Monday, February 22, 2010
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".
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.
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..
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.
• 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.
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