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Report ranks Texas as among least expensive states for energy

If you live in Texas, you're paying less than residents in almost every other state. Photo via Getty Images

A new report analyzed energy costs across the United States to find out what states had the highest energy prices. Turns out, Texas falls rather low on that list.

The study from WalletHub ranked Texas as No. 49 on the list of the 2023 Most Energy-Expensive States. According to the U.S. Energy Information Administration, almost a third (27 percent) of the country report having difficulty meeting the energy needs of their household.

"To better understand the impact of energy on our finances relative to our location and consumption habits, WalletHub compared the total monthly energy bills in each of the 50 states and the District of Columbia," reads the report. "Our analysis uses a special formula that accounts for the following residential energy types: electricity, natural gas, motor fuel and home heating oil."

The report ranked states based on their total monthly energy cost, but also identified the following:

  • Monthly electricity cost
  • Monthly natural-gas cost
  • Monthly motor-fuel cost
  • Monthly home heating-oil cost
Texas households' total monthly energy cost was reportedly $378, which is only beat by New Mexico ($373) and DC ($274). The top five most expensive states for monthly energy cost is as follows.
  1. Wyoming at $845
  2. North Dakota at $645
  3. Alaska at $613
  4. Connecticut at $593
  5. Massachusetts at $589
When comparing to other states, Texas monthly electricity costs are relatively high. At $153 a month, the Lone Star State ranks No. 11 in that category. Meanwhile, when it comes to monthly home heating-oil cost, Texans pay an average of $0 a month, as do Mississippi residents.
Fuel prices are also cheaper in Texas, as the state ranks No. 49 with only Louisiana and Mississippi with lower costs, respectively.

While Texans can find some comfort in the lower-than-average energy costs, the whole country is expected to see some prices increase, one of the report's experts says.

"Most likely, energy prices will continue to rise in 2023, although perhaps more slowly than at times in the past," writes Peter C. Burns, director of the Center for Sustainable Energy at Notre Dame. "The war in Ukraine continues to create uncertainty in energy supplies in Europe, while pledges to reduce oil production in the interests of reducing greenhouse gas emissions will also contribute to increasing prices."


Source: WalletHub

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A View From HETI

Lydian Energy has secured financing for three battery storage system projects in Texas. Photo via Getty Images.

The Electricity Reliability Council of Texas’ grid will get a boost courtesy of Lydian Energy.

The D.C.-based company announced the successful financial close of its first institutional project financing totaling $233 million, backed by ING Group and KeyBank. The financing will support three battery energy storage system (BESS) projects in Texas.

Lydian is an independent power producer that specializes in the development, construction and operation of utility-scale solar and battery energy storage projects. The company reports that it plans to add 550 megawatts of energy—which can power approximately 412,500 homes—to the Texas grid administered by ERCOT.

“This financing marks an important step forward as we continue executing on our vision to scale transformative battery storage projects that meet the evolving energy needs of the communities we serve,” Emre Ersenkal, CEO at Lydian Energy, said in a news release.

The projects include:

Pintail 

  • Located in San Patricio county
  • 200 megawatts
  • Backed by ING

Crane

  • Located in Crane county
  • 200 megawatts
  • Backed by ING

Headcamp

  • Located in Pecos county
  • 150 megawatts
  • Backed by KeyBank

ING served as the lender for Pintail and Crane projects valued at a combined total of approximately $139 million.

KeyBank provided a $94 million financing package for the Headcamp project. KeyBanc Capital Markets also structured the financing package for Headcamp.

The three projects are being developed under Excelsior Energy Capital’s Fund II. Lydian’s current portfolio comprises 20 solar and storage projects, totaling 4.7 gigawatts of capacity.

“Our support of Lydian’s portfolio reflects ING’s focus on identifying strategic funding opportunities that align with the accelerating demand for sustainable power,” Sven Wellock, managing director and head of energy–renewables and power at ING, said in the release. “Battery storage plays a central role in supporting grid resilience, and we’re pleased to back a platform with strong fundamentals and a clear execution path.”

The facilities are expected to be placed in service by Q4 2025. Lydian is also pursuing additional financing for further projects, which are expected to commence construction by the end of 2025.

“These financings represent more than capital – they reflect the strong demand for reliable energy infrastructure in high-growth U.S. markets,” Anne Marie Denman, co-founding partner at Excelsior Energy Capital and chair of the board at Lydian Energy, added in the news release. “We’re proud to stand behind Lydian’s talented team as they deliver on the promise of battery storage with bankable projects, proven partners, and disciplined execution. In the midst of a lot of noise, these financings are a reminder that capital flows where infrastructure is satisfying fundamental needs of our society – in this case, the need for reliable, sustainable, domestic, and affordable energy.”

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