Commercial Energy in Texas and Natural Gas Prices

by admin on March 26, 2012

I remember back when natural gas was trading at around $12 mmbtu. A good cheap Texas electricity rate at that time would cost you about 13 cents per kilowatt hour for 12 months for most businesses.

Now we see natural gas prices trading around $2.25 mmbtu and many analysts are saying that it is very likely to go to around $1.50 per mmbtu.

With any commodity it will never hit zero but we are talking about petroleum related energy here. $1.50 is ridiculous but Chesapeake Energy Corp. has unheard of supply right now.

In Texas locking in your electric rate near the bottom as it is now is a great idea. The longer term you sign up for will give you a higher rate but you are also locking in near the bottom of the market so in 2 – 5 years time if you are still on that same electric rate price you will likely be in a sweet price zone compared to your competitors.

A good electric rate over the long term helps your bottom line like almost nothing else as energy is a big piece of the pie for many Texas businesses.

Lock in your electric rate for 2 – 3 years fixed sometime in the next 6 months and you will be very glad you did.

Our energy consultants would be glad to talk to you about your options so give us a call when you decide you want to do something.

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