Why Is My Electric Bill So High ?
our opinions : ADVICE FROM AN EXPERT
In The Comfort Zone
Why Is My Electric Bill So High ?
Brett Hobson
AUGUST 2018 PARKER COUNTY TODAY
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By BRETT HOBSON CEO Comfort Experts
Last month I stressed the importance of making sure that you get the right sized unit for your home or commercial space . If you needed a new system and you worked with your AC service person to make sure that you got the right sized unit , as well as the most energy efficient one possible , then you might be asking yourself a question this summer . Why is my electricity bill still so high ?
The news was dire when it was announced in March of this year that Texans could expect sky high prices as demand increased this summer . There are a variety of reasons that this happened , according to Texas Electric Reliability Council of Texas ( ERCOT ). You might have learned in an economics class that when demand is high , and supply is low , prices increase . Unfortunately for us in Texas , the answer is not quite so simple .
So , why is high demand , and low supply leading to higher prices for everyone ? One reason is obvious , we are having a particularly hot and dry summer . Not unexpected if you ’ ve lived in Texas for a few summers , but this one is certainly hotter than usual and earlier than usual . Another reason is that three coal-fired power plants are closed and off the power grid . New power supply projects are either planned or in the works , but won ’ t be available to replace the coal plants that are being closed in the short term .
Although it is a concern , we aren ’ t looking at the rolling blackouts anytime soon in Texas , unless something catastrophic happens , so no need to panic . The Texas Public Policy Foundation is a think tank who says that the Texas utility market is working exactly like it ’ s supposed to . According to its vice president of research , the Public Utility Commission will allow prices to be high this summer . “ That ’ s because it will spur investment in ‘ peaking ’ power plants – those that run when there is high demand ,” Bill Peacock said . He believes that there is enough power to get us through the hot summer months .
The past decade , ERCOT has predicted that Texas will run out of power during the summer for the past decade , but it hasn ’ t happened yet . We currently have enough power supply to cover the predicted needs for this summer .
Along with increases in the cost of electricity , air conditioning service companies are seeing increases in the costs of almost everything we use . Equipment is more expensive than it was a year ago , with an average increase of 15 percent or more across the board . So is the availability and cost of refrigerant ? In 2000 , you could purchase a barrel of R22 refrigerant for $ 30 . Now the same barrel costs between $ 600 and $ 800 , if you can purchase it at all . There are barrels of this refrigerant sitting in warehouses in South America where it is produced , however they can ’ t be imported to our country . Regulations by the Environmental Protection Agency along with trade embargos have made the cost of everything that my company does more expensive . That ’ s why we continue to stress making sure your unit is running at its peak performance so it lasts longer .
There are some things that you as a consumer can do to help keep your power costs down until it cools off . If you have the option , shop for electricity . Most people do more shopping for a new television than they do the electricity that comes into their homes . A new TV is a one-time cost , while power is a continuing cost . Every single month you get that electricity bill so it would be worth some time to shop around for a new electricity company . This option is available to those in areas not serviced by a municipal utility or an electric co-operative . There are sites online that allow you to compare your bill and compare companies out there . Don ’ t fall for the free offers though . If it sounds too good to be true , it probably is . All of the free offers out there , let me assure you that you will pay higher rates during the times that you are paying .
Do a little bit of homework before you compare rates . What is your monthly power usage ? Look at your bill and figure out how much per kilowatt hour ( kWh ) you are paying by dividing the dollars you are being charged divided by the number of kWh you use . If you are out of contract with your current provider , or it ’ s ending soon , consider a shorter contract . The rates are expected to go down , so you don ’ t want to be caught in a long-term contract at the higher rate . And try never to go out of contract with your provider , they really raise the rate the moment you are no longer in a contract . Remember while you are shopping , retail electric providers can ’ t control all of the rates they can charge since much of the cost per kWh is determined by the state .
Adding electronic thermostats can save electricity , as does raising the temperature a few degrees . Ceiling fans can help keep the air moving , as well as weather stripping windows and doors to keep the hot air out and the cool air in . If you have kids , make sure they are turning off lights , computers , televisions and other appliances when they aren ’ t using them . And when they go outside , make sure doors are shut tight . Use some common sense and without making your family and your home uncomfortable , you can get that monthly electric bill down .
And remember too , it won ’ t last forever . The average number of 100 ° days per year at DFW is 18 , with the worst on record of 70 in 2014 . The weather experts are expecting this to be an average year , so with an average last day of 100 degrees plus being August 26 , we ’ re almost there .