Lower Electricity Bills are on the Way
Although summer’s energy-guzzling hot weather and high temperatures will stick around through September, Southeast Texans will soon see relief with a drop in their electricity rates that will last into next year.
You can expect a 12 percent decrease in your residential bills over September and October because of a fuel costs refund and a new lower fixed fuel factor. The refund is limited to two months, while the savings from the fixed fuel factor portion will be in effect until March 2015.
For an average 1,000 kilowatt-hour residential bill, the fuel refund will be $7.59 in September and $10.06 in October. In addition to the refund, customers will also see a drop in the fixed fuel factor, which is a pass-through charge to recover costs for fuel used to make electricity. This charge will change from its current amount of $42.27 per the average 1000 kilowatt-hour residential bill to $36.20, or about $6 in savings.
A comparison to current bills shows that the average bill in August was $121.61. That will drop to $107.95 in September and to $105.48 in October.
“Natural gas is an important component of our electricity production and the primary fuel we use in Texas,” said Sallie Rainer, president and chief executive officer, Entergy Texas, Inc. “Because fuel costs are passed on to customers, it becomes a key part of determining bills. With the price of natural gas continuing to moderate, we are pleased to be able to pass along this benefit to our customers.”