Texas Electricity Ratings Updates Rankings on 2/22/12
February 22, 2012
I just wanted to make a quick post alerting everyone that I’ve re-calculated the rankings on my website, Texas Electricity Ratings. The rankings are compiled using a number of independent sources including current electric rates, the most recent PUC complaint statistics, Better Business Bureau rankings, the customer reviews submitted through the website, and more.
Champion Energy has regained the #1 position, overtaking Bounce Energy, based on some lowered pricing and getting past some customer complaints from Texas’s hellish August. So congratulations to Champion Energy! Bounce Energy slides back to the #2 spot, and Direct Energy has leap-frigged Gexa for the #3 spot on the rankings. Gexa and StarTex Power round out the Top 5. Here’s how the bigger names in the Texas electricity market graded out:
4.21 Champion Energy
4.09 Bounce
3.93 Direct Energy
3.81 Gexa Energy
3.43 StarTex Power
3.29 Tara Energy
3.05 CPL Energy
2.75 WTU Energy
2.71 Spark Energy
2.51 Amigo Energy
2.44 Green Mountain Energy
2.39 TXU Energy
2.28 Dynowatt
2.18 Reliant Energy
Texas deregulated electricity can be very confusing, and unfortunately lots of people still don’t understand exactly how the market and the different providers actually work. Texas Electricity Ratings aims to help educate Texans on the market, highlight consumer issues, act as a consumer advocate, and most importantly arm people with the ability to research different providers through reviews and comparative pricing to help them make informed decisions on the electric plans that best suit their needs. And the rankings, the blog posts, and the access to customer reviews are all a different resources to make that happen and benefit Texas shoppers.
Texas Electricity, TCAP, and a Biased “History” – Part Four
February 7, 2012
Yes, I’m still writing blog posts about TCAP’s recent release of their “history” of deregulated electricity in Texas which they have been still pushing out heavily through PR channels the past couple weeks. I know I initially said I didn’t want to do a 10 part series on this topic, but I never said it wouldn’t take me four or five sections just for me to get through the broad strokes. Which brings us to Part Four. As things stand, I’ve gone through the “Facts” the document claims to examine as well as their “Major Findings” section. In this post I’m going to evaluate their “Recommendations” section. And after that I may or may not write a couple posts looking at some of their more hilarious pieces of “data,” as well as a closer look at TCAP the organization.
Anyway, now that we’ve gone through the laundry list of complaints TCAP seems to have with the deregulated electricity system, lets take a look at how TCAP thinks the system can be improved.
ENHANCE PROTECTIONS AGAINST ANTI-COMPETITIVE ACTIVITIES IN THE WHOLESALE MARKET
Anti-competitive behavior should be prohibited in the wholesale energy market, and legal loopholes that exempt some generators from prosecution should be closed. The submission of “hockey stick bids” and anti-competitive practices prohibited in other states by the Federal Energy Regulatory Commission should be outlawed in Texas. Penalties for anti-competitive activities should be increased. When market power abuses occur, market participants harmed by such anti-competitive activities should be given the right to participate in investigations and enforcement actions undertaken by regulators.
No complaint here. Find the loopholes and eliminate them and fine the people who break the laws.
AVOID CHANGES IN THE MARKET STRUCTURE THAT WILL INCREASE WHOLESALE COSTS
Policymakers should look for ways to stimulate growth in generation resources other than through price supports and subsidies that are inconsistent with the principles of competition and a free market. Policymakers should reject all proposals for “capacity markets,” in which generators get paid even when they do not operate. This will only add to consumer bills.
This is pretty vague. But yes, any other way to stimulate new generation assets that doesn’t include subsidies or price increases is prefereable. But I haven’t heard of any real examples of these possible solutions, and this report doesn’t offer any either. In their document, TCAP has complained about dwindling power reserves, they have complained about deregulated pricing (and incorrectly painted it as some of the highest in the nation when it is in fact some of the cheapest), and they’ve criticized any solution that requires taxpayer subsidies or stimulation to create more generation. Well, that’s pretty much everything. If they dislike all of the options, then what are their proposed solutions?
It is worth noting that Australia, a country with a completely deregulated electricity market, has price caps exceeding $10,0000 per unit. The caps in Texas are currently set at $3,000.
REDUCE CONFUSION IN THE RETAIL ELECTRICITY MARKET
Texas electricity consumers should have access to uniform, standard-offer products. These will help reduce confusion in the retail electricity market and allow for apples-to-apples comparisons in pricing deals. All retail electric providers should be required to promote the powertochoose through a printed notice on home electricity bills.
Again, you won’t see me complaining about this either. I consider myself a consumer advocate and my primary goal as such is to educate people how to navigate the Texas deregulated electricity market. Education is great. But TCAP loves to tout standard offer products, which I’m not against, but what is the standard part? Again, they offer no details or specifics to how this will work. And if you think that is because of space constraints, think again, because their website offers no details or explanations either:
http://rechargetexas.com/apples-to-apples/
The video on that pages says nothing. The text on the page offers no details. It is worthless and just another tool to get people to sign their petition, which in turn gives them cache when lobbying congress. They might have just made a page that says “We Want Everything To Be Awesome!” Gee, really?
When speaking of making standard or uniform offers they obviously don’t mean rates. So what do they mean, the additional charges? That would require the state to interfere with how individual companies conduct business in regards to minimum usage charges and other things. Of course, TCAP doesn’t actually explain or give an example of what this standard offer product would look like. At the end of their day, the big outcry here is that right now customers have read the fine print to understand their charges. Boo. Hoo. I’m all for reform and making things easier, but get back to me when you have a real suggestion for reform instead of just “This is hard because it requires people to read their contracts.”
Also, pay attention to this last sentence in their recommendations:
All retail electric providers should be required to promote the powertochoose through a printed notice on home electricity bills
Laughably, REPs have been required to promote Power To Choose on home electricity bills for years now. Specifically since April 1, 2010.
Way to keep up with the times, TCAP.
INCREASE OVERSIGHT OF ERCOT
The PUC should increase its oversight of ERCOT’s finances, both by approving all annual budgets for the organization and by pre-approving all uses of debt by ERCOT.
Finally, a second point I can one hundred percent agree with in regards to this report without any pause. Too bad it only took wading through about 50,000 words.
RE-REGULATION IS NOT THE ANSWER
Policymakers should strive to make the state’s deregulated electricity system as efficient and fair to Texas consumers as possible. Re-regulation is not the answer. Instead, the Public Utility Commission should pursue a balanced approach with regards to the state’s electricity market. Consumer protection should have equal footing with the promotion of competition.
First, I just want to enjoy the irony. Re-regulation isn’t the answer, but apparently almost everything that could be wrong with deregulation is wrong, and TCAP offers no real suggestions for improvement. And to be clear, they have to state they are against re-regulation this plainly because if they didn’t otherwise, people would assume they WERE advocating re-regulation.
What does “a balanced approach” mean? Again, this statement is vague to the point of worthlessness. Absolutely consumer protection should be equal to competition, if not tantamount. And yes it should be efficient and fair to customers. Thanks for telling us the obvious.
It is interesting that TCAP just wrote an entire dense, cumbersome document that had literally nothing positive to say about deregulation and left out important facts that might have illustrated it in a positive light. Of course, they say re-regulation is not the answer, but they also go out of their way to attempt to illustrate that nothing about deregulation has been positive.
Let me sum up their “Recommendations” section in one sentence, and keep in mind that I’m not leaving out any important details or specifics:
“Don’t allow anything anti-competitive, make sure ERCOT doesn’t waste money, don’t do anything that increases costs, try to make things easier to understand for customers, and don’t re-regulate.”
Seriously, they wrote a MASSIVE document with nothing positive to say about deregulation, everything negative to say about deregulation, and at the end of the day that distilled sentence is all they have to offer in way of suggestions for improvement. Why would they expend so much time doing research and writing that report if that is all they have to conclude or suggest? They don’t even have any solutions to offer on their webpage, just lots of opportunities to sign various petitions. That seems kind of odd, even lackluster, for a big company that claims to be a consumer advocacy organization, doesn’t it?
In my next post, I’ll take a close look at TCAP as an organization and offer my opinions on their own motivation and agenda.
When To Buy Electricity in Texas – 2011/2012 Edition
November 7, 2011
One of the most common questions most people ask is when to shop for Texas electricity. In fact, I’ve written about this topic before. Normally, my previous advice would apply any year, and for the most part it still does: Shop during the winter months when the rates are lowest and lock into long term plans with stable rates so you won’t be surprised by any huge bills. That is still the case, but I wanted to revisit the topic of the best time to shop because of a couple of new factors that will unquestionably effect our electricity rates…both in the short term, as well as potentially in the long term.
As I’m sure anyone who has been living in Texas is aware, we had a record setting drought and heat wave this past summer. Almost a month of consecutive days over 100 degrees, multiple threats of rolling blackouts and soaring electricity prices. Now, the soaring electricity prices and the high bills were the effect, and the cause was not having enough energy generation resources to meet demand because of the high temperatures.
Energy generation resources (coal plants, natural gas plants) are likely to continue to be a problem. With the looming EPA changes taking some of the existing resources offline, next summer could be even more grim than this past summer. Additionally, I’ve also spoken about and linked several articles recently discussing how the current economic market is making it unlikely that any companies will be building any new energy generation plants in Texas in the near future despite the fact that the state desperately needs more of them.
So what does this have to do with shopping for electricity plans? Well, recently multiple companies have come forward in their projections saying that they expect Texas electricity rates to rise in the near future. They highlight a scarcity of energy generation assets as well as companies that might attempt to recoup their losses from our sweltering summer (which I have also discussed previously) as reasons for the likely rate increaes. The parent companies for Reliant, TXU, Dynowatt, StarTex Power and more have all posted serious losses that they have attributed directly to the previous Texas summer weather.
The short of it is, that while there is no question that winter is the best time to shop for electricity plans, customers might really want to start keeping an eye on the marketplace RIGHT NOW. There’s reason to believe that the Texas electric rates are going to go up in the very near future, and probably for a long time to come. To that end, it might really behoove Texans to consider locking into long term plans that will last through the summer now, as opposed to waiting for January or February to start shopping. I can’t say when the rates will start going up for certain, but I can definitely advise people to keep an eye on the market prices and lock in a long term plan as soon as they start moving. Also, I’ve always been a proponent of 12 month fixed plans. Considering the state of the market, I’d actually consider more people start taking a look at 24 month fixed plans as well.
Anyway, I hope this post motivates people to keep an eye on the market prices moving forward.
Texas Electricity: Market Rates
September 12, 2011
It’s been a long time since I posted a blog update with the list of different electricity rates throughout the 5 different regions of Texas. To be perfectly honest, making that post became too cumbersome, and I was trying to find some easier ways to do that regularly with some technological solutions. Well, that hasn’t happened, although I’m still working on a long term solution. In the meantime, however, I wanted to give everyone an idea of the electric prices in a more general sense around the market this week, now that the summer energy crisis seems to be behind our state. This should give people an idea moving forward about what the fair rates are in the market for their region of deregulated Texas electricity.
Lets start with Oncor. Oncor is the biggest and most populated deregulated region of Texas. Their electric rates are also typically the cheapest. Right now, the cheap variable rates with promotional pricing are listed between 5 and 6 cents per kWh. After the promotional rate expires, it’s impossible what to tell what the rates would be, but I’d expect anything between 9 and 11 cents per kWh. A fair price for any long term fixed rate electricity plan, anywhere from 6 months to a year or two, should be between 8 and 9.5 cents per kWh. For green energy fixed rate plans, expect between 9.5 and 11 cents per kWh.
Next is Centerpoint. Right now, Centerpoint is pretty close to the rates in Oncor. Actually, they’re almost identical in terms of their ranges for what is a competitive market rate. I’d except them to match pretty closely to the rates in Oncor, with maybe just a few tenths of a cent more expensive across the board.
AEP Central’s range of electric rates is pretty much identical to Centerpoint’s. Typically, AEP Central is the most expensive region in Texas. And while they have less options for promotional variable rates, in general a customer can still get a decently priced fixed rate electricity plan in the 8 to 11 cent range, pending on the term of the contract.
AEP North is a bit more pricey, but again, not much. The promotional rates for variable electricity plans start close to the 7 cent per kWh rate. And the fixed rate electricity plans start at about the 9 cent per kWh range and end at about the 11 or 11.5 cent kWh point. Green electricity plans start at about a half cent per kWh higher and range accordingly.
Finally, is TNMP (Texas New Mexico Power). This region is a bit cheaper than both of the AEP regions mentioned above, and settles in right around the same rates as Centerpoint.
Again, this post isn’t as detailed per region with specific electricity plans and electricity providers, like it has in the past, but it should give consumers an idea of the market prices if they’re looking for new plans now that the summer heat seems to be subsiding.
Indexed Plans Explained
September 1, 2011
Indexed Plans have always been a quiet, and rarely understood part of the Texas electricity market. They’ve been present on the market for a couple years now, but for the most part have been sitting in the background behind Fixed Rate Electricity Plans and Variable Rate Electricity Plans.
Recently, however, that has changed. For starters, TXU Energy has started spending millions upon millions of dollars in television commercials advertising the “safety and reliability” of indexed plans. It’s been an effective, if somewhat misleading, marketing campaign. Which brings me to the second item that has brought Indexed Plans to the attention of people recently…the Texas heat wave. There’s been many articles written and barrels of attention brought to bear on Indexed Plans in recent weeks. But we’ll get to that in a minute.
What is an Indexed Plan?
An Indexed plan is very simply a plan that is tied directly, through a mathematical formula, to, well, anything really. In theory, you could tie the pricing of an Indexed Plan to the cost of oil, the cost of the Dow Jones Index, or even the cost of pork bellies. However, in practice, Indexed Plans are tied to the cost of natural gas market prices. Now, it’s important to note that the cost of natural gas prices set the market prices for ALL electricity plans, be they Fixed Rate, Variable, or Indexed. The difference is that the free-market acts as a control of the electricity prices for variable and fixed-rate plans. And what that means is that Retail Electricity Providers (REPs) have to keep their prices somewhat close and competitive to their competition, otherwise they’ll never get any customers. For Indexed Plans, however, the prices aren’t controlled by the free-market. Instead the cost of the plans is tired directly to the cost of natural gas by a mathematical formula. Here is the formula for one of TXU’s Indexed plans from their Electricity Facts Label:
Price per kWh = (Monthly NYMEX Natural Gas Price multiplied by applicable Seasonal Natural Gas Factor)
+ Energy Charge + Storm Recovery Charge + Storm Recovery Tax Credit + ((Base Charge + EECRF
Charge + CenterPoint Advanced Meter Charge)/Monthly billed kWh Usage)
Now, I’m not going to go through the formula like I have in other write-ups, because to be perfectly honest, it doesn’t really matter for our purposes here. All you really need to know is that Indexed Plans are Month to Month Plans, just like variable electricity plans, but the rate is determined by the cost of natural gas and the formula above. It’s very cut and dry and easy to track if you’re so inclined.
Indexed Plans: Perception vs. Practice
So lets talk a bit about how Indexed electricity plans are often portrayed to customers by different REPs, as well as some realistic examples of things that aren’t talked about as often. A common refrain you may hear about Indexed Plans is that they’re more stable and that they’re “safer” than regular variable plans. The justification for this is that a variable rate plan’s rate can go up and down “solely at the provider’s discretion.” And that’s absolutely true, although the way that statement is wielded, by design, often makes it sound like an REP that might raise their electric rates are doing it solely for purposes of profiting at the expense of consumers. Again, it paints a nice story. However, being a slightly more cynical person, I would point that the profits on Indexed for their proponents are consistent and built right into the monthly mathematical formula on the Electricity Facts Label. The fact of the matter is, Indexed plans are very safe for REPs in terms of making a profit, while at the same time allowing their proponents to take a step back and blame any of their electricity rate changes entirely on the cost of natural gas and avoid any responsibility. Meanwhile, variable rate plans, which are also based on the natural gas market (because ALL electricity plans are based on the natural gas market in some regards, because all REPs still have to BUY the electricity for their customers), rely upon the market forces to keep their rates competitive. So instead of a formula, their pricing is based on:
So upon closer examination, the two plans aren’t really that dissimilar after all. But there are some definite differences, and recently those differences have reared their ugly head in a way that really brings to question just how much of a “safer” option Indexed Plans are in practice.
How has the Heat Wave affected Indexed Plans and Consumers?
The heat wave has made things ugly for pretty much everyone in Texas, not just the people suffering from the heat or their high electricity bills. It’s also been hell on the Texas Electricity Grid and the individual Retail Electricity Providers. Recently Indexed Plans have been thrust into the limelight, and not for good reasons. Recently, ABC News ran a story about a Champion Energy customer who opened his bill to a shock. Champion Energy deals almost exclusively in Fixed Rate electricity plans and when customers fail to renew their contracts at the end of term but fail to cancel service, they are rolled over onto an Indexed Plan, which is tied to the rates of the natural gas market. Which is all well and good, except that due to this heat wave and the struggles of the electricity grid to meet the needs of Texans, the cost of natural gas has shot to SIXTY TIMES the normal price. It’s not price gouging, it’s not profiteering, it’s just an unfortunate fact that the cost of natural gas has risen exponentially during this heat wave when the grid faces shutdown. And for customers with Indexed Plans, where the costs are automatically tied into the natural gas market through simple math, the fact of the matter is that those colossal cost increases are passed on directly to the customer. Which is why Robin Jansen was shocked to find an electricity bill covering 4 days of service that was almost as much as their entire last month’s bill. Which is a perfect illustration of one of the rarely discussed dangers of an Indexed Plan. And this is hardly just one instance that was reported, I’ve personally received dozens of similar complaints from customers over at Texas Electricity Ratings.
Closing Thoughts
I actually find the interplay between Indexed Plans and Variable plans to be pretty interesting. In some ways, it’s kind of a microcosm of the differences between regulated and deregulated electricity markets. Indexed Plans represent the regulated market, where things are more cut and dry, things are more simple, and easy to understand. Variable plans represent the deregulated electricity markets, where the free market forces are the power that shapes the cost of electricity and forces providers to find ways to stay competitive with their peers.
It’s fair to note that when Indexed Plans get risky is particularly during times of natural disaster, so it’s not as if they’re this volatile on a regular basis. By the same note, prices on Variable plans have risen during this drought, but the market forces worked to keep prices at acceptable levels, and the losses were incurred by the electricity providers more than the consumers themselves in an effort not to lose customers. Personally, I find the dynamic pretty fascinating, although I’m probably in the minority on that one. Most people just want a reasonable electricity bill without any unexpected surprises. Either way, I hope that this post explains how Indexed Plans work to customers, so they know what they can expect, as well as what to be cautious about if you’re a considering an Indexed plan.
I ran across what I considered to be a fascinating read about what could be the future of electricity sales in Texas. To summarize, the article discusses how in the UK, much of Europe and Australia have been deregulated for quite awhile compared to the still young and immature US deregulated markets. And over there, an interesting trend has occurred: the Electricity companies are partnering with large retail stores to help sell residential electricity.
To put it simply, large retail stores with excellent brands and customer service records have a level of trust that many of the electricity companies themselves might not have with potential customers. Which isn’t to say they’re bad companies, but a new electricity provider that’s been around for 5-10 years isn’t going to match the equivalent of a Wal Mart or Target that people have been visiting their entire lives. Retail Stores might also have more of a history and understanding of successful customer service practices and dealing with the human part of the equation that some electricity providers might not have mastered yet.
This might not be as out of the normal as it appears on the surface. Bundled services are nothing new, even here in the US. For example, lots of companies combine forces to sell products, like Satellite TVs and Phone Service, once upon a time. Hell, some electricity providers here in Texas have started offering satellite TV service bundled with their energy offerings. The point is, this kind of thing isn’t new. Additionally, I’ve seen Green Mountain Energy booths set up outside several of my nearby grocery stores in Houston on a regular basis. We’ve already seen Kroger and other grocery stores start to sell gas at special rates at pumps set up outside there stores. Does Kroger Electricity really seem that far-fetched? Personally, I don’t think so. And I’m not sure it isn’t a good idea. I think it’s only a matter of time before people stop off for some milk, eggs, and a new fixed term electricity plan.
So what do you guys say? Would you buy your electricity from a grocery store or a retail warehouse?
Playing The Deregulated Field
June 15, 2011
Something I have noticed over the years in regards to the deregulated Texas electricity market is that most people seem to have a hesitancy about switching providers. Now, there are lots of reasons this might be the case. Some of it might be loyalty to incumbent providers like Reliant and TXU who they’ve known for decades. Other people just might not understand exactly how the market works, or they don’t want to deal with the hassle of regularly checking the market pricing to see if their current deals are competitive. Heck, some people might not even know the market is deregulated. Whatever the reason, lots of people in Texas do not shop for electricity with the same diligence and research that are standard when buying a piece of electronics, pricing cable or cell phone plans, or even the way they casually check pump prices at gas stations.
I was checking out the JD Power Website and came across a press release some interesting numbers in regards to deregulated natural gas in Georgia. Like the Texas electricity market, natural gas in Georgia is deregulated and customers can shop between a number of providers and seelct the one that suits them best. The survey into the satisfaction of natural gas studies shows that 15% of the 1.5 million Georgians in deregulated areas have switched their providers in the past year. Additionally, 15% of the people surveyed indicated that they planned on switching providers within the next 12 months.
It’s not unreasonable to assume that many of the people who have switched within the year and are planning to switching within the next 12 months are active within the deregulated gas market in Georgia. So lets assume that conservatively that 20% of the Georgia market is playing the deregulated gas field for the best prices and best service. I’m not certain what the numbers are for the percentage of Texans in the deregulated market, but if we estimate the number of potential deregulated customers at 18 million, I’m not sure that 20% of the Texas market are regularly shopping for electricity in Texas. If that’s the case, why not? In Georgia, only 1 in 5 people seem to be shopping regularly for gas, and you would think the question there would be why aren’t more people actively working the market to their advantage? And if my assumptions are true, not even 1 in 5 Texans are leveraging the market to their advantage. In an environment where we will all pass up gas stations for a cent lower, cut coupons to go to the grocery store, or wait in lines starting at 3 am to stampede stores for Black Friday sales, I find it baffling that most people won’t even bother exploring the Texas electricity market to make sure they’re getting the best deals.
Texas Electricity Provider Spotlight: TXU Energy
June 14, 2011
I’ve been intending to do a Provider Spotlight section for Texas electricity for awhile, but this weekend I saw something that inspired me to start writing. My intention for these provider spotlight segments is to break down individual electricity providers in more detail so people can learn about the individual companies offering them electricity service in Texas. This could include anything from the kind of plans they offer, as well as how their rates stack up, or the details of their rewards and promotions.
It was that last part that prompted me to write this provider update for TXU Energy, but we’ll get to that in a minute. TXU Energy is one of the major incumbent electricity companies operating in Texas, along with Reliant Energy. They formerly were the exclusive electricity provider for the Onocor footprint of Texas. With over 2 million residential and commercial electricity customers, they are easily the largest electricity provider in the state of Texas. So generally speaking, they’re one of the most recognizable and trusted electric providers in the state.
Next lets take a look at their rates, which is quite possibly the most important aspect an shopper looks for when determining their electricity plan. And compared to the rest of the electricity market, TXU’s prices are high. In fact, they’re some of the highest in the market regardless of fixed, month to month, or green electricity plans. They’re consistently about 2-2.5 cents per kWh (kilowatt per hour). That’s extremely high. To put it in Gas Terms, that’s like paying an extra 50 cents at the pump right now.
The next thing I’d like to examine is TXU’s recent promotion for Centerpoint customers, which was the inspiration for my typing this Provider Spotlight. This weekend, I saw this promotion that TXU has been advertising, and I spent some time exploring a little further because on the surface it seemed impossible. TXU is currently advertising $500 in savings that comes with their exclusive Energy Savings Package. At first I thought this meant a gift card or bill credits, but reading closer, this is not entirely the case. And because I was confused, I wanted to take the time to flesh out this promotion for other folks who might have had the same knee jerk reaction as myself. So it’s not strictly speaking $500 dollars in rebates. However, it is $200 in rebates, which is certainly as much as I can remember seeing in any single promotion. The rest comes in the form of a $25 credit to their new Brighten Online Energy store, which brings the total to $225. The promotion also offers a free programmable Brighten iThermostat and a professional installation (valued at $400). Customers also get a 10% discount on their electricity rates for summer months. All of this if shoppers sign up for TXU Energy Summer Savings 24 month plan.
On the surface, that is a lot of high ticket items to sign up for a 24 month plan, and it looks like quite a deal. However, dig a little deeper and there are certainly some catches to their offer that I think consumers should be aware of before committing to TXU. The $200 gift card is a great deal, there’s no question. That is a fantastic reward. The other large bulk of item for savings is the iThermostat with an installation, which they’ve valued at $400, which is is web programmable. If you’re a homeowner (to which this deal applies) and this kind of thermostat and installation appeals to you, then I’d say it’s a great deal, particularly for the web savvy. Go for it. However, this kind of thermostat and installation promotion might not appeal to everyone. The last item of the promotion, the 10% savings on electricity in summer months should definitely be viewed with skepticism. This plan starts off at 12.9 cents per kWh. The cheapest plan on the market for 24 months is 8.9 cents per kWh. That makes it 45% higher than the cheapest plan on the market for the same time period. Most competitive plans are in the 9 cent range, which at nearly 13 cents per kWh, TXU’s plan is still 3.5 cents per kWh higher than the market average, or 33%. So even if TXU offers you a 10% savings during the summer months, that’s still more than 20% higher than the market rates for the same length plan elsewhere. So in reality, it’s not savings at all. Customers are still drastically overpaying for this plan, even after the discount, so beware.
All in all, TXU is a known provider in the Texas electricity marketplace. They have a long reputation working for them, and they have the trust and recognition of Texans. However, their electricity plans aren’t in any way competitively priced. However, they do compensate on that to some degree with generous promotions and rewards for customers who select TXU electricity plans.
Hopefully this write-up will help shoppers understand a little bit more about TXU as a company, as well as what benefits and drawbacks they represent to Texans shopping for electricity.
Market Rates: Abilene Electricity & AEP North 5/26
May 26, 2011
Good afternoon, everyone. Our shopping guide entry today for Texas Electricity focuses on the North Texas region, which is serviced by the AEP North TDSP. This includes the prices for Abilene electricity and San Angelo electricity. Compared to Houston and Dallas, the electricity rates in this region are much more expensive for month to month electricity plans, but their long term fixed rate plans are actually reasonable and affordable. And while I’m almost always a proponent of locking in low electricity rates, it makes even more sense in areas like North Texas where volatile month to month rates are already priced at a high premium. The list below also includes both month to month electricity plans along with long term fixed electricity plans. It’s a good place for Texans to start their shopping process.
Month to Month Electricity Plans:
Month to Month Green Electricity Plans:
Long Term Fixed Rate Electricity Plans:
Long Term Fixed Rate Green Electricity Plans:
Cities covered in this shopping guide: Abilene electricity; Alpine electricity; San Angelo electricity; Vernon electricity.
Good morning, everyone. This mornings entry into our weekly series of Texas electricity shopping guide entries is for South Texas, which is the AEP Central service area. AEP Central’s service area includes Corpus Christi electricity and Brownsville electricity. This is the most expensive area of Texas for electricity rates, so it’s important to understand where the market starts when shopping for new electricity plans. The list below is of the most commonly ordered types of electricity plans with the cheapest electric rates. It should help anyone shopping for new electricity providers save money and keep their summer electricity bill low.
Month to Month Electricity Plans:
Month to Month Green Electricity Plans:
Long Term Fixed Rate Electricity Plans:
Long Term Fixed Rate Green Electricity Plans:
Cities covered in this shopping guide: Brownsville electricity, Corpus Christi electricity, Harlingen electricity, Laredo electricity, McAllen electricity, San Benito electricity, Victoria electricity.
Texas Electricity Ratings: The Blog 