WHAT IN THE HECK IS POLR....

The acronym stands for Provider of Last Resort.  It is a special, strengthened provision of the deregulation law that protects you, the consumer.  Should your current provider leave the market for any reason, the law requires another REP to step in and continue to provide your account uninterrupted service.  Full details on these measures are provided in a Fact Sheet published by the PUCT.  Read hear for more information

Your Electricity Guy was a victim of this circumstance in either '07 or '08 and suffered no real harm because of fast action.  The myth that you should not switch to another REP for good and valid reasons because you feel safe is hereby debunked.  That kite doesn't fly anymore.

ARE YOU READY TO SWITCH?....

When preparing to decide what action is best at the time of your contract expiration, there is much homework to do.  There is no place for laziness or procrastination if you are to do the right thing.  The decision to renew or switch must be examined.

Utter disregard of your obligation to make a contribution to the enhancement of competition in the market is unacceptable in my view.  Do the time and reap the possible reward.  The only excuse would be too much wealth to bother with the potential savings for yourself and others. 

Straight talk....huh.

CASE STUDY NUMBER TWO....

An extended family member's current contract expires on January 26th.  Written notification of that event has been received from the provider and that date is also posted on her bill as required by the PUC rules. 

The most recent statement reflects the total average price paid for electricity used that month to be 14.7 cents per kWh.  Understand though that the usage for the period was low and additional charges affecting the total average cost were assessed by the provider.

I have guided the relative to switch to one of the newest startup REPS in the marketplace offering the very lowest rate of 8.7 for a 12 month contract and to make that switch on or shortly after 13 January and not wait until 26 January.

For fixed term contracts, providers are prevented from levying early termination/cancellation charges during the last 14 days of the contract.  However, I want to  point out here that early cancellation of the old contract could have been beneficial if the savings would have offset the penalty fee.

The savings to be realized on this account after switching are huge.  Going from 14.7 to 8.7 is really big.  The savings are in the 30 to 40% range.

I acknowledge this case may not be typical, but it is factual.  Also, I have known persons who were paying 15 plus cents per kWh and switched to save.

ONCOR FILES FOR 350 MILLION DOLLAR RATE INCREASE....

A rate increase sought by Oncor Electric Delivery would, if granted, result in a double-digit percentage-point jump in the charges a typical residential customer in that service area pays to the transmission and distribution utility each month.  WOW!!!  Read More here. 

82ND TEXAS LEGISLATURE

The 82nd Texas Legislature convenes at noon, Tuesday, 11 January 2011.  This body, during its previous sessions, has not been the best friend to Joe Homeowner concerning the implementation of electricity deregulation mostly due to the political climate and the very strong energy lobby in Austin.  Many initiatives aimed at improving competition in the electricity marketplace and for providing consumer protections that deserved passage have been thwarted during previous sessions.

The two Committees handling this business of the people are the Senate Committee on Business and Commerce and the House Committee on State Affairs.  The links provided will allow you to learn the names of the committee members, their contact information and to follow their agenda.  Some members favor consumer advocacy more than others.  Learn who they are and interact on issues important to you.

Interested citizens are urged to become involved in every way possible and to appear before these committees or to submit information for their consideration for effecting improvement of status quo with regard to electricity deregulation.

CASE STUDY OF WRONG APPROACH WHEN CONTRACT IS ABOUT TO EXPIRE

Yesterday, an acquaintance, who will remain anonymous, advised me that their electricity contract was about to expire in a few days.  I learned the contract was with one of the legacy providers for a 24 month term and no switch was planned nor being investigated or considered.  The party stated all was fine and there was no reason to choose another provider.  Little homework had been undertaken to even determine what rate plan product and term would be selected for the renewal. WRONG!!! 

Our discussion continued to reveal the individual really didn't know how to read the monthly bill and wasn't familiar with the customer protection features contained on the statement since 1 April, 2010, i.e., total usage stated in kWh, rate charged, average price (inclusive of all fees and charges less taxes) paid for electricity for the month in format 0.00 cents per kWh, and contract period.  For months past, the bill was received and paid without any real review. WRONG AGAIN.  I say all need to be more knowledgeable and attentive to these details.

I inquired about the past twelve months history of usage for the account.  That was unknown.  Not all the records had been retained for file.  That data is very important because of the tiering of rates into usage increments by most REPs (500,1000,1500,2000) as shown on the EFLs (Facts Labels). 

Many REPs assess added charges for low usage any given month.  Those charges inflate average price.  Generally, REPs assign higher kWh prices to lower usage tier and lower prices to the higher usage tier.  In my opinion, this is an industry gimmick and a misleading practice that favors only the REP.  It permits the advertisement of a lower price at the 1000 kWh usage level on Power To Choose (PTC) and generates more revenue.  A flat rate inclusive of all charges with no tiering would be more acceptable.  Some REPs follow that practice.

In the case of this account for the past twelve months, 1 month fell into the bracket 1001 to 1500 kWhs, 4 at 1501 to 2000 and the other 7 months usage exceeded 2000 kWhs.  Likely, no low usage added charges applied to this account, but this account isn't the average residential usage account.  Incidentally, the PUC requires all TDSPs or TDUs (CenterPoint, TXU, etc.) to provide to the customers the past 12 months historical usage data on their websites.  You don't have to file all your bills if that is your preference.  The info is available online.

Finally, this person was intending to contact the current provider and decide then what to do on the renewal. WOW, REALLY WRONG.  On this date, 11 other REPs offered much lower rate prices with the very same reliable service for a 12 month fixed rate plan.

At time of contract expiration, the responsible person in every household needs to study the current market and seek out the REP of their choice with the lowest price if this competitive market is going to work to our advantage.  Bluntly speaking, complacency and skepticism must vanish.

The merits of using Power To Choose to do your homework for selecting a new REP and instructions on how to do so is well covered in earlier postings to this blog.  PTC is your best tool.  If you need help contact the PUC Call Center at Toll-free 1-866-PWR-4-TEX (1-866-797-4839).

FOOD AND GASOLINE PRICES....

Today, television news media has announced that food prices in this country are at record highs. Oops! Additionally, we all know that gasoline prices for our automobiles and trucks are again on the rise. 

You may be asking what in the devil does food and gasoline prices have to do with electricity.  The answer is they relate almost directly.  All three categories....food, gasoline, and electricity....are commodities sold on the open market.  Electricity having been added effective 1 January, 2002, due to deregulation. 

In view of the current economic climate and pressures on household budgets, the price we pay is of uppermost importance.  Folks, we should now shop for our electricity seeking the lowest cost the same as most of us do when buying our groceries and gas.

Many homeowners have failed to recognize the contribution they can make toward the enhancement of our so-called electricity competitive market by diligently shopping for the lowest price.  Let's all work together to create more pressures on our retail electricity providers to compete against each other causing prices to lower at a greater pace.

NEW DIRECTION AND DEFINITIVE GOAL….

Note the Blog name change. With the advent of the new year, this project is now set to move in a slightly different direction. The effort begun months ago to create the very first successful statewide opt-in residential aggregation has proven to be beyond reach for a number of reasons. The REAP Committee formed over a year ago has been dissolved.

The author and moderator of this blog will remain engaged and now, acting alone, embark on a somewhat differently slanted campaign. The total effort will aim to inform and educate ‘Joe Homeowner’ on all matters dealing with electricity deregulation that can possibly be helpful in understanding how to best get along within the existing system.

Readership of this online communications tool has continued to improve fairly steadily since its first posting on 30 December, 2009. Other residential customers/homeowners need to join in and become followers and contributors. Everyone’s help is needed and solicited.

Research, study and coordination with many other friendly parties, statewide and nationally, will continue. Please bookmark this site and plan to make frequent visits to learn more important facts and to receive guidance in moving forward to combat the ills of electricity deregulation in our fine state. Unquestionably, deregulation has been injurious to residential consumers.

NATURAL GAS PRICES FORECAST TO DECLINE

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

POWER TO CHOOSE IS BEST TOOL

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

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

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

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

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

CHANGE IS GOOD….

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

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

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

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

NATURAL GAS CONNECTION IS INDEED IMPORTANT

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

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

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

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

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

REALITY CHECK - - ELECTRICITY PRICES ARE STILL TOO DAMN HIGH

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

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

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

NATURAL GAS SPOT REPORT

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

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

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

SNAPSHOT OF MARKET

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

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

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

NATIONAL RANKINGS OF STATES FOR ELECTRICITY RESIDENTIAL PRICES

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

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

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

STATUS OF ELECTRICITY RESTRUCTURING BY STATE

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

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

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

TEXAS ENERGY QUICK FACTS

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

Source:  EIA.  Data updated as of 2 December 2010 

PENDING RATE INCREASE FOR CENTERPOINT'S SERVICE AREA CUSTOMERS

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

CITY OF DALLAS WANTS TO BECOME A REP

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

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

WHAT WAS THE MARKET SITUATION THREE PLUS YEARS BEFORE?

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

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

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

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

UNDERSTANDING RATE PLAN TIERED STRUCTURE

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

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

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

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

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

MONTH TO MONTH RATE PLANS....BEWARE

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

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

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

HISTORY OF ELECTRIC DEREGULATION.....

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

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

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

DID YOU KNOW?

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

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

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

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

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

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

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

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

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

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

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

LEGACY PROVIDERS, WHO ARE THEY

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

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

TEXANS…..WAKE UP…..GET SMART….

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

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

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

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

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

The committee thanks you.

FACTS ARE TELLING....

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

AVERAGE RATE COMPARISONS

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

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