And none of us in the industry would have guessed prices would go this high. The truth is, no one can predict the future. There are a lot of ifs, ands and buts when talking about power prices. Of course, that could just be reflecting market optimism that the conflict in Ukraine will resolve, and that Russia will re-open natural gas exports to Europe.Įven the experts in commodity markets don’t know what will happen in the future. That’s because wholesale electricity costs in what’s called the “forward months,” April 2023 and beyond, show prices falling.Īnd the closer we move into Spring 2023 time frame, the more we will see prices for electricity falling in Texas. We are seeing some relief this fall, and Texas electricity prices are dropping. QuarterĪll that brings us to fall 2022 electricity prices in Texas. This is based on data from the Public Utility Commission of Texas and represents their sample of electricity plans. This chart of electricity rates in Texas from 2019 to present shows what consumers have experiences. ![]() Electricity prices are currently some of the highest since the beginning of deregulation. So what do electricity rates look like now versus last year? Are we really seeing higher prices? Absolutely. That’s a big factor driving higher electricity prices in Texas and around the world.Ĭomparing Texas Electricity Rates – 2022 versus 2021 The chart here shows how consistent natural gas pricing has been in the past, and how it’s skyrocketed since January 2022. The Russian invasion of Ukraine in February 2022 shocked world wide energy markets. ![]() Second, electricity prices in Texas remain closely tied to natural gas. And they’ve left energy markets concerned about winter storms. Those regulatory changes have increased energy costs in Texas. But the 2021 storm, which killed hundreds, led to restructuring and legislation. ![]() January and February were already the “second peak” in usage in Texas, as consumers cranked up the heat. Two things are impacting Texas electricity prices and causing higher rates.įirst, Winter Storm Uri in February 2021 identified weaknesses in the Texas grid system. Two Reasons Why Texas Electricity Prices are High This Fall See our Texas Electricity Rate Trends 2023 article for the latest electricity price forecast for 2023. Prices are dropping… just not as far as we all hoped. And this year is no exception, based on what we’re seeing with pricing. Normally we would say, of course! Electricity prices always drop in the fall in Texas. We get questions like this all the time from customers, friends and neighbors.
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