📉 Real Simple Energy Cheapest Electricity Rate Index (4Q 2018)
The 4Q 2018 Real Simple Energy Cheapest Electricity Rate Index is out! We publish the rates our customers are actually paying on 12-month fixed-rate electricity plans in Texas.
Rates are slightly higher than 3 months ago but still much lower than the 2018 summer spike. Concerns remain over the grid’s ability to handle a hot summer in 2019 so rates are likely to remain elevated.
Real Simple Energy works hard every day to find our customers the cheapest electricity plans for their specific usage patterns. We can’t stop wholesale prices from going up and down but we can make sure our customers get the cheapest plan on a given day. Here’s how rates are trending in Texas for both houses and apartments.
What do these charts represent?
The line charts above are a rolling history of the absolute cheapest 12-month fixed rates in Texas (our search results). For example, if you locked in a 12-month fixed rate in March 2018 your fixed rate would have been around 8 cents, but if you locked in around June 2018, your 12-month rate would have been over 10 cents.
The nitty gritty
Electricity rates are determined by supply and demand. Rates are elevated now because of concerns that supply (power plants) in the summer may not be enough to meet record demand in Texas (all that growth we’ve had). The market had the same concerns a year ago (hence the rate spike in chart) but supply was able to meet demand and rates came back down. As we head into summer 2019, supply is forecast to be even less than last summer and that is the main reason rates on 6 and 12-month contracts remain high. We won’t know much more until September….
Real Simple Energy expects prices to remain elevated going into summer and we don’t expect them to fall much, if at all, until mid-summer.