Find out what you can do to offset high summer energy costs.
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Many Texans believe that their summer energy bills are higher because their rate went up. But that’s usually not the case. In fact, the most popular type of energy plan features a fixed rate, meaning your price is locked in for a set period. For most consumers, the problem is heavy AC usage to combat scorching summer days.
Here are a couple of scenarios that may be causing your high summer energy bills and what you can do to combat them.
The most likely cause of a higher bill is that you simply used more electricity than normal. According to the Energy Information Administration (EIA), AC accounts for the largest portion of residential electricity usage, making it one of your most energy-intensive appliances. If you’ve gone from barely using your AC to running it every day, that is probably the reason your bill suddenly spiked.
This scenario is an extension of the first one. If your energy consumption went up, you may have moved into a higher, more expensive usage tier. Many energy plans have a tiered pricing structure based on common usage levels: 500, 1,000, or 2,000 kilowatt-hours (kWh).
The average price per kWh can vary across tiers depending on your plan. If you used more energy in summer, you might have moved into a more expensive usage tier.
You can check your plan’s average price in the Electricity Facts Label (EFL) to find out if this scenario applies to you. If your plan no longer fits your average monthly usage, you can switch plans on Choose Energy to find a better match. Call the number on your screen if you’d like help finding a better fit for your energy needs.
Your electricity rate may have actually changed if your plan contains a variable rate. A variable-rate plan contains a fluid rate that can change each month with the wholesale cost of energy. During times of low demand, you might get a cheap rate, but when demand soars, customers often experience very high prices.
Check your plan’s EFL to find out if you have a variable-rate plan. Our experts recommend switching to a fixed-rate plan to secure more stable and affordable energy bills.
Reducing your energy usage is the best way to lower expensive summer electricity bills. Here are a few tips on how to do it.
Regular HVAC system maintenance ensures your unit is ready for high summer usage. If your AC unit is blocked or inefficient, it has to work harder to maintain a cool indoor temperature, resulting in higher energy consumption and bills.
In addition to regular HVAC maintenance, change your filters monthly during summer to remove buildup and keep your airflow clean.
The Department of Energy estimates that you can save 6–18% by adjusting your thermostat from 72 to 78 degrees Fahrenheit. Consider making this adjustment to save on your summer AC costs. A smart thermostat can also help you automatically regulate your home’s temperature for efficiency.
LED lightbulbs are up to 90% more efficient than incandescent bulbs. Switching out your lightbulbs is an easy way to reduce your energy usage. LED lightbulbs are also designed to absorb the heat they produce, which could help your home stay cool in the summer months.
While fans don’t generate cool air on their own, they’re a great way to circulate cool air without overburdening your air conditioner. Consider positioning fans near windows to circulate fresh air and provide a cooling effect. Most ceiling fans can also be adjusted to spin counterclockwise during the summer, which pushes cool air down. Using fans in this way can allow you to raise your thermostat by a few degrees and save money on your monthly bill.
If you live in a deregulated energy market, you can choose your energy provider and plan. Our energy experts recommend picking a low, fixed-rate plan to achieve affordable energy bills year-round. This type of plan protects you from price fluctuations and usually leads to more predictable monthly bills.
Whether you prefer to research options on your own or want the guidance of an expert, Choose Energy can simplify the process for you:
Want to compare plans at your own pace? Our online marketplace compiles today’s most accurate rates and plans from top electricity companies. Enter your ZIP code to explore options in your area and filter your results by rate type (like fixed rate), providers, home size, features like green energy, and more.
Want personalized guidance and real-time answers to your questions? Call the number on your screen — our team is standing by to help. Be ready with a few details, such as your address or ESID number, social security number, and email address (your data is always secure). One of our agents will ask you a few questions to better understand your energy needs and budget, and then connect you with the best deals available in your area. Some plans are only available over the phone, so you may have access to even more options. We’ll make sure you’re getting exactly what you need, whether that’s a lower bill, a more reliable provider, or a plan that better matches your usage.
We also understand the deregulated energy market can be complicated — our experts can answer questions about confusing terms like Electricity Facts Labels, early termination fees, fixed-rate vs. variable-rate plans, and more.
Once you identify the right plan match, you can sign up right away. Just like with the online experience, your new provider will take over from there and ensure there is no interruption to your service.
Electricity rates are typically cheaper during the spring and fall due to mild temperatures and lower energy demand. These seasons experience less strain on the power grid, resulting in lower prices. If you can enroll in a new energy plan or switch providers in the spring or fall, you’re more likely to lock in a lower rate than in the summer or winter.
Energy prices can spike in summer when electricity demand overloads the power grid. However, summer energy bills usually go up because homes and businesses use more AC to stay cool. If you have a fixed-rate plan, your rate stays the same, but your bill can still go up if you consume more electricity.
Our energy experts recommend choosing a fixed-rate plan to get the best rate. This type of plan locks in your rate for a set period, usually one to three years. Since your rate stays the same, it’s easier to budget for your monthly power bill.
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