Electricity Texas 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.

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.

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.

You often hear that the electricity energy coming to your home is all the same so it really doesn’t matter which electric company you choose. This opens up the window for the sales person to then tell you that the most important point is to pick the cheapest electricity company since the energy is all the same. I agree with this to a point.

A problem comes in when a customer approaches the Texas energy service shopping process in this way but fails to understand the rate. Another problem can crop up if the customer chooses an electricity company that is new to the market, has undercut almost all established Texas electric providers, and has a small amount of capital backing. A small energy company that comes in and all the sudden is offering the cheapest electricity rate causes some of the larger energy suppliers to salivate. Why is this? The smaller company is in danger of going out of business and having the PUCT take all of their customers away from them and giving them to what is known as, “The Provider Of Last Resort”.

Read the entire article at electricitybid.com.

A Year In Review On Houston Electricity Prices

Last year we saw residential electricity prices in Houston go up to as high as 31 cents per kWh during the summer energy crisis. Right now as of Dec 12 2009 a 1 year fixed rate is going for 10.86 cents per kWh for a residential rate and even cheaper for commercial businesses. The ERCOT balancing energy market went off the charts in 2008 and several electric providers in Houston could no longer honor their fixed energy prices. Fortunately none of the Houston electricity companies we recommend were in the bunch that hiked up their promised fixed rates. The fact that our comparison chart shows only reputable Houston electric providers that have clear straightforward electricity prices and easy to compare terms gives Houston residents an easy way to pick a Houston energy company.

Read more at Electricity Bid.

Many companies offer retail electric power contracts in the competitive retail portions of Texas, but for a long time the contracts have been kind of, you know, boring: either fixed rate or variable, if fixed then for 1 or 2 years. Renewable content offerings provided a little color, ranging up to 100 percent. Toss in some prepay options and differences on early termination fees, and that about covers the range of options.

Now smart meters, being installed in both the Houston and Dallas-Fort Worth areas, are enabling more diverse rate designs. Elizabeth Souder at Texas Energy and Environment mentioned TXU Energy and Reliant had begun offering time-of-use rates. Souder reports that for the Oncor distribution area (D-FW area)…

Read more at The Energy Collective.

I’m sure I’m not the only person who’s seen the new TXU commercials that are appearing everywhere on TV lately. The commercials don’t really promote any TXU products, instead they talk more about Variable Rate plans and things that potentially make them risky or dangerous. They’ve got their advertising webpage set up here for people to poke through and compare against other Texas electricity providers. The commercials don’t really, in my opinion, do a good job of promoting Indexed Plans and explaining what they’re all about, so I want to take the time on this blog to shed the light on the facts about Indexed Plans.

Now, the biggest part of Texas Electricity Ratings and the part I’m most proud of is the consumer advocacy aspect of the website. And with TXU’s release of their new Indexed plan, Texas Electricity Ratings has a rare opportunity to take a look at a new plan as it hits the market and is hitting public awareness. A large percentage of the people who share their experiences with me often have bad stories or negative reviews, and most of the time these are centered around shifting prices or unmet expectations with the plans they sign up for. So now I want to take a look at what exactly are the key pieces of TXU’s Index Plan so people can have an understanding of exactly what makes it different from the Variable Rate plans and what they should expect, in advance, if they sign up for an Index plan. So lets get into what I found.

Read the entire post at TexasElectricityRatings.com.

“Retail electric providers in Texas’ deregulated market are offering residential rates that in many instances are lower than those of some municipal power companies, electric cooperatives and investor-owned utilities that are still under rate regulation,” the Forth Worth Star-Telegram confirmed in a new survey.

Noting that Texas electric providers have sharply lowered rates in response to a plunge in prices for natural gas, the Star-Telegram reports that, “many consumers in Dallas-Fort Worth and other deregulated markets have been entering into fixed-rate plans of one year or longer to lock in lower rates before natural gas prices bounce back, as energy analysts have forecast will occur once the economy rebounds and gas supplies tighten.”

In a recent review of energy prices, the Star-Telegram found that the average rate for customers in the Dallas-Fort Worth area was 10.64 cents per kilowatt-hour, and that the average rate for the 50 cheapest plans was 9.62 cents per kilowatt-hour.  Five plans were under 9 cents, the Star-Telegram reported.

Read the entire post at SaveOnEnergy.com.

With competition forcing Texas electric companies to compete against each other for each customer’s business, Texas electric rates have fallen to their lowest levels in some eight years, below the final prices under the old regulated monopoly system.  With the recession lowering demand for power, now is the time to lock-in a low, fixed rate for electricity to save money on your electric bill.  SaveOnEnergy.com is the easiest and fastest way to compare Texas electric companies, allowing you to get competing offers from trusted energy suppliers with just a few clicks of the mouse.

Read the entire post at Blog.SaveOnEnergy.com