POSTINGS TOTHIS BLOG ARE SUSPENDED EFFECTIVE THIS DATE....

BOWING OUT….SAYING GOODBYE….

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.

The blog, as currently published with postings dating back more than a year, will remain active and can continue to be read for an indefinite period. The information and guidance is extensive and can be helpful to many.

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 key words for all to follow are simply SHOP, SWITCH and SAVE.

Good luck and goodbye to all,

THE ELECTRICITY GUY

EXAMINE AND UNDERSTAND YOUR DARN BILL....

It is a must that every Texan know who their electricity provider is; whether their plan is variable, indexed or fixed, green or otherwise; the date of expiration of their contract; and finally the average cost paid for electricity that month.  Answers to all these questions are required by law to be on the monthly statement.  

Many homeowners I encounter and visit with in Houston either don't give a hoot or they are really dumb.  A common excuse is "the wife pays the bill".  This is the complacency I write so much about.  That is a key reason we're in the fix we are.  Get smart people.  Your attitude or ignorance is costing you and me money.  Just more straight talk folks.

That average cost figure is the most important bit of information.  The number expressed in cents per kWh includes all charges and fees, less taxes.  That number tells what the true cost of your electricity is and avoids all the 'Mickey Mouse' confusing details the REPs like to throw out.

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.

MARKET SHARE UPDATE....

I last discussed this issue in postings dated 12 October last year and 2 March 2011. The percentage of  customers in the residential sector still retained by the affiliated or old legacy companies is little improved. See the numbers below.  

As long as TXU and Reliant maintain these high numbers, rate prices will remain artificially high until more switches are made to the new, non-affiliated retail electric providers.  It is simple folks.  Competition cannot flourish with a monopoly being held. This is just one facet of the awareness and education game.

                                        JUNE                SEPT                   DEC

ONCOR                          54.14                 53.77                  52.49

CENTERPOINT             45.90                 45.20                  44.56

WHERE IS ALL THE OUTRAGE?....

REPEAT.....WHERE IS THE OUTRAGE?  Recent polls across the country, certainly including Texas, have revealed that 3 out of 4 persons disapprove of government and big business.  All one has to consider are the abuses of Wall Street, excessive corporate profits and CEO salaries and benefit packages, unfair prices we are paying for our electricity and the lack of adequate consumer protections.  The people must rise up and revolt.

This blog has attempted to create awareness, that in so far as electricity deregulation is concerned ,Texans are being screwed by the system put into place over nine years ago.  All it takes is for Joe Homeowner to recognize this injustice and to start caring and become better informed.  Instead of cowering down, the majority should be screaming loudly how do we fix this situation and act to get involved.

COMMENTARY....

Not too many years ago, our ancestors read by light from a candle, an open fireplace or an oil lantern.  Do you recall that Thomas Edison invented the light bulb in 1879.  It may surprise all that in 1891, the Ames Hydroelectric Generating Plant, located near the mining town of Ophir, Colorado, was the world's first commercial system to produce and transmit alternating current (AC) electricity.

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....

As of today, data available at the PUC website indicates there are currently 118 active, certificated REPs.  Of this number, 20 are licensed as Option 2 providers.

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....

Read the complete article by Tom Fowler, business energy reporter with the Houston Chronicle.  USE THIS LINK.

FLAT RATE PLAN PRODUCTS ARE SIMPLE BUT NOT ALWAYS LOWEST COST....

We applaud Simple Power for its flat rate plan products, simple to read Facts Labels and monthly billing statements.   There are no confusing tiered rates, monthly service charges or hidden fees.  Review this Sample EFL and Terms of Service for their 6 month fixed plan for all service areas.  Caution....the rates are subject to change.  Visit Simple Power's website for current data.

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. Natural Gas Prices.  The Henry Hub spot price averaged $4.09 per MMBtu in February 2011, $0.40 per MMBtu less than the average spot price in January 2011 (Henry Hub Natural Gas Price Chart).  EIA expects that the Henry Hub spot price will average $4.10 per MMBtu in 2011, a drop of $0.29 per MMBtu from the 2010 average.  EIA expects the natural gas market to begin to tighten in 2012, with the Henry Hub spot price increasing to an average of $4.58 per MMBtu.

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

BASIC PROTECTION NOT PROVIDED....

The misleading and confusing monthly base or service charge assessed on our electricity accounts by many of the REPs is the culprit.  They practically void our interpretation and analysis of Facts Labels.  In our judgment, they should be prohibited by the PUC rules as being unfair.

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.

ENACTMENT OF SB948 WOULD BE A FAST CURE ALL FOR THE ILLS OF OUR ELECTRICITY MESS...

Citizens of Texas....you must become fully informed concerning a piece of new legislation introduced by Senator Wendy Davis of Dallas in the current session.  A key provision of SB948 that would restore fairness to our electricity marketplace in an instant is quoted below:

"(8)  to receive at least one written standard retail service package offer, or a description of such an offer, from a retail electric provider, on a commission-approved standard form with a standard font size, typeface, and page limit, that:
      (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 involved to promote consideration and passage of this bill in every way possible.  Follow progress of the bill using THIS LINK.

GET ON BOARD WITH THIS PROPOSAL....

CHAPTER 17, titled CUSTOMER PROTECTION, SUB-CHAPTER A. GENERAL PROVISIONS, Sec. 17.001. CUSTOMER PROTECTION POLICY, sub-para (b), of the PUBLIC UTILITIES REGULATORY ACT,  confers on the Public Utility Commission the authority to adopt and enforce rules to protect retail customers from fraudulent, unfair, misleading, deceptive, or anti-competitive practices.  The law further states that all buyers of retail electricity services are entitled to these customer protections.

I hold a strong opinion that the commission is not upholding this responsibility and is not adequately policing the marketing practices of the REPs to identify wrongdoings and taking corrective actions.  The tricks, gimmicks, unfairness and confusion rampant in the restructured marketplace continue to harm the residential and small business customer big time.

A new and completely non-partisan and independent consumer advocacy/protection organization, patterned after those found in other states, fully staffed by qualified personnel and initially funded by the state, tasked to clean this mess up, should be sought by our consumer friendly legislators in this current session.

Post your comments and opinions on this proposal as quickly as possible and help achieve the goal by your own actions.

REP PRACTICIES ARE DESIGNED TO FOOL AND CONFUSE....

The majority of the REPs operating in the Texas retail electricity market are following sales and marketing strategies, tactics and practices designed to confuse and abuse the residential consumer.  There are insufficient protections in place to prevent this abuse.  The evidence is clear.  Just read this blog.

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....

Yes, a new era has begun with the changes to take place with this blog.  More drastic measures are needed to gain readership and interaction with this blog and this will be our new tactic.   Accomplishment of our vital mission is of utmost importance.

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….

Phase four has begun with new vigor.  See preceding posting below for explanation of phases 1 thru 3.  Our undertaking has taken on more importance.  It is time to act more boldly and with purpose.

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. 

The education and awareness campaign begun with the launch of this blog over a year ago will not end.  Considerable factual information, opinions and guidance for assisting all homeowners in dealing with the unfair practices of the deregulated retail market will continue to be published.

News goals of strengthening advocacy on behalf of the electricity consumers of the state in every way possible and for returning fairness to the marketplace are being adopted.

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.

Lastly, the establishment of a new, independent consumer advocacy organization will be explored if that is found to be the best course of action and within the capability of this team.

HOW DID WE GET HERE?....

I began this quest to improve the position of ‘Joe Homeowner’ within this tangled mess of electricity deregulation over four years ago.  Even today, I remain committed to advocate for all residential customers in Texas adversely affected. 

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….

TXU, RELIANT AND OTHER REPS OPPOSE LEGISLATION TO HELP THE CONSUMER...

Jake Dyer, of TCAP, a good friend and partner to our endeavor, has just posted this message on the Recharge Texas blog:

"Think your retail electric providers are fighting for you at the Texas Capitol? Think again. In testimony this month before a key legislative committee, representatives for the state’s largest retail electric providers expressed support for removing information from home bills intended to help residential customers.

Under current law, REPs are required to print the following short message on all bills: “For more information about residential electric service please visit www.powertochoose.com.” Texans who visit that website will find information about the market, a sampling of electricity prices — even complaint information. But the requirement that REPs promote the powertochoose website expires in September.

And that’s how it should be, according to representatives for the Alliance for Retail Markets and the Association of Electric Companies of Texas. During a March 9 legislative hearing, both argued against House Bill 1374 that would require REPs to continue printing the public service announcements. “It is our opinion that REPs should no longer be required to reference the powertochose site on their bills,” said the ARM representative.

But state Rep. Dwayne Bohac, the Angleton lawmaker who crafted HB 1374, said competition benefits when customers have more information. “I believe in the free market,” said Bohac. “The more information we can put in a central location so people can shop around, the more efficient the market works and (that means) greater economic growth. I’m not scared of competition.”

The Texas Coalition for Affordable Power also supports House Bill 1374.

One of the REP groups that opposes the bill, the Alliance for Retail Markets, represents 15 companies in Texas. According to recent regulatory filings, members include Constellation NewEnergy, Inc; Direct Energy, LP; First Choice Power; Green Mountain Energy Company; Gexa Energy, LP; Integrys Energy Services of Texas, LP; Sempra Energy Solutions LLC; and Stream Energy. The Association of Electric Companies of Texas includes Reliant and TXU Energy, two of the state’s largest REPs."

STATE OF ILLINOIS IS DIFFERENT....

The state of Illinois was deregulated in a far different fashion than Texas with the passage of their new law in 1997. The law provided a phased-in approach to competition by lowering and capping rates immediately for residential customers.

Large industrial customers were able to begin receiving their electric supply from competitive suppliers beginning in late 1999. The ability to use a competitive supplier was offered to other industrial and large commercial customers over the next few years with all customers, including residential customers, able to use competitive suppliers beginning in 2002.

While Illinois customers have had the ability to purchase their electricity competitively, many had not due to the imposition of stranded costs along with the capped prices offered by the legacy utilities.  As of January 2, 2007, these and other barriers were removed.  Those caps remained in force for 10 years.  While the caps were in place it was not lucrative for alternative REPs to participate.  Residential customers only began, in actuality, to be serviced by alternative providers May last year.

Many new retail providers are now entering that states market due to a decision made in December by the ICC that makes it easier for alternative providers to bill for their services through the legacy or incumbent utility company and a rule change dealing with the purchase of receivables with consolidated billing.  Prior to this, introduction of retail competition for residential customers was somehow hindered.

The Citizens Utility Board, a strong consumer advocacy organization created by the Illinois General Assembly in 1983, has just published a fact sheet explaining the current situation.  Click here to read the fact sheet.  Note the rates being paid and the few number of REPs for the one major service area.

You may also want to visit the state of Illinois' counterparts to our PUC and Power To Choose websites. Click on their links.

ILLINOIS PUBLIC PUSHES BACK ON COM-ED'S RATE HIKE, SURCHARGE PROPOSAL....

(AS IT GOES IN ANOTHER DEREGULATED STATE - COMPARE TO RATE HIKES HERE IN TEXAS FOR ONCOR AND CENTERPOINT)

Commonwealth Edison, a legacy utility in Illinois, faced a tough hearing recently regarding its proposal for a $326 million rate hike that would add $5 a month to an average customer's electricity bill.

"When you have the economy as it is and these unemployed people, where's the money going to come from?" said James Kimbrough, an apartment building owner and Lansing resident who attended the public hearing.

Separately, ComEd also is asking the Illinois Commerce Commission (ICC) to allow it to add a surcharge to customer's bills to pay for such programs as low-income customer assistance, electric vehicle testing and, eventually, smart grid investments. So far, the programs it proposes to include under that surcharge amount to $195 million, or about an extra 25 cents a month for average consumers.

"By itself, it doesn't sound like a lot, but when you start adding it up — that surcharge doesn't include future investments in smart grid, which could increase that surcharge for consumers," said Scott Musser, associate state director for AARP Illinois.

The surcharge is one of several workarounds ComEd has sought in recent years to recoup capital expenses faster than going through the 11-month process normally used to determine rates.  Legislation that would overhaul the regulatory process and set rates by formula is making its way through Springfield.

Opponents called the request excessive, saying it unfairly burdens cash-strapped consumers to reward shareholders of Exelon Corp., ComEd's parent.

The cost of the electricity makes up about two-thirds of the average consumer's bill and is passed through without markup. The rate case, to be decided in May, applies to the amount ComEd charges for delivering power to homes.  ComEd is proposing that more costs be shifted to the charges on the delivery portion of the bill that don't vary based on electricity usage.

The result, said Karen L. Lusson, senior assistant attorney general, is that when customers try to conserve electricity to save money, they'll realize less savings than they would have previously."All users will have less of an ability to control their monthly ComEd bill," Lusson said.

STORY BY |JULIE WERNAU, CHICAGO TRIBUNE REPORTER, 10 MARCH 2011.

NO FIREWORKS AT PUC-ERCOT SUNSET BILL HEARING....

One free market advocate says it goes too far, but consumer groups say it’s a step in the right direction. Texas Coalition for Affordable Power President, Jay Doegey, told members of the House State Affairs Committee Monday that Texas cities wholeheartedly support calls for more oversight over the financial management of ERCOT (Electric Reliability Council of Texas).  “We believe the PUC needs to have the tools available to make sure rates remain reasonable,” Doegey said, testifying in favor of House Bill 2134 by State Rep. Burt Solomons (R-Carrollton). (Courtesy TCAP)

TEXAS ELECTRIC COMPANIES DEFEND RIP-OFF....

House Bill 2133, designed to help electric competition and consumers, draws industry fire at a recent hearing in Austin.  Here’s a simple idea: if you get busted for fraud, you shouldn’t be allowed to keep the money except, apparently, is not so if you are a part of the Texas electric industry.  The industry representatives and their lobbyists attending the hearing offered the flimsiest of rationale for the actions of the offender operating in the wholesale side of the house.  READ THE STORY HERE.

Courtesy Recharge Texas and TCAP

ELECTRICITY GUY'S RECENT SELECTION OF A NEW REP....

Electricity Guy made yet another switch effective 1 March.  My choice was Amigo Energy's 6 month fixed plan at 8.2 cents per kWh for 1000 kWhs usage.  The plan remains available today.

The Facts Label (EFL) stipulated the average rate to be 8.5 for 500 and 8.0 for 2000 kWhs.  This tiering was considered least harmful.  A $6.95 monthly service charge assessed for any month with usage below 500 kWhs accounts for the 8.5 rate.  I usually experience two months at that usage level.

The plan requires online sign-up, electronic billing and auto-pay.  At the time of sign-up, this was low market for the 6 month plan for my service area.  I advocate buying lowest cost and choosing the right terms.

These disclosures are a part of the new policy of this blog to name names. 

PUBLIC CITIZEN'S VIEW ON HIGH OIL AND GAS PRICES....

Don’t Let High Oil Prices Fool You – More U.S. Drilling Is Not the Answer

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 >>

GOP BILL TO RETALIATE AGAINST UTILITIES....

GOP lawmakers and industry lobbyists in Washington are talking about legislation aimed at reining in power companies after some utilities were seen as being less than friendly to their efforts to block Obama administration climate change rules. Several House Energy and Commerce Committee Republicans and industry lobbyists are pushing for a “Ratepayer Protection Act,” a measure that would limit utilities’ ability to pass along costs to consumers, according to lobbyists close to the committee.  More >>

GOOD OR BAD.  Provide your comments.

CEO OF BIGGEST U.S. NUCLEAR-POWER PRODUCER TOUTS "CHEAP" NATURAL GAS AS ENERGY SOLUTION....

The U.S. should use more natural gas to generate electricity and shun new “clean-energy” subsidies given for nuclear reactors, wind turbines, solar panels and coal-fired plants that capture carbon dioxide, Exelon Corp. CEO John Rowe said in prepared remarks for a speech recently, according to a Bloomberg News report. 

Higher U.S. production of natural gas “has already jump-started the transition to clean energy” and there is “no need for expensive mandates and subsidies” to support other technologies, Rowe said in remarks for a talk at the American Enterprise Institute in Washington, D.C.

PROVIDE YOUR OWN COMMENTS ON THIS  IMPORTANT SUBJECT OF SUBSIDIES. 

STATE REP. SYLVESTER TURNER ANGERED BY CHANGES IN SYSTEM BENEFIT FUND

Houston Democrat gets emotional at Appropriations hearing.

A proposal to further curtail how much money is paid from an account funded by electric ratepayers for a program to assist at-risk Texans with their utility bills led to an emotion-packed speech by state Rep. Sylvester Turner during a recent House Appropriations Committee hearing.

To learn more about the System Benefit Fund CLICK HERE.

A FEAR OF FRACKING MAY SLOW NATURAL GAS TREND....

Natural gas could be a major source of low-cost electricity nationwide, as an upsurge in domestic production drives costs down and looming environmental mandates encourage utilities to retire power plants that run on dirtier-burning coal. But energy experts and executives at the CERAWeek conference in Houston on Wednesday described a landscape of obstacles still standing in the way of natural gas producers. Chief among them: public fears about water contamination from the hydraulic fracturing process that is essential to unlocking natural gas in U.S. shale formations.

Story courtesy The Texas Energy Report and the Houston Chronicle

SUNSET BILL GIVES PUC MORE OVERSIGHT OF ERCOT....

Solomons' measure also tougher on market manipulation.

The Public Utility Commission would have the authority to approve or change the annual budget of the Electric Reliability Council of Texas and fines would quadruple for any company found to have manipulated the electric market for its own gain under the Sunset bill that will be heard in committee on Monday.

State Rep. Burt Solomons’ House Bill 2134 largely tracks the recommendations approved in January by the Sunset Advisory Commission and includes language that the Carrollton Republican has been advocating for at least two years to cut the number of ERCOT board members who have ties to the electric industry.

Solomons was closely involved with matters relating to the PUC and ERCOT dating back to the 2009 legislative session when he chaired the House State Affairs Committee. This session, he traded the State Affairs gavel for the chairmanship of the Redistricting Committee, but he remains a senior member of the panel that oversees electric issues.

COURTESY THE TEXAS ENERGY REPORT: BUZZ

REP FAILURES LIKELY OVER, SAYS ELECTRIC UTILITY REGULATOR....

It’s unlikely any more electric retailers will go out of business because of the Feb. 2 power emergency that created spikes in wholesale power prices, said Texas Public Utility Commission Chairman Barry Smitherman.  READ MORE >>

IT IS TIME TO ACT - MOVE OUT SMARTLY....

In the recent days two new bills designed to restore sanity and fairness to our electricity marketplace have been filed in both houses of the Texas Legislature.  They are Senate Bill 948 and House Bill 2222.

Legislators sponsoring these initiatives are to be applauded.  Ordinary citizens of this fine state must now muster behind this new effort to correct the wrongs resulting from deregulation.  The time has come to reject status quo and do what is right and certainly warranted.  We can end the manipulation of our electricity accounts by the industry.

Use the links provided to review the text of each of the bills and their status in the legislative process.  The changes to the rules being proposed are easy reading and self-explanatory. 

We have seen in the news of late that ordinary citizens....the people....can rebel against the Republican, big business, conservative way of doing business and have their voices heard.  Such a movement is needed here to return proper business ethics, fairness, and value to the consumer.

Answer the call to duty.  Join the ranks of those that want and need change.  Follow your self-interests and be guided by your stirred emotions.  Pain at the pump directly relates to pain at the meter.

LATEST SHORT-TERM FORECASTS FOR NATIONWIDE ELECTRICITY PRICES...

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 THE COMPLETE ENERGY REPORT HERE.

DO'S AND DON'TS....

DO’S

• Plan ahead of your current electricity account contract expiration date.  Review your usage for the past twelve months.  Do the homework and do the math.
• Search the market offerings using Power to Choose.  Seek out the lowest cost rate plans while considering the hidden fees and misleading sales and marketing tactics.  Work through the confusion that is ever present and rampant.  Follow the extensive guidance provided in this blog and other sites named in the links section.in the right panel.
• Take full charge of and better manage your electricity account.  Save money and help your household budget.  Exercise your right of choice of provider.  Reject status quo.
• Follow this blog to stay abreast of the latest news, legislative and regulatory actions and other developments.  Become better informed and smarter.
• Engage in the discourse underway.  Inject your own comments, ideas and opinions.  Spread the word to your friends, neighbors and family members.  Render special help to those not online.
• Finally, end complacency, skepticism and even cynicism regarding the whole issue of electricity deregulation facing the homeowners of this fine state. Help fix this mess.

DON’TS

• Don’t allow your electricity account to be manipulated by others.
• Don’t fall victim to the unfair practices of so many of the REPs seeking your business.  The schemes being used are not that difficult to identify.

QUESTION: WHICH LAWMAKERS REPRESENT ME?....

To learn the names and contact information of the state and national legislators that represent your district CLICK HERE.

WHAT IS A DEFAULT RENEWAL CONTRACT?....

For fixed term contracts, REPs are required to send their customers notices of contract expiration at least 14 days prior to the end of the initial contract term.  If the customer fails to renew with that provider or switch to another REP, normally, service will automatically continue on a month-to-month basis after the expiration of the initial contract on what is called the DEFAULT RENEWAL PRODUCT which is a variable price product whose price will be determined by current market conditions until either canceled by the customer or the REP.

ELECTRICITY PRICE TIERS WILL NOT INCREASE COST....

Average customers will see little change in their power bills, an analysis reveals.  Under the new three-tier system for "non-fuel" charges, customers who use more electricity pay a higher rate than those who use less.

This is all happening in Hawaii, but could it have application here in Texas.  READ MORE >>

CALIFORNIA GOVERNOR MAKES CHANGES AT UTILITY COMMISSION....

California Gov. Jerry Brown has appointed a consumer advocate and a law professor to the state's utilities commission in two of three closely watched appointments that could affect utilities and other companies regulated by the state.

The governor appointed to the California Public Utilities Commission Mike Florio, a long-time senior attorney for consumer advocate The Utility Reform Network and a former board member of the state's grid operator, the California Independent System Operator; and Catherine Sandoval, an associate professor at the Santa Clara University School of Law.   MORE >>

LEGISLATION SEEKS TO OPEN UP AUSTIN ENERGY TO COMPETITION ....

State lawmakers have filed legislation that would end Austin Energy's state-sanctioned monopoly. Companion bills in the state House and Senate would allow competing electric providers to operate within Austin Energy's service area, enabling them to potentially lure away some of the city-owned utility's roughly 400,000 customers. 

The legislation has not generated much attention and is a long shot to pass. Members of Austin's state delegation oppose it, and city officials say it could undercut the finances of Austin Energy and the city government. MORE > >

RECORD U.S. NATURAL-GAS OUTPUT LIKELY TO CONTINUE IN 2011 ....

The U.S. is inundated in natural gas, and the glut may not ease any time soon. Domestic production last year hit its highest level in almost 40 years, and 2011 will likely see another year of strong production.  That means another year of subdued electricity prices and pressure on drillers' bottom lines as well as a powerful incentive for companies and other consumers to switch to the heating fuel.  This report courtesy the WSJ and The Texas Report.

TEXAS CONSUMER ASSOCIATION NEW LEGISLATION RECOMMENDATIONS....

The Texas Consumer Association continually posts and updates its legislative recommendations for the competitive electricity market on their website.  In my opinion, the association should conduct far greater in- depth studies of the unfair practices followed by the majority of the REPs and move swiftly to persuade our lawmakers to enact reforms.  READ THE CURRENT TCA RECOMMENDATIONS HERE 

MAYBE YOU DON’T KNOW….

Rule changes made some time ago by the PUC due to the failures of some REPs in ’08 include the following measures:

• The Commission adopted stronger technical and managerial standards for REPs.
• REPs must now meet higher standards for capitalization and risk management.
• REPS entering the market must post a $500,000 letter of credit that may be used to pay the deposits of low-income customers if they are transferred to the POLR.
• A new rule now forbids a person who had control of a REP that transferred its customers to a POLR from owning or controlling a REP thereafter.
• The notice provided customers by ERCOT when they are transferred to a POLR was strengthened.
• More time is now given for the transferred customers to pay deposits to the POLR and more financial assistance was added for the low-income customers.

RECORD GLOBAL FOOD PRICES....

Global food prices have hit record highs, and could rise even further, according to the United Nations.  Report just released today. The UN's Food Price Index rose 2.2% in February to the highest level since the UN's Food and Agriculture Organization (FAO) began monitoring prices in 1990.  It also warned that spikes in the oil price could make the "already precarious" situation in the food market even worse.

THIS DEVELOPMENT WILL PUT MORE PRESSURES ON HOUSEHOLD BUDGETS AND AGAIN REINFORCE THE NEED TO PAY LESS FOR ELECTRICITY.  People....wake up.  Rejoin the real world.  Participate in this conversation.

ELECTRICITY AND GAS PRICES DOWN - BUT NOT IS TEXAS...

Customers in Calgary, Canada not locked into long-term energy contracts can look forward to bigger savings in March as longer, warmer days -and abundant natural gas supply -lead to lower REGULATED rates on electricity and natural gas.

Enmax Corp. dropped its March regulated rate option on electricity by 20 per cent Monday, to 7.356 cents per killowatt-hour.

For natural gas, meanwhile, soft prices continue to pull down prices, with Direct Energy's regulated rate dropping 27 per cent to $3.071 per gigajoule.

Story courtesy the Calgary Herald.

FOLLOW-UP TO PREVIOUS POSTING ON TCAP REPORT....

Excessive electricity prices under electric deregulation have cost Texans an additional $15.5 billion, according to a new report on the deregulated market.  THIS IS A MUST READ.  CLICK HERE. 

FILING A COMPLAINT WITH THE PUC....

The Customer Protection Division of the PUCT provides for the submission of complaints to their office using this resource.  CLICK HERE.

ENERGY INDUSTRY VETERANS FORM POLICY INSTITUTE BASED AT UT-DALLAS....

Three Texas energy insiders have formed a new policy institute designed to offer independent advice based on the state’s electricity experiments.

Monty Humble, a lobbyist who pushed T. Boone Pickens’ energy plan in Washington, and Mark Armentrout, former chairman of ERCOT, will lead the Center for Energy Policy and Markets.

The center is part of the Texas Institute, a young research institute created by Jonathan Shapiro to bring together experts from North Texas universities to work on energy problems.

The policy group, located at the University of Texas at Dallas, will seek to educate lawmakers and the public about energy.

This story courtesy of Fort Worth Business News.

A BULB REVOLUTION: LIGHTING EXPERTS MUST DEVELOP INNOVATIVE LUMINATION....

For an interesting and informative presentation on new technologies and mandates for suitable household lighting, visit this posting on the Houston Chronicle energy blog.

FuelFix.com is your daily must-read source for news and analysis on the energy business. Anchored by business reporters at the Houston Chronicle and other Hearst newspapers, FuelFix incorporates blogs by energy experts, market updates, useful data and a real-time summary of the top ideas, hottest stories and latest news.

WHY WERE ELECTRICITY PRICES RISING WHILE NATURAL GAS IS FALLING?....

While doing my homework last week for the recent switch of providers, I noted several REPs had raised their prices two to four mils (tenths of a cent) during the week.  Were their actions justified?  Natural gas prices were falling to $3.83 during the same period.  Did wholesale costs of electricity increase or did the REPs again profit on the fears of some due to events in Libya and the rise in oil and gasoline prices?  PROVIDE YOUR COMMENTS.

HOUSTON CHANNEL 11 NEWS STORY ON NATURAL GAS PRICES....

Title for the story reads "Why the state thinks Houstonians pay too little for natural gas".  Opening statement reports the big utility company, CenterPoint, selling natural gas to Houston residents is shifting costs from industrial and commercial customers to residential customers.  It further states "Fees on your gas bill, including "customer charges", are set by the Railroad Commission of Texas, which critics claim largely favors big companies over little consumers".  CLICK HERE TO READ FULL STORY

SAN ANTONIO RESIDENTS PAYING LESS FOR POWER DESPITE LACK OF COMPETITION....

The Texas Coalition for Affordable Power released a report recently that shows that in regions of the state where consumers have the right to choose their power suppliers, those ratepayers are paying more for electricity, while markets like San Antonio and Austin, where that option is not available, are paying less.

Read more: San Antonio residents paying less for power despite lack of competition | San Antonio Business Journal

ELECTRICITY DEREGULATION WARFARE….

Yes, many could classify the roles occupied by the energy industry and its supporters versus the consumer as warfare.  The views and interests of both parties directly oppose each other.  Profit motivates the industry and fairness should be the regulator’s and consumer’s guiding principle.

Senate Bill 7, signed into law in ‘99 by former Governor George Bush, began this war.  Industry has captured the hill with overwhelming force, but it is not time to surrender.  The consumer must counterattack.

As stated in an earlier posting, balance is needed in the battle being fought.  Too much power exists with the industry.  We consumers need more soldiers and ammunition.  Therefore, the duty undertaken by this Blog to recruit followers to its mission and goal is worthy and deserving of support.

SB7 ordered the restructuring of the electric utility industry in Texas to provide retail competition and customer choice beginning 1 January, 2002.  The Public Utility Commission was made responsible for implementation by the Public Utility Regulatory Act of 2001.

Among the statutes governing the operations of the PUC is Chapter 25 - Substantive Rules Applicable to Electric Service Providers.  Use the link provided to review the extensive rules.  This rule book is what we are fighting to reform to bring more fairness to the market as mandated by the law.

A REHASH OF NEW CONSUMER FRIENDLY RULES....

Fairly early last year, the PUC adopted rule amendments to facilitate more rapid transfers from one REP to another when a customer decides to switch REPs. Under previous rules, switching REPs could take as long as 45 calendar days, but the amendments now shorten that time to seven business days or less.

Also, TDUs must now process meter reads for customers who are switching REPs within four business days of receiving a request from the gaining provider. Additionally, REPs are now required to notify customers of the termination of a term contract for electric service at least 14 days before the termination date.

The combination of notifying the customer of pending contract term expiration and providing for a significantly shortened process for changing REPs has improved customers’ ability to make timely choices, thus making the competitive electricity market more responsive to the needs of retail electric customers.

WE NEED MORE RULE CHANGES SUCH AS THESE.  BECOME ENGAGED TO HELP THAT HAPPEN.

NEW FEES ON RESIDENTIAL ELECTRIC BILLS COMPLICATE COST COMPARISONS ....

See complete report filed recently by Carol Biedrzycki, Executive Director Texas Ratepayers’ Organization to Save Energy (TEXAS ROSE).    CLICK HERE

NEW LEGISLATION FILED TO HELP ELECTRIC CONSUMERS....

State Senator Wendy Davis from Ft Worth has introduced two new bills pertaining to the electricity retail market that she says will help ratepayers.  One of these bills calls for a new standardized rate plan product with set terms to be created for the market.  Follow the progress of these bills to learn if they are to be considered during this legislative session.  LEARN MORE BY CLICKING ON THE LINKS BELOW.

SB948

SB950

MARKET SHARE REMAINS AN IMPORTANT KEYWORD...

I last discussed this issue in a posting dated 12 October last year.  At that time, June data was used.  I can now report official, non-confidential, September numbers and, little change has occurred.  This is not good.

In the Oncor and CenterPoint service areas, a majority or near majority percentage of customers in the residential sector are still retained by the affiliated or old legacy companies.  The numbers are 53.77 and 45.20 respectively.  The numbers range from 30.40 to 34.76 for the other three service areas.  I ask, what is bad here?

Here is the answer.  This condition directly contributes to the lack of a flourishing competitive marketplace.    We still partly have the situation created by the expired 'Price to Beat' provision of the restructuring law that we all lived with from '02 to '07, when rates were artificially kept high.  We have only had a truly open market since 1 January 2007.  Market share does matter. 

Until TXU, Reliant and the other incumbents lose more of their customer base, rates will likely remain higher than they need to be.  The principle is basic.  Folks you need to end the stubbornness.... just don't care attitude, or its too much trouble mentality.  It's wrong  and irresponsible.  More of you need to switch to one of the alternative providers.  Again, this is straight talk.

AECT REBUTTAL OF RECENT REPORT CRITICAL OF THE DEREGULATED MARKET....

The Association of Electric Companies of Texas, Inc. (AECT) is a trade organization of electric companies in Texas.  It advocates strictly for the industry and its member companies.  Read the rebuttal statement posted on their website today pertaining to a friendly consumer advocate's recent report concerning the overall picture of deregulation.  CLICK HERE.

CENTERPOINT SMART METER DEPLOYMENT UDATE....

Key facts included in recent report include:

• CenterPoint Energy has installed smart meters for nearly half its Houston-area customers.  About 80,000 meters are being installed each month.  A few of the meters have been replaced due to erratic performance, their spokesman said.
• The job will be completed by the middle of next year.
• The $3.24 fee being collected by the REPs will drop to $3.05 this month, as scheduled.
• The fee will be collected for four more years instead of ten, as originally projected.
• Customers who haven’t yet received meters can check for an estimated installation date at CenterPoint’s website.

"HELP WANTED"....

The sign is now posted on the front door.  More concerned people are needed to join this conversation....to comment on the 130 plus postings published over the past year and to share their personal experience on this most important subject matter affecting every household.

Also, volunteers are wanted to help make postings....to research, draft, author and moderate.  Am I the only guy willing and able to perform this community service?  Am I the only homeowner who gives a hoot?  I want and need some professional assistance to improve OUR online communications tool....this Blog

One easy way to make a contribution is to select just one posting that struck a chord with you and forward it to a neighbor, friend or relative and invite that person to become a follower of the Blog. 

MANY THANKS....THE ELECTRICITY GUY

DEREGULATION HASN'T PROVIDED FAIRNESS....

Unless you are living under a rock, you probably know that household budgets are under assault from many fronts.  Belt tightening is occurring for many families across the country.  We now find that Texans haven’t been immune from these financial difficulties.

We all are facing higher costs for food, gasoline, clothing, health care, auto and home insurance and many other essential services.  The outlook for improvement is not good in view of the current political climate,  and recent domestic and Middle East events.  Signs of economic growth may now turn downward.

In my judgment, our situation will worsen in both the short and long term.  Those with fixed incomes will be hurt the most.  Relief from government is not on the horizon.  Municipalities, states, and our federal government are facing growing budget deficits and must make cuts and/or increase revenue.  The people will begin to bear a greater burden.

National news reported last week that one in five families is troubled with the payment of their utility bills.  We all know someone affected by these hardships.  Relief is needed, and frankly, is overdue.  Paying less for all utilities, including electricity, the topic driving this blog, should be the goal of every homeowner. 

Emotions and renewed self interests should be stirring with us all.  The mood of self improvement we see developing internationally and here at home hints for us, the people, to rise up to help combat high electricity prices that have resulted from deregulation. Collectively, we can make a difference.

The simplest explanation for what happened with deregulation is the lawmakers merely widened the spread or headspace between wholesale and retail so as to allow all the new players to come into the market and profit by administering our electricity accounts at our expense.  Operation of the new market is dishonest and unjust to ‘Joe Homeowner’, the little man.

This lack of fairness issue irks this writer and is the greatest motivator for this campaign.  When our electricity price was based on cost of generation and distribution with a reasonable business profit at retail, we were so much better off.  The new system stinks of profiteering and abuse of the customers.  The consumer is being manipulated.

This blog is a platform intended to give voice to the people and to win back the fairness battle.  I favor power with the people, not big business.  Fair minded fellow homeowners within the state are strongly urged to join this battle.

Help is needed to advance awareness of the ills of deregulation and to identify the wrongs and then to fight hard to see that the politicians, legislators and regulators fix them.  More Texans need to weigh in.  Our goal is a worthy one.

BE SURE TO READ THE NEXT POSTING ALSO.

TRICKS, GIMMICKS, FALSEHOODS AND UNFAIR PRACTICES....

My current 6 month fixed contract at 8.1 cents per 1000 kWhs expires within the next few days.  This posting will report on the results of my study of the current market, some key findings and my personal decision to again switch providers.

First action undertaken was to investigate rate plan offers of my current REP and hold a chat with their customer service personnel to assess the possibility of a renewal.  In this process, I learned no variable rate or 6 month product was being offered for my ZIP, within the CenterPoint service area.

My choices were either a 3, 12 or 14 month  plan.  The latter two had the exact same terms.  The 3 month plan had prices 4 mils (tenths of a cent) lower than the longer term.  I rejected off hand two green plans and the 24 month offer.

The 3 plans considered were structured with tiers for the 3 common usage levels (500,1000 and 2000).  All plans imposed a $4.95 monthly charge for usage below 500 kWhs.  Rate prices offered by this provider were well above low market for these products at this time.  For this single reason I rejected this REP, but there are others.

I found that this provider reported on its own website an average price lower than what was reflected on Power to Choose.  The price was marked by a very small asterisk and when reading the small print the price was qualified saying it represented 2000 kWhs usage.   I believe this to be misrepresentation or a misleading tactic to entice sign-up.

Finally, a customer service agent with this provider offered me a product with a lower 1000 kWh average rate than those otherwise advertised plus a $25 first month bill credit if I would sign-up.  Further questioning of that offer revealed unacceptable, more aggressive tiering of the rates that would have resulted in higher average costs. 

Next, permit me to disclose another industry tactic employed by several REPs of advertising variable rate plans as low as 6.2 cents.  I believe this is done so the industry can make false claims that the competitive market is working.  I did take another look at month to month plans, although I don’t recommend them.

These low market 6.2 rate plans are mostly used as teasers or bait and switch vehicles to get customers on their rolls with intentions to switch them to alternative plans.  Believe me, the REPs are not selling electricity to residential customers at this average price level. 

One REP just began to offer this come-on plan.  Its agent reluctantly acknowledged during inquiries that the applicable Terms of Service specified a switch after the first month to another variable plan in their portfolio with average rates ranging from 9.96 to 12.06 for the past year according to historical data required to be available on their website.

In the case of another REP offering a 6.2 plan, the Facts Label reflected rates for the 500 and 2000 usage tiers so radically higher that the average cost for the customer would have been much higher than the 6.2.

Now, to move on to fixed rate plan products.  These are the safest to consider.  The term is your decision.  My search on Power to Choose and the websites of various REPs uncovered other tricks of the trade we all must guard against.

First, is the matter of bundling versus non-bundling.  Have you noticed how many different formats are used by the REPs for their Facts Label (EFL) even though the PUC has standardized what information must be contained on the form.  The extra hogwash is put there to confuse us.

The simplest, easiest to read and understand EFLs reflect bundling of  the various charges.   Some REPs are trying to mess with you by explaining pass-thru, smart meter, separate energy, hurricane recovery and other TDU unique charges approved by the PUC. 

Average rate prices shown on all EFLs under each usage column are inclusive of all costs for your power, less taxes.  If you find they aren’t, report the fact to the PUCT.  Also, the price for 1000 kWhs should agree with what is posted on Power to Choose.

Let’s now discuss monthly service charges.  I have found them to range from $4.95 to $9.99.  Some are imposed as standard.  Others kick in when usage drops below a specified level.  All are gimmicks, in my opinion.  They should be incorporated into the rate prices for simplification.

Beware of a particular REP that advertises on Power to Choose a rate price at the low end for its products to obviously lure customers, but after examination of the EFL for each plan you find the worst of average prices posted under the 500 and 2000 kWh usage levels.

The pinnacle of confusion was evidenced by a REP offering 28 different rate plan products.  An idiot can see the motive here.  When you call in as I did, most are usually sold the plan they want you to have within the parameters identified.

This Electricity Guy has again chosen a 6 month fixed plan with a new REP offering a rate structure of 8.5/8.2/8.0.  The plan requires online sign-up, electronic billing and auto-pay via credit card for an additional $2 monthly fee.  I readily agree to these terms in order to secure the lowest rates.

The plan chosen was advertised only on Power to Choose.  To sign-up, it was necessary to click on the SIGN-UP icon on the Power to Choose webpage and be directed to a special site.  The plan was excluded from the offerings on the REP's own website.  Why do you think this is the practice followed?  I know why.

APPI ENERGY MARKET SNAPSHOT....

Interesting forecasts for natural gas and electricity prices.  CLICK HERE TO REVIEW SNAPSHOT.

NORTH TEXAS CITIES OPPOSE ONCOR RATE HIKE....

The increase translates into a 14.6 percent increase in residential rates, a 15.5 percent increase in commercial rates, and a 25.9 percent increase in street lighting rates.  READ FULL STORY HERE.

KOCH INDUSTRIES SAYS IT WON'T GAIN FROM WISCONSIN BILL....

The bill includes language saying the Wisconsin Department of Administration “may sell any state-owned heating, cooling, and power plant or may contract with a private entity for the operation of any such plant, with or without solicitation of bids, for any amount that the department determines to be in the best interest of the state.”

READ THE POLITICO ARTICLE HERE.

OVERSIGHT OF THE GRID IS IN KNOTS....

Loren Steffy, Houston Chronicle Business Columnist, recently wrote: "The rolling blackouts have, hopefully, gone, but they have left questions about the reliability of our power grid and the accountability for overseeing it.  Several state agencies administer different aspects of the deregulated market in a tangled array of jurisdictions and rules that resembles the nest of cords behind my computer table".

 

SEE COMPLETE COMMENTARY HERE.  

THE PARENT COMPANY OF TXU AND LUMINANT REPORTS LOSS OF REVENUE AND CUSTOMERS....

Energy Future Holdings brought in less revenue in the fourth quarter as the company sold less electricity to fewer customers.  Executives with the Dallas power company predict 2011 will be worse than last year.  Should we be sympathetic?  Remember, we need for TXU, the legacy provider, to lose far more market share to enhance competition.           READ STORY HERE.

PUBLIC CITIZEN'S CONTRIBUTION TO ROLLING BLACKOUT HEARING....

Public Citizen, was the final of two consumer advocate organizations to speak before the Senate hearing on the blackouts earlier this week.  This important question was asked?  How much money was made during this last blackout?  Perhaps as much as $385 million due to the higher than normal prices.

 

SEE TEXT OF THE WRITTEN TESTIMONY HERE.

BALANCE IS NEEDED - BALANCE IS GOOD….

STRAIGHT TALK AND A BIT OF PHILOSOPHY.

Privatization, as it certainly can be termed, of the electricity retail market in our state and a few others across the nation hasn’t worked.  There is an abundance of evidence to back up this claim.  Just read the postings in this blog. 

Regrettably, the politicians, legislators, industry representatives and their ever powerful lobbyists at both the national and state levels are able to maintain status quo for the most part.  It appears that electricity deregulation isn’t going away, at least not here in Texas.  We, the people, must make it at least tolerable.

Big business is winning at the expense of the people.  Our money, billions, continues to pad the pockets of the entrepreneurs.  The consumer, the little guy in this equation, is under represented.  We can do better.  I am trying hard with the operation of this Blog.

Again, I am issuing a call for more citizens to wake up, be an adult, become involved and better informed.  Ignorance is weakness.  Do your part.  More reforms are needed to restore consumer protections.

The best recommendation I've uncovered to date is for the PUC to force all REPS to offer a fixed plan with terms that have been standardized and dictated by law.  This measure would eliminate all the gimmickry and misleading sales tactics employed by the majority of the REPs.

More ‘fighters’ are needed to advocate for the interests of ‘Joe Homeowner’ with regard to this mess caused by electricity deregulation.  Tackle the issues in your own way.  Be vocal with your grievances.

 

INDEED, BALANCE IS GOOD AND NEEDED.

NATURAL GAS PRICES FALL BELOW $4....

During the report week (February 9-16), the Henry Hub spot price decreased $0.29 to $3.93 per million Btu (MMBtu).  SEE EIA WEEKLY UPDATE HERE.  Question: should electricity prices also lower?

NATURAL GAS PRODUCERS LOCKING IN PRICES....

Natural gas producers have already sold about 54 percent of their 2011 oil and gas production, a sign that they see little prospect that prices will rebound from their lowest level for any winter in the past nine years. This year's advance sales are up from 49 percent last year and 47 percent in 2009, according to Barclays Capital.

By selling output now, companies ensure they get paid today's prices for future production, protecting them from declines. 

Story courtesy Fort Worth Star Telegram and Texas Energy Report.

NUMBER OF PLANT FAILURES REACHES 120....

During testimony before state legislators on 15 February, ERCOT CEO reported that 82 power generating plants failed during the blackouts without explaining the list was incomplete.  Today, that number has grown to 120.  The overwhelming majority of the plants were fired by natural gas, but several coal units were also in the mix.  More operators have now waived the law that allows them to keep information regarding outages confidential. This report courtesy of TEXAS ENERGY REPORT.

FERC LAUNCHES INVESTIGATION INTO BLACKOUT EVENT....

The Federal Energy Regulatory Commission said Monday that it has initiated a staff inquiry into the electricity and gas outages seen in Texas and nearby states. The federal agency oversees rates and the reliability of regional electric grids across the U.S. but its jurisdiction is limited in Texas.

POWER PLANT OPERATOR REPORTS 30 MILLION DOLLAR LOSS DUE TO BLACKOUT EVENT....

Parent company of Luminant, the new name of the old TXU power generating entity, files Form 8-K with SEC.  Read original document with interest and then provide your comment to this posting.  Who was at fault?  CLICK HERE 

THE HIGH RISK ASSOCIATED WITH VARIABLE RATE PLANS IS HIGHLIGHTED HERE....

Read THIS STORY written by Tom Fowler, business energy reporter with the Chronicle.  Tom reports his month to month plan with DynoWatt jumped from 10.4 to 14.4 cents per kWh effective 9 Feb, supposedly due to the weather related events earlier this month.  The raising of rate prices in this manner for this category of rate plan product is permitted by the PUC rules.  Therein lies the risk assumed when choosing a variable rate plan.

I MUST SAY I TOLD YOU SO....

In an earlier posting, this author stated that millions, perhaps billions, of dollars had been taken from the pockets of residential customers in this state.  A new study has just been released that confirms this eye opening conclusion.  

 

The study tallies cost of deregulation at more than $11 billion in higher residential rates.  Consumers of Texas need to wake up and fight hard to correct the injustice. 

 

READ THE STAR TELEGRAM ARTICLE and THE REPORT.

BILL CALLS FOR END TO THE PUC....

Well that didn't take long. Less than two weeks after rolling blackouts left much of the state in the dark, state Rep Lyle Larson, R-San Antonio, has filed a bill to abolish the Public Utilities Commission. HB 1302 would transfer the PUC's duties to the Railroad Commission, which would be renamed the Energy and Communications Commission.  READ THE FULL STORY

AT BLACKOUT HEARING, BIG POLITICAL DONORS QUESTIONED....

The power companies and execs at yesterday's hearing on the rolling blackouts this month were familiar faces to the senators asking the tough questions.  Over the years, they've helped bankroll the lawmakers' political campaigns.  THE REST OF THE STORY

WILL THE LEGISLATIVE HEARING PROVIDE THE ANSWERS?....

Likely not to the satisfaction of Joe Homeowner.  Only one consumer advocate has been invited to speak.  Her name is Sheri Givens of the Texas Office of Public Utility Counsel.  She will indeed be outnumbered by the regulators and industry representatives.  Are you skeptical?

A joint hearing of two committees of the Texas Legislature tasked to examine what went wrong during the recent rolling blackouts is set to begin at 8:30 AM, Central Standard Time, Tuesday morning, 15 February.

FOR VIEWING A REAL TIME VIDEO FEED OF THE HEARING CLICK HERE.

AN INTERESTING SIDELINE STORY - WHY ELECTRIC CARS AREN'T SELLING....

Some day electric cars will affect this state's and the nation's electric grids because of their re-charging requirements.  Recharging stations are already being built in selected Texas cities.

Hong Kong had its worst-ever year in terms of roadside pollution in 2010, according to government data. It also hosts the world’s highest traffic density, says Clear the Air, a local antipollution organization.

But despite rising concern over roadside pollution levels and a government campaign to get consumers and companies to adopt zero-emissions vehicles, electric cars aren’t yet creating much spark.

Mitsubishi, EuAuto and Tesla each offer an electric car to Hong Kong consumers to replace gasoline-powered ones, but so far, there have been few takers.  As of Dec. 31, just 70 electric cars were registered in Hong Kong. Twenty-two of those are part of the government fleet and include electric golf cart-like vehicles.

THE REST OF THE STORY.

WILL THE RECENT BLACKOUTS CAUSE HIGHER ELECTRIC RATES?….

Lots of Texans are asking that question in the wake of last week's rolling blackouts, and nobody's going to be happy with the answer, which is: "It depends" (if you ask the electricity industry); or "Yes" (if you ask consumer advocates).  READ THE TEXAS TRIBUNE STORY HERE.

NATURAL GAS IN BEAR MARKET 'GRAND SLAM'....

The natural gas market was caught in a technical "grand slam" and prices could go lower, according to energy analyst Mike Fitzpatrick, who is editor of the Energy Overview newsletter. "You've got everything going for it in the technicals to move lower. You have the market below three major moving averages - the 10- , 40- and 200- day.

About a week ago, the 10-day went under the 40-day. That was further confirmation, and on top of that, you have the market below the pivot point," he said. The pivot point it went through Thursday was 4.041, he said. Earlier in the week, it fell through 4.2275, setting up the "grand slam." 

This report is courtesy CNBC and The Texas Energy Report......just released today.

WHY THE LIGHTS WENT OUT....

Mr. Loren Steffy, Business Columnist for the Houston Chronicle and long term friend and partner of this  Blog, has expertly highlighted in his latest article the harm thrust upon the consumers of this state due to the deregulation of the retail electricity market. A key statement included reads "We are left with an electricity market that has failed at both ends".

THIS COMPLETE STORY IS A MUST READ.

ABACUS CUSTOMERS SAVED FROM THE SPOILS OF POLR....

READ COMPLETE STORY HERE.

FLASH - FOR IMMEDIATE RELEASE....

The REP named Abacus Resources has withdrawn from the market either voluntarily or by direction.  More than 7,700 retail electric customers in Texas are being forced to switch to other providers after Abacus defaulted on its obligations to the Electric Reliability Council of Texas.

ERCOT said today that well over half of the customers are in the Oncor service area and the bulk of the others are served by AEP Central and CenterPoint.

This report courtesy of The Texas Energy Report.

POLR PROCEDURES EXPLAINED....

What to do if your REP leaves the market.  The PUCT has a set of instructions for you to follow.  CLICK HERE to access the online brochure. 

The best guidance for customers affected is to act fast on switching to an acceptable rate plan offered by the designated POLR provider or choose an alternative REP utilizing the guidance provided within this Blog.  The rates paid to POLR providers in this circumstance are unacceptable.

POLR - PROVIDER OF LAST RESORT....

The Provider of Last Resort serves as a back-up electric service provider in the competitive retail electric market in the event a REP leaves the market for any reason.  POLR service is a safety net for customers whose chosen retail electric provider is unable to continue service.  

The Public Utility Commission of Texas (PUCT) designates certificated retail electric providers to provide POLR service for each customer class in each electric utility service area that is open to competition.  It is good to know who these are.  Be sure to review the EFL (Facts Label) for your applicable service area provider under the residential column.  CLICK HERE to review the designations.

STATEWIDE AVERAGE ANNUAL RATE PRICES....

The PUCT publishes reports each month titled "Average Annual Rate Comparison for Residential Electric Service".  Data for ten or more REPS offering rate plan products in each of the five TDU service areas is included.  The December, 2010 report has just been posted.  The time lag  for posting these reports is unexplained.

The average prices shown are compiled from the EFLs (Facts Labels) of the REPs and are inclusive of all fixed and variable charges.  The actual cost per customer may vary based on usage.  The PUC makes no recommendation with respect to any REP with the presentation of these reports.

To see the reports CLICK HERE.

MORE INTERESTING ARTICLES ON THE BLACKOUTS....

If interested, you may want to scan these articles appearing in various news outlets recently.

The Austin American Statesman

KETK TV News

Houston Chronicle

Austin American Statesman

VERY LATEST PRICE CHECKS....

Latest News from AECT

Price Check – February 7, 2011

The latest roundup of offers available in the competitive electric market as shown on Power to Choose.  Data has not been verified by the author of this Blog.

A BIT OF RATIONALE SURROUNDING THIS BLOG PROJECT AND A PLEA FOR HELP….

A recent event within my home community here in North Houston has caused this Electricity Guy to pause and consider these questions: is the Blog acceptable and providing sufficient benefit to the audience it is reaching or should it be closed down?

Although the number of visitors to the blogsite is steadily growing, there has been no interaction in the way of comment postings by the viewers.  I have been unable to gauge the value of my efforts.  However, other consumer advocates and interested partners across the state have offered commendations and advised me to continue to march forward.  Nevertheless, I am wavering.

My interest in this whole matter of electricity deregulation first arose in early ‘07 when I faced a need to either renew a service contract with my current provider or switch to another.  The arduous chore I undertook to arrive at the right decision was eye opening and a real education.

The ills of the restructured market and harm going to residential customers became  evident early on.  I decided then and there to try to help my community, neighbors, friends and relatives any way possible.

First, the sub-division commercial accounts were moved away from Reliant and to an alternative provider for great savings.  Later, I led an unsuccessful effort to create an opt-in residential aggregation project for my home community and those nearby.  That endeavor was abandoned 1 December last year.  This Blog is the current and final stage of my efforts.

The mission of this Blog is outlined in the preface on the homepage.  Restated, it is to share my knowledge and hopefully provide good guidance to the homeowners of the state living in the deregulated areas and to help them lower their electricity bills.

The recent editorial in the Dallas Morning News, discussed in the posting to this Blog on 7 February, again highlighted the difficulty in selecting a new retail electricity provider and the confusion and frustration experienced by many consumers.  The problem hasn’t gone away.

This total project has been my passion and personal crusade for over four years.  I am willing to continue with much energy but want and need the support, encouragement and participation of you Blog viewers.

May I get your feedback on this posting.  Post a comment…..please.

UPDATE OF NATIONAL FORECASTS FOR NATURAL GAS AND ELECTRICITY PRICES....

U.S. Natural Gas Prices. The Henry Hub spot price averaged $4.49 per MMBtu in January, 2011, $0.24 per MMBtu greater than the average spot price in December 2010.  EIA expects that the Henry Hub spot price will average $4.16 per MMBtu in 2011, a drop of $0.22 per MMBtu from the 2010 average.

U.S. Electricity Retail Prices.  EIA expects the U.S. retail price for electricity distributed to the residential sector to rise slightly (0.6 percent) during 2011, after a small increase of 0.7 percent during 2010. The U.S. residential price increases by about 0.7 percent in 2012.  These price increases are relatively small compared with the average annual growth rate of 3.5 percent over the period of 2000-2009.

CLICK HERE to review the complete EIA Short-Term Energy Outlook.

CRITERIA FOR SELECTING A REP....

In the early stages of this deregulated retail market....the first five or six years....it was important to research the new players extensively.  Most were new startup companies with no history of operations.  Things are different now.

Then, we needed to examine business organization, financial strength and stability, qualifications and experience of key executives, business philosophy, and customer service policies.  Although this was done, some failed and had to withdraw from the market.  Customers of those failed providers did suffer penalties at the time.

Today, we have less concerns about these matters.  A REP is a REP.  Financial qualifications for obtaining their license has been strengthened.  A new watchdog division was created at the PUCT to oversee and enforce compliance with the rules and regulations.  Complaints are processed expeditiously.  The POLR provisions have been revised to enact more customer protections.  Switches now take place in 5 to 7 business days. 

Recognize a REP is mostly a 'bill sender' like your credit card company.  Pay your bill and things go smooth.  Although not guaranteed, it is less likely today to be the victim of a business failure that would impose severe penalties.  

I say set aside most concerns about which REP is best in terms of the factors discussed above, except for customer service, and go with those offering the most competitive rate prices.