Houston, the city in Texas, is often referred to as the “Energy Capital of the World” due to its major contribution to the energy industry. More than half of the research centers in Houston focus on the development of energy technology and its innovation. Even the majority of the economy of Houston is dependent on the energy industry particularly oil.
So much energy, what’s the source?
Houston is a state in Texas where the major energy created is by natural gas. Texas is a major provider of natural gas in the state of the US, creating 25% of the country’s natural gas. Natural gas has been proved the best source to produce electricity there. This constitutes half of the energy of Texas, in figures 46%. The remaining half of the energy is contributed by coal produce -18%, wind power accounting for 23% of the total, nuclear power contributing for 11% and solar being a small share of 2. The average Houston Energy Rates of domestic energy per unit are low as 12.01 cents per kilowatt-hour.
Many produce high, why prices here so low?
Being the energy capital of the world with so many electric companies in Houston, its residents have dozens of reliable options to choose from.
In Texas, almost the whole state is made energy deregulated i.e. 85% of the total. Deregulation of electricity means that consumers hold the right to choose the company from which they will receive the electricity, Retail electricity provider (REP). For example cellular networks in India. REP’s are majorly held responsible for the supply, support, and maintenance of electricity provided to consumers.
Cons of REP’s
For every product, it’s a usual thing that sellers try to attract consumers giving them the best deals. Something like this happens with electricity in Houston where there is huge competition in REP’s. REP’s offer the best rates and offers to attract and retain their consumers. This leads prices to fall down and best benefit the consumers.
- Option to Choose- Consumers have the option to choose the best deal for them, question and complaint, their provider easily
- Access to New Energy Technologies– In order to lower the prices, providers try to make use of the latest technologies to reduce the production costs which keeps them flowing with the new technologies.
- Reduced Grid Pressure– Energy regulation Texas helped to reduce the load on one grid and increase its reliability. Even more funds and incentives were implemented by the government to reduce the cost of production and reduce peal demand.
- Stimulates New Investments– The cheap production due to natural gas and getting appreciable profit, investors are more encouraged to put their money in this sector.
Texas system perfect?
Houston and Texas are working efficiently with the current energy system but unseen natural calamities can move this far by. In late February 2021, Texas was hit by a storm and although Houston being the chief producer, some people were made to pay high bills as during a storm, production was hindered, lines were broken and many people had had no access to energy. Only some of the people managed to get energy and they were charged massive bills for consuming energy just for few hours.