FEB 2012 – The Energy Information Administration (EIA), a division of the US Department of Energy, recently published it’s latest Short Term Energy Outlook. The report contains projections for the various energy markets, including electricity, coal, gasoline, etc.
With respect to the electric utilities market, the news is pretty good. Let’s get right to the ‘meat of the report’ on the projections for electricity rates in the residential market. Here is the relevant quote from the report:
“The average U.S. residential electricity prices are forecast to rise by 0.5 percent in 2012 before falling by a similar amount in 2013.”
A 0.5 percent increase is indeed quite a modest increase for electricity rates in Texas. That increase only pushes a 10 cent per kWh rate to 10.05 cents per kWh.
That’s pretty insignificant. Let’s provide an example: If a resident uses 2000 kWh’s in one month, with a rate of 10 cents per kWh, they would have a bill right at $200. With an increase of just 0.5 percent, their bill would be $201. Just a $1 increase to this monthly bill! Also, if the projections hold up, in 2013 we’ll see a decrease of the electricity rates of a similar amount. Here’s for hoping the projections do become a reality.
We have been experiencing low electricity rates in Texas for a couple of years now, as compared to the nation’s average rate, and the rates of years past. This has been, in part, due to the huge expansion of the supply of natural gas over the last few years. This expansion of natural gas supply is expected to continue. More good news.
This graph from the EIA shows that the expectation is for stable pricing in the Round Rock utilities | electricity market over the next couple of years.
Here at Round Rock Electricity, we are glad to help by answering your questions regarding the electricity rates in Texas. We DO NOT pressure you to become our customer. If you want to know a bit more about the electric utilities market in the Round Rock area, but don’t know who to ask, feel free to contact us.
On Another Note:
Since we all use liquid fuels like diesel and gasoline, we thought we would include the EIA’s outlook on gasoline. It actually presents more good news. The projections indicate, once again, only slight increases in gasoline prices over the next year or two. Here’s the graph: