How Stream Energy Is Facing Texas' Increasing Energy Rates

There is no doubt about the fact the cost of energy has been increasing in Texas. And with the arrival of summer, the wholesale summer power prices are expected to rise again. But this isn’t only due to temperatures heating up in the state. It is mainly due to the shutdown of three coal-fired power plants shut in 2017. For many energy consuming customers, this may come as a surprise because over the last few years energy prices have been fairly low. Consumers of Stream Energy along with many other energy providers are now asking how their electricity bill will be affected by the increase. With so much uncertainty, the truth is that many consumers will not know until summer is over.

"We are going into a summer where people are going to be paying a lot, potentially paying a lot more," said Commissioner Brandy Marty Marquez, who serves on the state's Public Utility Commission. "We are not really sure what we are going to see."

Due to the closure of the three power plants, the Electric Reliability Council of Texas expects a loss of more than 7000 megawatts of power capacity before summer even hits Texas. This is massive as the Electric Reliability Council of Texas is in charge of 90 percent of the state’s power grid with one megawatt powering 200 homes in Texas on a hot summer's day. Additionally, over half of 7000 megawatts (around 4000 megawatts) in the past came from the power plants that have now been shut down.

Over the last several years we’ve seen really low prices mainly caused by low natural gas prices and a lot of renewables coming online which are very cheap. That is beneficial to us, but what that does is it creates an uneconomic environment for some of the generators so they have to start doing something with the plants that they have. Specifically, a lot of coal plants have become uneconomical to run over the past few years and they are starting to retire those plants.

– Stream Energy’s Chief Wholesale Officer Jake Hadix.

As these plants are retired, this reduces the amount of supply that the energy market receives. Adding to the strain on the energy supply in Texas is the fact that many people are moving to the state and many businesses are relocating there which in turn increases the demand for power. Unfortunately, with the closure of three power plants, the demand can not be met, and therefore energy prices have increased.

To keep pace with the changes, every energy provider across Texas, including Stream Energy, has now been forced to adjust their energy rates. On 25 May 2018, Stream Energy released its new rates page with new pricing details. The new rates page helps both new and existing Stream Energy customer as it clearly outlines prices covering all plans and areas. Additionally, the pricing is based on 2000 kWh usage which will ensure the customers align with the rest of the energy market. It also allows customers to see exactly how Stream Energy measures up against its competition.

How Does The New Energy Prices Impact Independent Associates

For Stream Energy Independent Associate, it is essential that they educate their customers on the new prices and on the importance of energy conservation. This becomes even more important as Texas is currently in its summer months. Throughout the summer, Stream Energy will continue to focus its efforts on maintaining its competitive pricing, as well as keeping Independent Associates educated about any changes in pricing.

There are various ways that the Dallas-based company is educating its Independent Associates and customers. One of these ways is through sharing information that helps to educate customers of their options in a situation like this. For example, Stream Energy has a Budget Power Plan which gives Stream Energy customers a level of certainty. This plan gives customers the option of paying the same amount each month for energy. Another way that Independent Associates can assist their customers is informing them about energy conservation.

“As these rates are going up, we are dealing with a new changing market condition, you want to thinking about how you’re conserving at home during these spikes in energy price,” said Stream Energy’s President and Chief Operating Officer Dan O’Malley.

Conserving energy can be very easy if you know how to do so. Stream Energy has encouraged their energy users to follow these few simple energy-saving tips:

• Turn off lights that are not being used.
• Keep thermostats 75 degrees or warmer during the summer months.
• Use less energy during peak hours of 2 pm to 6 pm.

It really matters the time of day that you have a lot of usages. If you’re running your washer and dryer or running your dishwasher or those type of things in the middle of the day, say between 2 pm and up to about 7 pm, those are the peak hours of the day and the most expensive. Those mundane things that you do, try and switch those to another time of day - maybe in the morning or later at night.

– Stream Energy’s Chief Wholesale Officer Jake Hadix.

Overall, Stream Energy hopes to empower its customers through education so that the Texas energy rate increase does not have a massive impact on their on-the-go lifestyles.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.