Staggering 70% Electric Bill Hikes Shock Texans

Texas residents are feeling the intense heat of rising electricity prices. In the last year, electricity prices have skyrocketed by an astonishing 70%. This dramatic increase has put a financial strain on families across the state, as they struggle to manage their budget. With no relief in sight, many Texans are left feeling helpless and frustrated as they try to make ends meet due to the staggering 70% electric bill hikes.

This rate hike comes as something of a double blow for many Texans who are already struggling financially due to pandemic-related issues such as job losses and business closures.

Texas residents are feeling the pinch as electricity prices continue to skyrocket. In June 2021, the average price-per-kilowatt hour of electricity for Texas residences was 7.98 cents. However, just one year later in June 2022 it had increased 70 percent to 18.48 cents – an unprecedented jump that has many Texans feeling worried and financially strained.

In a move that has left experts and citizens alike worried, the new price point for electricity in the state grid is the costliest ever recorded since its privatization in 1999. Prices have steadily increased over the past two decades, but this jump is particularly concerning as those who rely on electric power will now have to pay more than ever before. 

“We’ve never seen prices this high,” AARP Texas Associate State Director Tim Morstad told Sherman. “There’s going to be some real sticker shock here.”

The driving factor behind these electric bill hikes is the skyrocketing cost of natural gas. Prices have risen dramatically over the last few years and show no signs of stopping anytime soon. This puts a heavy burden on both consumers and businesses alike, who are forced to bear the brunt of rising energy rates.

According to recent estimates, power plants fueled by natural gas make up 44 percent of the Texas grid’s energy capacity. This sharp shift from coal-based energy sources has caused electricity prices to skyrocket as well, leading to serious concerns about affordability among consumers. 

The grid’s reliance on natural gas, however, has tethered it to a resource whose average price has quadrupled over the last two-and-a-half years.

And this trend, according to a federal report on the short-term outlook of energy production and consumption in the United States, could actually worsen.