A recent article published by Fox Business highlights the strong link between the natural gas market and commercial electricity. Some retailers are even beginning to offer rate plans sourced on natural gas. As the article points out,
Texans already get plenty of their power–about 40%–from natural gas, of which their state is the nation’s largest producer. But [new natural-gas specific rates underscore] the growing role played by the once unsexy commodity thanks to a supply boom unleashed by oil and gas companies drilling in shale fields using recently developed hydraulic fracturing technology to unlock hydrocarbons that had previously been uneconomic.
Fox Business also notes that natural gas prices, “which soared above $13 per million British thermal units in the summer of 2008, recently hit decade-low levels below $2/mmbtu.”
Because so much of Texas commercial electricity is produced using natural gas, you don’t have to be a market expert to understand how low natural gas prices could drive down electricity rates. When it costs generators less money to generate power, it typically costs less money to buy it. Low natural gas prices result in a favorable effect on business electricity rates—lower prices.
However, the cost to produce power is only one of the factors that impacts business electricity rates. Other factors like seasonal weather, inclement weather, regulatory changes, political trends and heat rates also influence the price of energy. And natural gas, while a major fuel source in Texas, is not the only fuel source in the Lone Star State. Texans utilize everything from nuclear power to renewable energy resources, like wind.
With so many factors in play, it can be difficult to develop a business electricity strategy that fully capitalizes on current market conditions. As a business owner, you undoubtedly want to curb costs whenever you can. Your commercial electricity arrangements present you with a prime opportunity to lower your operational expenses if you can correctly gauge the market, selecting the best product, provider and contract for your organization and executing that contract at the right time.
That’s where Live Energy can help. Live Energy is a commercial electricity brokerage firm that specializes in working with businesses of all sizes. Deregulated electricity markets, like the market in Texas and other deregulated states, allow you, the consumer, to maintain complete control of your energy arrangements. But just look at all the elements you have to stay on top of to make those arrangements on your own! It would be a daunting task even if it were the only thing on your plate, and as a business owner, this is hardly your only responsibility.
The expert team at Live Energy can help you manage the complexity of a deregulated market, saving you time and money, while also giving you the peace of mind that your business electricity strategy is well developed and well suited to your organization. Energy will always be an expense, but our goal is to lower that expense by finding the best possible rate for your company. We’ve been working with businesses just like yours for the last decade, helping them lower their commercial electricity costs, and we’d like to help you.
To find out more about how you can partner with Live Energy to develop a strong commercial electricity strategy for your organization, call us today at (817) 810-7770. Discover the power of having the experts in your corner.