be "above usual." Peak hurricane season is between August and September.
Electricity providers are very cautious due to the uncertainty in the energy market.
The futures market also signal no immediate relief from higher prices.
Power prices are much lower in the futures market two years out from now compared to what is forecast next month.
The wholesale market prices electricity in 12-24-month segments. The rates will tend to stay the same if natural gas prices don't drop.
Everything is related to the price for natural gas.
Natural gas is almost the only source of power for power surges. This happens most often during summer heat.
This is another reason why natural gas prices are rising.
Texas electricity providers consider the current high natural gas prices as well as the risk of a further significant price increase.
Consumers who were fortunate enough to have signed multi-year contracts as recently as six months ago for 8 to 9 cents per kWh will not be concerned in the immediate future.
For those who do not have a contract, or whose contract is up for renewal, the residential rates are right now at between 15 and 18 cents.
Many providers have stopped signing up new customers because it's not profitable at the moment.
Due to current price pressure, it is much more difficult to get a good rate on a 12-month contract than it is on a 24- or 36-month contract.
Customers without an energy contract are currently faced with the dilemma of whether to keep their monthly plan in hopes of locking in lower prices for the 12-24 month term or to go ahead and lock in much higher rates for a longer term.
The volatility in the wholesale price of natural gas is responsible for most of the price uncertainty. There will be no significant price relief until the European situation stabilizes.
Visit TexasElectricityRatings.com to compare the best Corpus Christi electricity rates from Texas energy providers.
Texas Energy News and Corpus Christi TX Electricity Rates
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