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Consumers looking for lower electricity prices can find their savings through a variety of different methods. TXU Energy announced earlier this month that is offering another new option for many Texas residents with the introduction of nighttime electricity rate discounts.
Electricity companies must play a complicated game with consumers, balancing constantly shifting demand with the need to have a consistent supply. This can prove extremely difficult during the day when demand is at its highest point, which often forces generators to rely on out-dated and expensive power plants.
Electricity provider TXU intends to let residents take advantage of this changing demand by offering substantially reduced prices during the night and off-peak times of 6.8 cents and 9.2 cents per kilowatt-hour, respectively.
Peak hour prices are much higher – 21.9 cents per kilowatt-hours – but the way the program is structured just 10 percent of all hours are actually peak hours, only including five hours in the afternoon from May to October.
This type of plan could prove even more cost-effective for customers with electric vehicles, which they can charge at night, or people with solar installations that would produce much of their power when rates would be much higher.