The price of electricity has gone up. Although you won’t see a significant difference in your electricity bill right away, eventually you will.

In June, changes were made to what utility companies could charge for wholesale electricity. The price increased by $2,000 per megawatt-hour to $7,000 per megawatt-hour. Last year the Public Utility Commission of Texas capped the price per megawatt-hour at $5,000. And the hike isn’t over, next year it will increase to $9,000.

What this could mean for retail customers is an upward pressure for longer term electricity rates. According to consumer advocates, since most customers are locked into a fixed retail contracts, prices shouldn’t be affected right away, but it will.

“When those prices are allowed to go higher, it does add some cost to electricity overall,” said Jake Dyer, a spokesman for the Texas Coalition for Affordable Power. “Sooner or later, those costs end up trickling down to end-use customers.”

According to energy experts, wholesale price changes can increase volatility in costs retailers pay for the power they sell to customers. Meaning it’s more important for customers to pay close attention to the details of their plans.

Research shows that real-time wholesale electricity prices averaged $33.71 per megawatt-hour last year. The good news, retail providers buy most of the power they sell to consumers under futures contracts that guarantee a purchase price. The wholesale price for power spikes when a higher demand for electricity approaches the generation capacity available on the grid.

Typically summer time is when wholesale prices increase, but winter months have seen a spike in prices too. Earlier this year when cold weather hit Texas, it increased the demand for heating at times when plants were down for scheduled maintenance.

So to make sure you’re getting the most for your buck when cooler temperatures invade Texas, here are some tips that could help you save on your electricity bill.

• Use a programmable thermostat to control your main heating source.
• Make sure your building is properly insulated and all cracks in windows and doors are sealed.
• Keep your heating system well-maintained and serviced.
• Supplement the efficiency of your business heating system by admitting as much sunlight as possible to your establishment and using ceiling fans to push warm air that rises to the ceiling back down into the room.

For more information on how to get the most energy for your buck, contact Progeneration Energy at (844)776-3637 or email us at info@progenerationenergy.com.