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The High Risk of Summer 2018 Texas Month to Month Electricity Plans

Texas electricity customers face historically high electricity prices this summer. The rising energy rates are not so much a result of the cost of natural gas, the primary commodity used to generate electricity, but are a result of increased demand and anticipated shortages in supply. What does this mean for customers on variable rate, month to month electricity plans? High, high, high electricity rates for the dog days of summer. Who is most at risk? Prepaid electricity customers and customers on holdover rates from expired electricity contracts.

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What’s Ahead for 2018 Texas Summer Electricity Rates: Supply, Demand, and Reserve Margins

If you’ve shopped for an electricity plan in Texas recently, you’ve probably noticed that rates are rising. In fact, some of the energy rates for Texas plans have increased over 30% so far in 2018 and will continue to rise as the summer approaches.

What’s contributing to this rise? In short, it’s simple economics. Understanding the market forces at play in ERCOT will help you make an informed decision about your energy needs going into the summer and avoid a painful utility bill.

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