Texas Growth to Drive Commercial Electricity Rates Higher

Texas Growth to Drive Commercial Electricity Rates Higher

Commercial Electricity Rates
Photo by USFS Region 5

We have an energy problem here in the great state of Texas.

In fairness, it’s a good problem to have in many ways. We are a growing state, and as a result of our growth, we are consuming more power. Certainly, no one wants growth to stop. As a business owner, you undoubtedly agree.

However, as we grow and as our commercial electricity usage grows, our production of energy must grow, too, and therein lies the problem. Right now, generators, the companies that build, own and run power plants, aren’t building in Texas at a fast enough rate to keep up with our growing demand. While the outlook in the immediate future isn’t currently a concern—it appears that we will make it through this summer, for example, with enough production—the next few years are less certain. In order to ensure that we don’t end up having to deal with rolling black outs, we need generators to address our growing consumption by building more power plants.

To make that happen, the Public Utility Commission is considering a policy change that will, hopefully, provide generators with some economic incentive to build new plants. The solution that is under considerable right now is to raise the cap on the price of energy during peak demand hours. If this strategy is pursued, the Power Balance Penalty Cap and System High Cap could jump to $4500 as soon as August of this year, and could well be as high as $9000 by 2015. That would certainly allow for generators to make more money, making expansion in Texas a financially attractive option, but it will likely also drive the cost of commercial electricity up.

Even if you don’t follow the commercial electricity market like a hawk, you may have already heard about this potential policy change, either on this blog or in the news. What you may not be aware of is the fact that the PUC is constantly watching the Texas energy market. In an effort to ensure that we have the power to meet our needs at all times, there are often significant policy changes under review. Some of them make headlines and some of them don’t. With the potential for impact to your energy costs in the balance, how can you stay ahead of the curve?

That’s where the experts here at Live Energy can save you both time and money. It’s our job to watch all elements of the Texas energy market 24 hours a day, 7 days a week. Whatever factor has the potential to drive commercial electricity rates up or down—be it the natural gas market, heat rates, inclement weather, seasonality, or legislative changes (like the policy change currently under review)—we utilize our considerable resources to stay on top of things. We want to be your energy experts, advising you of the ideal time to act and helping you to select the energy plan that will get you the best possible commercial electricity rates, so that you can concentrate on running your business. With energy prices low, now could be a very good time for you to make a move.

If you’d like to see how our expertise can save you time and money, please give us a call at (817) 810-7770. You have enough of on your plate already. Let us help you take the worry and hassle out of selecting your commercial electricity rates.


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