NATURAL GAS PRICES FORECAST TO DECLINE

Article by Asjylyn Loder published at Bloomberg.com/news Dec 28, 2010 1:57 PM CT - titled "Hedge Funds Bet Natural Gas Will Decline in Warm New Year: Energy Markets", has made this forecast and provides supporting data.  This is good to know information.  Read more here. 

POWER TO CHOOSE IS BEST TOOL

Power to Choose (PTC) is the official Electric Choice Website of the Public Utility Commission of Texas (PUCT).  In our judgment, it is the best tool available online to learn about electric competition in Texas and to shop for retail electricity providers (REPs).  Beware of other biased websites that may simply act as referral agents and  portals for selected REPs while earning commissions.

The current version of the PTC site is vastly improved and more user friendly. ‘Apples to Apples’ price comparisons of the multiple rate plan products and terms offered by the various REPs are afforded and guaranteed providing complete analysis is made of details contained in EFLs (Facts Labels).

Sorting of the offers is no longer presented in random order. They are now sorted in ascending order with lowest cost plan listed first. In addition, everyone is urged to utilize the filter capabilities provided in the Search Criteria panel on the left of the webpage to facilitate their study.

The offer information shown is provided by the REPs in real time. Each has direct electronic access to the database for making immediate changes at will as dictated by market fluctuations and their marketing strategies.  The offers are subject to change at any time.

While the PUC does not warranty that the information is a complete list of all offers in the marketplace, REPs are required to honor prices listed as a condition of posting their offers on this site.  Also understand, not all licensed REPS advertise on PTC.

CHANGE IS GOOD….

Here, change is intended to mean switching to one of the new non-affiliated retail providers that has entered the state’s deregulated electricity market place to compete with the legacy providers, i.e., TXU and Reliant.

The pace of switching throughout the state has fallen off for the past two years according to the latest report of the PUCT. This is not good. The general population has become too complacent and would be better served if they were not satisfied with status quo with regard to their electricity accounts. This is wrong when the majority need to cut household costs and save in the current economic climate.

The continued erosion of market share and the number of residential customers held by the old monopolistic incumbent providers will pressure them to lower rates even more causing the market overall to improve. Lower prices, improved rate plan products, terms of service, and customer service will benefit all residential customers.

Switching is safe, almost effortless and seamless. Reliability of service is unaffected. Rules established by the PUC during 2010 provide new protections for the consumers. This is good. Homeowners are urged to become better informed on all matters dealing with “Right of Choice”.

NATURAL GAS CONNECTION IS INDEED IMPORTANT

We have highlighted earlier that the cost of natural gas on the open market influences the price of electricity in the states where that fuel is largely used to generate the power.  That is certainly true here in Texas.  It behooves us all to be aware of current and future prices of natural gas when deciding to switch electricity retail providers and for what term of contract to lock into.  Informed decisions are usually better.

Following is extract of Market Summary published in the Houston Chronicle Friday, December 24, 2010:

Energy Price, Natural Gas-Henry Hub,  U.S. Dollars per MMBtu
     Last Price-4.08
     Pvs Day-3.99

Constant Maturity Index (Composite percentage change of all futures traded, providing an insight into what direction prices are heading)
     Per Cent Change-Day  -0.7
     Per Cent Change-Month   -4.3
     Per Cent Change-Year To Date   -36.7

Commodity Price Outlook (The median price of analysts surveyed by Bloomberg)
     2011 Forecast   5.00
     2012 Forecast   5.41
     2013 Forecast   5.75

REALITY CHECK - - ELECTRICITY PRICES ARE STILL TOO DAMN HIGH

Another trusted partner has come forward at our request to refute the very recent industry claim that Texas has the most successful electricity retail market of all North America.  Refer back to our earlier posting dated 7 December, 2010.

Recharge Texas is a statewide, non-profit, non-partisan consumer advocacy initiative dedicated to reducing the cost of electric power for cities.  It is sponsored by the Cities Aggregation Power Project (CAPP), a statewide non-profit corporation that pools public sector purchasing power to negotiate lower and more stable prices for its more than 100 Texas city and other political subdivision members. CAPP is a successful municipal aggregation project.  Learn more at http://www.capptx.com/.

Read more here about Recharge Texas and its blog posting on this subject made 22 December, 2010.  Be sure to click on the bar chart to open a larger view.

NATURAL GAS SPOT REPORT

Electricity rates in Texas are greatly affected by the price of natural gas on the commodities market. In 2009, 42 per cent of the state’s electricity was produced with natural gas, with an even higher percentage during periods when electricity demand is high.

Natural gas prices peaked at above $13 per MMBtu during mid-2008. Prices averaged $4.54 per MMBtu in the first nine months of 2010 per the PUCT.

Spot prices at the Henry Hub, as reported at the New York Mercantile Exchange (NYMEX), decreased $0.24 to $4.22 per million Btu (MMBtu) during the week ending Wednesday, December 15, 2010.

SNAPSHOT OF MARKET

The PUCT Power To Choose website discloses the following snapshot of rate prices as of this date.  Data is for the 12 month fixed rate plan products for ZIP 77379 within the CenterPoint service area expressed in cents per kWh, :

Low  8.7
Reliant Energy  9.5
Champion Energy  10.1
TXU  10.9
High  12.2

Twelve non-affiliated REPs offered rate prices below the encumbent Reliant.  Again, EFLs (Facts Labels) must be examined to learn details of all offers.  Promotions, incentives and added charges based on usage level must be considered.

NATIONAL RANKINGS OF STATES FOR ELECTRICITY RESIDENTIAL PRICES

Again, the source for this information is the EIA.  Data is for August, 2010.  Click here to review the full report.

Texas ranked number 19 with a price of 11.95 cents per kWh.  The national average was shown to be 12.02.  The highest price is paid by the consumers in Hawaii at 28.59.  Second highest was New York state at 19.03.  Washington state had the lowest cost at 8.32. 

Among the 15 deregulated states, only 3 had rates lower than Texas (IL, OH and OR).  Of the 19 top rankings, 12 were deregulated states.  Hawaii, Alaska, Vermont, District of Columbia, and Wisconsin are the regulated states reporting higher costs than Texas.  California and Nevada are the suspended states who were higher.  The higher costs are clearly shown to exist in the deregulated states. 

STATUS OF ELECTRICITY RESTRUCTURING BY STATE

Restructuring means that a monopoly system of electric utilities has been replaced with competing sellers as has been the case here in Texas since 1 January 2002.  This report deals with the status existing in the nation as of September, 2010.  Source for the information is the U. S. Energy Information Administration (EIA).

15 states remain active.  Those states are New York, Connecticut, New Jersey, Rhode Island, New Hampshire, Maine, Massachusetts, Maryland, Delaware, Michigan, Pennsylvania, Texas, Illinois, Ohio and Oregon.  Note the high concentration of states in the North East and Mid-Atlantic.  7 states have suspended their deregulation laws.  These include California, Nevada, New Mexico, Arizona, Virginia, Montana and Arkansas.  With the exception of Virginia and Arkansas, these states are located in the West.

Refer to the following posting to see how Texas ranks with regard to electricity residential prices.

TEXAS ENERGY QUICK FACTS

• Texas is the leading crude oil-producing State in the Nation (excluding Federal offshore areas, which produce more than any single State).  
• The State’s signature type of crude oil, known as West Texas Intermediate (WTI), remains the major benchmark of crude oil in the Americas.  
• Texas’s 27 petroleum refineries can process more than 4.7 million barrels of crude oil per day, and they account for more than one-fourth of total U.S. refining capacity.  
• Approximately three-tenths of total U.S. natural gas production occurs in Texas, making it the Nation’s leading natural gas producer.  Natural gas-fired power plants typically account for about one-half of the electricity produced in Texas and coal-fired plants account for much of the remaining generation.
• Texas also leads the Nation in wind-powered generation capacity; there are over 2,000 wind turbines in West Texas alone.  
• Texas produces and consumes more electricity than any other State, and per capita residential use is significantly higher than the national average.

Source:  EIA.  Data updated as of 2 December 2010 

PENDING RATE INCREASE FOR CENTERPOINT'S SERVICE AREA CUSTOMERS

Two administrative law judges in Austin have proposed that the Houston area's electric power distribution company increase rates by only $26 million instead of the $110 million it wants. The state Public Utility Commission, which asked the judges to examine CenterPoint Energy's proposal, will have the final say and plans to consider the issue in January. The company proposed the rate increase in July. CenterPoint operates the poles and lines that transmit electricity to more than 2 million Houston-area customers, regardless of which retail company sells them their electricity.

CITY OF DALLAS WANTS TO BECOME A REP

Its application to become a licensed Retail Electicity Provider (REP), submitted to the Public Utility Commission in September, was denied.  The City Attorney's office reports it will take court action to overturn the PUCT decision that rejected the idea.  That case is likely to be filed in District Court this month. 

The city believes it absolutely has the right under the statutes to become the first municipality in Texas to operate in this fashion.  Its aim is to eliminate a middle man and purchase electric power for its buildings and facilities at lower costs direct from the wholesale market.  Currently, this initiative doesn't involve residents of the city.

WHAT WAS THE MARKET SITUATION THREE PLUS YEARS BEFORE?

The issue of switching to one of the new non-affiliated REPs, the main theme of aggregation, has been addressed in previous postings but is being revisited again due to its importance. 

A bit of near past history......in his 15 January 2007 Report on the Scope of Competition in Electric Markets, submitted to the state legislature, Mr. Paul Hudson, then PUC Chairman, made an unpopular recommendation.  He urged the legislature to adopt new rules to forcibly switch residential customers still with the affiliated REPs on default plans to the new non-affiliated retail providers that offered more competitive prices.  This was a move to enhance competition.  We all know the legislature failed to act. 

Considering the status of market shares still enjoyed by the affiliates today, the market appears only slightly improved since January, 2007.  See posting dated 12 October for the most recent market share data. The number of accounts remaining with the legacy providers remain too high today.

The new legislature about to convene early next year is highly unlikely to take any similar or related action to force switches.  The consumers/homeowners must act for their own benefit.  Complacency and skepticism among the population dealing with the ills of the deregulated market must go away.  People need to become better informed concerning this electricity deregulation matter and move to help themselves and their neighbor.  The industry and the legislature aren't coming to their aid.

UNDERSTANDING RATE PLAN TIERED STRUCTURE

The PUCT requires all REPs to furnish an EFL (Facts Label) pertaining to each of their rate plan products to all prospective customers either in writing or published online.  The format and content of the form is also dictated.  The division of rates is shown in three levels of usage.....500, 1000 and 2000 kWhs.  This is the tiering the title refers to.

When doing homework involved in the selection of a new REP, the EFL is considered the most important document to review and study.  The data contained therein allows for 'Apples to Apples' comparisons of rate prices.  Of special note is the fact that all rates shown on Power to Choose (PTC) are for 1000 kWh usage.  This is important.  When studying and comparing, keep this in mind.  Usually, the lowest rate cost is shown on the EFL under the 2000 kWh column.  Don't mistakenly compare it to the PTC rate.

Although the EFL format allows for this tiering of rates for the different usage levels, their is no real requirement to do so.  REPs could assign the same rate costs across the board if they wished, and at least one REP for ZIP 77379 currently does.  If all the REPs did this, wouldn't things be simplier and and not so misleading?  Folks, the tiering of rates, in our opinion, benefit the REPS by generating more revenue and higher costs to the customer in the case of the average residential account.  Obviously, the customer using greater than 2000 kWhs for every month is unaffected.

For example, this writer's electric account usage history for a twelve month period shows three months <500 kWhs and only one month >2000 with the balance in the middle.  In general, the account is believed to be typical of an average residential customer. Tiered rates penalize the low user and only provide real savings for the higher usage.  Often, additional monthly service charges are assessed for usage<500 kWhs, therefore the true average costs for those months is increased.  For the average usage customer, a $4.95 service charge adds approximately an effective half penny or five mils cost.  A $9.95 fee raises the cost a full penny.  A quoted $0.10 rate becomes a true $0.105 or $0.11.

The REPs would prefer that this knowledge not become commonplace.  We disagree and think the interest of Joe Homeowner overrides.  Also, the imposition of higher costs for less usage opposes conservation.

MONTH TO MONTH RATE PLANS....BEWARE

Many REPs, but not all, offer Month to Month variable rate plan products.  For the consumer, Joe Homeowner, these plans carry high risk.  Although termed Month to Month, the rate may be changed at the whim of the REP any amount it chooses at any time after the introductory month without advance notice to the customer.  In contrast, fixed rate plans guarantee the same rate for the term of the contract.  They are the safest rate plans.

It is believed the majority of homeowners that are on variable rate plans....and many are there without awareness....had that plan chosen by default action.   In the circumstance when fixed term contracts have expired and the customer took no action to switch providers or select a new plan with the same provider, that account may have reverted to a variable rate plan and remained there without recognition by the customer.  However, some customers chose a low price promotional variable rate plan when initially switching to a REP and have allowed the account to remain status quo despite rate increases to levels higher than those on fixed rate plan products.

Our monthly electric bills now show what plan and term the customer is on.  Review your bill to determine your status and act as appropriate.  In addition, it is suggested all electric account holders be more vigilent.  Finally, there are no early cancellation fees connected to variable rate plans. 

HISTORY OF ELECTRIC DEREGULATION.....

I discovered two excellent, comprehensive and factual reports on the history of electric deregulation in the nation and the state of Texas.  Persons with a serious interest is this matter will want to explore this in-depth reading material.  It is highly recommended.  Both reports challenge electricity deregulation and deem it a failure. 

Public Citizen, the people's voice in the nation's capital, is the organization that has authored one of the reports and the other was written by Mr. Jake Dyer who is with the CAPP coalition of communities project here in the state.  Use the links below to find the reports online:

http://www.citizen.org/Page.aspx?pid=2384
http://www.capptx.com/?q=node/5

DID YOU KNOW?

In 2008, a group of six West Texas cities operating in the state's deregulated market tried and failed to use a bulk purchasing strategy in order to lower rates for their constituents.  The strategy, known as opt-in aggregation, is explicitly authorized by Senate Bill 7, the deregulation law for this state.

However, as the cities of Cisco, Comanche, Dublin, Eastland, Hamilton and Snyder discovered in 2008, the aggregation provision in the law doesn't work particular well in practice.

The cities managed to sign up 1,600 households during an extensive outreach program and then attempted to negotiate a bulk rate power deal on their behalf. But citing the relatively small number of customers, the REPs either decided not to participate or would not offer prices lower than those already advertised on Power To Choose.

Organizers of this effort concluded that they would have been more successful using another bulk rate purchasing strategy, known as opt-out aggregation. However, opt-out aggregation is not permitted under Senate Bill 7.

Source for these facts is CAPP, Cities Aggregation Power Project,Inc.

TEXAS ELECTRICITY MARKET DESIGN RANKED MOST SUCCESSFUL IN NORTH AMERICA - DOES IT FEEL LIKE THAT MAY BE TRUE?

According to an industry sponsored report, Texas residential and commercial/industrial deregulated electric markets top the 2010 list of competitive electric markets in North America. Texas has earned the top spot in residential for four consecutive years by being awarded the rating of "Excellent" for its implementation of customer choice.

These are findings of the industry connected firm Distributed Energy Financial Group (DEFG) in its Annual Baseline Assessment of Choice in Canada and the United States (ABACCUS) report which was released yesterday.

DEFG, LLC is a specialized energy consulting and financial services firm focused on innovative energy technologies and solutions that span the entire alternative energy sector.

Market share still held by the state's legacy providers speaks a different tune than this finding.  Refer back to posting dated October 12th.  Comments are certainly invited with regard to this posting.  Click below to read the complete report.

http://www.defgllc.com/Assets/downloads/defg-texas-press-release-2010dec06.pdf

LEGACY PROVIDERS, WHO ARE THEY

If you have never chosen an electric provider since the start of deregulation, your electricity account is most likely still with the legacy, sometimes referred to as the incumbent or affiliated, retail provider.  In this case, you are paying more for your electricity than is necessary.  It's a good idea to shop around for a lower rate and save money.  This aggregation project has done that shopping for you.  Here is a list of the legacy providers:

• Reliant Energy
• TXU Energy
• First Choice Power
• CPL Retail Energy
• WTU Retail Energy

TEXANS…..WAKE UP…..GET SMART….

Sound harsh…..it needed to be said. The scolding these words are intended to convey is justified.  Simply refer back to the facts outlined in the previous posting. 

Far too much complacency, skepticism, and even cynicism has prevailed among the homeowners within the state with regard to becoming fully informed about electricity deregulation matters. Too many have chosen status quo, which has been wrong.  The "Right of Choice" needs to be exercised for the benefit of all.  The end result would be an enhancement of competition among the providers and lowering of prices.

We all have now lived under the new rules for over eight years and made to suffer the ills of the new system put into effect on 1 January 2002. There are ways allowed by the statutes to lower the costs we pay for electricity. This aggregation project is assuredly the best solution devised to date. It’s model and strategy are indeed workable.  Many have worked long and hard to make it a reality.  It will not succeed without your contribution.  Failure would be tragic.

Electricity is now a commodity the same as gasoline or food…. products we buy on the open market. We should shop for the lowest price for electricity the same as we shop for a bag of groceries.  The fact that so many residential customers remain with the affiliated providers and continue to pay rates higher than those available from the new retail providers is the root cause for lack of real, unencumbered competition in the marketplace.

All are urged to move forward by participating in the aggregation. Please do the necessary homework and study to convince yourself it is the right thing to do.

The committee thanks you.

FACTS ARE TELLING....

Did you know that the latest data available from the PUCT reflects for the CenterPoint service area that the affiliated REP, Reliant Energy, continues to hold nearly a 46 % (45.9%) market share in number of customers, both residential and small business, as of 30 June 2010.  That number is much higher for the Oncor service area in North Texas where TXU has maintained their customer base at 54.14%.  In the opinion of this committee, these facts directly impact the development of real competition in our deregulated marketplace.  Rate prices will remain artificially high until more switches are made to the new, non-affiliated retail electric providers.  

AVERAGE RATE COMPARISONS

Another resource offered by the Public Utility Commission (PUCT) is a compilation of monthly reports  of average annual rate comparisons for residential electric service for selected Retail Electric Providers (REPs) in each of the five major TDU service areas across the state expressed in cents per kWh.  The prices shown for all REPs included for the CenterPoint service area at 1000 kWhs usage for 12 month fixed rate plans exceed what is available from Champion Energy Services through participation in this aggregation.  Click below to review the data.

http://www.puc.state.tx.us/electric/rates/RESrate.cfm

FREQUENTLY ASKED QUESTIONS (FAQs)

A vital purpose of this blog is to conduct an awareness and education campaign.  Fullfilling that role dictates this additional announcement.  Another source of most valuable information on the whole gamet of electric choice is reflected on the PUCT website in the form of FAQs.  Use this link to study the questions and answers:  

 http://www.powertochoose.org/_content/_resources/faqs.asp

PUCT GUIDANCE FOR SWITCHING

The Public Utility Commission of Texas (PUCT) Power To Choose website provides easily understood guidance on the switching of electricity retail providers.  Included are: Electricity Basics; Reasons For Considering Switching; Questions To Ask Yourself; Why Switch; and The Switching Process.  Use the link provided below to review this guidance information.  Remember, this aggregation project is your very best choice to make because of the savings to be realized.

http://www.powertochoose.org/_content/_switch/index.asp 

DID YOU KNOW......

Our monthly electricity bills now contain a statement reporting the average price price paid for electrical services for that month (excluding taxes) in the form of $0.000 kWh.  This new rule became effective last April.  All REPs must include, for standarization, the same cost elements in this quote.  Use of this average price is the best way to compare rates among the various retail providers.

ELECTRICITY FACTS LABEL (EFL)

Shopping for electricity is a new concept for Texans, and the Public Utility Commission of Texas has developed a way for customers to make an "apples-to-apples" comparison of offers from Competitive Retail Electric Providers.

The Electricity Facts Label, similar to a nutrition label found on many food products, provides information on electricity prices, contract terms, sources of generation, and emissions levels. This information will help you make an informed decision about your electric service.

Each Retail Electric Provider (REP) is required to provide you with a copy of their Electricity Facts Label upon request. The Electricity Facts Label encourages you to compare information, in a standardized format, so you can select a Retail Electric Provider based on what matters most to you.

IMPORTANT FACTS......

• Switching to save on your electric bill is simple and streamlined and justified. 
• Why switch?  Because Texans deserve lower electricity rates. 
• Customers may exercise their right to switch at will based on their individual circumstance.
• All customer bills now disclose end of current term date for fixed term contracts.
• New rules prevent REPs from assessing early cancellation penalties on fixed contracts during the last 14 days of the term. 
• Many customers will find that their savings will offset early cancellation penalties and thereby permit immediate switches.
• All switches are now made within 3 to 7 business days after ERCOT is notified of the switch request by the gaining REP. 

 

NEW THREAT TO HIGHER ELECTRICITY COSTS

Today's Houston Chronicle contained an article on page B11 titled "One-way rate-making hurts power customers".  The author reports that state utility officials are peddling fiscally irresponsible thinking as good policy when it comes to setting electric rates.  The proposals are known as one-way rate-making because they work in only one way: against ratepayers.  Use this link to read the complete story.

VIEW YOUR ELECTRICITY USAGE DATA

Individual electric account usage data for the past twelve months for customers served by CenterPoint and the other TDSPs is available online for viewing and download. 

This data can be especially useful for customers who do not keep their hard copy bills after review and payment or have this data furnished by their current REP on the monthly bill.  Knowing your kWh usage (high, low and average) is important when making a decision on a retail provider and a specific rate plan product.

Use this link to visit their website and obtain the information:
     http://www.centerpointenergy.com/services/electricity/residential/viewyourelectricusage/

ELECTRIC BILL FORMAT AND CONTENT

Beginning April 1, 2010, retail electric providers (REPs) must follow new rules regarding format and content for issuing monthly bills to retail customers.  Among many requirements, bills must now reflect:

• A standardized calculation of the average unit price for electric service for the current billing period, labeled, “The average price you paid for electric service this month”, expressed as a cents per kilowatt-hour amount rounded to the nearest one-tenth of one cent.
• And, the date a  fixed rate plan product will expire.

The first new bit of information will allow for apples to apples comparison of rates.  Prior to this new rule going into effect, many customers were unable to determine their true and effective rates paid due to misleading line item entries on their bills.  The latter will insure customers know when their current contracts expire so that actions may be undertaken to renew or to switch to a new provider at the appropriate time.

For more details click here to review the statutes.

HEADLINE......Texans Endure Second Highest Electric Rate Increase in the US

Hot off the press......just posted today by the Cities Aggregation Power Project (CAPP) bloger.  Click here to read the story and see the chart.

"URBAN MYTHS" ABOUT RESIDENTIAL ELECTRICITY......

The City of Houston's website, "Houston Consumer Choice", urges Houstonians to become better informed electricity consumers.  It further states:

• "Informed consumers have saved hundreds of dollars on utility bills according to the Texas Public Utility Commission.
• You should also know your choice of power supplier does not affect the reliability; Center Point Energy is responsible for that. 
•  Consumers must take some responsibility for protecting themselves when the price rises too much.  Some people may prefer to buy the cheapest possible electricity. Others may choose a supplier offering "green power." It's your choice. And remember to conserve energy whenever you can".

That same website addresses quite well many myths associated with 'Right of Choice' all residential electricity customers have.  Learn more about these myths here. 

ABOUT ELECTRIC CHOICE

Most Texans have the option to choose their Retail Electric Provider (REP). This has been the case since the inception of deregulation in our state on 1 January 2002.  Just like you shop around for home insurance, fuel for your auto, or a bag of groceries, you can shop around to find the company and rate plan product that best fits your electricity needs at the lowest cost.  Now, we all should shop for the lowest price of electricity for our home or business the same as any other commodity. 

Rest easy – switching providers will not interrupt your electricity service. All that changes is the company that sells you power.....sends you the bill and provides customer service..... not the company that maintains the poles and wires that deliver electricity to your home or business. The reliability of your service will not be affected by your choice of provider, and if a power outage occurs for any reason, your service will still be restored just as before regardless of which company you’re with.

Switching is simple and seemless.  It costs nothing.  Just  sign up on their web site. They’ll send you a “Terms of Service” agreement, which is your new service contract.  Review it carefully because after you receive it you'll only have three business days to cancel without penalty, if your Terms of Service provides for a penalty. You will also receive a postcard in the mail telling you that the switch request has been received and processed and will tell you how to cancel the switch.

AN INTERESTING READ.......How to defend higher rates: the Fruit Salad Approach

Mr. R. A. (Jake) Dyer, Policy Analyst for Cities Aggregation Power Project, Inc.(CAPP), a good friend of REAP, is moderator for the blog associated with his organization.  In a recent post on that blog he counters claims made by industry groups here in Texas that deregulation has benefited consumers.  A revealing chart and factual data is included in the article.  Click here to read the article.

LAWMAKERS IN MARYLAND WANT AWARENESS OF ELECTRIC CHOICE......

Some Maryland lawmakers want the Public Service Commission in that state to do more to advertise that residents have options in choosing electricity providers.  Read the article here.  Could the same situation prevail here in Texas?   The answer is positively yes. 

The Public Utility Commission of Texas (PUCT) budget for conduct of the Right of Choice awareness campaign was set at $12 million dollars at the beginning of deregulation but was reduced to $750 thousand for the past six plus years.  These funds are barely enough to operate the Power to Choose website and the associated telephone call center with minimal outreach to texas electricity consumers.

As of January 31, 2010,, the percentage of residential customers.....statewide.....remaining with the affiliate/incumbent REPs, including Reliant and TXU, stood at 50.8%.  Fewer than half have switched.  In the opinion of many, this fact is a major contributor to lack of competition in the open market.

 It might be added that Mr. Paul Hudson, Chairman of the PUCT in '07, in his 15 January report to the state legislature of that year, wrote: "there remain a large number of residential and small commercial customers who have not chosen a competitive supplier and are paying electric rates that are higher than the rates paid by customers who have shopped for another supplier".  That same report proposed new legislation that, if enacted, would require those still receiving service from the incumbent providers such as Reliant and TXU to be switched to the new competitive REPs by some mechanism to be developed.  We all know that didn't happen due to the political climate in support of deregulation..

CUSTOMER PROTECTIONS......

Retail Electric Providers must follow a set of customer protections by providing each customer:
• An Electricity Facts Label (EFL): This gives a Retail Electric Provider’s pricing information, contract terms, sources of generation and levels of emissions in a standardized format.
• A Terms of Service document: This is your contract. It informs you of a Retail Electric Provider’s contract terms and conditions.
• A "Your Rights as a Customer" disclosure: This informs you of your standard customer protections as mandated by the PUC.