Compare Electricity Rates: Know Ins and Outs of the Business
Before you begin to compare electricity rates, take into account that the energy industry is turbulent. Much like the price for filling your car with gas, electricity rates are constantly changing throughout the year. These fluctuations are caused by a variety of factors:
Transmission is the process of transporting your energy from a power plant, or generation facility, to an electrical substation. You might have heard transmission networks be referred to as “power grids” or even just “the grid.” Transmission lines can either travel overhead or underground. Once your electricity reaches a substation, it then enters a distribution network. This entire process costs money, which affects your rate for power.
Regulations have an effect on your price for electricity. In many areas of the United States, the energy industry is regulated by public service commissions. In other words, consumers in regulated regions pay regulated prices. In other areas that are deregulated, such as many parts of Texas, the energy industry is open to competition.
In deregulated states or ZIP codes, prices for the generation of energy are unregulated, while the price for transmission and distribution is still regulated. Simply put, if you live in a deregulated zone, you have the option to compare electricity rate plans and compare electric companies to choose the energy plan that best suits your needs.
- Weather conditions can also impact your electricity rates by directly affecting demand. For example, rain and snow can boost production of energy made through hydropower. A heat wave and the subsequent use of air conditioning can increase demand; likewise, a cold front might cause consumers to turn up the heat in their homes.
- Transmission and distribution, or the transport of energy, is handled by a utility. Utilities are designated according to your locale and make sure that your energy is flowing to your home or business. Since you are assigned your utility, it won’t affect your ultimate decision after you compare electric companies.
- Generation of power also comes with its own price. The cost to make electricity, as well as maintain power plants, plays a part in determining your price for energy. Construction and maintenance costs, as well as what type of fuel is used for generation, can all vary greatly.
All of these aspects of the energy industry are constantly at play. It’s because of these many different parts of the puzzle that it can be difficult to predict the bottom line for your electricity bill each month. Plus, different electricity providers offer different rates. If you live in an area of Texas that is deregulated, you are free to compare energy companies and choose your favorite. These providers have unique offerings, but all are competing for your business. Thanks to the open market, you can compare electricity rates from each to find the best price and energy plan for your Texas home or company.
The power to compare electric companies
Electricity companies have different types of payment plans, billing options and even electricity plan types. In fact, when you compare energy companies, you might notice electricity retailers that sell green energy. This type of electricity is made with renewable resources, such as solar or hydropower, as opposed to coal and other fossil fuels that are being depleted and contribute to air pollution. When you compare energy companies, you also might notice that some businesses contribute to local charities. With such a diverse range of providers serving your area, you’re sure to find the best one for you.