Texas residential electricity rates are lowest in spring and fall months. That means you can secure a cheaper price between late February and early May, and mid-September to early December.

During these months, demand for power is lower and that translates to lower prices for Texas electricity shoppers.

Why are Texas electricity prices lower in spring and fall?

Electricity prices are lower in the spring and fall due to a combination of market factors, including:

• Wholesale market volatility
• Supply and demand
• Geographic location
• Fuel source
• Costs to operate a power plant
• Costs associated with managing transmission and distribution
• Statewide regulations

Wholesale market volatility

If electricity providers are buying energy for 12 months, why don’t the rates average out? That would certainly make market rates more stable throughout the year. Unfortunately, it’s not so simple. This is where wholesale market volatility comes into play.

Prices in peak seasons are incredibly volatile because the grid is more at risk of extreme weather events, such as heatwaves or winter freezes. When it comes to signing up for a new plan, the further in time you are from these risky months, the cheaper the rates. This is because it’s easier for electricity providers like BKV Energy to prepare for their customers’ electricity consumption during those extreme weather events.

To simplify this further, purchasing wholesale electricity on behalf of customers when weather is temperature is more efficient, more cost effective, and less risky. This leads to lower prices for customers.

How supply and demand impact Texas energy rates

To put it simply, energy prices decrease when demand decreases and energy prices increase when demand increases. Texans use less electricity during the spring and fall because the weather outside is milder.

Homeowners and renters rely less on air conditioning to stay cool in the spring and fall, so demand on the grid decreases. As a result, prices decrease.

During the summer, we crank up the AC and demand increases. This increased demand leads to higher prices across the Texas energy marketplace.

Supply and demand curves related to weather typically have the highest impact on the marketplace.

How location impacts your energy choice

Where you live within the state of Texas impacts your electricity price. Texas is divided into six utility regions: Oncor, CenterPoint, AEP North, AEP Central, Texas-New Mexico Power, and Lubbock Power & Light.

Each of these utility companies charge different rates (TDU Charges or TDU Pass Through Charges) based on their costs to manage the transmission and distribution infrastructure (such as the maintenance of power lines). Each of these utility companies add a per kWh charge and a flat monthly charge to your bill that impact your overall average price per kWh. With the except of Lubbock Power & Light, they only charge per kWh and there is no monthly flat fee.

Texas utility companies adjust their fees at least twice per year, on March 1 and September 1. Changes to rates must be approved by the Public Utility Commission of Texas. They can change rates at other points throughout the year, but only with the approval of the PUCT.

Check out the recent history of TDU charges in Texas.

How fuel source impacts electricity prices

As the Texas power grid fuel mix continues to evolve, so does its impact on wholesale electricity prices. As more solar and wind farms go live, these changes become even more prominent.

Wind and solar produce electricity relatively cheaply, but they are not always available. The sun isn’t always shining and the wind isn’t always blowing. When solar and wind go down, the grid must rely more on fossil fuel plants to meet demand. In the summer, when demand is especially high, this causes wholesale prices to skyrocket.

These high wholesale prices during the summer translate to high prices for Texans. Just another reason to sign up for a new power plan in the spring and fall!

The cost to generate power

For natural gas power plants especially, the cost to generate electricity can vary widely depending on the weather. When temperatures rise over the summer, natural gas power plants operate at a lower efficiency, which means the cost to produce power increases. This increase in operation costs leads to higher wholesale prices, which means higher prices for consumers.

Changes to transmission and distribution costs

We already spoke about how utility charges vary by where you live, but we also need to address why utility costs increase or decrease.

Let’s take CenterPoint for example. When Houston gets slammed by a hurricane and severe damage is inflicted upon the infrastructure that delivers powers to homes and businesses, it is very expensive to repair that damage.

If Houston finds itself in the path of several dangerous storms in a row, CenterPoint may increase utility pass through charges to help pay for the work needed to mend the grid.

Statewide regulation

There are two major organizations that have an impact on electricity prices in Texas: ERCOT and the PUCT. These groups (and others) impact retail electricity prices in several ways.

• Renewable energy portfolio standards, or how much energy must come from renewable sources
• Emissions standards and water usage regulations for power generators
• State and federal subsidies and incentives for renewable power
• Grid reliability management, or requirements for investment by utilities into new and updated infrastructure
• Consumer protection rules on retail pricing
• Energy bill payment assistance programs
• Weather emergency response programs

ERCOT and the PUCT are most likely to step in and influence the market during summer and winter because these are the times of year when the majority of grid-sensitive issues occur. In the summer, hot weather can lead to supply and demand issues. In the winter, freezes can shut down the grid entirely. Remember the winter storm of 2021?

In these extreme situations, state regulators jump into the ring and their actions can increase (and in some cases decrease) the cost of power for consumers.

When is the best time to switch providers or plans?

The best time to switch plans in Texas is generally towards the end of your current contract.

The PUCT requires electricity providers to allow customers to switch plans or providers in the last 14 days of their current contract without incurring an early termination fee.

If you decide to stick with your current provider, you can typically switch plans in the last 30 days of your current contract without incurring that early termination fee.

But what do you do if your contract ends in the summer or winter? How can you secure those affordable spring and fall prices?

How to manage contract length and cancellation fees

If your electricity plan renewal schedule lands you smack dab in the middle of the summer or winter, you may be wondering how you can secure a lower rate in the spring or fall. Luckily, you have a few options.

1. Choose a plan with a 3, 6 or 9-month term

Shift your renewal schedule by enrolling in a plan that ends in the spring or fall. From then on, only enroll in plans with 12, 24 or 36 month terms.

2. Pay the early cancellation fee and enjoy long term savings

If you don’t mind paying the early cancellation fee, you can switch whenever you want. The money saved by securing spring or fall rates will eventually eclipse what you spent to switch plans early.

3. Find a provider that covers your early cancellation fee when switching

If you don’t want to pay an early termination fee, some providers occasionally offer a deal where they will cover your early termination fee when you choose one of their plans.

Switch to BKV Energy’s Bluebonnet plan

At BKV Energy, our #1 goal is to help Texans save on energy. That’s why we created the Bluebonnet plan. With no base charges, no usage fees, and a simple fixed rate, you can easily save just by switching. Enter your zip code below to explore rates in your area.

The post When Is Electricity Cheapest in Texas? appeared first on BKV Energy.

TDU charges are part of your monthly electricity bill in Texas that pay for the delivery of power from the plant to your home, management and maintenance of power lines, and the meter and measurement of your home’s electricity consumption.

Learn more about the charges on your energy bill.

What is a TDU?

TDU stands for Transmission/Distribution Utility. TDUs are the organizations that are responsible for the delivery of electricity from the power plant to your home or your business. They manage and maintain power lines, as well as the meter on your home that measures your home’s energy usage. TDUs may also be referred to as Transportation and Distribution Service Providers (TDSP).

When trees fall into power lines during a bad storm, your TDU is responsible for repairing that line and restoring electricity to the area that lost power as a result of that fallen tree.

How are TDU charges determined?

Charges from TDUs are approved by the Public Utility Commission of Texas (PUCT) and will appear as a line item on your bill next to the phrase “TDU charges,” TDU delivery charges,” or “TDU pass-through charges.”

TDU charges are adjusted twice per year, every March 1 and September 1. View the latest TDU charge updates.

TDU charges change because the TDUs are allowed to recuperate all of the costs incurred from the services they provide. If Houston experienced several severe hurricanes that required Centerpoint Energy to provide more maintenance than normal, they would likely need to increase their charges for a certain time.

How to find your TDU charges

Before you enroll in an electricity plan, you can view your region’s TDU charges on that plan’s Electricity Facts Label or Fact Sheet.

Other charges on your electricity bill

After you enroll in a plan, your electricity bill should break down your monthly payment into different charges including:

• TDU charge
• Energy charge
• Base fee (many plans do not have base fees)
• PUC assessment
• Sales tax

How many TDUs are there in Texas?

There are currently six TDUs providing services to different regions throughout the state of Texas: Oncor, Centerpoint Energy, Texas-New Mexico Power, American Electric Power (AEP) Texas Central, AEP Texas North, and Lubbock Power & Light (LP&L).

Oncor services most of North Texas, Centerpoint Energy services the Houston area, Texas-New Mexico Power provides services to West Texas, AEP services Central and South Texas, and Lubbock Power & Light services the city of Lubbock.

View current TDU rates by provider here.

Find your Texas TDU

Here are a few of the major cities that lie within the service area of Texas’ Transmission and Distribution Service Providers.

• Oncor: Dallas, Fort Worth, Waco, Temple, Round Rock, Midland, Odessa
• Centerpoint: Houston, Beaumont
• Texas-New Mexico Power: League City, Glen Rose, Pecos, Angleton
• AEP Texas Central: Corpus Christi, McAllen, Victoria, Laredo, Harlingen
• AEP Texas North: Abilene, San Angelo, Vernon
• Lubbock Power & Light: Lubbock

Lubbock Power & Light became the sixth Texas utility company in January 2024 when the city of Lubbock officially deregulated its electricity market. You can read more about that transition in our guide to electricity choice in Lubbock.

The post Ultimate Guide to TDU Charges in Texas appeared first on BKV Energy.

This guide will go over the basics of energy deregulation, look at its advantages and disadvantages, and answer common questions. The goal? To help you navigate the Texas energy market with confidence. Let’s dive in.

Key facts about energy deregulation

A brief timeline of energy deregulation in America

Let’s delve into the evolution of energy deregulation in the U.S., beginning from the initial state of the energy market:

• Early Days: The energy market is dominated by vertically integrated utilities, handling everything from generating electricity to delivering it to customers. The infancy of electricity generation was a turbulent period of rapid advancements and competing standards. Energy utilities were not regulated by any central authorities. Because the multiple companies producing and transmitting energy handled distribution in different ways, the lack of uniformity caused problems for consumers.
  
• 1920s: The Federal Power Commission (FPC) is established by Congress to coordinate federal hydropower development.
  
• 1930s: To solve the issues of competing standards and unsavory business practices from the large utilities that had become de facto monopolies (by the 1930s three utilities controlled nearly half the industry in the US!) the US government passes the Public Utility Holding Company Act (PUHCA), introducing regulation to the growing energy industry. In 1935 the FPC becomes an independent regulatory agency.
  
• 1960s: The Great Northeast Blackout of 1965 leaves over 30 million people in the US and parts of Canada without electricity. Recognizing the need to improve before further regulation, the electric utilities industry created the North American Electric Reliability Council to address the issues and improve energy distribution reliability. However, it also allowed regional monopolies to form, and the lack of competition sometimes resulted in higher energy costs and no reason to better serve customers.
  
• Early 1970s: The energy crises of the 1970s spiked prices higher, led largely by oil costs from OPEC, and the need for change in the energy industry became clear. To ween America off this expensive energy source, utilities begin developing power plants for other energy sources, and Americans are stuck with the costs. This challenging period highlights the drawbacks of the market, prompting the government to explore ways to boost competition and efficiency.
  
• 1977: In response to the oil crisis, Congress forms the Department of Energy to consolidate energy-related agencies into a unified agency. The FPC is renamed to the Federal Energy Regulatory Commission (FERC) and retains its independence within the DOE.
  
• 1978: President Jimmy Carter signs the National Energy Act, which includes the Public Utility Regulatory Policies Act (PURPA). This groundbreaking legislation aims to promote energy conservation and reduce our reliance on foreign oil. It also gives a much-needed push to alternative energy sources by requiring utility companies to purchase power from qualifying producers at competitive rates.
  
• 1992: The Energy Policy Act is passed, taking deregulation a step further. This act breaks down legal barriers in the electricity market and enables independent power producers to access transmission lines, setting the stage for retail competition.
  
• 1990s: The Federal Energy Regulatory Commission (FERC) issues Orders 888 and 2000, promoting open access to transmission lines and encouraging the creation of Regional Transmission Organizations (RTOs). In 1995, Texas opens a wholesale energy market, allowing independent power producers to sell electricity directly to utility companies.
  
• 2002: Texas transforms into a deregulated energy market, following the passage of Senate Bill 7. This legislation paves the way for a competitive retail market, granting consumers the power to choose their electricity provider and motivating companies to offer innovative products and services.
  
• 2005: The Energy Policy Act is signed, reinforcing the trend of deregulation. This act further stimulates competition in the electricity and natural gas markets and establishes essential reliability standards for the bulk power system.
  
• Today: The deregulation movement continues to expand, with 17 states and the District of Columbia embracing deregulation as of 2021. The conversation around deregulation is ongoing, with lively debates about its pros and cons, as well as efforts to fine-tune regulations to strike the perfect balance between competition and consumer protection.

Which states have deregulated energy markets?

Wondering which states have ventured down the same path as Texas? Let’s highlight key moments in the journey of energy deregulation across the U.S. with a brief timeline:

State-by-state deregulation timeline

• 1996: California pioneers the movement, turning its electricity market into a competitive landscape.
• 1997: Rhode Island and Massachusetts initiate the deregulation process, offering their consumers an array of electricity providers to choose from.
• 1999: Pennsylvania and New York join the trend, sparking competition and opening a variety of choices for consumers in their electricity markets.
• 2000: New Jersey and Maryland step in.
• 2001: Connecticut and Delaware join the deregulation bandwagon.
• 2002: Texas paves the way for an entirely deregulated energy market, showcasing a plethora of electricity providers and novel plan types.
• 2002-2003: Illinois, New Hampshire, Maine, and the District of Columbia deregulate their markets.
• 2004-2005: Michigan, Ohio, and Oregon extend the list of deregulated states, widening the scope for their residents to pick their preferred electricity providers.
• 2006: Virginia embarks on their deregulation journey.

As of 2021, 17 states and the District of Columbia have deregulated their energy markets, either completely or partially. These states include California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, and Virginia.

While each state’s approach to deregulation may differ, the overall goal remains the same: to increase competition, foster innovation, and provide consumers with more choices in the energy market.

How is Texas’ deregulated market different from other states?

Now, let’s focus on Texas. Here are some features that make our deregulated market stand out from the rest:

1. Leading deregulated energy market: With over 9.9 million households and a population exceeding 29 million, Texas holds the distinction of being the most sizable deregulated energy market in the United States.
   
2. Comprehensive deregulation: Unlike many other states, Texas does not have a government-backed utility, allowing for a wider diversity of energy plans and types.
   
3. Designated regulating entities: Texas has its own governing agencies, the Electric Reliability Council of Texas (ERCOT) and the Public Utility Commission of Texas (PUCT). ERCOT manages the state’s power grid, while PUCT oversees electricity providers, ensuring compliance with regulations.
   
4. Power to Choose: This resource, operated by PUCT, provides Texans an impartial platform to compare energy plans and providers, aiding consumers in making informed decisions regarding their energy options.
   
5. Separation of power generation & delivery: In Texas, power generators produce electricity, retailers sell the power to consumers, and utilities deliver it through the grid. This division of roles enables each entity to focus on its core competencies, enhancing efficiency and competitiveness in the market.
   
6. Independent power grid: Texas maintains its own power grid, separate from the Eastern and Western Interconnections that supply power to the rest of the United States. This unique arrangement allows the state to independently manage its energy resources.

What about areas outside of the ERCOT deregulated energy market?

Texas, with its diverse regional grids, covers about 85% of residences under its umbrella of deregulation. Nevertheless, several cities and regions, including Austin, San Antonio, and El Paso, have not adopted deregulation.

These regions continue with municipally owned utilities or electric cooperatives. In these areas, the energy market structure remains traditional, where a single entity is responsible for both the generation and delivery of power.

Advantages and disadvantages of energy deregulation

Energy deregulation, like any system, brings a blend of advantages and challenges. It has given rise to an array of innovative plan types in Texas, driving competition and consumer choice. However, it has also led to situations like the 2021 grid collapse and Griddy’s bankruptcy in the wake of winter storms. These events underline the complex dynamics that come with navigating the energy market.

Advantages

• Enhanced competition: This leads to lower prices and a wider selection of plans for customers.
• Promotion of innovation: Companies are incentivized to create new technologies and services.
• Customer choice: Consumers have the freedom to select the energy plan and provider that best fits their needs.

Disadvantages

• Price instability: In a deregulated market, prices can vary.
• Potential for misleading marketing: Some companies might resort to deceptive strategies to gain customers.
• Possible reduction in consumer protections: Deregulation can occasionally result in fewer safeguards for consumers.

Conclusion

There you have it – your comprehensive guide to understanding energy deregulation in Texas. We trust this information will equip you to make knowledgeable decisions about your energy provider and plan. Keep in mind, BKV Energy is always on hand to assist you in selecting a plan that aligns with your lifestyle and budget. So now, it’s your turn. Get out there and choose the energy plan that’s right for you¹, with confidence!

The post Understanding Energy Deregulation in Texas: A Comprehensive Guide appeared first on BKV Energy.

The average price of electricity in Texas has increased 26% over the last several years thanks to a combination of different factors.

Increasing population and continuous electrification have consistently increased demand, severe weather conditions, rising utility (TDU) charges, and the state’s aging power grid. Here’s how the average residential electricity rate in Texas has changed since 2020, per the Energy Information Association.

• 2020: 11.71 cents per kWh
• 2021: 12.11 cents per kWh
• 2022: 13.76 cents per kWh
• 2023: 14.46 cents per kWh

Why are Texas energy prices rising?

Texas energy prices have steadily increased since 2002 when the state deregulated the energy market.

Since then, many factors have influenced growing electricity prices including demand, electrification, record-breaking high temperatures in the summer, winter storms that put the grid to a halt, the age of the energy infrastructure, and increasing transmission charges from utility companies.

Demand for electricity is growing in Texas

There has never been a higher demand for energy in the state of Texas.

Per the 2000 United States census, the population of Texas was around 20 million people. In 2021, the population of Texas had grown to over 29 million people – that’s an increase of over 45%! There are more Americans flocking to Texas than to any other state except Florida.

This population boom means that power generation across the state has had to race to keep up to ensure that there is enough electricity to go around.

For anyone who has taken a macroeconomics course, it shouldn’t be surprising that high demand and a trailing supply lead to higher prices for energy.

Increasing economic electrification and change in social behavior

The population boom of Texas impacts electricity prices in more ways than one.

While more people means more households and more demand for residential electricity, more people also means more commercial and industrial activity. Coffee shops, strip malls, restaurants, and skyscrapers full of offices all require energy to power our work days.

Additionally, our behavior around work has changed significantly in a way that has increased and lengthened peak demand hours.

Thanks to COVID, more people than ever are working from home and this has increased our demand for energy in the evening when solar power begins to decline. Declining solar energy makes it more difficult to meet the state’s energy needs.

The hottest Texas summers on record

The summers of 2011 and 2023 go down as the first and second hottest summers ever recorded in Texas, respectively.

The higher the thermometer goes, the more we expect from the energy grid to continue delivering higher and higher amounts of electricity to our homes to keep us cool and safe from the heat. Air conditioners have to work extra hard to cool our indoor air the hotter it gets outside.

These insanely high temps not only increase demand across the state, but they also impact the cost of energy production at plants fueled by our most significant energy source: natural gas.

At natural gas energy plants (which generate about 50% of the state’s power), high heat directly impacts the efficiency of the equipment needed to generate electricity. As temperatures rise, the turbines lose efficiency which means more natural gas is needed to produce the same amount of electricity that previously required less fuel.

This increased fuel consumption leads to higher operational costs which increases the prices that the power plants can sell the power to retail electricity providers (like BKV Energy) before it’s passed on to you, the consumer.

Retail energy providers don’t want to charge their customers higher prices. They want to offer affordable rates that are lower than their competitors to get more customers.

Unfortunately, the intertwined market conditions do not always allow REPs to sell energy to homeowners and renters at the prices they could several years ago.

Winter Storm Uri won’t be the last

In February 2021, Winter Storm Uri struck nearly the entire state of Texas, leaving millions without electricity for days. Even though people were prepared for the winter storm, several died in this tragedy.

During the storm, the prices of electricity increased significantly – several retail electricity providers went out of business as a result. The collapse of one wholesale retail electricity provider, Griddy, took center stage during the fallout of the storm.

But what about cold temperatures increases the price of electricity? As we’ve already mentioned, natural gas is Texas’ largest fuel source for generating electricity.

When temperatures drop too low like they did during Uri, natural gas pipelines that deliver fuel to the power plants can be frozen and the entire process is disrupted.

With less fuel heading to the power plants to spin the turbines that generate electric current, in combination with higher demand for heating in Texas homes across the state, the prices can skyrocket.

Cold weather can even have an impact on electricity pricing before the cold weather happens. Retail electricity providers purchase electricity from power plants in advance, forecasting how much energy they will need to provide for their customers in the future.

When power plants are uncertain about the future or believe that further history-making winter storms are on the way, the future prices of electricity increase as well.

The Texas grid is ready for an upgrade

The aging power grid in Texas also contributes to higher electricity prices across the state. There are three major issues that desperately need to be addressed to ensure power is delivered when people need it most.

1. Winterization

Our power plants across the state are not fully prepared to handle more storms like Uri in February 2021. Without enhancements such as enclosures around tanks, valves, and power lines, and protection for pipes to prevent freezing, we could see mass grid failure again.

During Winter Storm Uri, 50% of the natural gas power plants went offline, leading to disaster.

2. Increased transmission & infrastructure

In recent years, there has been a renewable energy boon in Texas. Texas generates the most wind power in the country, the second most solar power in the United States, and has an incredible amount of renewable energy slated for development.

There are a couple problems with this. We don’t have the infrastructure yet to store excess energy generated by wind and solar because the technology for this is still incredibly expensive. Storage is critical for renewables because the wind doesn’t always blow and the sun goes down at night – we can’t rely on these sources 24 hours of every day.

Another problem? We don’t have power lines to deliver enough of the electricity to parts of the state that are not geographically positioned for wind and solar farms of their own.

3. Interstate connections

The Texas grid is completely isolated from neighboring states. This means we must independently generate enough power for the state at all times – even during disaster.

If we were to construct connections to the grids of Oklahoma, Louisiana, Arkansas or New Mexico, we’d be able to draw power from them in times of need and vice versa.

There are some situations where this could be beneficial, but it is certainly not a one-size-fits-all solution because neighboring states experience similar weather patterns and similar energy demand. When we desperately need more energy supply, so do our neighbors.

Increasing TDU/TDSP charges

When reading your monthly electricity bill, there are two main types of charges: the usage charge and the utility charge.

The usage charge pays for the electricity you’ve used throughout the past month and goes to your retail electricity provider of choice. The TDU charge goes straight to your utility company (e.g. Oncor in Dallas or Centerpoint in Houston) and pays for the management and maintenance of the infrastructure that delivers energy to your home, like the power lines.

Retail electricity providers have no control over how much TDU charges are. They are set every six months by your utility company and approved by the Public Utility Commission of Texas (PUCT).

Recently, TDU charges have been increasing. This is a financial fallout from the Winter Storm Uri. These utility companies are still paying for damage incurred by that devastating storm and hopefully, making improvements to the grid to prevent such a disaster from happening again.

What can you do to lower your bill?

Luckily, there are still many actions you can take to help reduce your monthly electricity bill. Follow these tips and you can significantly decrease your energy consumption, resulting in less pain for your budget and your wallet.

• Set your thermostat to 78 during the summer and rely on ceiling or portable fans to remain cool
• If you can afford it, invest in higher efficiency HVAC systems like ductless mini splits that require less energy to operate
• Increase the insulation in your home with weather stripping on windows and doors
• Seal your attic to prevent the loss of cool air to unoccupied space
• Set your thermostat to 65 during the winter and bundle up in comfortable clothes to stay warm
• Avoid space heaters because they require a lot of energy to keep a very small space warm
• Always turn the lights off when you leave a room
• Sign up for a simple fixed rate plan to lock in a low rate for the duration of your contract

Looking for more energy saving hacks? Check out our curated list of 100 ways to reduce your electricity bill.

Explore BKV Energy’s affordable, fixed-rate energy plans by entering your zip code below.

The post Why Are Texas Electricity Prices So High? appeared first on BKV Energy.

Understanding how to read an Electricity Facts Label is integral to finding and selecting the energy plan that’s right for you.

What is an Electricity Facts Label (EFL)?

In Texas, an Electricity Facts Label (EFL) is a standardized document provided by electricity providers to inform consumers about the details of their electricity plans. They are meant to help shoppers compare plans between providers.

The Public Utility Commission of Texas (PUCT) mandates these documents and standardizes their layout. When you check an EFL, electricity plan details are presented consistently, allowing for easier comparison. Key information, such as the average price kWh and the energy charge, is clearly noted. This standardization gives consumers a better idea of how these plan details impact their bills. While EFLs from different companies may vary slightly, their overall structure looks similar.

How to read an Electricity Facts Label

EFLs include information such as the price per kilowatt-hour, contract terms, cancellation fees, renewable energy content, and customer service contact details. The EFL aims to empower consumers with transparent and comparable information, enabling them to make well-informed decisions when choosing an electricity plan in the deregulated energy market of Texas.

• Energy Charge – price per kWh for electricity
• Average Price – price per kWh based on 500, 1000, and 2000 kWh usage levels
• Base Charge – some companies include monthly base charges regardless of energy use (BKV Energy does not)
• Usage Fee – some providers charge you when you use too much or too little electricity (BKV Energy does not)
• TDU/TDSP Delivery Charges – fees from your local transmission and distribution utility (TDU). Providers do not set or profit from delivery charges, they go straight to your utility company.
• Contract Term – number of months in your contract
• Plan Type – indicates whether the plan is fixed or variable rate
• Early Termination Fee – fee for canceling your contract early (BKV Energy’s ETF is $20 per remaining month)
• Percentage of Renewable Content – amount of electricity from renewable sources (choose between 29% and 100% renewable with BKV Energy)

How to calculate a bill from an EFL

When you examine an Electricity Facts Label, electricity costs can be estimated using this formula:

Energy Bill = kWh Usage x (Energy Rate + TDU Delivery Rate) + TDU Monthly Fee

Click this link to use our custom energy bill calculator. Use it to compare potential bills across competitor EFLs along with your household’s historical monthly kWh usage.

Where to find an EFL

Electricity providers will include links to the Electricity Facts label document on each plan’s listing on their website. After you enroll, you will receive the EFL via paper mail or to your email inbox, depending on your chosen communication preferences.

Why you should read the EFL

Reading the Electricity Facts Label before enrolling is crucial to understanding your expected electricity costs. Before making a decision, pay attention to the energy charge, potential base charges or usage fees, cancellation fees, and other details that may impact your bill. Compare multiple plans to ensure you’re getting the best deal for your needs.

Explore a real BKV Energy Electricity Facts Label

Affordable electricity with BKV Energy

Interested in signing up for a cheap, simple fixed rate plan with BKV Energy? Click this link and enter your zip code to explore prices in your area.

Choose a Bluebonnet plan to enjoy electricity with the following benefits:

• $0 Monthly Base Charge
• $0 Usage Fee
• ‘$0 Early Termination Fee in First 30 Days
• No Marketing Gimmicks
• Super Affordable Fixed Energy Charge
• No Interest Deferred Payment Plan with Save Now, Pay Later
• Reduce Your Rate Mid-Contract for Free with Blend & Extend
• Personalized Plan Renewal Services with Contract Consultation
• Annual Customer Reward with ElectroShare Rewards
• Severe Weather and Energy Saving Tip Notifications with Spark Alerts

The post How to Read an Electricity Facts Label (EFL) appeared first on BKV Energy.

This article sheds light on the critical role of nuclear energy in the Lone Star State, offering a detailed look at its history, current status, and what the future might hold.

Active nuclear power plants 

Texas hosts two active nuclear power plants with four total reactors, which are pivotal in meeting the state’s energy demands. These plants include:

• South Texas Project in Matagorda County
• Comanche Peak Nuclear Power Plant in Somervell County

Together, they contribute significantly to the state’s electricity grid, ensuring a steady supply of power fueled by nuclear fission. These facilities are not just powerhouses of energy; they are also marvels of modern engineering, designed to operate safely and efficiently for decades. The stringent safety protocols and regular maintenance schedules ensure these plants operate at optimal levels, providing a reliable source of power for millions of Texans.

Capacity and output of Texas nuclear power plants

The two nuclear power plants in Texas generate a near constant ~5,000 MW of power, capable of powering millions of homes and businesses. The capacity and output of Texas’ nuclear power plants are a testament to their efficiency.

The high energy density of nuclear power means these plants can produce large amounts of electricity from a relatively small amount of fuel, compared to other energy sources. This efficiency is crucial in a state as large and energy-hungry as Texas, where the demand for electricity is constantly growing due to its booming population and economy.

Contribution to Texas’ overall energy supply

Nuclear energy plays a vital role in Texas’ diverse energy portfolio. Depending on the total energy demand of the state, Texas’ nuclear power plants account for about 8-12% of the state’s total electricity generation, complementing other sources like natural gas, coal, wind, and solar power.

This balanced energy mix is crucial for Texas, providing stability and resilience to its power grid. Nuclear power’s consistent and reliable output is particularly valuable in meeting base-load demand while also helping to reduce the state’s carbon footprint, as it produces virtually no greenhouse gas emissions during operation.

History of nuclear energy in Texas

The history of nuclear energy in Texas is a story of pioneering spirit and technological advancement. The journey began in the late 20th century when Texas, known for its oil and gas reserves, started exploring nuclear power as an alternative energy source. The construction of the first nuclear power plants in the state marked a significant shift in its energy landscape. Over the years, these facilities have not only provided a stable supply of electricity but have also contributed to local economies, creating jobs and supporting communities. The evolution of nuclear technology in Texas reflects the state’s commitment to innovation and its ability to adapt to changing energy needs.

The state of nuclear energy in Texas

Are there any new nuclear power plants in Texas?

The prospect of new nuclear power plants in Texas is a subject of much interest and debate. This article offers insights into the latest developments and future plans for nuclear energy in the state. It discusses the challenges and opportunities associated with building new nuclear facilities, including technological innovations, regulatory frameworks, and environmental impacts.

How many nuclear power plants are in Texas?

Texas, a state known for its vast energy resources, currently operates two nuclear power plant sites with a total of four reactors. These are the South Texas Project Electric Generating Station, located near Bay City, and the Comanche Peak Nuclear Power Plant, situated near Glen Rose. Each of these facilities houses two operational nuclear reactors.

Which US state has the most nuclear power plants?

While Texas is a key player in nuclear energy, it’s interesting to note that it does not hold the title for the most nuclear power plants. That distinction goes to Illinois with 11 total reactors. Pennsylvania comes in second with 9 reactors.

However, Texas’ investment in nuclear energy is significant, reflecting its commitment to a diversified energy strategy. The state’s approach to nuclear power, focusing on safety, efficiency, and sustainability, sets a benchmark for others to follow.

How much nuclear energy is produced in Texas?

Texas produces around 5,000 MW of electricity from 4 nuclear power reactors on a near constant basis. Nuclear power is a key component of the state’s energy mix, contributing a substantial portion of its electricity. This production is not just about meeting current demands but also about planning for a future where clean and reliable energy sources become increasingly important.

How many power plants are in Texas?

Texas is home to over 300 power plants, including nuclear, natural gas, coal, wind, and solar facilities. These plants are strategically located across the state to meet the energy needs of its vast and diverse population efficiently. The history of these plants, including when and where they were built, reflects the state’s evolving energy priorities and its response to technological advancements and environmental considerations.

Why does Texas use nuclear power?

Texas’ use of nuclear power is driven by several factors. Firstly, nuclear energy provides a stable and reliable source of electricity, essential for a state with a large and growing population. Additionally, nuclear power plays a crucial role in reducing greenhouse gas emissions, aligning with broader environmental goals. The state’s commitment to nuclear energy also stems from its desire to diversify its energy sources, ensuring energy security and resilience against market fluctuations and natural disasters.

Current trends and future projections

The future of nuclear energy in Texas looks promising, with current trends indicating continued reliance and potential growth in this sector. Advances in nuclear technology, such as small modular reactors and next-generation designs, offer new possibilities for safer, more efficient, and more sustainable nuclear power. The state’s energy policies and market dynamics will play a significant role in shaping the trajectory of nuclear energy in Texas. This section explores these trends and projections, offering a forward-looking perspective on how nuclear power might evolve in the coming years.

The post Nuclear Power Plants in Texas: History, Current State, and Future Projections appeared first on BKV Energy.

The main difference between a utility and an electricity provider?

• Utilities are responsible for the maintenance of the electrical equipment that delivers electricity your home.
• Electricity providers are the companies that provide you with electricity plans, rates, bills, and customer service.

When we talk about getting electricity in our homes, we often hear about ‘electric companies’ and ‘utilities.’ These words might seem like they mean the same thing, but they actually refer to different parts of how we get our power. This article is going to clear up any confusion about these terms and will answer, “Is electric the same as a utility?”

We’ll look at what each one does, compare retail energy providers vs utilities, and highlight why the distinction matters to consumers. By understanding these differences, you’ll get a better idea of how electricity reaches your home and who is responsible for what in the energy world.

Primary differences

Distinct roles in energy supply chain

When comparing utility companies vs electricity providers, it’s important to understand their different but complementary roles. A utility company is responsible for the infrastructure that delivers electricity to your home or business. This includes the maintenance of power lines and the distribution network. On the other hand, an electricity provider, also known as a retail electricity provider (REP), is the company you choose to buy your electricity from. They purchase electricity from power generators and sell it to consumers, offering various plans and rates.

Regulatory differences

Utility companies are typically regulated by state and federal agencies, which means their rates and operations are closely monitored to ensure they provide reliable service at fair prices. Electricity providers, however, operate in a competitive market in deregulated states. This means they can set their own prices and offer different types of plans, such as fixed-rate or variable-rate plans, to attract customers.

Customer interaction and billing

When it comes to customer interaction and billing, electricity providers are your main point of contact. They handle account setup, billing, and customer service. The utility company, while less visible to the consumer, plays a crucial role in ensuring that the physical delivery of electricity is uninterrupted and repairs are made in case of outages.

What is a utility company?

Utility companies are essential in our daily lives, providing vital services such as electricity, water, and gas. They are responsible for the generation, transmission, and distribution of electricity, ensuring that it safely reaches our homes and businesses. 

Types of utility companies

Utility companies can be categorized based on the services they provide:

• Electric Utilities: Manage the distribution of electricity.
• Water Utilities: Ensure safe and reliable water supply and sewage treatment.
• Gas Utilities: Distribute natural gas for heating and cooking.

What is a TDU?

TDU stands for Transmission and Distribution Utility, which is an electric utility company. Transmission and Distribution Utilities (TDUs) play a crucial role in the electricity sector. They are responsible for maintaining the wires, poles, and infrastructure that deliver electricity to consumers.

TDUs ensure that electricity travels safely from power plants to your home or business. They manage and maintain power lines and are also in charge of the meters that measure your home’s energy usage. In situations like a bad storm causing trees to fall onto power lines, it’s the TDU’s responsibility to repair these lines and restore electricity to the affected areas.

What is a TDSP?

TDSP stands for Transmission and Distribution Service Provider. This term is interchangeable with TDU (Transmission and Distribution Utility). It’s a term used primarily in the electricity market, especially in areas with deregulated electricity markets like Texas. TDSPs are companies that own and maintain the physical infrastructure required to transmit and distribute electricity from power plants to homes and businesses. This infrastructure includes power lines, poles, meters, and transformers.

The role of a TDSP is distinct from that of an energy provider or retail electricity provider (REP). While REPs handle the sale and billing of electricity to consumers, TDSPs are responsible for the actual delivery of electricity. They ensure that electricity is transmitted safely and reliably across their network. If there’s a power outage or an issue with the electricity lines, it’s the TDSP that takes care of repairs and maintenance.

How are TDU/TDSP charges determined?

TDU charges are a part of your monthly electricity bill in Texas. These charges are approved by the Public Utility Commission of Texas (PUCT) and appear on your bill as “TDU charges,” “TDU delivery charges,” or “TDU pass-through charges.” They are adjusted twice a year, on March 1 and September 1, to allow TDUs to recuperate costs incurred from the services they provide. For example, if a region like Houston experiences several severe hurricanes requiring extensive maintenance, the local TDU, such as Centerpoint Energy, might need to increase their charges temporarily to cover these additional costs.

What is an energy provider?

An energy provider, or a retail electricity provider (REP), is a company that purchases wholesale electricity and sells it to consumers. They offer various plans and pricing options, allowing consumers to choose the best fit for their needs. Unlike utility companies, REPs do not own the physical infrastructure for electricity delivery; they focus on customer service and billing.

In Texas, there are dozens of retail electricity providers working together with the 5 main TDUs to deliver electricity to homes and businesses connected to the ERCOT grid across the state.

Utility company vs energy provider

Understanding the difference between a utility company and an energy provider is crucial in navigating the electricity market, especially in deregulated areas. Here’s a in-depth breakdown of how these two entities differ in their roles, responsibilities, and interactions with consumers:

Utility company

Infrastructure and maintenance: Utility companies own and maintain the physical infrastructure for electricity transmission and distribution. This includes power lines, poles, transformers, and meters.

Region-specific: They typically operate in a specific geographic region and are responsible for ensuring the delivery of electricity to all consumers in that area, regardless of the energy provider the consumer chooses.

Regulated rates: Utility companies are regulated by government entities, which means their rates and operations are closely monitored. They charge standardized rates approved by public utility commissions.

Emergency services: They are responsible for addressing power outages and repairing any damage to the electrical infrastructure.

No choice for consumers: Consumers do not choose their utility company; it is determined based on their geographic location.

Energy provider (retail electricity provider – REP)

Electricity sales: Energy providers purchase electricity from power generators and sell it to consumers. They do not own the physical infrastructure for electricity delivery.

Competitive pricing: In deregulated markets, energy providers compete with each other, offering various electricity plans and rates. This competition can lead to more innovative services and pricing structures.

Customer choice: Consumers in deregulated areas have the freedom to choose their energy provider based on their preferences for price, contract terms, customer service, and even the type of energy (like green energy plans).

Customer service and Billing: Energy providers handle account management, billing, customer service, and any inquiries related to the electricity plans they offer.

No physical service responsibilities: They are not responsible for the physical delivery of electricity or for addressing power outages. These are the responsibilities of the utility company.

What are the Texas utility companies?

Texas currently has six main TDUs providing services to different regions of the ERCOT grid:

Oncor

Oncor operates in North Texas, serving major areas like Dallas and Fort Worth. It’s known for its extensive infrastructure and commitment to renewable energy sources.

Centerpoint

Centerpoint services the Houston metropolitan area, focusing on efficient and reliable energy distribution to one of Texas’s most populous regions.

Texas-New Mexico Power

This company covers parts of Texas and New Mexico, known for its cross-state services and dedication to maintaining a robust energy grid.

AEP Texas Central

AEP Texas Central operates in the southern and central parts of Texas, ensuring energy reliability in these diverse and growing regions.

AEP Texas North

Serving the northern region of Texas, AEP Texas North focuses on delivering consistent energy services to both urban and rural communities.

Lubbock Power & Light

LP&L operates in the city of Lubbock. They are the newest utility company and were previously the electricity provider for the area before deregulation occurred.

Affordable energy plans from BKVE

At BKVE, we understand the importance of reliable and affordable energy. Our plans are designed to meet the diverse needs of Texas residents, offering competitive electricity rates in Texas and exceptional customer service. Whether you’re looking for a fixed-rate plan to stabilize your monthly bills or a variable plan to take advantage of market rates, BKV has a solution for you. Choose BKVE for an energy partner committed to powering your life efficiently and affordably.

The post What’s the Difference Between a Utility Company and an Electricity Provider? appeared first on BKV Energy.

Enter your address below to find your ESI ID.

What Does ESI ID Mean?

ESI ID stands for “Electric Service Identifier.” ESI IDs are unique service identification numbers assigned to every electric meter on a home or business in the state of Texas.

ESI IDs are used by retail electricity providers (REPs) to look up your billing and energy consumption history. REPs do not assign these IDs, they are actually created by the Electric Reliability Council of Texas (ERCOT).

The post ESI ID Lookup: What Is Your ESI ID? appeared first on BKV Energy.

Texas electricity providers offer a wide range of electricity contract term lengths from 1 to 36 months, and in some extreme cases, even 4 or 5 years.

Choosing between them can become complicated — how do you know which one is the best deal offering the most savings? It’s all about finding a balance between security and savings.

Here’s everything you need to know about selecting the best term length for your budget.

Pros and Cons of Short Term Contracts

Upsides to Short Term Contracts

Short term contracts (such as those less than 1 year long) offer more freedom for people who enjoy shopping around for lower electricity prices. They are easier to get out of when you find a lower rate.

They are also great for folks who are staying somewhere for a short amount of time. You can sign a deal for the duration of your extended stay without worrying about a high cancellation fee.

The Downside to Short Term Plans

Short term plans are not without their drawbacks. If you sign a short contract, the entire market could swing in the wrong direction during the term. When it comes time to sign up again, you may get stuck with a high rate.

Pros and Cons of Long Term Plans

Advantages of Long Term Energy Contracts

The most significant benefit to signing a longer term contract (such as one longer than 2 years) is the stability. When your rate is locked in for the duration of your contract, you are insulated from negativity in the marketplace due to changes in cost of production and weather. This means you can better predict your finances for the foreseeable future.

Another benefit? You don’t have to worry about finding a plan. You can set your account to autopay and get on with the rest of your life.

Disadvantages of Long Term Electricity Plans

There are a couple downsides to a longer term plan. First, if you find a plan part of the way through your current contract with a lower rate, you may get stuck paying a high early termination fee.

Second, if you cannot afford the early termination fee while the market drops, you are stuck paying a higher rate for electricity until your plan ends.

Extra Long Energy Plans

Some Texas electricity providers may offer plans that are outrageously long with 4 to 5 year terms. These plans are backed by wild guesses, stabs in the dark, and crystal ball predictions about the distant future.

Providers offering these plans do not know how state, national, and global economics, weather patterns and climate change, or updates to the Texas power grid regarding renewable energy sources and battery storage will impact the cost of electricity that far in advance.

We do not recommend signing up for plans this long because the early termination fees may be astronomical and if the market swings in the right direction for the consumer, you will not be able to take advantage of the potential savings in your household.

The Best Term Length

The ideal term length for residential electricity is 9-24 months. Plans like these offer the perfect balance between rate stability, potential early termination fees, and flexibility to switch to another plan or provider. These plans are backed by much more reasonable assumptions about the future of energy production costs, updates to the Texas grid, weather, and climate change.

At BKV Energy, we take this one step further. Our Bluebonnet plan automatically enrolls you in our Blend & Extend program.

Our Blend & Extend software automatically searches for opportunities to lower your rate in the middle of your contract. If we find an opportunity, we’ll give you the option to switch and save without paying a cancellation fee.

When you sign up for BKE Energy’s Bluebonnet plan, you get the perfect combination of factors:

• Price stability
• Low early termination fees
• Opportunities to lower your rate for free
• Rates backed by realistic market data

Enter your zip code to explore plans and prices in your area. Contact us today if you have any questions.

The post Short vs Long Term Electricity Plans: Find the Best Contract Length appeared first on BKV Energy.

The grid failed so spectacularly for several reasons:

• Power infrastructure was not winterized
• The state was highly dependent on un-winterized natural gas power plants for electricity
• The Texas grid is isolated from other states
• Demand for electricity surged as millions of people tried to heat their homes
• Lack of preparedness by ERCOT
• Failures of communication and coordination between ERCOT, state officials, utility companies, gas suppliers, electricity providers, and power plants
• No lessons learned from previous winter storms of similar intensity

These issues fell upon each like dominos, leading to power outages for millions, the deaths of hundreds of Texans, and billions of dollars in damages. This catastrophe highlighted the need for swift and sweeping upgrades and protections against future extreme weather events.

Every year since 2021 when winter draws near, Texans wonder whether recent improvements to the grid were substantial enough to keep them safe in the face of another storm like Winter Uri.

In this article, we’ll dive into the specific legislation enacted by the Texas state government in response to the disaster and explore whether the relevant parties have done their part to winterize the Texas grid.

Texas state legislature’s response to 2021 Winter Storm Uri

In March 2021, just a few weeks into the aftermath of Winter Storm Uri, Texas lawmakers introduced and passed significant legislation aimed at upgrading the state’s power infrastructure and preventing repeated failures. The bill, Senate Bill 3 (SB3), included many measures such as:

• Requirements to weatherize gas supply chain and pipeline facilities that sell electric energy within ERCOT, and penalties up to $1 million for violation of these requirements
• Requirement for ERCOT to procure new power sources to ensure grid reliability during extreme heat and extreme cold
• Designation of specific natural gas facilities that are critical for power delivery during energy emergencies
• Development of an alert system that is to be activated when supply may not be able to meet demand
• Requirement for the PUCT to establish an emergency wholesale electricity pricing program

Weatherization measures implemented by Texas natural gas plants

In the Railroad Commission of Texas’ May 2024 document regarding guidance for weatherization practices for gas supply chain and pipeline facilities, they laid out a couple dozen solutions for preventing harm to the grid from severe winter weather.

These solutions include (but are not limited to) the following:

• Installation of insulation on critical components of a facility
• Construction of permanent or temporary windbreaks, housing, or barriers around critical equipment to reduce the impact of windchill
• Guidelines for the removal of ice and snow from critical equipment
• Instructions for the use of temporary heat systems on localized freezing problems like heating blankets, catalytic heaters, or fuel line heaters

The question still remains—have these updates been implemented? According to Daniel Cohan, professor of environmental engineering at Rice University, power plants across Texas have installed hundreds of millions of dollars worth of weatherization upgrades to their facilities.

In ERCOT’s January 2022 winterization report, they stated that 321 out of 324 electricity generation units and transmission facilities fully passed the new regulations.

Is the Texas grid prepared for another Winter Uri?

Utilities, power generators, ERCOT, and the PUCT have all made changes to their operations and facilities since 2021 to be better prepared for extreme winter weather. Are these changes enough? Has the Texas grid officially been winterized?

At this point, it’s not possible to say for certain. Since Winter Storm Uri in 2021, subsequent winter storms have paled in comparison. Temperatures have not reached the same lows, there has been less snow and ice, and instances of winter weather have not lasted for as many days.

If another winter weather storm arrives, blanketing nearly the entire state with several inches of ice, we are likely to at least experience many localized outages. When tree branches cannot support the weight of the ice, they can snap and knock out power lines to neighborhoods across the state. In the instance of a downed power line, we must rely on regional utilities to act quickly to restore power.

The only true way for Texans to know if the grid is ready for another storm is for Mother Nature to unleash another test. If the grid can better withstand, we’ll have our answer, and vice versa.

The post Has the Texas Grid Been Winterized? appeared first on BKV Energy.