In the last few weeks, many of us have experienced how crazy Texas weather can get, with high temperatures hitting the triple digits. What was even more volatile was the price for energy, which reached record-highs, causing ERCOT to issue several Energy Emergency Alerts. On August 13, wholesale prices in the Houston area reached $9,000 per MWh for a short time. According to the Houston Chronicle, “Power reserves dipped below 2,500 megawatts Tuesday afternoon, raising concerns whether Texas would have enough power to get through the hot afternoon and whether it would have to resort to extreme measures such as rolling blackouts.”*
Why did the price per megawatt go so high? Simple: more demand= higher market prices. With prices peaking at $9,000 per mWh, this means wholesale customers were paying $9 per kWh! If you’re currently on a fixed-rate plan, congratulations! If you’re paying variable/wholesale prices, you likely were exposed to the volatile electricity pricing caused by the increased demand.
Here’s a quick look at the risks with wholesale/variable rate pricing and how sticking with a fixed-rate plan may benefit you and your household spending in the long-run.
- Sure, we’ll admit that wholesale pricing looks extremely attractive. We also get that majority of the time you will be below the Texas average, but what about those price spikes? Those can get brutal and may offset some or all of the savings you had when you were below the local average.
- Fixed-rate plans will lock you into a low rate for the length of your contract. No matter what’s going on in the wholesale world, you will be charged the same amount per kilowatt hour of electricity each month. We also understand that rates do go up when demand is high, such as during the summer, but that’s why it’s important to lock-in that low rate when you see it. You don’t have to be energy-savvy, but as long as you shop smart and are aware of seasonal rate changes, you’ll be ahead of the curve.
With a combination of energy-saving practices and a low fixed-rate plan, price spikes like these can be one less worry for you, your household, and your wallet. Here’s the way we see it, energy is energy. So why pay more for the same?
See what low fixed-rate plans we have to offer and lock it in today: http://bit.ly/SecureYourRateToday
*Read the full Houston Chronicle: https://www.chron.com/business/energy/article/ERCOT-predicting-reserve-capacity-power-shortage-14301122.php