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.

WHITE HOUSE UPSET AT BLACKOUT CLAIMS....

President Barack Obama’s team wants the world to know his environmental policies had nothing to do with the rolling blackouts blanketing Texas last week.

White House Communications Director Dan Pfeiffer swung back late Friday at conservative media and lawmakers who have pinned the blame on Obama for the lights going off across the Longhorn State amid extreme cold temperatures and high winds.

READ THE STORY OF THIS RIDICULOUS CLAIM.

DALLAS MORNING NEWS EDITORIAL: PICKING A POWER COMPANY SHOULDN'T BE SO CONFUSING....

Review the editorial and provide your comment.  The recommendation for a state sanctioned, standardized, 12 month fixed plan for all REPS to price and offer would be a big step in coming to the aid of Joe Homeowner.  READ MORE HERE.

IMPORTANT ELECTRICITY SHOPPING HINTS....

In addition to the excellent and detailed guidance contained in the PUCT Brochures titled “Official Guide to Electric Choice” and “How to Shop for a Retail Electric Provider”, these additional hints are offered:

• Do your homework using Power to Choose.
• Supplement the official word with all the guidance contained in this Blog.
• Insure the price offer being considered is expressed as the Average for 1000 kWh s of usage.  Avoid some tricks of the trade..
• Aim for the low end of the price market for the product plan you are considering to maximize savings and enhance competition.
• It is a must that you read and understand the EFL (Facts Label) applicable to the plan you may have selected.
• Research the company you wish to select as your REP using all available means.
• Feel comfortable with your decision.
• The actual switch is simple to arrange either online or by telephone.

CUSTOMER COMPLAINT STATISTICS....

Because the PUC is legally prohibited from releasing the number of customers that each REP serves, it has converted complaint information into an easy to read graphical scoring system in order to provide customers across the state with information concerning the rate at which customers lodge complaints concerning particular REPs.

The complaint statistics are located on the Power to Choose website.  CLICK  HERE FOR THE STATS.

SOME COMPANIES MADE MILLIONS OFF THE TEXAS BLACKOUTS....

The rolling blackouts that occurred in our state on 3 February have disclosed many factors discussed in the publications shown below.  They provide for some interesting reading.

The Texas Observer - CLICK HERE

Public Citizen - Texas -  CLICK HERE.

Houston Chronicle - CLICK HERE

PAPERLESS BILLING AND AUTO-PAY....

Both are good because they generally qualify the customer for a lower electricity price.  These two measures save any business administrative operating costs in today's digital world.  Therefore, the product....your electricity....can be sold cheaper.

Auto-pay really has no pitfalls.  Transmission of your credit card or bank debit information is safe and secure.  Authorization you provide for the REP to collect your monthly bill payment by these means cannot be abused by law.  This writer has used these procedures for years without incident.

The REPs are required by the PUCT to retain the past 24 months of records for all customers and provide access to those records at will.  Let the REP be the file depository.

WHAT IS A MIL?....

This is a common term used by the professionals in this deregulated electricity retail marketplace.  A Mil is one tenth of one penny in the language of the industry.

The REPs, consultants, aggregators, referral agents, portal website operators, door to door salesmen and others paying and earning commissions would prefer you not have this knowledge.

Study has disclosed that the commissions paid these middlemen by the REPs generally range from 2 to 5 Mils.  Please take this fact into account when securing and using their services.  Insure you are receiving a real cost saving benefit.

VARIABLE RATE PRICE HISTORICAL DATA....

For those customers considering a high risk variable rate plan product from one of the REPs, be advised the PUCT requires all REPs offering that category of rate plan product to post on their website the past twelve months of historical price data for your review.

RELOCATION OR SALE OF HOME....

Both events are justification for cancellation of your current electricity account contract without penalty.

Generally, the customer must provide the REP three days advance notice of the move or sale.  Also, it would be best to coordinate with the new tenant if possible to avoid disconnection of service and fees associated with reconnection.

Also remember, REPs cannot penalize customers for canceling fixed term contracts the last fourteen days of the contract or at anytime for variable, month to month plans.

AVERAGE OR LEVEL BILLING....

What is an Average Payment Plan?  It is an agreement worked out between a REP and a customer that allows the customer to pay approximately the same amount for electricity each month, with the balance to be trued-up periodically to account for over or under payments.  All REPs are required by the PUC to offer average payment plans.

If you pay about the same amount for electricity every month regardless of usage you may be on a levelized or average billing plan. If this is the case, you may care about the time of the year you decide to change providers because you may owe a balance to the provider you are leaving.  Also, there may be times of the year when the provider will owe you money if the account is closed.

Be mindful of these facts when deciding to go on a level payment plan or when choosing to switch from your current provider to a new REP.  This hazard has surprised many customers.

CULTURE OF COMPLACENCY

The rising cost of food and fuel for our autos and trucks is affecting our household budgets. This trend is beyond most individual’s control for obvious reasons and has resulted mostly from weather conditions and events in the Middle East.

What about that recurring monthly electricity bill for a utility service we must have? The bill must be paid. Can we help ourselves here? The answer for many is yes. Savings are available for the taking with absolutely no adverse consequences in most cases.

The culture of complacency so prevalent among the citizens of our state when dealing with electricity deregulation matters needs to change. Acceptance of status quo with regard to every homeowner’s electricity account, without consideration of the alternatives available in the new marketplace, is totally wrong.

This blog has and will continue to provide a wealth of information and pointed guidance pertaining to the actions that should be taken to lower everyone’s electricity bill.

Adopt a positive attitude and, at the least, consider our recommendations. Peer into the postings on this page and those archived.

The underinformed and ill advised need to get smart and act to help themselves and others.