Last Updated on April 7, 2021 by Mary Pressler
Protect Against Rising Electric Rates with a Long Term Plan
Texas has a reliable power grid from a technical standpoint, and major blackouts are very rare in the state. However, this reliability has a cost: electricity is priced by comparing supply and demand, and demand is highest when air conditioners run at full power on hot summer days.
This is why Texans must deal with “electricity price spikes” like those from August 2019, which could happen again in August 2020. However, you can avoid rate hikes by switching to a long term electricity plan with a fixed rate.
According to the Electric Reliability Council of Texas (ERCOT), electric demand will continue to increase between 2020 and 2025, at a rate of over 1.5% each year. New power plants will be brought online to keep up with consumption, and energy efficiency programs can offset the electric load increase.
Consumption peaks will continue to happen in summer, so make sure you’re protected with a stable energy rate.
Things to Consider About Long Term Energy Plans
- The Longer the Term, The Cheaper the Rate
When choosing a long term electricity plan, 24-month and 36-month contracts tend to have a lower price than 12-month contracts. While serving customers with a fixed rate energy plan, Texas energy providers have more time to plan and achieve lower kWh prices.
In the summer, homes and businesses must use their air conditioners at full capacity to stay comfortable with the high temperatures. This increases electricity consumption, which tightens the margin between supply and demand, and kilowatt-hour prices become higher. However, a long-term fixed-rate electricity plan solves this issue, since the kWh price stays constant regardless of supply and demand.
- Compare Before You Commit
Comparing rate plans is strongly recommended before signing an electricity contract. While these plans offer constant prices, they also have fees for early termination. Take your time and read the Electricity Facts Label (EFL) before making a final decision.
- Good Credit Counts
Selecting a home energy plan with Quick Electricity is easy and online registration takes only 5 minutes. For longer term plans with cheap rates, you must have good credit or you will be asked to pay a security deposit that is fully refundable when your contract is up.
- Less Hassle for the Long Run
The best thing about choosing a long term energy plan is not having to worry about your electric bill for the next two or three years. Home ownership is challenging enough. Give yourself a break!
Eyeing ERCOT Long Term: Texas Electric Supply and Demand for 2021-2025
|Year||Demand (MW)||Supply (MW)||Reserve Margin|
The outlook is favorable, since the reserve margin stays above the ERCOT target of 13.75%. However, electricity consumption and kilowatt-hour prices will continue to be higher during summer, affecting anyone without a fixed-rate plan.
This ERCOT projection also assumes that power plants are completed on time, and that energy efficiency programs achieve the expected results. In a less favorable scenario, the margin between supply and demand can become tighter, and electricity prices increase more.
There’s no doubt that Texas electricity prices are on the rise. That’s why we recommend a fixed rate plan with a term of 12, 24 or 36 months. Commit to a long term plan, and in exchange you will secure today’s kWh rate with no fluctuations for up to 3 years.
Switch to a Long Term Energy Plan Today
At Quick Electricity, we’re proud to offer the lowest long term rates in Texas. Our energy providers tout five star ratings with the Texas PUC and Better Business Bureau.
Ready to shop long term options?
Start by viewing rate plans in your city. Select a plan, and sign up in minutes. You’re on your way to a cheaper light bill – for years to come!