There
are
many
factors
that
influence
Texas
electricity
prices;
weather,
natural
gas
crude
oil
prices,
and
others.
This
year
many
electricity
customers
and
those
coming
off
of
two
or
three
year
contracts,
are
getting
sticker
shock
from
high
electricity
prices.
This
has
been
mainly
been
caused
by
the
dramatic
increase
in
natural
gas
prices.
Many
elements
have
played
a
role
in
this
cycle,
not
the
least
of
which
that
the
gas
industry
has
endured
its
two
worst
natural
disasters
in
history
(Over
60%
of
Texas'
generation
capacity
is
fueled
by
natural
gas),
thus
the
correlation
between
natural
gas
prices
and
electricity
costs.
This
is
simply
because
Texas
is
rich
with
natural
gas,
and
it's
faster
and
cheaper
to
get
electricity
generation
plants
on-line
that
run
on
natural
gas.
Electricity
rates
are
based
on
several
key
components.
Some
of
the
factors
that
influence
prices
include;
weather,
natural
gas
production,
operating
rigs,
and
natural
gas
storage
reports.
Texas
deregulation
calls
for
some
charges
to
be
on a
fixed
rate,
and
allows
other
charges
to
be
pass-through
fees.
The
fixed
rates
include;
energy
charge
(cost
per
kWh),
congestion,
ERCOT
administrative
fees,
ancillary
fees,
and
fuel
surcharges.
Pass-through
fees
include;
TDSP
(Transmission
and
Distribution
Provider
-
lines
and
wires)
fees,
and
applicable
taxes.
Weather
has
also
played
a
major
role
more
recently,
as
weather
is
historically
one
of
the
main
determining
factors
in
electricity
prices.
As
we
get
into
the
winter
months
and
colder
weather
lingers
across
most
of
the
eastern
U.S.,
the
demand
for
natural
gas
will
keep
growing
and
along
with
it
electricity
costs.
On
the
brighter
side,
after
all
of
the
slow
downs
the
natural
gas
industry
has
still
managed
to
refill
storage
levels
for
the
winter.
Actually,
most
of
the
production
and
gas
processing
is
back
on
line.
Gas
production
in
the
Gulf
is
slowly
recovering
from
the
summer's
hurricane
damage,
and
according
to
industry
traders,
natural
gas
storage
is
in
pretty
good
shape.
However,
gas
prices
remain
very
high
and
this
will
continue
to
place
pressure
on
our
electricity
prices
here
in
Texas.
With
this
in
mind,
electricity
users
should
not
only
make
sure
they
currently
have
a
favorable
electric
rate,
but
you
should
also
do
what
you
can
to
cut
down
on
energy
consumption.
