How Fort Worth’s Growing Population Impacts Energy Usage

If you live in Fort Worth, you’ve probably noticed the growing population. Fort Worth is currently the 12th largest city in the U.S. and is quickly approaching 1 million residents. Of the 30 most populous cities, Fort Worth has the fastest-growing population in the country.

More residents, households , and businesses in the region mean there’s a greater demand for electricity. Ultimately, Texas energy generators will need to produce more electricity to meet the rising demand, and this could impact the amount you pay on your monthly electric bill.

More residents and businesses increase energy demand

While Fort Worth’s population growth is not the only factor, it has played a part in the rising demand for electricity across Texas (as have the populations in several other major cities in the state). Based on Electric Reliability Council of Texas (ERCOT) data , the peak demand for electricity increased 16% from 2021 to 2023.

Texas power generation has had to work to keep up. From 2020 to 2023, total electricity production in Texas increased by about 14%, according to data from the Energy Information Administration (EIA).

The Texas power grid has generally been able to support the state’s growing number of residents and businesses. There have been some exceptions, primarily in the summer months when temperatures are high and energy demand spikes. This summer is a prime example of the strain high temperatures put on the grid. With more people residing in Fort Worth, ERCOT predicted an elevated risk of declaring an Energy Emergency Alert (EEA) in August, which could result in rolling blackouts to ensure the available energy supply can meet the increased demand.

However, Texas has expanded its energy portfolio in recent years, which could help provide the grid with enough electricity to meet demand. Texas leads the nation in wind energy generation and comes in second in solar energy production (beaten only by California). Based on data from the EIA , wind and solar energy accounted for 22% and 6%, respectively, of the total electricity production in 2023. Natural gas accounts for the largest portion of the state’s energy mix, making up over 51% of production last year.

How has increased energy demand affected Texas electricity rates?

It’s clear that more people equates to higher energy usage and more strain on the grid. But has that also led to higher electricity prices?

The average annual Texas electricity rate for residential customers has increased every year since 2020. Using rate and usage data from the EIA, the average Texan paid about $137.94 in energy bills each month in 2020. By comparison, the average energy bill in 2023 was $168.69, about 20% higher.

So far in 2024, the average electricity rate is even higher than the 2023 average — 14.65 cents per kilowatt-hour. Using that average, the estimated energy bill for this year will be approximately $172.55. It’s worth noting that this amount uses the average rates from the EIA that are already available for this year, which spans from January to May. This average doesn’t include the average rates for the summer months, which will likely increase.

Population growth and an increase in energy demand are only partially to blame for rising electricity rates in Texas. Energy prices nationwide have been on the rise in recent years due to several factors, including inflation, natural gas prices, and major weather events. However, more residents consolidating in Fort Worth impacts the strain on the power grid, which plays a role in how the wholesale cost of electricity is calculated.

If you are experiencing high electricity bills, the most straightforward way to lower the cost is to reduce your monthly electricity use. Because Fort Worth is deregulated, you could also switch to another energy plan with a better rate or more favorable terms. You can check for current electricity rates in your area on an energy provider’s website or compare prices from multiple providers on an energy marketplace site.