Lowest Cost Houston Texas Electric Rates

by Donny on January 13, 2009

Comparing Electric Rates in Houston Texas

If you live in Houston Texas and have been trying to find the lowest cost Houston Texas electric rate then you can compare multiple electric providers on our comparison page. We compare the cheapest Houston electric providers in a detailed electric service rate comparison. There are several different fixed rate terms to compare. If you need a no commitment option we have a provider that offers a month to month rate that closely follows the energy markets. This means that if the energy commodities market goes down you can take advantage of lower electricity prices. We have several energy consultants that work with Houston electric rates.com that have their residence on variable electric rate plan like this. For the clean energy conscience consumer we also compare renewable green energy electricity rates and providers with each other to assist in helping those that are interested in a green energy choice find the cheapest available energy company. All the green energy options available are 100% renewable energy.

What is Your Hunch on What Electricity Rates Will Do?

When deciding which low cost electricity rate to go with it is important to make up your mind about what you believe electricity rates will do in the long term. In Texas there is about a 90% correlation with natural gas prices and electricity rates and because of this you can follow what energy commodities have done to determine what you think electric prices will do. Natural gas futures commodities closely follow oil futures and most people are aware what oil and gasoline prices have been doing this year. We saw gasoline go up to some all time high prices only to come back down again close to the $1.00 level. Natural gas followed a barrel of oil down from $150 a barrel to $37 dollars a barrel as of today. Natural gas is trading in the $4.90 per mmBTU range as of today when in the summer of 2008 it was trading around $12 – $13 mmBTU.

Houston Electricity Prices and Picking the Right Fixed Term

Electricity rates in Texas are low right now too just like the rest of the energy market in the United States. Finding a low cost Houston electric rate is a pretty easy thing to do right now because electric service prices are low along with the energy commodities they follow. The reason electricity rates in Houston have come down with natural gas is due to the power generation plants that produce our Texas electricity being generated primarily from natural gas powered steam turbine power facilities. If you were scared what energy prices were going to do this summer and you are risk averse it may be wise to lock in for a longer term now that electric service prices are so low right now. If you are ok taking a risk and do not mind trying again to renew in 6 months or a year then a shorter term fixed electricity price would be a better option. You can lock in anywhere from 1 month, 3 months, 6 months, 1, 2, or 3 years and have your Houston electric rate locked in for that time frame. You have to decide if you think when it comes time to renew if energy prices will be higher or lower. No energy analyst can accurately tell you what energy prices will be a few years from now. If they could they could trade energy themselves and quickly become millionaires. The choice is yours and since there is just a little money at risk when locking in a residential electric rate you may want to simply pick the cheapest fixed rate term available and try again when the contract is up for renewal.

Why Are Longer Fixed Terms More Expensive Right Now?

An important point to consider is that electric rates are more expensive on the end of the term where electric rates are expected to be lowest. Their is a reason you some times pay a higher price for electric service for 3 years then if you sign up for 6 months. The energy commodities market futures contracts are based on the best possible speculation of what electric prices will look like in the future. If you have to pay a premium to sign up for 3 years it is probably because electric rates are expected to come back up in price for the short term. By locking in for 3 years you are basically buying insurance during the time that is expected to be volatile and upward in price movement. Note: Sometimes short term fixed rates are more expensive then longer term fixed rates. It all depends on what is going on in the natural gas futures market which has a corresponding effect on Texas electricity rates.

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