Houston Banking Rates

Energy Crisis May Force Residents to Tap into Houston Savings Accounts

Texas Savings Account

With the summer months threatening triple-digit  temperatures in the city, residents will likely be forced to dive into their Houston Savings Accounts to pay for inevitable energy costs.

Scorching heat encourages Houston residents to turn up air conditioner units to full blast leading to higher electricity bills over the coming months.Officials, however, state that another reason for the expected rise in the price of electricity is due to the recent energy crisis.

The city of Houston and other cities across Texas are growing in their population numbers, resulting in a greater need for energy. According to a recent report, the state could face a 2,500 megawatt deficit in energy, which is equivalent to five power plants by 2014. Officials claim that this shortfall will result in rolling blackouts indefinitely if regulatory price caps are not raised to generate funds to build more power plants.

What Does the Energy Crisis Mean for Houston Residents?

State officials have pegged a number of factors as having an impact on the energy crisis. All of which seem to lead to only one solution: forcing residents to pay more into the electrical industry and less into their Houston savings accounts.

The Brattle Group released a report to state electric grid officials, stating that a high spike in consumer energy costs is what’s needed to give power generators the incentive needed to build new power plants to address rising energy needs.

Power generators have also expressed that currently energy prices are so low many future energy-producing projects have been put on hold. According to the report, Brattle Group recommends that the existing cap for the price of ceiling (at $3,000 a megawatt hour) should increased to $9,000 a megawatt hour — three times the existing cost.

Those who oppose proposals for a higher price of electricity claim that this move is merely a product of greed and that this will only cripple Houston consumers and other cities statewide in the midst of slow economic recovery.

Critics continued to express their opposition by noting that generators would be under no obligation to build the new power plants that the increased price caps were meant to fund. Instead, generators would profit and further encourage energy shortages throughout the state.

Reducing the Blow of the Price of Electricity

No matter who or what is to blame for the energy crisis, Houston residents can expect the price of electricity to skyrocket in the upcoming months.

To lessen the financial burden each month, limit air conditioning use in the home. Instead of keeping units on the entire day, ensure that all windows and doors are closed and dedicate hourly intervals to having the air on. For example, you can keep the air conditioning on from 10AM to 11AM in the mornings and 1PM to 2PM in the afternoons.

You can also visit close-by air conditioned public locations like the Galleria or your local recreational center.