EST. 2013
Finding the Best Texas Energy Plans for Summer Electricity Needs
Published on May 13, 2024
Why Is My Electric Bill So High in the Summer?
The dreaded summer electricity bill. We’ve all been there. Afraid to open the envelope. Avoiding your inbox. Seeing a bill that could be triple your last one! Why does that happen every year? Well, the answer is quite simple actually…
Air conditioning
During the summer months, the sweet relief of air conditioning at home is real! Air conditioners use a lot of energy, which can significantly increase your electricity bill. Keep reading to see one easy thing you can do right away to help your AC unit do its job in less time.
Increased energy usage
It’s not just the AC that causes people to typically use more energy in the summer than in other seasons. With more daylight hours, you might spend more time outdoors, which can also mean an increased use of appliances and electronics. If you have a pool, you may be spending more time in the water. The pool pumps and pool vacuums have to work hard to keep up! Check our guide to Energy-Efficient pools to help you save money.
Higher energy rates
Some retail electricity providers may increase their rates during the summer months when demand for electricity is higher. This can lead to higher electricity bills even if your energy usage remains the same as it was outside the summer season.
Poor insulation
If your home is poorly insulated, hot air can enter, and cool air can escape more easily, which can cause your air conditioner to work harder and use more electricity to maintain a comfortable temperature.
To help reduce your electricity bill in the summer, you can try to conserve energy by using your air conditioner less, keeping your home well-insulated, and using energy-efficient appliances and electronics. You can also consider switching to a different electricity provider or plan with lower rates. One of the quickest and easiest ways to make sure your bill is in good shape is to sign up with Energy Ogre…
When it comes to picking out Texas electricity plans for our members, Energy Ogre is always focused on enrolling our members in the most competitive, cost-effective plan available at the time of enrollment. We consider the market circumstances now and in the future to help our members net maximum savings on their electricity bill.
Texas Electricity Pricing Trends - Summer 2024
As we head into Summer 2024, energy pricing is changing once again, but our team at Energy Ogre isn’t expecting a dramatic shift like we experienced a couple summers ago. You might remember that in Summer 2022, natural gas levels and a few other factors sent electricity pricing to record levels.
Come 2023, the summer prices went down to all-in rates of 10 to 13 cents per kWh. An all-in rate, also known as an effective rate, is truly the price per kilowatt hour you’re paying on your bill. The effective rate includes your energy rate, delivery charges, meter charges, and various taxes.
While we don’t have a crystal ball, our experts at Energy Ogre are estimating this summer’s prices to be between 15 and 16 cents per kWh all in.
“This summer electricity prices have been creeping up from where they were in the spring,” said David Kinchen, Energy Ogre’s chief operating officer. “It’s comparable to last summer but a little bit higher, and it’s nothing like two summers ago. As always, we’ll continue to keep an eye on it.”
Why Are Electricity Prices Going Up
Kinchen noted that retail electricity providers are still finding the right pricing as the electricity production in Texas continues to evolve. Why? Well, we’ve seen a pattern develop over the last few summers in terms of electricity generation.
In the early evenings, as the sun sets and solar power reduces, there’s a little gap before night-time winds help with wind generation. During that pocket of time, if there are any issues with thermal production facilities, the cost to buy wholesale electricity for the providers can be more expensive.
“There’s still some concern around this evening ramp down period when solar is going away,” Kinchen said. “It’s something the retail electricity providers are still trying to deal with. As we kind of get more certainty around that, prices might continue to creep up a bit, level off, or maybe even come down.”
Bottom line, Energy Ogre is monitoring the rates for our members. We’ll find and enroll you in the best plan at the time, and if something better comes up, we’ll let you know if it’s financially beneficial to make a switch.
If you’re thinking about joining Energy Ogre, see how your current electricity bill stacks up to a plan we could find you by filling out our free savings calculator. It takes less than 30 seconds!
Energy Ogre's Plan Selection Strategy During the Summer
We select plans that are custom fit to each member and their electricity usage. We search from hundreds of providers and sometimes can even offer custom, below-market rates available only to our members.
That being said, here are just a few key aspects we typically look for in a contract:
- A contract term ranging between 3 and 12 months.
- Which plan delivers the most savings throughout the year.
- We consider the offered rate as well as the projected rates that will be available when the contract ends.
Ways to Reduce Electricity Consumption at Home
There are several ways to reduce electricity use around the house, including:
- Switch to energy-efficient light bulbs: Replace incandescent light bulbs with LED bulbs, which use up to 80% less energy and last up to 25 times longer.
- Unplug electronics when not in use: Many electronics, such as TVs, computers, toasters, hair dryers, and phone chargers, use energy even when they are not in use. Unplug them or use a power strip to easily turn them off.
- Use a programmable thermostat: A programmable thermostat can help you automatically adjust your heating and cooling settings to save energy when you are not at home.
- Change your air filters: Changing your air filters at least once every 90 days can make a big difference. With cleaner filters, your air conditioning unit won’t have to run as long to cool down your home.
- Reduce hot water usage: Take shorter showers, fix leaks, and turn down the temperature on your water heater to reduce energy usage.
- Air dry clothes: Use a clothesline or drying rack instead of a dryer to save energy and money.
- Use energy-efficient appliances: Look for Energy Star certified appliances, which use less energy and are better for the environment.
- Install ceiling fans: Ceiling fans can help circulate air and make your home feel cooler, reducing the need for air conditioning.
- Seal air leaks: Seal gaps and cracks around windows, doors, and other areas to prevent heat loss and save energy.
- Use natural light: Open curtains and blinds during the day to let in natural light instead of turning on lights. But, if you’re out of the house, it’s a smart idea to close the blinds.
- Cook efficiently: Use a slow cooker, microwave, or toaster oven instead of the oven to save energy when cooking.
Current Electricity Rates - Comparing Your Electricity Contract to What's Available
Compared to last year, pricing is a little bit higher. Current energy rates are around 12 cents, with the all-in rate combining to be around 15 to 16 cents once all delivery charges are factored in. If you’re currently paying more than that, don’t wait to get into a better deal!
To see the lowest rates currently in your zip code, enter your zip code into the tool below.
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ERCOT Voluntary Conservation Notices in 2024
It wouldn’t be too surprising if ERCOT asks Texans to conserve electricity use at certain times this summer. This happens when there’s concern about the ability for electricity generation to meet demand. With more and more people moving to Texans, we’ve seen record demand numbers each of the last two years.
As Texans transitions into using more renewable energy generation such as wind and solar, the afternoon/early evening times have been a point to watch. Wind and Solar are intermittent resources, meaning they're available when they're available but you can't turn them on and off so to say. The sun has to be shining, and the wind has to be blowing. During those early evening hours, we see the sun start to set and generation from solar goes down. Typically at night, wind generation helps a bunch. However, there becomes a pinch point if the wind hasn't picked up yet, and the sun has gone down.
It's important to remember that advances in battery storage and demand response are in the works, but as we all go through this energy transition, these are spots we have to be mindful of.
What to Do if ERCOT Asks Texans to Conserve Electricity?
One of the most effective things to do is to turn your AC up 2-3 degrees during peak hours. Like mentioned above, using fans and unplugging devices that aren’t in use can help as well. One more thing to think about, it's often easiest to simply shift when you are using electricity. For example, if you can run your laundry machine in the morning, instead of peak time, that's a big help. For more tips take a look at the graphic below.
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Enjoy the Texas Summer!
We know the Texas heat can be a lot. At least with Energy Ogre on your side, you can stay cool without overpaying on your electricity bill. We’ll find the right plan for you, so you can set that thermostat, turn on a baseball game, and love your summer in the lone star state.
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