Texas Residential Electricity Usage

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We created ElectricityMatch.com based on the simple truth that searching for great electricity offers is of no value unless you actually find one that matches your needs. Your time is valuable and you want to see competitive offers presented in a clear and easy-to-read format. You need choices free from gimmicks and confusing jargon. You want to work with top-rated energy providers that consistently deliver what they sell.

About ElectricityMatch

About Charlie HewittCharlie Hewitt has more than 20 years of in-depth energy experience having served in executive and managerial roles at some of the largest retail energy providers in North America. His expertise covers a wide range of retail energy disciplines including pricing, contracting, risk management, and credit. He holds an MBA from UT Arlington, MA and BS degrees in geology from UT Austin, and was a TXU environmental research fellow.

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Residential energy consumption varies greatly depending on what part of the country you live in. Primary drivers in energy usage are the climate (cold, hot, mixed, humid, dry, marine), whether the customer lives in rural or urban setting, and the type of housing (detached, multi-family, mobile home). Other factors influencing energy usage are the year the home was built, how many people live in the home, and the types of energy consuming appliances used in the home.

For Texas retail energy consumers, there is little doubt that electricity is the primary energy source used in their home. An extended cooling season and high humidity place Texas homes near the top of all states in electricity usage. In fact, according to the U.S. Energy Information Administration, electricity usage in Texas homes is 26% higher than the national average. In colder regions of the country where space heating is the priority, natural gas and fuel oil dominate the household energy budget.

Consumption Drivers

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Although residential natural gas deregulation is unlikely to ever come to Texas, the graph on the previous slide shows that the greatest cost benefit for Texas retail energy consumers lies in the retail electric choice program. Not only do customers have the ability to pick their electricity provider, it is critical that they maximize savings by signing up for the electricity plan that best suits their needs.

When Texans choose a retail energy provider, they will come across a variety of great electricity rates and plans. While most of these plans are standard offers where all usage is charged at the same rate, some plans are classified as time-of-use where electricity rates according to the time of day or day of the week.

Retail Electric Choice

Before considering a time-of-use plan, electricity consumers should understand how electricity is used in their household and what flexibility they have in shifting usage to cheaper time periods.

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Source: http://www.eia.gov/consumption/residential/data/2009/

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As shown in the previous graphic, 75% of electricity in the home is consumed by air conditioning and “other” uses. These other uses are referred to as Miscellaneous Electrical Loads (MELs). MELs include stoves, ovens, microwaves, dishwashers, washing machines, clothes dryers, lighting, electronics, and similar end-uses. Any benefit derived from time-of-use rates will come from changing air conditioning and MEL usage patterns.

Air conditioning usage can sometimes be moderated by using a smart thermostat. There may also be some flexibility around when laundry is done or when the dishwasher is run. Time-of-use electricity rates can be an attractive option for Texas customers but they may not be right for everyone. Make a list of how you use major appliances and decide if you can realistically change how and when you use then to take advantage of these innovative rate plans.

Time-of-Use Rates