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

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

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

PROVIDE YOUR OWN COMMENTS ON THIS  IMPORTANT SUBJECT OF SUBSIDIES. 

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

Houston Democrat gets emotional at Appropriations hearing.

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

To learn more about the System Benefit Fund CLICK HERE.

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

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

Story courtesy The Texas Energy Report and the Houston Chronicle

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

Solomons' measure also tougher on market manipulation.

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

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

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

COURTESY THE TEXAS ENERGY REPORT: BUZZ

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

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

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

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

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

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

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

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

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

U.S. Electricity Retail Prices.  During 2010, retail prices for electricity distributed to the residential sector averaged 11.58 cents per kWh, about the same level as in 2009.  EIA expects residential prices to rise by 1.0 percent in 2011, followed by an increase of 0.5 percent in 2012 (U.S. Residential Electricity Prices Chart). 

The effect of lower generation fuel costs in 2011 should be more evident in retail prices for electricity distributed to the industrial sector, which EIA projects will fall 1.6 percent during 2011 and then rise 0.2 percent next year. 

 

READ THE COMPLETE ENERGY REPORT HERE.

DO'S AND DON'TS....

DO’S

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

DON’TS

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

QUESTION: WHICH LAWMAKERS REPRESENT ME?....

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

WHAT IS A DEFAULT RENEWAL CONTRACT?....

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

ELECTRICITY PRICE TIERS WILL NOT INCREASE COST....

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

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

CALIFORNIA GOVERNOR MAKES CHANGES AT UTILITY COMMISSION....

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

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

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

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

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

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

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

TEXAS CONSUMER ASSOCIATION NEW LEGISLATION RECOMMENDATIONS....

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

MAYBE YOU DON’T KNOW….

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

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

RECORD GLOBAL FOOD PRICES....

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

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

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

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

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

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

Story courtesy the Calgary Herald.

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

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

FILING A COMPLAINT WITH THE PUC....

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

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

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

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

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

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

This story courtesy of Fort Worth Business News.

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

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

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

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

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

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

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

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

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

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

ELECTRICITY DEREGULATION WARFARE….

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

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

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

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

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

A REHASH OF NEW CONSUMER FRIENDLY RULES....

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

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

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

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

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

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

NEW LEGISLATION FILED TO HELP ELECTRIC CONSUMERS....

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

SB948

SB950

MARKET SHARE REMAINS AN IMPORTANT KEYWORD...

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

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

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

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