Energy analysts say that the electricity rates in Texas will follow the rising cost of natural gas, the fuel used by half the state’s generators. Starting in 2008, Texas had some of the lowest power prices as the state opened the market to competition.

According to the Houston Chronicle, “some analysts were optimistic that the trend could continue, predicting that slower economic growth, combined with an increase in the amount of natural gas production (and wind farms in West Texas providing electricity) coming online this year, would keep gas and electric prices lower.”

But natural gas, which essentially sets the rates for all of Texas power, surged 23 percent since the beginning of the year, most of that occurring in the last six weeks.

The Chronicle quotes Steve Madden, senior vice president of StarTex, an independent electric retailer, as saying, “wherever natural gas goes, electric follows.”

To read the entire article from the Houston Chronicle, link here:

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