Available Alternative Energy Sources
The increased awareness regarding the adverse effects of carbon emissions and global warming has increased the popularity of alternative energy sources. These new energy sources provide cleaner, renewable and cheap electricity sources that can supply the energy needs of households, business establishments and industries.
Now more and more states like Texas, where energy deregulation is in full bloom, have provided their populace with the power to select providers for electricity in Houston, Dallas and other areas in Texas. Part of this includes not only the option to select the Texas electric company that will provide electricity, but they can also choose among companies that have partnered with producers using alternative energy sources.
Why is There a Need for Alternative Energy Resources
More and more electric companies are slowly introducing alternative energy sources as part of their main electricity production process. Still, many people do not understand the implication of such moves in their lives, even though they have been hearing “energy crises” issues clamored across the country and even across the globe.
Although people over the years are partly to be blamed, there is no need for finger pointing now. The key thing here is that people realize the need to use alternative energy sources — before it is too late. The world has been overly dependent on fossil fuels in generating the power they need and use in their everyday lives. However, this dependency only resulted to global warming, increase in pollution levels and the imminent dangers of climate change.
Now people has the option to take the next step and create a change — a change that will affect the way they live now, and the future that is in store for their children, and their children’s children. People now have the option for micro generation of renewable energy right in their own homes, or switch to utility companies that use alternative energy sources.
Read the entire article on Shop Texas Electricity Blog.
PUC Investigates Smart Meters
Texas Electricity Ratings has blogged quite a bit about the new Smart Meters being rolled out in the Dallas and Houston area. We’ve spoken about their ability to save money for customers, how they can measure real time electricity intake, how they could potentially be vulnerable to hacking, and even how they might be able to speak directly to your utilities like your washer and dryer. With all of the time we’ve paid to those things, I definitely don’t want to miss the opportunity to blog about this new development.
Since many of the smart meters have been installed, people have been calling in and complaining to ONCOR (and Centerpoint) that their electric bills have doubled, and in some cases tripled. This seems awfully coincidental seeing how it happened the second that the new smart meters were installed. Now, there are some explanations for what could cause this outside of the meters. ONCOR and Centerpoint are saying that the record cold has caused the huge leap in electricity usage, and that a vast majority of the people complaining about higher bills haven’t had smart meters installed. They say that record cold weather has forced people to use more electricity for heat, as well as space heaters, etc. They also didn’t mind throwing some REPs under the bus by saying that some guys just charge higher rates than others. Way for all of Texas Electricity to work as a team.
Read the entire article on Texas Electricity Ratings.
A freeze on Texas smart meters
A Texas lawmaker is calling on state officials to freeze the installation of new smart meters, saying too many of his constituents are seeing spikes in their bills with the installations.
Sen. Troy Fraser (R-Horseshoe Bay) is calling on the Texas Public Utility Commission to order a stop to installations “until independent testing of the meter and software can be conducted” according to the letter he sent (see it below). He also calls on the companies installing them to do a number of side-by-side digital and analog installations to test for accuracy and to suspend the monthly fee customers are paying while the testing is being done.
In the Dallas area the grid operator, Oncor, has already said it will start a Smart Meter Verification Plan after some of the 700,000 customers with new smart meters complained, according to the Dallas Morning News:
It will offer free verification to customers in the Killeen area if they contact Oncor by March 12 and will offer free in-home monitors to 100 customers in the area.
The utility wants a side-by-side comparison of old and new meters in homes of customers who volunteer. The project will start in the Killeen area to help persuade customers that the meters work correctly.
Read the entire article on NewsWatch: Energy.
Implications of Electricity Deregulation in the United States
In monopolies, companies who are in control are in the position to raise the prices of their products and services even without additional value given to the consumers. This is true with any industry, even for electric generation and distribution. Consumers have no option but to accept what is given them at the rates dictated to them since they are left with no other alternative to choose from.
With electricity deregulation, the rules have drastically changed and consumers in Texas now have the power to select their electricity providers. Implementation is dependent on the state, as states like Texas have fully embraced the rules set by deregulation, while others have derailed implementation pending further study and planning.
What is Electricity Deregulation?
The basic concept of electricity deregulation is to empower consumers to choose who or what company shall provide their electrical power. Like in the state of Texas, most residents can choose their electricity provider, and plan depending on their individual needs.Switching from one company to another who will provide electricity to residents will not result in a disruption of services for a house or business establishment as the same electrical wire and poles will be used — only the company selling the electricity will change. The difference would lie in the price or power rates that a particular electric company shall offer, as well as the quality of service and responsiveness that they provide their customers.
What are Potential Issues with Electricity Deregulation?
Energy deregulation is implemented on a state-by-state basis however not all states, as well as consumers, have totally embraced this implementation. For one thing, many states find the redesigning of their electricity market too complicated for implementation to occur immediately. Other consumers on the other hand are still in a wait-and-see mode and have not yet made the move to switch to another Electricity provider.This could be due in fact to past experiences by other states like California, whose initial implementation of electricity deregulation was plagued with blackouts, electrical supply emergencies, and major utility companies diving into financial trouble due to sudden price spikes.
What Benefits will Consumers get with Electricity Deregulation?
Despite these past issues, several states like Texas and their consumers have benefitted significantly from the implementation of electricity deregulation. Private consumers, commercial establishments and businesses have benefitted from this in more ways than one as outlined by the list below:
- Electrical deregulation allowed the entry of alternative energy providers that provides clean and renewable electricity, making it safer and better for the environment
- The playing field for industry players and providers are leveled out, with existing and upcoming service providers have an equal chance of providing service to consumers
- Consumers have the option to choose providers that offer the most cost effective power rates package to their clients. This same benefit can also be enjoyed by commercial and other business entities.
- Regional differences in power rates between states can be leveled out and standardized
- The entry of more service providers creates more jobs for the people of the local communities
- Service quality and reliability is greatly improved due to the increase competitiveness between providers.
‘Smart’ meters will help consumers track electricity use
A sudden cold snap creates a spike in consumption. Christmas lights are fun at the time, but they, too, keep that meter running. Kids routinely leave electronics on, even when they’re not in the room.
Sure, you try to do all those little things that, in a perfect world, can help keep cost and environmental impact down. Unfortunately, this is not a perfect world, and a big number on that electric bill each month can come as a shock to both the system and the budget.
But what if your world was just a little more perfect? What if you could log on to your computer and check consumption down to, say, a 15-minute period? What if you could figure out that your teenager is running the TV, stereo, a game player (or two) and every light in his room — all despite the fact that he’s spending the night at a friend’s house?
That’s the future of the Advanced Metering System (AMS), and that future is closer than you may think.
In Texas, electric infrastructure provider Oncor already has installed more than 700,000 of the new meters as part of its Smart Texas program, and the company plans to roll out a total of about three million by 2012. The technology feeds information directly to your electricity service provider, eliminating the need for anyone to come read the meter. Once a new website is launched in the next few months, users will be able to access reports broken down into 15-minute intervals, allowing them to chart how much energy is being consumed in their home or business.
Read the entire article on GreenRightNow.com.
Texas electricity deregulation opinions all over the grid in industry panel
Depending on who you are, deregulation of the Texas electric industry has been a boon or a burden.
We gathered nine executives, officials and consumer advocates to discuss who has benefited from deregulation, who has been harmed and what’s to come.
There was no consensus. Retail executives said their customers want the freedom to choose among pricing plans and features, but one consumer advocate said people simply want low prices, and they “don’t give a flip” about choice.
Participants also discussed confusion about contract terms, stricter repercussions for taking advantage of consumers and whether smart meters will change the customer’s experience.
Most of the participants agreed on one point: Anyone who tries to live in the past, who cannot or will not learn about the new system, could get hurt.
The Texas Legislature deregulated the retail electric industry in 2002. No longer would utility monopolies reign. At that point, most people served by the Texas grid could choose their retail provider. Lawmakers had already deregulated the wholesale market, allowing any willing investors to build generation plants and trade power.
Only the power line utilities, such as Oncor, remain fully regulated.
Since 2002, Texans have debated whether deregulation caused prices to rise or fall. Officials, lobbyists and corporations have produced dozens of studies designed to prove their points.
Read the full article on the Dallas Morning News.
Electricity Rates Are Cheap Right Now
Unless you are an energy professional you probably don’t spend a great deal of time paying attention to what electricity rates are doing in your town. Some summers you may have been able to sign up at a very cheap electricity price and then the next summer prices are high again. The same type of price fluctuations happen in the winter as well. Some people spur on the misconception that electricity rates are always higher during the summer. This is not always the case it is just that there is usually more price volatility in the summer time. This price volatility can cause electricity rates to go down dramatically just as much as go up.
Winter months can be just as volatile to electricity prices. Fortunately this winter electricity prices have remained low. Even today as energy prices are up you can still lock in at a very good electricity rate. For the last several weeks prices have been coming down and looking better and better. Electricity can only come down so much and at this time we are experiencing some very good energy price levels. If you are wanting to wait until electricity rates come down even further I do not recommend this strategy. We have a good position right now to lock in for 1 – 2 years on a very good fixed electric rate.
Read the entire article on ElectricityBid.com.
Money-Saving Innovations from Electric Choice Not Available to All of Texas
Competition in the Texas electric market means that energy providers have created a wealth of new products and services designed to meet customers’ individual needs and lower their electric bills. Such new products include fixed priced plans which give customers budget certainty, time-of-use plans that let customers take advantage of lower rates during off-peak times, seasonal rates designed for customers with electric heat, prepaid products for customers looking to avoid costly deposits, and many more. Soon, Texas electric companies will be offering electric plans designed specifically for customers with plug-in electric vehicles.
One of the newest products introduced last year by several Texas energy companies is a program where customers with distributed generation — like rooftop solar panels — may sell their excess generation back to their energy supplier. Not only do these customers save money by generating their own power, they receive a credit when they generate more power than they need, further reducing their monthly electric bill.
Competition Brings Texas Electric Rates Below National Average
With customer choice forcing Texas electric companies to compete for customers’ business, Texas electric rates have gone from above the national average before competition, to below the national average. However, that’s not the story that’s typically reported by the media, because the federal Energy Information Administration is using flawed data which underestimates the significant decline in Texas power prices since the start of competition, according to a new study by the Texas Public Policy Foundation (TPPF).
“Most competitive prices are considerably lower than what is reported in the federal government’s data,” said Bill Peacock, Director of the Foundation’s Center for Economic Freedom. “In fact, the average competitive price is below the national average, and consumers who exercise their choice can easily find rates that are lower than in our neighboring states.”
TPPF found that the average electric rate offered by electric companies in the competitive regions of Texas in December 2009 was 11.01 cents/kWh, while consumers could choose offers as low as 8.52 cents/kWh. However, the federal Energy Information Administration (EIA) reported that Texas consumers paid an average of 12.26 cents/kWh in October 2009 (the most recent month of data).
For 2009, the EIA data shows a national average price of 12.06 cents/kWh. According to EIA, the average Texas rate is 12.26 cents/kWh, but in reality, the average Texas rate in parts of the state open to competition is actually lower — only 11.01 cents/kWh. Texas energy prices are thus below the national average in areas where Texans can choose their energy provider.
Read the entire article on SaveOnEnergy.com.
