Is Energy Deregulation Increasing Lubbock Electricity Prices?
4minute read• Graham Lumley • Last update February 2024
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As you shop Lubbock providers and plans, you may find yourself questioning whether these new options will actually help you save money on electricity.
Will your bills be higher or lower in the competitive retail market versus with Lubbock Power & Light? How do you know which plan is best?
In this article, we’re going to compare historical electricity rates from Lubbock Power & Light to statewide average prices, discuss what outside factors impact prices, and offer expert advice on selecting the right plan for you.
Are Lubbock Electricity Rates Higher Than Before?
Lubbock Power & Light shared electricity rates from the past 3 years to allow customers to compare with plans offered by the dozens of retail providers entering the market.
On the U.S. Energy Information Association website, you can find the average retail electricity rates in Texas going back to 2001. Let’s compare the average rates to the data provided by Lubbock Power & Light.
It turns out that historically, Lubbock Power & Light energy rates were around 1-3 cents per kWh more expensive than the Texas average.
Now that deregulation is here and Lubbock infrastructure has been connected to the ERCOT grid, you can expect to receive a few benefits that impact available rates:
You’re in control – choose your own provider and plan.
The grid has access to a diversified portfolio of power sources including wind, solar, natural gas, nuclear, and coal.
Lubbock Power & Light no longer needs to build a new power plant estimated to cost between $350-$700 million. Some of those costs would have been passed on to you. Instead, they need only construct new transmission lines estimated to cost around $110 million over 5 years.
What factors lead to those changes? How come sometimes energy costs more and sometimes less?
The population of Texas is increasing, which means the demand for electricity is increasing as well.
Longer, hotter summers require more electricity to keep people cool, while the increased temperatures decrease energy production efficiency from natural gas power plants.
Winter storms can shut down power plants that are not winterized, reducing the supply of energy when we need it most.
Increasing wind and solar power generation can bring down the cost of energy production when the sun is shining bright and wind is blowing strong.
Part of your energy bill goes straight to the utility company, not the energy provider. These TDU charges are set by the utility and approved by the Public Utility Commission of Texas.
How to Choose the Best Energy Plan
Shopping for electricity can be a confusing task. Here are our tips:
Choose a Fixed Rate Plan
There are two main types of energy rates: fixed and variable. On a variable plan, your rate can change every single month. Make sure to sign up for a fixed rate plan so your rate doesn’t spiral out of control during the summer when the cost of energy production increases.
Watch Out for Base Charges
Many retail providers tack on a monthly base charge up to $9.95 or higher regardless of how much electricity you consume. Opt for a plan that comes without this extra and unnecessary fee.
Stay Away from Usage Fees
Some electricity companies will charge you extra because you used the “wrong” amount of energy during a billing period. Avoid enrolling in a plan that penalizes you for conserving energy.
Double Check the Early Cancellation Fee
There a wide range of early cancellation fees in the Texas energy market, flat fees can range from around $150 to $300 and higher. Look for plans that offer a cancellation fee that decreases as your contract ages, so you aren’t stuck with high fees if or when you decide to switch providers.
At BKV Energy, you can cancel within the first 30 days through our 30-Day Power Pilot at no cost. After that, it’s $20 per remaining month on your contract.
Select a Balanced Contract Length
While shopping, you will see plans with a variety of term lengths. Some as short as 3 months and some as long as 4-5 years. We recommend selecting a plan in the middle range, lasting between 9-24 months.
Plans with these lengths offer the perfect balance between rate stability, potential early termination fees, and flexibility to switch to another plan or provider.
Always Check the Electricity Facts Label
The number one thing we can recommend to electricity shoppers? Always, always, always check the Electricity Facts Label before enrolling in a plan. It’s the only way to determine if you’re locking yourself into a plan with a simple fixed rate, no extra fees, and superior flexibility.
BKV Energy Goes the Extra Mile
At BKV Energy, we’re proud to recommend our Bluebonnet plan. This energy plan offers an affordable fixed rate without extra fees like base charges and usage charges.
But that’s not all.
Enrolling in a Bluebonnet plan gets you so much more through our Premier+ benefits program at no extra cost.
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