The Average Kilowatts Rates
Energy bills in the US vary by state and region, as the cost per kWh differs. In 2016, the average US household consumed roughly 900-kilowatt hours (kWh) of electricity per month. To estimate your monthly supply of energy bills, multiply the average home’s energy usage (900 kWh) by the supply cost per kWh in your state in 2016.
Commercial Electricity Supply Rates
Both businesses and households across the US can take advantage of pricing and plans availed by energy suppliers. But this option is limited to states with energy choice. In some states, only businesses have the power of choice. In 2016, the average business in the US consumed 6,278 kWh of electricity per month and received an electricity bill of roughly $700.
Understanding the Energy Market
Energy market prices are not static and keep changing throughout the year due to the volatility of the energy market. For example between October 2016 and October 2017, Florida had the biggest fluctuation in Residential Energy Rate electric prices. This is in contrast to Oregon and Utah who both had the most consistent prices.
Fluctuation in electricity supply prices may seem irregular, though few factors determine how much you pay. They include:
· The time: Some Retail Electric Providers offer plans with time-of-use discounts. For example free energy supply from 9 p.m. to 6 a.m.
· The month: The high energy demand for cooling in warmer states can be higher during summer unlike during winter.
· Your location: Energy supply rates are different from state to state and even among utility areas in the same state. This is regardless of whether the state has energy choice.
How to Pay Less for Electricity in Texas
Different states have different electric rates. According to the 2017 data, Louisiana households paid the lowest average residential electricity supply rates of any state in the US, followed by Washington. Here are several ways you can pay less for your energy bills.
1. Compare electricity providers – Comparing electricity providers can increase your savings on energy bills. Energy consumers among the 85% of the Texas population living within the ERCOT grid service have the power to choose their electricity supplier. The ERCOT service grid includes AEP Texas, CenterPoint Energy, Oncor, Texas-New Mexico and Sharyland Utilities. These options will give you a choice of how much you can pay for your electricity needs.
2. Less energy lower bills – The less electricity you use in your home the lower the electricity bill you’ll pay. That said, be on the lookout for minimum usage fees, and changing rates based on your energy consumption, as they can cancel out savings.
Alternative Sources of Energy
You can also opt for alternative sources of energy such as wind, solar and hydroelectric power.
· Wind – Texas can produce more 18,000 megawatts of electricity through wind. Some 5,000 megawatts of wind generation capacity is also expected from facilities still under construction.
· Hydroelectric – The state of Washington produces almost half of its net electricity from hydroelectric power. The northern part of the state is home to the largest hydro plant located at the Grand Coulee Dam.
· Solar – If your choice is solar, confirm the kind of tax incentives available in your area, and the conditions for claiming them. Various companies lease solar panels making them a good choice for customers who want to avoid up-front costs.