Electricity Texas Now

Last week the Public Utility Commission (PUC) of Texas imposed a total of $3.7 million in penalties on two retail electric providers related to their default in 2008, which left thousands of customers “stranded” and forced to pay a very high energy price.  The penalties are a reminder of the dangers of going it alone when looking for a lower electric rate, as history has shown that not all electric companies are equally dependable and stable.

The PUC’s fines date back to the high prices experienced by Texas customers in the spring and summer of 2008, and the failure of two energy providers: National Power Co. Inc. and Pre-Buy Electric LLC.  Both suppliers, prior to running into trouble, had some of the lowest electric rates in the market, enticing customers to sign up with these firms.  However, both companies lacked proper internal controls and risk management processes to serve customers reliably.  When wholesale electric prices soared, these companies had not hedged their purchases in advance, and could not cover the exorbitant costs of serving their customers.  The end result was that thousands of these companies’ customers, who had been promised some of the lowest electric rates in the state, were shifted to the emergency “back-up” electric company, known at the Provider of Last Resort.  In some cases, the rates customers ended up paying for the emergency Provider of Last Resort service was more than double the rate they were promised from their original electric company.

Read the entire article at SaveOnEnergy.com.

The CAPP blog (Cities Aggregation Power Project) reports today on the Public Utility Commission approving new electricity consumer protection rules today.

Among the issues addressed: printing contract expiration dates on bills so customers know when they might lose a particular rate. Some retail electric providers didn’t want to put the actual date while the PUC staff and consumer groups argued that the law that led to the new rules mandated the exact termination date. Using anything else would add to customer confusion.

Read the entire article at NewsWatch: Energy.

Texas Public Utility Commission staffers are considering new energy efficiency rules that would more than double the requirement of utilities to invest in energy efficiency.

Luke Metzger with Environment Texas says the “strawman” proposal (see below) is similar to the efficiency bill that was almost passed by the Texas Legislature last session:

“According to a PUC analysis of that bill, utilities would offset the need for 535 megawatts of electricity in the year 2016 at a cost of $220 million, but with a savings of $411 million. In addition, the rule says utilities “may” (but not shall) invest 10% of efficiency funds to promote solar power.”

Read the entire article at NewsWatch: Energy.

The Public Utility Commission of Texas (PUCT) is moving to a Dynamic Electric Database and away from using only static excel spreadsheets, to help consumers find and interact with important Texas electricity information more easily. The new format will allow for utility searches by simply entering a name in the search box and selecting the electricity company from a list. Prior to the change, a simple site search generally garnered a mixture of Excel docs, PDFs, etc., making it increasingly difficult to find specific information.

Read the entire post at Bounce Energy’s Blog.

On October 8 2009 the PUCT filed a report detailing the fees and violations that National Power Company were assessed for several violations against the Texas state government and Texas retail electric customers. Below is a list of some of the PUCT rules the state has said National broke during their short lived time as one of the lowest priced electricity companies in Texas last summer.

Notice of violation concerning the assessment of administrative penalties and other related relief against National Power Company Inc. (National) for violations in the State of Texas of the following Public Utility Commission of Texas Substantive Rules Applicable to Electric Service Providers: P.U.C. Subst. R. 25.107(f)(2), related to Financial Standards Required for Customer Protection; P.U.C. Subst. R. 25.107(i)(8), related to Requirements for Reporting and for Changing Terms of a REP Certificate; P.U.C. Subst. R. 25.478(j)(2), related to Refunding Deposits and Voiding Letters of Guarantee; and P.U.C. Subst. R. 25.43(n)(7), related to Transition of Customer to POLR Service.

Read the entire article at ElectricityBid.com.

Customer benefits in Texas’ competitive electric market continue to grow, the state’s Public Utility Commission said last week, drawing attention to lower prices available and additional discounts for qualified low-income customers.

“I urge Texans to take advantage of every opportunity to reduce their electricity bill this summer,” said Barry Smitherman, Chairman of the Public Utility Commission of Texas (PUC). “Customers need to be aware of these programs at a time when we’re using more electricity than ever.”

A reduction in energy prices over the past year is reflected in current price offers by retail electric providers, the PUC noted.  Most of the competitive areas, including the Dallas-Fort Worth Metroplex, have several offers below 10 cents per kilowatt-hour (kWh).  That’s less than $100 a month for customers using 1,000 kWh, a benchmark for monthly residential usage.

Read the entire article on SaveOnEnergy.com.