Don't Fear Your Next Bill: Electricity Prices in Texas Soaring in the Summer

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Don't Fear Your Next Bill: Electricity Prices in Texas Soaring in the Summer
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You might have seen headlines about electricity prices in Texas going through the roof recently. But the electricity market in Texas is doing exactly what it's designed to do — and most customers probably won't notice any effect on their bill.

Wholesale power prices in Texas have shot higher for brief periods this summer as demand records have repeatedly been broken.about electricity prices in Texas going through the roof recently, as extreme heat keeps bearing down on the state. But those headlines really aren't telling the whole story.what it's designed to do — and most customers probably won't notice any effect on their bill.

Wholesale electricity in Texas — the power coming right out of the power plant — is priced to a large degree on scarcity. Demand is way up and there's not much extra? Prices go up as more expensive generators come online to help fill the gap. This is an incentive to bring more generators online to keep everything working smoothly.So, higher prices during peak electricity demand is normal; prices basically go up every summer and sometimes in the winter.

"A few hours of those really high prices is actually healthy," Doug Lewin, head of the consulting firm

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