top of page

Confused on why electricity prices are rising?

Writer: Shane RichardsonShane Richardson

I get why you’re scratching your head—electricity prices in Texas usually dip in spring, especially March and April, but this year they’re climbing instead. Let’s unpack this oddity based on what’s happening in 2025 and what folks are saying online.


Typically, prices fall in spring because it’s a “shoulder season.” Demand drops—winter heating’s done, summer AC isn’t cranking yet—and milder weather means the grid isn’t stressed. Historical data backs this: April, May, and October are often the cheapest months to lock in rates, with July, August, and January being pricier. It’s a supply-and-demand thing: less strain, lower wholesale costs, and providers pass that on. But 2025’s breaking the mold, and here’s why.


First, demand isn’t easing like usual. Texas’ population keeps growing—over 4 million new folks since 2010—and industries like data centers and crypto mining are sucking up power year-round. ERCOT’s projecting a peak demand of 90,336 MW this year, way up from last summer’s 85,931 MW. Spring isn’t the breather it used to be; businesses and homes are still pulling hard, keeping supply tight. X posts mention a 17% demand jump since 2021, and that doesn’t just vanish in March.


Second, supply’s getting squeezed. Power plant closures—Texas leads with double the peak-season shutdowns of any state—aren’t helping. These “maintenance” outages, often suspiciously timed, shrink capacity when we need it. Meanwhile, renewables like wind and solar (34% of Texas’ power in 2024) are growing, but they’re flaky in spring—less wind, cloudy days—and backup gas plants kick in at a premium. The EIA says natural gas prices for generators are up 24% to $3.37 per million BTU in 2025, and since gas sets the marginal cost, that hikes rates even in “off” seasons.


Third, market weirdness is at play. ERCOT’s energy-only market means prices spike when supply’s low, and post-Uri changes—like ECRS fees to idle plants—add costs that don’t fade in spring. Online chatter calls this manipulation: plants go offline, capacity shrinks, prices rise. The Texas Tribune and WFAA note Uri’s $7 billion in bonds and TDU rate hikes (e.g., CenterPoint’s 40% jump in 2024) are still rippling through bills, no seasonal discount included.


Finally, weather and policy aren’t cooperating. Spring 2025 forecasts hint at hotter-than-normal temps, per NOAA, pushing early AC use. Plus, the Inflation Reduction Act’s renewable subsidies—tripling to $25 billion yearly—jack up grid costs to balance solar and wind, per the Texas Public Policy Foundation. Wholesale prices spiked 208% in three years, and that pressure doesn’t let up just because it’s March.


So, unlike a typical spring where demand slacks and supply steadies, 2025’s got relentless demand, shaky supply, a volatile market, and extra costs baked in. That’s why prices are rising instead of falling—it’s less a seasonal lull and more a perfect storm.

 
 
 

Comments


bottom of page