The reason our energy prices for heating our home and for air conditioning are so low right now has to do with our reliance upon natural gas to produce our electricity.
There are many natural gas power generation facilities throughout our state and even more natural gas producing wells in our state as well.
Gas is stored in salt domes and natural gas storage tanks in different areas of the state of Texas and when we have peak demand period during the day these salt domes are emptied and the gas is used to produce the needed electricity during peak times.
On a really hot summer day wind power from wind turbines just will not be able to produce enough electricity to meet the amount of demand needed to run all the AC units in peoples homes.
Texas has an immediate answer to peak demand days like when a Texas summer gets to 115 degrees and that is using natural gas power plants to create the electricity we need to keep ourselves cooled off.
Natural gas prices are very low right now and because of this we can heat our homes for cheap right now during the winter. In the summer when natural gas prices are low we can use electricity to cool our homes and still receive a low cost electricity bill.
Unfortunately we do not have enough storage locations to store excess natural gas for Texas and so we pipe it into other states and sell this cheap power to our neighbors.
Because Texas has so much natural gas we benefit from nice low prices for electricity power but occasionally experience high price spikes.
When averaging prices over the period of a year even though we may experience price spikes the annual average rate Texas residential and commercial energy consumers pay is much less than in several other states.