Historically, retail electric prices in Texas have closely tracked the price of natural gas. But with natural gas prices and electricity prices both near their 10-year lows, it’s difficult say whether electric prices will continue to fall from here. The U.S. Energy Information Administration’s Short-Term Energy Outlook report
for January, 2013 forecasts a slight rise in the gas prices through 2014.
Just as important, the price of natural gas may not be the only factor that affects power prices this year. Changes in regulations and available power supply can also have a significant impact on prices. Last October, the Public Utility Commission of Texas voted to double the price cap on wholesale electricity prices
in an effort to encourage companies to build more power plants. Experts disagree on the effect this change will have on power prices, but if we have a very hot summer or power supplies run short, higher wholesale prices may result in higher retail prices. At the very least, it does raise the possibility that prices summer may be more volatile this summer than in prior years.
There are no guarantees when it comes to electricity prices, but knowledge is definitely power when it comes to searching out the right electric plan for your household.