Texas electricity rates are determined by several factors:
Production Costs: The cost of producing electricity, including fuel prices and power plant operations, affects the rates.
TDU Fees: Transmission and Distribution Utility (TDU) fees are charged for delivering electricity from power plants to homes. These fees vary by location and are added to your bill.
Energy Market: Electricity rates fluctuate based on supply and demand in the energy market. High demand can drive prices up, while low demand can lower prices.
Company Pricing: Each electricity provider sets its own prices, leading to competitive and sometimes confusing rates. Providers offer different plans with various rates and terms.
Understanding these components helps explain why electricity prices can vary and how you can find the best plan for your needs. With GridHacker, you can easily compare and enroll in plans from different providers right on our website.