Six-month plans continue on their seasonal price decline as longer term contracts sink to an annual low in Houston. For this update, we analyzed 910 plans from 60 providers
across Texas' competitive territories to find that standard six-month, one-year, and two-year contracts are all staying low across all service areas. However, two specific areas of the Texas electric grid are currently subject to higher prices on average.
In the statewide price index views below, you can see that the South and West Texas territories (served by AEP North and Central, respectively), offer the highest prices in Texas
. This is directly correlated with the surge of oil drilling activity in these parts of Texas. More drilling equates to a much higher electricity demand in these areas
See this map
for current shale/oil activity as it relates to AEP's service territory. Prices Dropping: