Winter Storm Landon's Affect On Energy Rates

Winter’s not over yet!  In fact, some of the volatile weather conditions that we’ve been seeing in the U.S. would exemplify the opposite.  Winter Storm Landon is predicted to impact a large portion of the US– from Texas and all the way to Maine, through this Friday 02/04/2022.  Ice, freezing rain, sleet, and snow will definitely impact travel conditions and it’s advised to avoid travel if possible, where Landon is making it’s way through.

With these volatile weather conditions occurring, many residents and business owners in the affected locations are wondering:

• How will this affect my power?
• Are my energy bills going to spike, like they did with Winter Storm Uri?
• How can I prepare for these types of storms now and in the future?

To answer the questions above, the consensus is that blackouts or rolling blackouts could affect much of the power in certain areas.  Texas Governor Greg Abbott claimed that “no one can guarantee” those power outages won’t occur, but the state is doing its best to approach the situation based on this Washington Post article.  Winter Storm Uri caused unprecedented high energy rates and it’s no wonder that energy customers want to be more prepared this time around and moving forward.

In Texas, specifically, the ERCOT power grid is heavily affected.  Retail energy suppliers can only provide pricing for very short amounts of time and if provided, may need to pull any provided pricing, at any given time.  Some may even need to shut down pricing altogether until weather conditions improve.  This makes it difficult to sign on any fixed-rate contracts, as energy market volatility has caused rates to increase 2-3 tenths of a penny (ie: 2-3 mils) in the past 24-48 hours.

In terms of preparation for these volatile market conditions, a broker (hey, that’s us!) or energy procurement advisor can assist with the shopping around of fixed all-in rates, prior to when conditions become unpredictable or unstable. Essentially, choosing a fixed-rate energy plan allows for peace of mind and predictability for the client.  The kWh rate stays fixed and does not fluctuate, even when market price volatility does.  It’s important to note that the fixed-rate all-in (make sure ancillary fees are included) applies to only the supply charge of a bill.  Distribution and transmission prices are not included in that price. 

See your electric plan type options here, if you’re a resident or business owner in Texas.  Contact Ananta Energy Source here if you’d like a complimentary energy analysis on your home or business, today!

Stay safe, warm, prepared, and protected this winter season.