This is why your Texas electric bill is higher this year. No, it’s not just the heat
High utility bills are not unusual for North Texans during the summer months, when air conditioning units are used most to cool off homes from, at times, triple digit heat.
This summer Tarrant County has seen consistent days of over 100 degrees with little to no rain in the area. The National Integrated Drought Information System records this year as the county’s tenth driest year over the past 128 years.
Additionally, summer peak demand has increased throughout the years with an average annual growth rate of 1.1% from 2012-2021, according to the Electric Reliability Council of Texas, also known as ERCOT.
This year’s heat wave is not the only reason for higher utility bills.
Some energy companies and cooperatives like the Tri-County Electric Cooperative have increased their rates to match the rise in wholesale power costs statewide.
What’s causing the rise in power costs?
The main force behind the rise in power costs in Texas is due to the increased price of natural gas, Tri-County Electric officials said in their July bulletin.
In July 2021, natural gas sold for $3.84 per million Btu, according to the U.S. Energy Information Administration. Last month the price for natural gas was $7.28. The highest rate for July since 1997 was $11.09 in 2008.
Natural gas is the primary energy source ERCOT uses to generate electricity in Texas.
Other factors contributing to higher prices include the invasion of Ukraine, weather-related disruptions from the February freeze, halted oil production in the Gulf Coast due to Hurricane Ida and supply constraints.
After Winter Storm Uri in February 2021, there were several changes to laws, regulations and market rules made by the Public Utility Commission of Texas and ERCOT, which increased supply costs in the state, the Star-Telegram previously reported.
How are rising power costs impacting my utility bill?
An increased utility rate this summer could be due to the increased cost of natural gas.
Tri-County Electric, which serves 16 Texas counties including the North Texas region, uses a power cost recovery factor to recover the wholesale power cost and transmission services billed to them from their wholesale power supplier, Brazos Electric Power Cooperative.
How can I save on my bill?
The Public Utility Commission of Texas has some tips for ways to save on your utility bill this summer. They include:
Shade outside air conditioning units
Use ceiling and portable fans to circulate cool air
Set thermostat to 78 degrees
Try to save heat and humidity-generating activities like laundry, cooking and washing dishes for the early morning or evening
