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What affects the cost of electricity?

The final electricity price that an electric company charges is a result of many different factors. These factors are different for each company, that is why you might see different companies with differing price structures.

Key Factors in electricity price are:

Location: This dictates what power sources are available. Water driven hydro-power generated electricity tends to be the cheapest and natural gas generated electricity tends to be the most expensive.

Weather: In areas where hydro-electric power is the main source of electricity, rain storms can provide for added electric generation at lower cost. Wind storms can provide energy for Wind generated electricity. High summer temperatures in the summer can cause an increase in the demand for electricity, and cause short term energy cost spikes in a given area as demand nears capacity.

Transmission and distribution lines: The electric wires that carry electricity to your home or business must be maintained. This would include materials and labor costs. Inflation of prices can play a role here.

Power plants: The cost to construct, finance and maintain power plants is an important consideration to the overall cost of electricity for a state or region.

Regulation: Some states are fully regulated in their pricing by the Public Service (Utilities) Commissions. In others it is a mix of regulated pricing (generation) with unregulated pricing for power transmission and distribution.

Texas and New York Residential Electric Users

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The average prices can vary by location: Average price for electricity in 2007

Highest electricity prices in 2007:

Hawaii: (21.29 cents per kWh)

Connecticut: (16.45 cents per kWh)

New York (15.22 cents per kWh)

Lowest electricity prices in 2007

Idaho (5.07 cents per kWh)

Wyoming (5.29 cents per kWh)

West Virginia (5.34 cents per kWh)

The Hawaiian costs for electricity are highest because nearly all electricity was created by fuel oil. Idaho showed the lowest costs to produce electricity because of hydro-electric dams.

Electricity is also different for the types of users. 2007 electric prices by user was:

Residential electricity is usually the highest: 10.65 cents per kWh

Commercial electricity: 9.65 cents per kWh

Industrial electricity: 6.39 cents per kWh

Commercial electricity is lower than residential electricity usually because it buys more per month, thereby getting a small discount because of the larger purchase.

Industrial use gets the lowest prices of all because they usually consume more energy, and can use it in higher amounts. Therefore there is no extra cost in lowering the electricity voltages for them.

Smart Meters

The introduction of smart meters for residential and businesses have the promise of lowering electricty costs for business and consumers because it gives them the opportunity to purchase more electricity at lower cost during off-peak times, and less during peak times. Houston Texas is currently installing 2 million smart meters for residential customers.

Texas Industrial and Business Electric Users

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Lets us supply your Business or Industrial electricity needs in Texas: Just send us a message telling us contact information, location, and energy needs and we will get right back to you with an energy quote. We can also get you an energy auction if your usage is high. Contact Don consultant(at)cheaptexaselectricrates.com

Visit also Power to Choose Electric and Cheap Texas Electric Rates

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Are you ready for electric smart meters?

They are on the way for Texas residents. They will soon be on the way for residents of New York State residents. Your TDSP company (poles and wires) will install them. In Houston Texas that will be Center Point Energy. In fact Center Point Energy is in the midst of installing 2 million smart meters in Houston right now. That will cover just under half the city.

What smart meters do

A smart meter communicates. It communicates to the home office how much energy it is serving, and to what kind of equipment. It also monitors the usage of electricity as to when it is used and how much. Smart meters can allow an energy company to charge more for peak usage and less for off peak usage. This could save customers money.

In addition, smart meters can be set to turn off heavy equipment use of electricity during peak usage times. The energy to the household or business would still be available, but the electricity could be strategically cut to air conditioners, or other large energy users for a short time. This would not be mandatory at all, just an option a homeowner or business could have.

Texas and New York Residents Looking for Lower Residential Electric Rates?

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Contact your TDSP (Transmission Distribution Service Provider) about when your smart meter will be on the way.

Contact numbers for TDSP companies

Houston Zone: contact Center Point Energy   888-313-4747

North Texas Zone: contact OnCor     800-332-7143

South Texas Zone: contact AEP Central   866-223-8508

West Texas Zone: contact AEP North    866-223-8508

Texas New Mexico Power TNMP      888-866-7456

Be sure to Visit Power to Choose Electric and  Cheap Texas Electric Rates

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The County of Carbon PA recently held an electricity auction. There were seven Energy companies bidding on the Energy business. Commissioner William O’Gurek , chairman said that the county would have paid 30% more if they had stayed with their energy provider PPL.

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Contact our Commercial Energy Consultant: consultant (@) cheaptexaselectricrates.com

The auction offered 3 bidding categories. They were 11 month, 23 month and 35 month bids. Seven energy suppliers took part in the bidding process.They were Direct Energy, Champion Energy, Bluestar Energy, Liberty Power, Dominion, Exelon Energy and Suez Energy.

Champion Energy Services won with a bid of 8.45 per kWh.

If you are a decision maker for energy services for a Texas county, city, large business, or a business that has many locations in Texas and uses 500k kWh per year you might save big just like Carbon County PA.

Drop us a line with your needs and contact information and electricity usage levels, and we will get back to you with how you can save money with an energy auction of your own.

Please Contact: Don at consultant(at)cheaptexaselectricrates.com

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ERCOT: The Electricity Reliability Council of Texas announced on Friday January 8, 2010 that the recent Texas cold snap caused peak demand records for two consecutive days.

On Thursday January 7th 2010 ERCOT reported peak usage between 7-8 am of 52,001 megawatts. This new record only took one day to be broken. The following day, Friday January 8, 2010 the peak usage was reported to be 55,856 megawatts during this time period.

Kent Saathoff, a spokesman for ERCOT (who runs the Texas electricity grid) said that “The ERCOT grid has not experienced any major operational issues during this severe weather event.”

This summer on July 13th, 2009 there was a peak demand record set of 63,400 megawatts for the Texas electricity grid.

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Texans Save Money During Tough Times

We all know that there is a recession going on, and it is estimated that over 10% of the US population is unemployed. People are holding on to their money more. And businesses are more and more stressed by high costs and lower demand. So lowering electricity costs should be on the agenda. This is true for residential users and commercial users.

Affordable Energy is one company that offers low rates, and up to 3 year plans for it’s customers. that is both for residential and commercial users. Click Here for Affordable Energy residential rates.

Startex Power Residential rates Click Here

For commercial users, Affordable energy may give discounts based on the electricity usage of the company. Click Here for commercial rates.

Some commercial Texas companies use a tremendous amount of electricity. That is either as a stand alone plant, or an electric  aggregation of sites across the state of Texas. If you would like a quote for a large electricity usage bid, just send us a message below, or send a message  for information on an electric aggregation bid:  Contact consultant(@)cheaptexaselectricrates.com

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Houston Texas compare your residential rates and save

The following is a rate comparison between Reliant Energy, TXU Energy and Affordable Energy. Texas electricity deregulation has made these rate comparisons possible. Take advantage of the new lower rates with Affordable Energy for your residential and Commercial needs. Affordable Energy is available in all deregulated markets of Texas. Click on links to sign up.

Residential Electricity Rate Comparison as of 4/30/2009

One Year Fixed (12 Months)

Reliant: 15.6 Cents per kWh

TXU: 14.7 Cents per kWh

Affordable Energy: 11.7 Cents per kWh

We would have done a 2 and 3 year rate comparison here, but Reliant only had a 1 year rate published with the Power to Choose site. TXU did publish a 2 year rate and it was 14.9 cents per kWh. Compare that with Affordable Energy’s 2 year rate of 12.7 Cents per kWh.

2 Year Fixed (24 months)

TXU 14.9 Cents per kWh

Affordable Energy 12.7 Cents per kWh

Affordable Energy 3 Year (36 month) 12.9 Cents per kWh

Come look us over at Cheap Texas Electric Rates in affiliation with Affordable Energy.

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CLICK HERE for Residential Electric Rates

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It is about Texas electricity deregulation. There is some dialogue about ways to lower electric bills, and receive better electric rates.It is about 28 minutes long. Has some funny moments. This also features an interview with Donny Eisenbach while he is on the “road”.

CLICK  HERE for lower electric rates.

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