How to Avoid High Energy Bills After a Winter Storm
Large portions of Texas are bracing for a winter storm expected to bring up to five inches of snow beginning Thursday morning. The National Weather Service (NWS) forecasts between two and four inches of snow in North Texas, including Fort Worth. In anticipation of the storm, Governor Greg Abbott has requested the Texas Division of Emergency Management escalate its readiness level.
Extreme weather can significantly impact your monthly energy bills, even after the snow and ice melt. Many Texans remember the aftereffects of Winter Storm Uri, when electricity rates hit the market cap of $9 per kilowatt-hour (kWh). As a result, some residents were left with energy bills charging as much as $17,000 for five days of power.
You can protect your home and wallet from high electricity bills after extreme winter weather by monitoring the market and minding your energy usage. Follow these tips to avoid high energy prices after the incoming winter storm.
Keep yourself safe
While energy bills may be a concern, your first priority during a severe winter storm should be keeping yourself and your household safe. Maintaining proper heating safety is incredibly important as temperatures drop. You should never use a grill or oven for warmth as they can cause fires and carbon monoxide poisoning. If you experience a power outage during a winter storm, contact your utility company for information about when power will be restored.
After the storm has passed, be extra careful if you need to drive somewhere. Snow and ice create hazardous driving conditions that can linger for several days if the temperature remains low. Staying off the roads until all the ice melts is ideal, but if you need to leave, be sure to brush the snow off of your vehicle and defrost your windows before driving.
Understand why energy prices change
Electricity rates can fluctuate for several reasons, including changes in energy demand. Winter weather in Texas typically creates more demand for electricity as residents use more energy to heat their homes. Moreover, snow and ice can sometimes cause energy generators to fail or fall offline, causing lower energy supply. When supply is low and demand is high, the wholesale cost of electricity normally increases.
The market cost of electricity can be volatile even after the winter storm passes. Energy demand may remain high for several days after the storm subsides due to low temperatures and people remaining at home out of caution. Understanding how weather events and energy demand impact your electricity rate can help keep you informed and prepared when your next energy bill arrives.
Consider your energy plan’s rate type
There are two common types of energy plans for residential customers — fixed-rate and variable-rate. Under a fixed-rate plan, your electricity price remains the same while you’re under contract. Variable-rate plans do not lock in your energy price, so the rate you pay will change based on the market cost of electricity.
If you are signed up for a variable-rate plan, you could be at a greater risk of an unexpectedly high electricity bill during and after the winter weather. If energy demand increases, so will the wholesale cost of power, directly impacting your rate under a variable-rate plan. This is what happened to many residents during Winter Storm Uri, causing alarmingly high electricity bills following the storm.
Switch plans only if you need to
You can monitor electricity rates online by checking energy providers’ websites or free energy marketplace sites. If you check energy prices in your area and find a cheaper rate for a fixed-rate plan, you could consider switching, but only if you absolutely need to. For example, if you’re currently enrolled in a variable-rate plan and you find a fixed-rate plan offering an affordable rate, switching could be a good idea. Now is not the time to switch to a variable-rate plan, even if it advertises a cheaper rate than what you’re currently paying. When the winter weather rolls in, variable rates will likely increase and could remain high even after it has passed.
If switching plans is the right decision for you, be sure to check the terms of your current contract to determine whether you’ll need to pay an early termination fee (ETF) to cancel your service. Variable-rate plans don’t charge an ETF, so you can freely switch to a fixed-rate plan today without penalty.
Monitor your energy usage
After the winter weather is over, you should continue to monitor your energy consumption. Generally, the less electricity you use in your home, the lower your energy bills will be at the end of the month. Here are a few easy ways to immediately lower your energy usage after the storm without sacrificing comfort or safety.
- Adjust your thermostat a few degrees — Keeping your thermostat between 68 and 70 degrees can help you lower your energy usage. If this setting is cooler than you’re used to, consider wrapping up in a blanket or layering on a sweatshirt.
- Open curtains and blinds during the day — Once the winter weather has passed, you can open your curtains and blinds to let the sun in. The natural sunshine can help heat your home without increasing your energy consumption.
- Reverse your ceiling fan blade rotation — Ceiling fans can cool your room, but they can also be helpful to warm your home. In the winter, reverse your ceiling fan blades to a clockwise direction to help push warm air down to where you are.
- Safely use a space heater or fireplace—Space heaters and fireplaces are useful for heating your home and typically use less electricity than central heating. Be sure to follow all safety recommendations, and do not use either a space heater or a fireplace if you are going to sleep.
- Seal gaps around windows and doors — Use weatherstripping to seal any gaps that could let cold air inside. If you don’t have weatherstripping on hand, you can use blankets or bed sheets as a temporary solution.
- Avoid using energy-intensive appliances or devices — If possible, hold off on using your washer, dryer, or other appliances that use a lot of electricity for a few days following the storm. If you need to use them, try to run these appliances during off-peak hours, such as in the evening hours or early in the morning.
This story was originally published January 9, 2025 at 10:00 AM.