Are electric rates higher in summer or the Winter? The answer to this question depends on a number of factors, but there is one thing that will impact your electricity bill more than any other, your choice of electricity plan.
Does your electricity bill cause you anxiety during the summer months?
Do you have a house full of kids from dusk to dawn trying to escape the hot summer sun?
When we ask the question, are electric rates higher in summer or winter, are we really looking for ways to reduce your summer electricity bill?
Many Texas families face these same concerns during the hot summer months.
We’ve created this guide to:
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Electric rates do go up in the summer. There are a few good reasons why this happens.
Before we review these reasons, let us introduce the Jones family:
The Jones family lives in Texas and has two working parents and three school-aged children who spend most of their daytime hours throughout the week outside of their home.
They aren’t using appliances, watching television, turning lights on and off, or doing laundry during the peak hours of the day.
With so many “free nights and weekends plans” offered by Retail Electric Providers (REP), the Jones family saves money on their electric bill during most months throughout the year.
However, in the summertime, the three children are home ALL DAY.
With the high temperatures in Texas during these few months where the kids are out of school, the Jones family children spend many of their daytime hours inside of their house.
They’re playing video games for entertainment, blasting the air conditioner units to help stay cool, and taking care of some household chores like laundry and dishes while their parents are at work.
Electric companies in Texas realize that the demand for electricity is much higher during these crucial summer months and often increase their rates.
Many key factors influence the price of electricity.
According to the United States Energy Information Association (EIA), some of these factors are:
These factors play a large role in how REPs generally price their electricity.
But, there are also reasons why summer electricity rates are often higher than winter electricity rates.
During the summer months, when temperatures are at a brutal all-time high, school is not in session.
This means that most Texas homes are filled with school-aged children during the daytime hours when electricity usage is at its peak.
The kids who are normally in school during most of the daytime hours are instead:
Texas is rather warm almost all year round, but summer days in Texas are particularly hot.
Starting as early as the first signs of spring, temperatures in Texas can average between 68°F to 80°F and continue to climb through the fall.
While school is not in session, Texas temperatures reach close to 100°F, forcing many people indoors during daytime hours.
Temperatures in Texas stay high until the winter months when they tend not to drop much lower than 50°F.
The high summer temperatures in Texas force residents and business owners to use their air conditioners frequently to stay comfortable.
Running an air conditioner for countless hours requires a lot of electricity. Often, they are working very hard to cool down an entire house or business establishment.
Internally, there are a lot of moving parts to an air conditioner unit. All of the work that these parts do consumes a lot of power which raises the price of your electricity during these crucial months.
Additionally, neglecting care on your air conditioner unit can run your electric bill even higher.
It is possible to lower your summer electricity rates by making smart choices and changes in your daily routines during these high-temperature months.
Rather than leaving your air conditioner on high all day long while no one is home at your house, use a programmable thermostat that can be set according to your family’s schedule.
During hours when family members are normally home, program your air conditioner to run at cooler temperatures.
While there is no one in the house, keep the temperature higher or turn the AC off completely to save some money on your electricity bill.
It is tempting to stay home and cool off in the AC during the high temperatures of a Texas summer.
Instead, try to spend some of your summer days outside of your house in places where you can still keep cool.
Consider places like:
Sometimes it is difficult or nearly impossible to get out of the house on hot Texas summer days.
Just because you are forced to stay indoors does not mean you have to crank the air conditioner all day long.
During the hours that your air conditioner is programmed to turn off or raise the temperature, take advantage of your blinds, drapes, and ceiling fans.
By blocking the hot sun from coming through the windows and keeping the rooms in your home darker, your home will stay a bit cooler.
Blinds and drapes are not just for decoration. Blinds are made to reduce heat by up to 45%, while drapes can reduce heat by 33%.
Similarly, using ceiling fans can cool a room by approximately 4 degrees.
Using all of these methods can help to minimize air conditioner usage and reduce your electricity bill during the Texas summer months.
Before the majority of Texas deregulated the energy market, the hours of the day did not matter in terms of electricity use. In fact, before deregulation, we never asked the question are electric rates higher in summer or winter.
In a regulated energy market, electricity providers charge one flat rate no matter the time of day. They were able to do this because consumers had no choice in who they used as their electricity provider.
Now, REPs typically break down the day into three different periods and vary their pricing from one to the next to stay competitive.
Typically, electricity is in the highest demand from 10 a.m. to 8 p.m. in the summer.
When demand for electricity is relatively average, it is known as “mid-peak hours.”
Normally, this is on weekdays from 7 a.m. to 10 a.m. and 8 p.m. to 11 p.m. in the summer.
When electricity is in the lowest demand for the day, it is considered “off-peak hours.”
This is the best time to use electricity.
Generally, this is from 11 p.m. To 7 a.m. in the summer.
These periods will vary with each Texas REP, so be sure to check with your specific electricity provider.
During the winter months, Retail Electric Providers generally vary their pricing based on the time of the day when electricity consumption is at its highest or lowest demand.
Try to avoid electricity usage during these hours to keep your electricity bill down.
Electricity prices are average during this time of day.
It is best to use electricity during off-peak hours when electricity consumption is at its lowest.
Retail Electric Providers generally set their rates at the lowest pricing during off-peak hours when electricity consumption is at the lowest.
Each Texas REP might have its own time of day where they offer lower electricity rates.
Using major appliances during the peak hours of the day can cause your electricity bills to spike during the summer.
Some of these appliances include:
Instead, save your major appliance usage for when electricity rates are the cheapest throughout the day.
When is electricity the cheapest?
Electricity is cheapest during off-peak hours (generally early morning and late night), but these specific hours might vary with each different electricity provider.
Many electricity companies offer off-peak rates during the summer months.
These rates are usually during the night hours when electricity consumption is lower than at other times of the day.
However, electricity companies are aware that many homes still run their air conditioner units through the night to allow for comfortable sleeping.
Because of this, they may not offer a significant price decrease during the off-peak hours in the summertime.
Your Money on Your Summer Bills
Charles and his family are residents of Houston, Texas. During the summer months, Charles has three school-aged children at home during peak hours when electricity is in high demand.
Charles believes that he and his family are doing all that they can to help reduce their electricity bill during the summertime.
They are consistent with:
Regardless of all of these changes, Charles’ electric bill has not dropped.
He wonders if switching to a new electricity company might be the answer to his summer electric bill problems.
Maybe you find joy in filling your days with hours and hours of research.
But searching through all of the different Texas electricity providers and the options they offer could take all day.
Here’s what that process might look like for you:
This is stressful and will prove to be a waste of your time.
Searching for a new electricity company can be tedious and frustrating.
Like Charles, you can spend hours and hours searching Google to find the various REPs around Houston, Texas.
You will probably have to take notes to keep track of all of the different rates and prices each provider offers before spending the time to read through and review each one individually.
By this point, you will likely be frustrated and want to give up on the process of searching for a new electricity provider.
Instead, you can save yourself time and frustration and use an electricity comparison site where you can compare plans and companies in one place.
In conclusion, understanding the seasonal fluctuations in electric rates can help you better manage your energy costs throughout the year. By being aware of the peak periods and adjusting your energy usage accordingly, you can minimize the impact of higher rates, whether they occur in the summer or winter.
Additionally, exploring energy plans that cater to your specific usage patterns can further enhance your savings. Stay informed, be proactive, and make smart energy choices to keep your electricity bills in check all year round.
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