This first posting of 2026 will be short and straightforward. The data is important and should be considered when making the right decision regarding everyone's current electricity contract expiration. Every consumer responsible for the electric bill must not be apathetic or negligent is doing their due diligence in considering a Switch to a new REP in order to attain the lowest cost available in the marketplace for the enhancement of competition. In the typical manner in which this blogger writes, that would be foolish, unfair to your neighbor, and just plain nonsense;  

Mr Google, with its AI technology included, provided this exact quote in my research on the first day of the new year:

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In 2026, U.S. residential electricity prices are projected to average approximately 18.02 cents per kilowatt-hour (kWh), while Texas is expected to see rates between 14 and 19 cents per kWh. Both national and statewide prices are expected to rise due to increasing demand and infrastructure investments.

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I wrote in this blog over two years ago this bit of important guidance concerning the statement included sometimes in the fine print section of each of our monthly electricity bills:

Below is an exact copy of the Public Utilities Commission (PUC) most recently published analysis of the two-decade old, deregulated retail market on which most Texans must purchase their residential and small business electricity services. Please note no mention is made of the various and numerous REP market shares. 

Non-disclosure of that data by the PUC prevents us consumers from seeing and evaluating the true status of competitiveness in the marketplace. Of special concern is the rising market concentration (mergers of Reps) in the state's retail electricity market. Given the most recent acquisitions, some question whether a retail market with higher levels of concentration can continue to offer low prices. Two Reps, NRG and Vistra, following NRG's acquisition of Direct Energy in early 2020, now serve an estimated 78% share of the residential segment of the market. Independent research agencies studying the matter have reported the number. 

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Extract of Biennial Agency Report (PUCT) to the 88^th Texas Legislature

dated January 2023 

COMPETITIVE RETAIL MARKET

Retail Electric Providers

Texans in areas open to retail competition choose electricity products from a variety of REPs. A REP buys power from power generators and sells it to its consumers. A REP also manages the retail relationship with the consumer, including billing and customer service. Nearly all eligible consumers have exercised the right to choose their electricity provider since the market opened. During the 2021-22 biennium, the number of REPs and offers in the competitive market areas of ERCOT has increased. Thirty-eight new REPs have been certificated by the PUCT and 19 REPs have relinquished their certificates to operate in Texas. There are currently 138 REPs authorized to sell electricity in the Texas competitive market.

Each REP can offer a wide variety of plans to suit consumer preferences. As of September 2022, plans are available that offer 100% renewable electricity, time-of-use pricing such as free electricity on the weekends, and prepaid plans. Contract terms vary from one month up to 60 months.

The variety of plans available in the competitive retail market allows consumers to choose a plan that best fits their needs and budget. As of March 2022, REPs in the competitive market serve 6,869,461 residential premises, 1,175,922 commercial premises, and 4,715 industrial premises. The average prices available on powertochoose.org for a 12-month, fixed-rate plan across the TDU service territories in November 2022 ranged from 14.83¢ per kilowatt hour (kWh) to 16.93¢ per kWh. 

Electricity Brokers

 Electricity brokers are relatively new entrants into the competitive market and the services that they offer continue to evolve as the market matures. These electricity brokers do not sell electricity to consumers, and a consumer does not need to have a relationship with an electricity broker to receive electric service. Most electricity brokers provide shopping services for consumers so that they may switch electricity plans among REPs. They also provide supplementary services to their customers, such as energy management services or bill management services. The PUCT gained regulatory authority over brokers with the passage of SB 1497 (86th Legislature, Regular Session). As of November 2022, there are 1,287 active brokers registered with the PUCT.

 DUE DELIGENCE IN SWITCHING REPS....

Yesterday, I completed a Switch in service following my personal policy of always selecting the lowest cost plan advertised on Power to Choose at the time of contract expiration. I chose Cirro Energy. Note an extract of the EFL pertaining to the plan. The current market costs are reflected. The increase from my previous eighteen- month plan of 9.1 cents for 1000 kWhs is over fifty percent.

A REP is a REP. Their only duty is to bill and collect while providing good customer service. They are simply middlemen making big profits built into the system under the provisions of law implemented for the deregulation of the electricity utility in our state. 

If most of us homeowners always buy from the lowest cost provider, competition will thrive because of us and for everyone's benefit. Data available shows there is far too much complacency among us consumers. 

We all suffer from this shortcoming. In the two decades of deregulation, Texans have paid billions of dollars too much for their electricity. Source TCAP and Truthout. 

 I ask all that find this site to note that in 2015 I retired and requested someone volunteer to replace me as moderator. No individual has come forward.

Today, in the month of December 2022, I am faced with my own decision to switch or renew with my current REP. In the performance of due diligence on my part to arrive at the right decision, I have clearly seen the market is still rigged for the benefit of the sixty-five or so retailers. There appears to be little or no protection in the system even today for us homeowners. 

Advocacy for the public remains so important. I plead one final time for a sole that feels as passionate as I do about the issue to post to this website so we can speak together as soon as possible.

I send my heartfelt wish for all to have a joyful holiday season. Thank you kindly.

THE ELECTRICITY GUY

THE PUBLIC CAN STILL MAKE A DIFFERENCE

After four years of absence in making postings to this Blog, this author returns to the scene for one main reason and that is to reiterate the great importance of the information and guidance material contained in his writings despite the passage of time.  Most all is still pertinent and can be helpful to all electricity consumers in the state. 

 

The situation with regard to the unregulated electricity market in the state appears to have not improved that much.   Competition among all Reps currently servicing the markets and the lowering of our electricity costs to the level possible has not yet been achieved.  It is believed this condition continues to be attributable to consumer complacency and lack of education. 

 

This Blog, as published, will serve to enhance that knowledge.  Wherever possible, all persons discovering this Blog site should explore its content and assist to advertise its availability by all means including social media.  Use the links provided......please.

 

THE ELECTRICITY GUY.....

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.