You’ve just moved to Texas or you’re a current resident. Your electricity plan is getting ready to expire and you need to compare electricity rates. But when is the best time to do this? Should you sign up for a new plan in the Fall, Spring, or Summer?
What Can Affect Electricity Rates
There are a number of things that can affect electricity rates. Some are dependent on the market while other can be from environmental conditions. Regardless, they still have the same effect. Either causing your electricity rates to increase or decrease. Let’s take a look at some of the things that affect your electricity rates.
Demand
Electricity rates in the summer are usually at their peak. According to the U.S. Energy Information Administration, “most consumers pay rates based on the seasonal cost of electricity. Changes in prices generally reflect variations in electricity demand, availability of generation sources, fuel costs, and power plant availability. Prices are usually highest in the summer when total demand is high because more expensive generation sources are added to meet the increased demand.” Locking in electricity rates during the right seasons is important to avoid having to select a plan in the summer.
Weather
During certain times of the year, weather can lend a hand or make things worse. In the spring, snow and rain can provide for cheap hydropower generation. Additionally, windier times of the year also allows for low-cost wind generation through the use of windmill farms. Both of these practices pass on savings to customer’s bills, allowing for lower electricity rates.
Commodities
Another factor that comes into place with electricity rates is commodity pricing. One of the main sources of electricity generation outside of coal is natural gas. If natural gas prices are high. Then the cost to operate generation plants and produce electricity increases. These costs are then passed on to the consumer. Resulting in higher electricity rates for everyone.
When Should You Shop for an Electricity Plan
Summer is definitely the time you DON’T want to sign up for an electricity plan. As discussed earlier, this is when consumption is at its peak. People are using pools (pump is running more frequently), HVAC units run longer and harder. However, if you don’t have a choice, you can sign up for a 6-month plan to get you into the Fall/Winter. Allowing you to avoid renewing electricity rates in the summer the following year.
The ideal time to sign up or renew a plan is usually in the Fall and Winter. An ideal time to start shopping would usually be the beginning of October through February. During this time rates are commonly seen at their lowest. If you’re able to lock into a plan during this time it’s ideal to sign up for a 12 or 24-month contract. This way you’re plan won’t expire in the summer. It will also allow you to shop the best electricity rates, during the perfect time, when it expires.
Where Can You Shop Electricity Rates
UtilityHound makes shopping for electricity rates online easy. As a trusted utility concierge within the Relocation Technology marketplace. They work with the best providers and offer straightforward plans. Allowing for residents to shop and connect their electricity on one platform with complete transparency. The best part…by using UtilityHound you don’t have to call into any call centers. This saves tons of time! If you’re moving you’ll likely be needing to be connecting other home services. As one of the leading Relocation Technology providers. UtilityHound can also help you directly connect and set up other services like Movers, Internet, TV, Home Security, Renters Insurance, Mail Forwarding, and more.