Does Temperature Affect Your Electricity Bill?

How Does Temperature Affect Your Electricity Bill?

There are three primary ways that Texas weather can impact your electricity bill:

• Increased demand: Extreme heat in the summer and extreme cold in the winter both lead to higher energy consumption and demand as more people run their HVAC systems at the same time.

• Energy strain: Extreme weather, like severe storms or heat waves, puts stress on the system and drives up costs for consumers.

• Weather-driven consumption patterns: Energy use habits change based on the weather outside, using more or less depending on the conditions and contributing to increased energy usage and costs.

Does Cold Affect Electricity Rates?

Yes. While we often associate electricity price spikes with extreme heat, cold temperatures also increase demand, including the demand for natural gas, which helps generate electricity in the state. This leads to higher costs for consumers, especially those with less efficient heating systems.

Does Temperature Affect Your Heat Bill?

Absolutely. Again, it’s not just AC that drives up energy costs. Temperature has a significant impact on heating, too, and the larger the difference between the temperature outside and the temperature your thermostat is set to, the more you’ll spend.

Weather and Electricity Rates in Texas

If you’ve lived in Texas long enough, you’re well acquainted with the state’s temperature swings. These range from average highs of 100+ degrees in the summer to average lows of around 30 degrees in the winter.

As mentioned, spikes in temperature = spikes in electricity costs. If you don’t have a fixed-rate plan, you’re likely to experience the effects of high demand on the wholesale energy market. It’s why you might experience predictable rates most of the year and then get hit with major sticker shock come July.

Of course, temperature isn’t the only thing impacting electricity rates. Storms and hurricanes, for example, can lead to outages and infrastructure damage, both of which raise electricity rates.

Luckily for Texas residents, the Electricity Reliability Council of Texas (ERCOT) has advanced forecasting data that helps them manage the state’s energy grid and keep things as stable as possible in the face of extreme weather patterns. It’s not foolproof, but it does help keep the grid reliable – even if you end up paying more to use it.

How to Navigate Weather-Related Electricity Price Changes

You can’t control the weather, but you can be proactive about energy usage and help keep your costs in check.

One way to do that is to take advantage of fixed-rate energy plans. These shield you from weather-related price surges so you know what to expect regardless of the weather outside.

Next, make a point to reduce energy consumption during peak weather conditions. Ways to do this include smart thermostats and proper insulation use. You should also read up on what appliances use the most energy and either switch to more efficient models or be strategic about when you run certain appliances.

Finally, be sure to monitor usage during peak seasons. There are certain ideal thermostat temperatures for summer and winter temperature extremes, and knowing what these are can go a long way toward better managing your bills.

Take Control of Your Energy Costs

Weather has an effect on electricity use and pricing no matter where you live, particularly in deregulated states like Texas. If your bills are too high, we recommend going back to the drawing board to find an energy plan that offers you the best bang for your buck in the face of weather-related rate changes.

Ready to see what’s available? Search plans by zip code to find the best available rates in your area.