Texas Energy News and Odessa TX Electricity Rates
Texas Energy News and Odessa TX Electricity Rates
ODESSA, TEXAS, September 10, 2022 - Texas Electricity Ratings
Odessa Electricity Rates are now doubled without any relief
The high prices of natural gas are causing financial problems in the Odessa area. Texas energy analysts have found that there are more problems ahead.
According to analysts, Texas homeowner's electricity rates are at their highest level in 13 years. They are likely to go up.
Electricity providers are setting new contract prices at record levels. This summer could be the most expensive in Texas history for electricity due to a convergence of several conditions.
ERCOT reports that 46 percent of Texas' power grid is powered by natural gas. Natural gas prices have tripled since the U.S. war in Ukraine. They are even better in Europe. 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's hot summer days increase electricity demand. Wholesale electricity prices have risen due to high demand.
But there's more.
NOAA forecasts that there is a 70% chance that 14-21 (hurricane storm) storms will form this year. With as many as ten of them potentially becoming hurricanes, These storms could turn into major hurricanes if they reach six or more. "NOAA has reported that this year's hurricane seasons will be "above-normal." Peak hurricane season runs from August to September.
Electricity providers are being cautious because of uncertainty in the energy markets.
Futures markets also indicate no immediate relief from rising prices.
A two-year look at wholesale power in the futures market shows a much lower price than what is expected next month.
Wholesale markets generally charge electricity in 12-, 24- and 36-month blocks, called strips. It is likely that these rates will remain the same if natural gas stays the same or does not drop.
Everything is directly related to the cost of natural gas.
Natural gas is almost the only source of power for power surges. This happens most often during the summer heat.
This is another reason why natural gas prices are rising.
Texas electricity providers are taking into consideration the current high natural gas prices and the potential risk of additional substantial increases.
For those consumers who were lucky enough to have signed a multi-year contract for as little as 8 or 9 cents a kWh six months ago, they won't have to worry in the short term.
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 offering new sign-ups entirely because it's not economically profitable at the moment.
The current price pressure makes it harder to get a good rate on a 12-month contract than on a 24- or 36-month contract.
Customers without an existing energy contract have two options: either continue with a month-to-month plan in hopes of getting a lower price for a 12-24 month term contract or opt to lock in higher rates for a longer-term plan.
The current volatility in natural gas wholesale prices accounts for the majority of price uncertainty. Price relief is unlikely to occur until Europe has stabilized its situation.
To shop for the best Odessa energy rates available from the best electricity companies, visit TexasElectricityRatings.com.
Texas Energy News and Odessa TX Electricity Rates
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