Texas Energy News and Fort Worth TX Electricity Rates

FORT WORTH, TEXAS - September 10, 2022 - Texas Electricity Ratings

Fort Worth Electricity Rates are now doubled without any relief

The high prices of natural gas are causing financial problems in the Fort Worth area. Texas energy analysts believe that more pain is coming, according to their studies.

Analysts predict that Texas electricity rates are set to rise and will continue to climb.

New contracts are being priced by electricity providers at all-time highs. This summer could see the highest price for electricity in Texas history due to the convergence of a number of factors.

ERCOT reported that natural gas is used to power 46 percent of Texas's power grid. Natural gas prices in the United States have tripled in value. The situation in Europe is worse due to the war in Ukraine. US natural gas prices will fall because of the demand to import more European natural gas.

The heat has been much higher than normal over the past week. Texas's hot summer days increase electricity demand. Wholesale electricity prices have risen due to high demand.

But wait, there's more.

NOAA expects "a 70% chance" of 14-21 hurricane-type storms this year. As many as ten could potentially become hurricanes. These storms could turn into major hurricanes if they reach six or more. "NOAA has reported that this year's hurricane seasons will be "above-normal." Peak hurricane season is between August and September.

Electricity providers are being cautious because of uncertainty in the energy markets.

The futures market also suggests no immediate relief for higher prices.

Futures prices for wholesale power two years from now are much lower than what is forecast for next month.

Electricity is typically priced in 12-, 24-, and 36-month increments in wholesale markets. It is likely that these rates will remain the same if natural gas stays the same or does not drop.

Everything is related to the price of natural gas.

Natural gas is almost the only source of power for power surges. This happens most often during summer heat.

This is another reason why natural gas prices are rising.

Texas electricity providers have taken into account the high natural gas prices currently in Texas as well as the possibility of significant increases in the future.

Consumers who were fortunate enough to have signed multi-year contracts as recently as six months ago for 8 to 9 cents per kWh will not be concerned in the immediate future.

Residents who have no contract, or who are about to renew their contract, will pay residential rates in the range of 15-18 cents.

Many providers have stopped offering new sign-ups entirely because it's not economically profitable at the moment.

Prices are much higher now for 12-month contracts than they are for 24- or 36-month contracts due to current price pressure.

Customers without an existing energy contract have two options: either continue with a month-to-month plan in hopes of getting a lower price for a 12-24 month-term contract or opt to lock in higher rates for a longer-term plan.

The volatility in the wholesale price of natural gas is responsible for most of the price uncertainty. There won't be any price relief in the near future until the situation in Europe stabilizes.

To shop for the best Fort Worth electricity rates available from the best energy providers, visit TexasElectricityRatings.com.

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