I wrote in this blog over two years ago this bit of important guidance concerning the statement included sometimes in the fine print section of each of our monthly electricity bills:
ELECTRICITY STRAIGHT TALK
Purpose of this Blog is to promote, as a public service, a continuing conversation across the state of Texas on the wide array of issues concerning electricity deregulation . The author and moderator will provide straightforward, unbiased, information, opinions and guidance on the subject and will advocate on behalf of 'Joe Homeowner'. The challenge of being fully informed on this matter remains with every household.
Saturday, August 5, 2023
Monday, January 30, 2023
Below is an exact copy of the Public Utilities Commission (PUC) most recently published analysis of the two-decade old, deregulated retail market on which most Texans must purchase their residential and small business electricity services. Please note no mention is made of the various and numerous REP market shares.
Non-disclosure of that data by the PUC prevents us consumers from seeing and evaluating the true status of competitiveness in the marketplace. Of special concern is the rising market concentration (mergers of Reps) in the state's retail electricity market. Given the most recent acquisitions, some question whether a retail market with higher levels of concentration can continue to offer low prices. Two Reps, NRG and Vistra, following NRG's acquisition of Direct Energy in early 2020, now serve an estimated 78% share of the residential segment of the market. Independent research agencies studying the matter have reported the number.
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Extract of Biennial Agency Report (PUCT) to the 88th Texas Legislature
dated January 2023
COMPETITIVE RETAIL MARKET
Retail Electric Providers
Texans in areas open to retail
competition choose electricity products from a variety of REPs. A REP buys
power from power generators and sells it to its consumers. A REP also manages
the retail relationship with the consumer, including billing and customer
service. Nearly all eligible consumers have exercised the right to choose their
electricity provider since the market opened. During the 2021-22 biennium, the number of REPs and offers in the
competitive market areas of ERCOT has increased. Thirty-eight new REPs
have been certificated by the PUCT and 19 REPs have relinquished their
certificates to operate in Texas. There are currently 138 REPs authorized to sell electricity in the
Texas competitive market.
Each REP can offer a wide variety
of plans to suit consumer preferences. As of September 2022, plans are
available that offer 100%
renewable electricity, time-of-use pricing such as free electricity on the weekends,
and prepaid plans. Contract terms vary from one
month up to 60 months.
The variety of plans available in the competitive retail market allows consumers to choose a plan that best fits their needs and budget. As of March 2022, REPs in the competitive market serve 6,869,461 residential premises, 1,175,922 commercial premises, and 4,715 industrial premises. The average prices available on powertochoose.org for a 12-month, fixed-rate plan across the TDU service territories in November 2022 ranged from 14.83¢ per kilowatt hour (kWh) to 16.93¢ per kWh.
Electricity Brokers
Electricity brokers are relatively new
entrants into the competitive market and the services that they offer continue
to evolve as the market matures. These electricity brokers do not sell
electricity to consumers, and a consumer does not need to have a relationship
with an electricity broker to receive electric service. Most electricity brokers provide
shopping services for consumers so that they may switch electricity plans among
REPs. They also provide supplementary services to their customers, such
as energy management services or bill management services. The PUCT gained
regulatory authority over brokers with the passage of SB 1497 (86th
Legislature, Regular Session). As of November 2022, there are 1,287 active brokers registered with the
PUCT.
Wednesday, December 21, 2022
DUE DELIGENCE IN SWITCHING REPS....
Yesterday, I completed a Switch in service following my personal policy of always selecting the lowest cost plan advertised on Power to Choose at the time of contract expiration. I chose Cirro Energy. Note an extract of the EFL pertaining to the plan. The current market costs are reflected. The increase from my previous eighteen- month plan of 9.1 cents for 1000 kWhs is over fifty percent.
A REP is a REP. Their only duty is to bill and collect while providing good customer service. They are simply middlemen making big profits built into the system under the provisions of law implemented for the deregulation of the electricity utility in our state.
If most of us homeowners always buy from the lowest cost provider, competition will thrive because of us and for everyone's benefit. Data available shows there is far too much complacency among us consumers.
We all suffer from this shortcoming. In the two decades of deregulation, Texans have paid billions of dollars too much for their electricity. Source TCAP and Truthout.
Saturday, December 17, 2022
I ask all that find this site to note that in 2015 I retired and requested someone volunteer to replace me as moderator. No individual has come forward.
Today, in the month of December 2022, I am faced with my own decision to switch or renew with my current REP. In the performance of due diligence on my part to arrive at the right decision, I have clearly seen the market is still rigged for the benefit of the sixty-five or so retailers. There appears to be little or no protection in the system even today for us homeowners.
Advocacy for the public remains so important. I plead one final time for a sole that feels as passionate as I do about the issue to post to this website so we can speak together as soon as possible.
I send my heartfelt wish for all to have a joyful holiday season. Thank you kindly.
THE ELECTRICITY GUY
Saturday, June 6, 2015
THE PUBLIC CAN STILL MAKE A DIFFERENCE
Sunday, May 1, 2011
POSTINGS TOTHIS BLOG ARE SUSPENDED EFFECTIVE THIS DATE....
This old soldier is moving on to different and less stressful endeavors in his remaining retirement years. The four plus years devoted to this project have not produced the results desired nor intended. A real conversation never developed.
My aim was to provide a civic duty to the community and citizens of the state. Perhaps in some measure I have, but to too few people. The blog readership numbers have remained too low and no interaction has been generated. My calls for help went unanswered.
I do regret that I was not more successful in my outreach to and education of the general public on this most important matter of electricity deregulation. In great part, I blame the consumers in Texas for their no-care attitude and acceptance of status quo when, in my opinion, they should have been joining the fight against unfairness in the marketplace.
It is past time for the consumers of this state to stand tall and do what is right and have their voices heard. There are many actions that can be taken. Bills filed during the current session of the State Legislature calling for reforms of the laws governing deregulation of the electric utilities and operation of the retail market must be supported with fervor. This is the task at hand. Without the reform, consumers of Texas will continue to pay too much for their electricity.
THE ELECTRICITY GUY
Saturday, April 2, 2011
EXAMINE AND UNDERSTAND YOUR DARN BILL....
That average cost should be at or near the lowest cost in the market for the type plan chosen per your review of Power to Choose. If it isn't, you're paying too much.
Friday, April 1, 2011
MARKET SHARE UPDATE....
ONCOR 54.14 53.77 52.49
CENTERPOINT 45.90 45.20 44.56
WHERE IS ALL THE OUTRAGE?....
Tuesday, March 29, 2011
COMMENTARY....
Across this county, electricity was first used to power street lights, factories, public buildings and work places like the mine in Colorado. First homes to get electricity were new homes built around 1905 - 1910. Development of the technology has been remarkable and not fully recognized or understood by many. The industry is complex.
Today, we give little thought to electricity, its origin, how it is produced or delivered to our home, office or business. Most take it for granted. We flip a switch and the light is on. The bill arrives each month and is paid. That attitude was perhaps acceptable prior to deregulation, but, assuredly, it is not now.
Since 1 January 2002, a large majority of Texans have been buying their power on an open market the same as food, gasoline and health insurance. We, as individuals, have been made to assume full responsibility for the shopping and purchase of our electricity.
I maintain that the market developed under the restructuring laws has not yet become truly competitive, lacks fairness and sufficient consumer protections. The interests of big business are favored over the consumer. Actions are needed to rectify the problem. Again, I urge all responsible citizens to join the fight to lower our costs.
NUMBER OF REPS CURRENTLY LICENSED....
Option 2 providers cater to the industrial and large commercial class of customers in the state....refineries, for example. They do not provide service to residential customers. 44 of the remaining 98 advertise on Power to Choose for our residential business in the CenterPoint service area. The numbers vary for the other service areas.
This large number of REPs and the seemingly endless and varied rate plans they offer aren't making the desired contribution to competition and the lowering of rates. Instead, confusion abounds.
Many consumers find it too difficult to make a choice of a new provider and don't bother with the drill and don't seek out the lowest cost plans that meet their requirements. I find this situation exists with so many homeowners that I have an opportunity to visit with. That is regrettable for we all suffer the consequences.
IS TEXAS ELECTRIC COMPETITION WORKING FOR CONSUMERS? LET'S LOOK AT AN OLD BILL....
FLAT RATE PLAN PRODUCTS ARE SIMPLE BUT NOT ALWAYS LOWEST COST....
The simplicity employed by this REP is a standard I would like to see throughout the market by all licensed providers. Such a standard has been recommended by the introduction of SB948 discussed in an earlier posting to this blog.
All customers will need to make separate cost analysis of the rates specified at the time of switching based on their usage profile to determine if overall savings can be achieved by choosing the REP. Remember, I chose a different provider recently that offered a tiered rate structure of 8.5/8.2/8.0 with a $6.95 monthly service charge for any month with less than 500 kWh usage. For me, that product netted a lower total cost for the 6 months compared to the 11 cents rate from Simple.
Through this example, can you see the complexities built into the market and all the games the REPs are playing with us. This is why we need reform of the laws and a new consumer protection agency.
NATURAL GAS AND ELECTRICITY PRICE UPDATE....
U.S. Electricity Retail Prices. During 2010, retail prices for electricity distributed to the residential sector averaged 11.58 cents per kWh, about the same level as in 2009. EIA expects residential prices to rise by 1.0 percent in 2011, followed by an increase of 0.5 percent in 2012 (U.S. Residential Electricity Prices Chart). The effect of lower generation fuel costs in 2011 should be more evident in retail prices for electricity distributed to the industrial sector, which EIA projects will fall 1.6 percent during 2011 and then rise 0.2 percent next year.
READ FULL REPORT
Sunday, March 27, 2011
BASIC PROTECTION NOT PROVIDED....
First point....these added fees represent a loophole left open by the rules and are not fully understood by most. They distort our analysis of "apples to apples" comparison of rates. They provide added profits to the REPs by increasing the average cost we pay for our power.
Secondly, these additional charges on our bills are predicated on low usage. This practice, employed by the REPs and permitted by the PUC, runs counter to conservation. The customer should be rewarded for lowered usage....not penalized.
Finally, I want to highlight that the charges raise the effective rate being paid for any month they are assessed. The advertised rates shown on Facts Labels (EFLs) are inaccurate in these cases.
Saturday, March 26, 2011
ENACTMENT OF SB948 WOULD BE A FAST CURE ALL FOR THE ILLS OF OUR ELECTRICITY MESS...
(A) offers service for at least 12 months;
(B) charges a fixed price per kilowatt hour throughout the term of the offered service period; and
(C) does not include a fee that the commission does not require the retail electric provider to charge."
GET ON BOARD WITH THIS PROPOSAL....
Saturday, March 19, 2011
REP PRACTICIES ARE DESIGNED TO FOOL AND CONFUSE....
Most customers are fooled by the use of tiered rates, monthly service charges, confusing EFLs and Terms of Service, hidden charges and etc. The REPs can employ these tactics because they have the upper hand.
The homeowners in this state are not well represented with a completely independent and effective consumer advocacy organization. The people have no real voice or representation. This can and must change. Establishment of a new consumer friendly organization or reorganization of those already existing has become a new focus of this blog.
The mere number of REPs and the multitude of products they offer is overwhelming for average Joe Homeowner. Making a choice is not easy and too many consumers don't want to mess with the hassle. The REPs rely on that consumer attitude. At last count, for ZIP 77379, there were 45 providers offering 257 different rate plan products, all types. The number of fixed 12 month plans to choose from was 79.
The industry lobby and the PUC tout the number of REPs operating in the market as evidence that competition is working. We believe that the excessive number only confirms the structuring of the market is tuned for the benefit of business and profits and not for the people.
We're paying too much for our electricity. The profits built into the current market are too high. We, the people can do better.
Just more straight talk....
IT'S TIME FOR SHOCK AND AWE AND FOR NAMING NAMES....
The misleading, unfair and sometimes fraudulent sales and marketing practices being used in the retail market will begin to be identified and tied to the REP responsible by name. Those doing good things will be praised along with the bad guys. A plan is being explored for the development of a grading system for the REPs. A volunteer is urgently needed to assist with this project.
Also, help is needed to do this social networking thing. Is anybody out there willing to volunteer to assist with that new angle? Stay tuned for future postings.
NEW DIRECTION, NEW MISSION AND GOALS….
Assistance is needed in information technology, social networking, consumer advocacy, state legislative and energy regulatory matters, not for profit organizations, fund raising, communications, legal, and utility deregulation in general.
Volunteers in these areas of expertise or others may indicate their availability and willingness to serve or consult by adding a comment to this or any other posting. You may also email: theelectricityguy@sbcglobal.net. We need more capable activists to join the team.
Specific unfair practices and identification of the offending REP will begin to be disclosed on the blog. Friends and partners to this effort will be identified and encouraged to become more active and effective. Help is needed from all corners.
HOW DID WE GET HERE?....
In March ‘07, I volunteered to serve for my community HOA (Homeowners Association) as a one-man electricity committee with a two-fold objective. First mission was to convince the governing board to switch the commercial accounts of the development away from Reliant to one of the alternative REPs for substantial savings. This mission was accomplished. This project began my thirst for more knowledge.
Second goal was to explore the creation of an opt-in aggregation for the two thousand single family households in the community. That project never really advanced due to non-support from the HOA and its management company for reasons not agreed with even today.
Phase two of this endeavor began in September ‘09. At the urging of some friends and neighbors, the aggregation project was resurrected. A committee of several volunteer residents was formed and work began with limited support from the HOA. The committee selected an energy consulting and aggregator partner after extensive study and consideration of the various options for moving forward.
That partner firm forwarded RFPs (Requests for Proposals) for building the aggregation to several REPs for competitive bidding. The process concluded with the business being awarded to one REP. Sign-ups to the aggregation began 1 September 2010. Those sign-ups were terminated on 1 December after discovering the REP providing service had become non-competitive in the marketplace.
Incentives for joining the aggregation had vanished. Thus, the aggregation effort failed and was abandoned. Of special note here is the fact that PUC rules and regulations and the business models of the REPs make the formation of any residential aggregation impossible to achieve.
Our residential aggregation effort was not the first undertaken and to fail. The treatment of residential customers individually and not collectively is the name of the game for the REPs. The sign over the door reads no collective bargaining allowed.
The online publication of this blog, which actually began over a year ago, and the conduct of the education and awareness campaign constitutes phase three. It is now time to embark on phase four.
THE ELECTRICITY GUY….
Friday, March 18, 2011
TXU, RELIANT AND OTHER REPS OPPOSE LEGISLATION TO HELP THE CONSUMER...
The Texas Coalition for Affordable Power also supports House Bill 1374.
Wednesday, March 16, 2011
STATE OF ILLINOIS IS DIFFERENT....
ILLINOIS PUBLIC PUSHES BACK ON COM-ED'S RATE HIKE, SURCHARGE PROPOSAL....
NO FIREWORKS AT PUC-ERCOT SUNSET BILL HEARING....
TEXAS ELECTRIC COMPANIES DEFEND RIP-OFF....
Courtesy Recharge Texas and TCAP
ELECTRICITY GUY'S RECENT SELECTION OF A NEW REP....
Saturday, March 12, 2011
PUBLIC CITIZEN'S VIEW ON HIGH OIL AND GAS PRICES....
Statement of Tyson Slocum, Director, Public Citizen’s Energy Program
With oil prices briefly topping $100 per barrel, some are dusting off the tired “drill baby drill” playbook and calling for an expansion of domestic oil and gas drilling – ignoring the point that opening up access to the Pacific, Atlantic and eastern Gulf regions, which are currently off-limits to drilling, would not have a significant impact on domestic crude oil and natural gas production or prices before 2030. MORE >>