It may come as a surprise that what you pay for power is a culmination of many factors. A lot goes into flipping on that switch: electricity must be generated and delivered through equipment that operates on fuel and requires building and maintenance costs. When the prices of these things increase or decrease, so does your electricity bill. As a matter of fact, prices change every minute, but customers are charged based on seasonal demand. There are so many factors, some large, some small, that go into determining the price of electricity in the United States: Cost of Fuels: Electricity has to be generated and delivered, and these processes take energy supplied by fuels. As you probably know, fuel prices vary, which in turn affects the cost of electricity. Power Plant Costs: Like anything else, power plants need to be built and maintained. That, plus the operating costs, have an impact on electricity prices. Transmission and Distribution System Costs: Like the point above, distribution and delivery systems also need to be built, maintained, and repaired when necessary. Weather: Inclement weather can work for or against you when it comes to electricity costs. Rain and snow can assist in cheaper hydropower generation, while wind keeps turbines spinning. However, extreme weather that increases the demand for electricity can ultimately make it more expensive. Regulations: Regulations vary per state, with some service/utility...
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Consumers in Houston, Dallas, Fort Worth and Corpus Christi were promised bargains on electricity when the Texas Legislature deregulated the electricity market. But 16 years later they're still paying more for electricity than their counterparts in cities Texas lawmakers exempted from deregulation such as Austin and San Antonio, according to the Texas Coalition for Affordable Power which analyzed federal electricity pricing data.
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Since areas surrounding downtown – such as Sycamore and Northside – are mostly populated by families, homeowners might want to consider plans that will last for several years. Rather than switching REPs every few months, you can choose to stick with your preferred retailer for a longer period of time by opting for a long-term contract. Also, if you're looking to grow a relationship with your REP, you can research retailers based on their attention to customer care.