Your Commercial Electricity Window of Opportunity

Your Commercial Electricity Window of Opportunity

Commercial Electricity Rates
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Natural gas prices are low. In fact, they are not just low. They are hovering just above ten year lows, and that has a huge impact on commercial electricity rates.

Ten years ago the state of Texas deregulated the electricity market. At that time, natural gas prices were around $2 per MMBTU. Over the course of the last ten years, however, prices have been considerably higher. Prices over $5 per MMBTU have been the mainstay for long periods, and we’ve seen the price rise above $10 more than once, at times even approaching $15. The good news is that current prices are back down in the range they were in ten years ago—around $2 per MMBTU.

And if you’re interested in saving money on your commercial electricity, that is very good news.

While the natural gas market and the commercial electricity market are not identical, they are closely tied to one another. In Texas, the most common fuel used for producing energy is natural gas. When the cost of fuel is low, that can help to drive the cost of electricity down, and that is certainly what we’re seeing right now. For the time being, commercial electricity rates are trending low right along side natural gas prices.

However, heat rates (which are in essence a measurement of how efficiently fuel, like natural gas, is converted to energy) are on the rise. That has the potential to counter-balance the low cost of natural gas. Additionally, the Public Utility Commission is considering some significant changes right now. In an effort to prompt generators to build additional power plants, the PUC is considering raising the cap on the price of electricity during times of peak demand. The change would allow for generators to make more money, encouraging growth, but it would also likely mean higher prices for commercial electricity.

This creates a time crunch that industry insiders are familiar with. It is often the case with commercial electricity that there are windows of opportunity to guarantee the lowest prices. We are in one of those windows right now. Savvy business owners are taking advantage of this time to lock in low rates that will last for years. After all, we don’t know how high the price will rise when this window closes, or how long it will be before the next ideal buying time arrives.

Why not take advantage of this time to save your business some money?

At Live Energy, we work with businesses to guide them through the complex and potentially confusing world of commercial electricity rates. Our goal is to enable you to make decisions that impact your bottom line. Whatever your expense for commercial electricity, lowering it is always a good thing. Now is a prime time to take a closer look at your commercial electricity rate and consider renewing or extending your contract. If you’re interested in how we can help you make sense of your options, helping you make the most cost effective decision possible, please contact us at (817) 810-7770.

Don’t let the current window of opportunity close without making the move that is best for your business.


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