r/TexasEnergyShopping • u/mypowernegotiator • Apr 09 '26
Why do large commercial customers get better electricity rates than us?
I think, it really just comes down to volume. Commercial customers get the best rates because they bring massive "load" to the table. As homeowners shopping individually, we have zero leverage to negotiate.
If you have a renewal coming up in the next 2 months, it might be worth joining the group now so there’s enough volume to actually push the providers for a better deal. The more people that join, the more leverage the group has to drive these rates down for everyone.
I'll put the link in the comments if anyone wants to check it out or share it with neighbors.
2
u/electricityplans Apr 16 '26
Large commercial customers get different pricing due to volume AND their usage profile. Residential customers tend to be HVAC load which hits the grid differently than a C&I client that uses power consistently each day and that can ramp down power when asked to do so. Customer aggregation is an interesting play for deal pricing though!
1
u/mypowernegotiator Apr 09 '26
Here is the group I was talking about for those with renewals coming up:https://www.mypowernegotiator.com/negotiator-rates
1
u/Daihashi Apr 09 '26
I don't trust these sites that don't just let you freely use them. They are mining data for resale.
1
u/mypowernegotiator Apr 13 '26
Really encouraged to see the collective group list grow over the weekend! It’s clear that a lot of us are tired of the guessing game.
The group will be open for the May and June negotiated rates until April 24th.
With Texas's energy demand growing rapidly, this collective effort is exactly what we need to gain real leverage with the providers.
If you haven't checked your 'True Rate' yet, you can still run your numbers at Check My True Rate to see your True rate.
Let's keep fueling the May and June renewal group Negotiator Rate - the bigger we are, the better the deal for everyone.
1
u/Fine_Investment_4076 Apr 13 '26
waiting on the rate
1
u/mypowernegotiator Apr 13 '26
Thank you. We will finalize the rate for May and June enrollments in the last week of April. You will get an email
2
u/Just_Energy_Anita Apr 29 '26
Working in energy, I can speak to this. One thing that could help would be to shop at renewal. A lot of contracts roll to month-to-month when they expire, and those rates are usually quite a bit higher than what you originally signed up for. Locking in before summer demand picks up tends to get you a better rate than shopping in July 😄 Best of luck!
2
u/Middle-Class-Dad Apr 12 '26
Large industrial power consumers can also be asked to turn off or spin down during peak load times and be paid because their consumption can have a material impact on the grid and the wholesale cost of energy.
The rate you pay is not the rate it is costing to serve your home every hour of each day and time of year.
Say your personal residential fixed rate is $0.12/kWh - On an early morning in March when the sun is shining and wind is blowing, it might only be costing your provider $0.005 to serve you. On a hot August day at 6PM, it might be costing your provider $0.45/kWh to serve you.
In Texas, Natural Gas is the most expensive energy input. So, when the sun isn't shining (for solar) and the wind isn't blowing (wind) the "market" has to input more Natural Gas. The "market" will essentially pay the large industrial consumers to spin down or stop their operation to ease the cost of Natural Gas for certain hours of the day.
So in essence, you are technically getting the benefit of large industrial consumers getting special rates and credits. Otherwise, your provider would have to charge you higher fixed rates.