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

FREQUENTLY ASKED QUESTIONS (FAQs)

A vital purpose of this blog is to conduct an awareness and education campaign.  Fullfilling that role dictates this additional announcement.  Another source of most valuable information on the whole gamet of electric choice is reflected on the PUCT website in the form of FAQs.  Use this link to study the questions and answers:  

 http://www.powertochoose.org/_content/_resources/faqs.asp

PUCT GUIDANCE FOR SWITCHING

The Public Utility Commission of Texas (PUCT) Power To Choose website provides easily understood guidance on the switching of electricity retail providers.  Included are: Electricity Basics; Reasons For Considering Switching; Questions To Ask Yourself; Why Switch; and The Switching Process.  Use the link provided below to review this guidance information.  Remember, this aggregation project is your very best choice to make because of the savings to be realized.

http://www.powertochoose.org/_content/_switch/index.asp 

DID YOU KNOW......

Our monthly electricity bills now contain a statement reporting the average price price paid for electrical services for that month (excluding taxes) in the form of $0.000 kWh.  This new rule became effective last April.  All REPs must include, for standarization, the same cost elements in this quote.  Use of this average price is the best way to compare rates among the various retail providers.

ELECTRICITY FACTS LABEL (EFL)

Shopping for electricity is a new concept for Texans, and the Public Utility Commission of Texas has developed a way for customers to make an "apples-to-apples" comparison of offers from Competitive Retail Electric Providers.

The Electricity Facts Label, similar to a nutrition label found on many food products, provides information on electricity prices, contract terms, sources of generation, and emissions levels. This information will help you make an informed decision about your electric service.

Each Retail Electric Provider (REP) is required to provide you with a copy of their Electricity Facts Label upon request. The Electricity Facts Label encourages you to compare information, in a standardized format, so you can select a Retail Electric Provider based on what matters most to you.

IMPORTANT FACTS......

• Switching to save on your electric bill is simple and streamlined and justified. 
• Why switch?  Because Texans deserve lower electricity rates. 
• Customers may exercise their right to switch at will based on their individual circumstance.
• All customer bills now disclose end of current term date for fixed term contracts.
• New rules prevent REPs from assessing early cancellation penalties on fixed contracts during the last 14 days of the term. 
• Many customers will find that their savings will offset early cancellation penalties and thereby permit immediate switches.
• All switches are now made within 3 to 7 business days after ERCOT is notified of the switch request by the gaining REP. 

 

NEW THREAT TO HIGHER ELECTRICITY COSTS

Today's Houston Chronicle contained an article on page B11 titled "One-way rate-making hurts power customers".  The author reports that state utility officials are peddling fiscally irresponsible thinking as good policy when it comes to setting electric rates.  The proposals are known as one-way rate-making because they work in only one way: against ratepayers.  Use this link to read the complete story.

VIEW YOUR ELECTRICITY USAGE DATA

Individual electric account usage data for the past twelve months for customers served by CenterPoint and the other TDSPs is available online for viewing and download. 

This data can be especially useful for customers who do not keep their hard copy bills after review and payment or have this data furnished by their current REP on the monthly bill.  Knowing your kWh usage (high, low and average) is important when making a decision on a retail provider and a specific rate plan product.

Use this link to visit their website and obtain the information:
     http://www.centerpointenergy.com/services/electricity/residential/viewyourelectricusage/

ELECTRIC BILL FORMAT AND CONTENT

Beginning April 1, 2010, retail electric providers (REPs) must follow new rules regarding format and content for issuing monthly bills to retail customers.  Among many requirements, bills must now reflect:

• A standardized calculation of the average unit price for electric service for the current billing period, labeled, “The average price you paid for electric service this month”, expressed as a cents per kilowatt-hour amount rounded to the nearest one-tenth of one cent.
• And, the date a  fixed rate plan product will expire.

The first new bit of information will allow for apples to apples comparison of rates.  Prior to this new rule going into effect, many customers were unable to determine their true and effective rates paid due to misleading line item entries on their bills.  The latter will insure customers know when their current contracts expire so that actions may be undertaken to renew or to switch to a new provider at the appropriate time.

For more details click here to review the statutes.

HEADLINE......Texans Endure Second Highest Electric Rate Increase in the US

Hot off the press......just posted today by the Cities Aggregation Power Project (CAPP) bloger.  Click here to read the story and see the chart.

"URBAN MYTHS" ABOUT RESIDENTIAL ELECTRICITY......

The City of Houston's website, "Houston Consumer Choice", urges Houstonians to become better informed electricity consumers.  It further states:

• "Informed consumers have saved hundreds of dollars on utility bills according to the Texas Public Utility Commission.
• You should also know your choice of power supplier does not affect the reliability; Center Point Energy is responsible for that. 
•  Consumers must take some responsibility for protecting themselves when the price rises too much.  Some people may prefer to buy the cheapest possible electricity. Others may choose a supplier offering "green power." It's your choice. And remember to conserve energy whenever you can".

That same website addresses quite well many myths associated with 'Right of Choice' all residential electricity customers have.  Learn more about these myths here. 

ABOUT ELECTRIC CHOICE

Most Texans have the option to choose their Retail Electric Provider (REP). This has been the case since the inception of deregulation in our state on 1 January 2002.  Just like you shop around for home insurance, fuel for your auto, or a bag of groceries, you can shop around to find the company and rate plan product that best fits your electricity needs at the lowest cost.  Now, we all should shop for the lowest price of electricity for our home or business the same as any other commodity. 

Rest easy – switching providers will not interrupt your electricity service. All that changes is the company that sells you power.....sends you the bill and provides customer service..... not the company that maintains the poles and wires that deliver electricity to your home or business. The reliability of your service will not be affected by your choice of provider, and if a power outage occurs for any reason, your service will still be restored just as before regardless of which company you’re with.

Switching is simple and seemless.  It costs nothing.  Just  sign up on their web site. They’ll send you a “Terms of Service” agreement, which is your new service contract.  Review it carefully because after you receive it you'll only have three business days to cancel without penalty, if your Terms of Service provides for a penalty. You will also receive a postcard in the mail telling you that the switch request has been received and processed and will tell you how to cancel the switch.

AN INTERESTING READ.......How to defend higher rates: the Fruit Salad Approach

Mr. R. A. (Jake) Dyer, Policy Analyst for Cities Aggregation Power Project, Inc.(CAPP), a good friend of REAP, is moderator for the blog associated with his organization.  In a recent post on that blog he counters claims made by industry groups here in Texas that deregulation has benefited consumers.  A revealing chart and factual data is included in the article.  Click here to read the article.

LAWMAKERS IN MARYLAND WANT AWARENESS OF ELECTRIC CHOICE......

Some Maryland lawmakers want the Public Service Commission in that state to do more to advertise that residents have options in choosing electricity providers.  Read the article here.  Could the same situation prevail here in Texas?   The answer is positively yes. 

The Public Utility Commission of Texas (PUCT) budget for conduct of the Right of Choice awareness campaign was set at $12 million dollars at the beginning of deregulation but was reduced to $750 thousand for the past six plus years.  These funds are barely enough to operate the Power to Choose website and the associated telephone call center with minimal outreach to texas electricity consumers.

As of January 31, 2010,, the percentage of residential customers.....statewide.....remaining with the affiliate/incumbent REPs, including Reliant and TXU, stood at 50.8%.  Fewer than half have switched.  In the opinion of many, this fact is a major contributor to lack of competition in the open market.

 It might be added that Mr. Paul Hudson, Chairman of the PUCT in '07, in his 15 January report to the state legislature of that year, wrote: "there remain a large number of residential and small commercial customers who have not chosen a competitive supplier and are paying electric rates that are higher than the rates paid by customers who have shopped for another supplier".  That same report proposed new legislation that, if enacted, would require those still receiving service from the incumbent providers such as Reliant and TXU to be switched to the new competitive REPs by some mechanism to be developed.  We all know that didn't happen due to the political climate in support of deregulation..

CUSTOMER PROTECTIONS......

Retail Electric Providers must follow a set of customer protections by providing each customer:
• An Electricity Facts Label (EFL): This gives a Retail Electric Provider’s pricing information, contract terms, sources of generation and levels of emissions in a standardized format.
• A Terms of Service document: This is your contract. It informs you of a Retail Electric Provider’s contract terms and conditions.
• A "Your Rights as a Customer" disclosure: This informs you of your standard customer protections as mandated by the PUC.