Texas Electricity, ERCOT, and Future Power Generation

Paul Ring over at Energy Choice Matters has been on fire lately with a number of interesting and thoughtful articles. In the latest one, Paul analyzes some comments Calpine COO Thad Hill in regards to the issues that Texas is having in attracting new investments in energy generation. Calpine is a fortune 500 company with more than half a dozen major power plants all over the country.

As always, the original article by Paul Ring is fantastic, and I encourage everyone to take the time to read it. That being said, below I’m going to spell out the issues facing Texas electricity.

The basic issue discussed by Hill and analyzed by Ring is how Texas is currently having trouble attracting interest from investors who are willing to build new power plants in Texas. As last July and August demonstrated, Texas is right on the edge of having enough electricity generation capacity to meet the state’s needs during the hottest months of the year. And that doesn’t even take into account what pending EPA changes in 2012 will do do to older coal-fired plants that have been deemed as too “dirty” in regards to pollution. In short, it looks like Texas is going to have problems meeting their power needs, particularly if we have any more summers like the one we just experienced.

So what is the problem? Just build more plants, right? Well, that’s where things get tricky. Under deregulation, the model is that investors shoulder the burden of new plant construction, when before the state could simply tax or charge Texas electricity customers directly through their bills to subsidize new plant construction. But this is out of the question in the deregulated market (as it should be). Meanwhile, investors like Calpine, are saying that building plants in Texas is too risky and might not be profitable enough to warrant them taking the risk. In a regulated market, investors could be guaranteed a certain amount of energy to be purchased over a long time period by the state or regulated entity, but in the Texas electricity market the only driver is demand, there aren’t any built in guarantees or incentives. Basically, most Texas customers don’t like to sign up for electricity more than a year at a time with one company, so most REP’s are only buying energy in year metrics. Investors need to take their chances just like customers when they’d prefer to have 7 year guarantees. Since they can’t predict their profits and losses, and they’re unwilling to invest. Meanwhile, Texas desperately needs more energy generation plants. So we are at an impasse.

Whatever the solution, and I have no idea what it will be, guarantees are out of the question as are subsidies from Texas citizens to build new plants. Both of those solutions would be large steps towards removing deregulated electricity completely because they would be flying in the face of electric choice in Texas. One thing is certain, this issue will only continue to get more visibility as time moves on, because it is a huge problem that will have to be solved somehow.

Market Rates: South Texas Electricity 4/4

Good morning, folks. We’ll jump right into today’s Texas electricity shopping guide entry, which for today is the South Texas area (AEP Central). This includes Corpus Christi electricity and Brownsville electricity. The electricity rates in this region are always the highest in Texas, with their electricity prices starting at almost 2 cents per kWh higher than Dallas. It’s imperative that people understand the markets for electricity rates in this area before they go shopping for new electricity providers and electricity plans. The plans below are a sampling of the most common terms of electricity plans ordered by customers in Texas, sorted by the cheapest prices. It’s a great place to save money and start the shopping process.

Month to Month Electricity Plans:

Reliant Energy – 6.8

Kinetic Energy – 6.9

Mega Energy – 6.9

StarTex Power – 6.9

Frontier Utilities – 7.4

Bounce Energy – 7.8

Month to Month Green Electricity Plans:

Kinetic Energy – 8.0

Bounce Energy – 8.1

Reliant Energy – 8.1

Southwest Power & Light – 8.4

YEP – 8.5

Dynowatt – 8.8

Long Term Fixed Rate Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 9.4

Mega Energy – 6 Month Fixed Plan – 9.5

Southwest Power & Light – 6 Month Fixed Plan – 9.5

Mega Energy – 12 Month Fixed Plan – 9.5

Southwest Power & Light – 12 Month Fixed Plan – 9.5

YEP – 12 Month Fixed Plan – 9.6

Mega Energy – 24 Month Fixed Plan – 10.3

Amigo Energy – 24 Month Fixed Plan – 10.3

Southwest Power & Light – 24 Month Fixed Plan – 10.4

Long Term Fixed Rate Green Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 9.8

YEP – 6 Month Fixed Plan – 9.9

Reliant Energy – 6 Month Fixed Plan – 9.9

Southwest Power & Light – 12 Month Fixed Plan – 10.0

Mega Energy – 12 Month Fixed Plan – 10.0

Tara Energy – 12 Month Fixed Plan – 10.0

Tara Energy – 24 Month Fixed Plan – 10.7

Southwest Power & Light – 24 Month Fixed Plan – 10.7

YEP – 24 Month Fixed Plan – 10.8

Mega Energy – 24 Month Fixed Plan – 10.8

Kinetic Energy – 24 Month Fixed Plan – 10.8

Market Rates: West Texas & TNMP 4/29

Good morning, everyone. In celebration of it being Friday, we offer our last Texas electricity shopping guide of the week. Today’s entry is for West Texas and the Texas-New Mexico Power region. TNMP services a large pocket in West Texas, as well as many other smaller pockets all over the state. The electric rates in this area are pretty expensive for Texas, almost as high as the AEP regions. As a result, it’s extremely important to compare the electric prices from the different electricity providers to make sure you’re getting the best deal on your electricity. With summer heat starting to set in, bills will start rising and it’s important that people do everything they can to save money.

Month to Month Electricity Plans:

Bounce Energy – 6.4

Reliant Energy – 6.4

StarTex Power – 6.6

Frontier Utilities – 6.7

Kinetic Energy – 6.9

Southwest Power & Light – 7.0

Month to Month Green Electricity Plans:

Reliant Energy – 7.1

Bounce Energy – 7.4

Southwest Power & Light – 7.5

YEP – 7.6

Kinetic Energy – 7.6

Dynowatt – 7.6

Long Term Fixed Rate Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 8.3

Southwest Power & Light – 6 Month Fixed Plan – 8.3

YEP – 6 Month Fixed Plan – 8.4

Reliant Energy – 12 Month Fixed Plan – 8.5

Gexa Energy – 12 Month Fixed Plan – 8.5

Amigo Energy – 12 Month Fixed Plan – 8.5

Southwest Power & Light – 12 Month Fixed Plan – 8.5

Tara Energy – 24 Month Fixed Plan – 9.0

Amigo Energy – 24 Month Fixed Plan – 9.1

Southwest Power & Light – 24 Month Fixed Plan – 9.2

Long Term Fixed Rate Green Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 8.7

Reliant Energy – 6 Month Fixed Plan – 8.7

YEP – 6 Month Fixed Plan – 8.8

Tara Energy – 12 Month Fixed Plan – 8.7

Southwest Power & Light – 12 Month Fixed Plan – 8.8

YEP – 12 Month Fixed Plan – 8.9

Tara Energy – 24 Month Fixed Plan – 9.6

Southwest Power & Light – 24 Month Fixed Plan – 9.7

YEP – 24 Month Fixed Plan – 9.8

Market Rates: North Texas Electricity 4/28

Good afternoon, everyone. Today’s Texas electricity shopping guide entry shines a light on the electric rates for North Texas (AEP North). This area of Texas cover the rates for electricity in Abilene and electricity in San Angelo. The electric rates in this region are expensive, so it’s important to understand the price basement before you go shopping for a new electricity provider. Below are the electric rates for the most commonly ordered plans in the state of Texas. It should help Texans save money on electricity when shopping.

Month to Month Electricity Plans:

Kinetic Energy – 6.6

Bounce Energy – 6.7

Reliant Energy – 6.7

StarTex Power – 6.9

Frontier Utilities – 7.1

Southwest Power & Light – 7.4

Month to Month Green Electricity Plans:

Kinetic Energy – 7.5

Bounce Energy – 7.6

Reliant Energy – 7.6

Southwest Power & Light – 7.9

Texas Power – 8.0

YEP – 8.0

Long Term Fixed Rate Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 8.3

Reliant Energy – 6 Month Fixed Plan – 8.3

YEP – 6 Month Fixed Plan – 8.4

Amigo Energy – 12 Month Fixed Plan – 8.7

Southwest Power & Light – 12 Month Fixed Plan – 8.8

APNA Energy – 12 Month Fixed Plan – 8.8

Amigo Energy – 24 Month Fixed Plan – 8.9

Tara Energy – 24 Month Fixed Plan – 9.1

Texas Power – 24 Month Fixed Plan – 9.6

Long Term Fixed Rate Green Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 8.9

Reliant Energy – 6 Month Fixed Plan – 8.9

YEP – 6 Month Fixed Plan – 9.0

Tara Energy – 12 Month Fixed Plan – 8.9

Southwest Power & Light – 12 Month Fixed Plan – 9.0

YEP – 12 Month Fixed Plan – 9.1

Tara Energy – 24 Month Fixed Plan – 9.1

Kinetic Energy – 24 Month Fixed Plan – 9.8

Southwest Power & Light – 24 Month Fixed Plan – 10.2

Market Rates: Dallas Electricity 4/4

Good afternoon, everyone. Today’s Texas electricity shopping guide entry is for Dallas electricity. The Oncor region has the most residents in Texas, and it also happens to have the cheapest electricity rates in Texas. While the rates are low right now, that won’t last forever. Now is the best time for customers looking for Texas electricity to get great deals on electricity rates. Pretty soon, the electricity rates will inevitably start to rise as the summer heat kicks in, so now is when shoppers should be looking to lock in the lowest priced electricity plans to get them through the summer heat.

Month to Month Electricity Plans:

Kinetic Energy – 5.0

StarTex Power – 5.2

Mega Energy – 5.2

Reliant Energy – 5.2

Texas Power – 5.6

Frontier Utilities – 5.9

Month to Month Green Electricity Plans:

Texas Power – 6.0

Kinetic Energy – 7.0

Reliant Energy – 7.1

Southwest Power & Light – 7.1

YEP – 7.2

Bounce Energy – 7.2

Long Term Fixed Rate Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 8.0

APNA – 6 Month Fixed Plan – 8.1

Mega Energy – 6 Month Fixed Plan – 8.1

APNA Energy – 12 Month Fixed Plan – 8.3

Mega Energy – 12 Month Fixed Plan – 8.3

Brilliant Energy – 12 Month Fixed Plan – 8.4

Amigo Energy – 12 Month Fixed Plan – 8.4

Amigo Energy – 24 Month Fixed Plan – 9.1

Mega Energy – 24 Month Fixed Plan – 9.1

Brilliant Energy – 24 Month Fixed Plan – 9.1

Tara Energy – 24 Month Fixed Plan – 9.1

Long Term Fixed Rate Green Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 8.6

Mega Energy – 6 Month Fixed Plan – 8.6

Southwest Power & Light – 6 Month Fixed Plan – 8.8

Tara Energy – 12 Month Fixed Plan – 8.7

Amigo Energy – 12 Month Fixed Plan – 8.8

Mega Energy – 12 Month Fixed Plan – 8.8

Tara Energy – 24 Month Fixed Plan – 9.4

Southwest Power & Light – 24 Month Fixed Plan – 9.5

Mega Energy – 24 Month Fixed Plan – 9.6

YEP – 24 Month Fixed Plan – 9.6

Market Rates: South Texas 3/30

Good afternoon, everyone. Here’s today’s Texas electricity shopping guide for South Texas, which covers electricity in Corpus Christi and electricity in Brownsville. This is hands down the most expensive area of Texas, so it’s extremely important to shop intelligently in regards to electricity rates and understanding what makes a competitive price for this region. In fact, it’s vital if anyone has any interest in trying to save money in this part of Texas. The list below is a selection of the most common electricity plans that people order from some of the most known electricity providers operating in Texas. And of course, they’re the plans with the cheapest electricity rates.

Month to Month Electricity Plans:

Kinetic Energy – 6.9

Mega Energy – 6.9

Reliant Energy – 7.0

StarTex Power – 7.0

Texas Power – 7.2

Frontier Utilities . 7.4

Month to Month Green Electricity Plans:

Kinetic Energy – 7.5

Texas Power – 7.6

Bounce Energy – 8.1

Southwest Power & Light – 8.4

YEP – 8.5

Dynowatt – 8.7

Texpo Energy – 11.3

Long Term Fixed Rate Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 9.2

Southwest Power & Light – 6 Month Fixed Plan – 9.5

Mega Energy – 6 Month Fixed Plan – 9.5

APNA Energy – 6 Month Fixed Plan – 9.5

Mega Energy – 12 Month Fixed Plan – 9.5

Southwest Power & Light – 12 Month Fixed Plan – 9.5

Tara Energy – 12 Month Fixed Plan – 9.5

StarTex Power – 24 Month Fixed Plan – 10.3

Mega Energy – 24 Month Fixed Plan – 10.3

Amigo Energy – 24 Month Fixed Plan – 10.3

Long Term Fixed Rate Green Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 9.6

Southwest Power & Light – 6 Month Fixed Plan – 9.8

YEP – 6 Month Fixed Plan – 9.9

Tara Energy – 12 Month Fixed Plan – 9.9

Mega Energy – 12 Month Fixed Plan – 10.0

Southwest Power & Light – 12 Month Fixed Plan – 10.0

Tara Energy – 24 Month Fixed Plan – 10.6

Southwest Power & Light – 24 Month Fixed Plan – 10.7

YEP – 24 Month Fixed Plan – 10.8

Mega Energy – 24 Month Fixed Plan – 10.8

Market Rates: Houston Electricity 3/1

Good afternoon, everyone. This afternoon’s Texas electricity shopping guide entry covers the Centerpoint region, or Houston electricity rates. Electric rates in Houston are still in the cheaper side of the marketplace, although not as cheap as Dallas. The rates below are a list of the most common terms of electricity plans from some of the most known and respected electricity providers working in Texas. Hopefully this helps shoppers save money on electricity.

Month to Month Electricity Plans:

Kinetic Energy – 6.0

Texas Power – 6.1

StarTex Power – 6.4

Frontier Utilities – 6.4

Reliant Energy – 6.5

Month to Month Green Electricity Plans:

Texas Power – 6.5

Kinetic Energy – 7.3

Bounce Energy – 7.3

Reliant Energy – 7.5

Southwest Power & Light – 7.6

Dynowatt – 8.1

Long Term Fixed Rate Electricity Plans:

Mega Energy – 6 Month Fixed Plan – 8.0

APNA Energy – 6 Month Fixed Plan – 8.5

Reliant Energy – 6 Month Fixed Plan – 8.9

Mega Energy – 12 Month Fixed Plan – 8.7

Brilliant Energy – 12 Month Fixed Plan – 8.8

APNA Energy – 12 Month Fixed Plan – 9.1

Mega Energy – 24 Month Fixed Plan – 9.6

Brilliant Energy – 24 Month Fixed Plan – 9.8

APNA Energy – 24 Month Fixed Plan – 9.9

Long Term Fixed Rate Green Electricity Plans:

Mega Energy – 6 Month Fixed Plan – 9.4

Reliant Energy – 6 Month Fixed Plan – 9.4

Southwest Power & Light – 6 Month Fixed Plan – 9.6

Tara Energy – 12 Month Fixed Plan – 9.5

YEP – 12 Month Fixed Plan – 9.7

Mega Energy – 12 Month Fixed Plan – 9.7

Tara Energy – 24 Month Fixed Plan – 10.0

Mega Energy – 24 Month Fixed Plan – 10.2

Kinetic Energy – 24 Month Fixed Plan – 10.4

Market Rates: South Texas Electricity 2/2

Good morning, folks. I hope that everyone all over Texas is weathering the dangerous and icy conditions that have covered almost all of Texas today. Oncor and other areas instituting rolling electricity blackouts to counteract high demands thanks to the ice storms in north Texas. That being said, today’s shopping guide entry isn’t for Dallas electricity, but for electricity in South Texas. The electricity rates in South Texas (AEP Central) are always the highest in all of Texas electricity. Promotional Month to Month rates this week check in a cent and a half more expensive than Dallas. So it’s important to shop around and save money on electricity prices. The electricity plans below cover electricity in Corpus Christi and electricity in Brownsville and lists out the most popular types of plans on the Texas electricity market.

Month to Month Electricity Plans:

Kinetic Energy – 7.4

StarTex Power – 7.5

Frontier Utilities – 7.7

Reliant Energy – 7.7

Mega Energy – 8.0

Southwest Power & Light – 8.0

Bounce Energy – 8.0

Month to Month Green Electricity Plans:

Bounce Energy – 8.0

Kinetic Energy – 8.2

Southwest Power & Light – 8.4

YEP – 8.5

Dynowatt – 9.1

Texas Power – 10.2

Long Term Fixed Rate Electricity Plans:

Mega Energy – 6 Month Fixed Plan – 7.5

Amigo Energy – 6 Month Fixed Plan – 8.5

Southwest Power & Light – 6 Month Fixed Plan – 8.7

Mega Energy – 12 Month Fixed Plan – 8.7

Amigo Energy – 12 Month Fixed Plan – 8.9

Tara Energy – 12 Month Fixed Plan – 9.5

Mega Energy – 24 Month Fixed Plan – 10.0

Bounce Energy – 24 Month Fixed Plan – 10.2

Amigo Energy – 24 Month Fixed Plan – 10.3

Tara Energy – 24 Month Fixed Plan – 10.3

Long Term Fixed Rate Green Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 9.5

Mega Energy – 6 Month Fixed Plan – 9.6

YEP – 6 Month Fixed Plan – 9.6

Tara Energy – 12 Month Fixed Plan – 9.6

Mega Energy – 12 Month Fixed Plan – 9.7

Southwest Power & Light – 12 Month Fixed Plan – 10.0

Tara Energy – 24 Month Fixed Plan – 10.4

Mega Energy – 24 Month Fixed Plan – 10.5

Southwest Power & Light – 24 Month Fixed Plan – 10.7

Market Rates: Houston Electricity 2/1

Good morning all. This week’s second entry into the Texas electricity shopping guide is focusing on the market prices for Houston electricity (Centerpoint). The electric rates are still extremely low, although not as low as Dallas. Still, that is good news, especially with severe weather and ridiculous cold threatening most of Texas this week. Texans might need to actually use their heaters for once. Anyway, the list of electricity prices below covers month to month electricity plans, long term fixed rate electricity plans, and environmentally friendly green energy plans. And remember, considering how low prices are right now, it’s a great time to lock in electricity plans at low rates to get through the inevitable summer heat.

Month to Month Electricity Plans:

StarTex Power – 6.5

Kinetic Energy – 6.5

Frontier Utilities – 6.8

Reliant Energy – 6.8

Mega Energy – 7.0

Bounce Energy – 7.0

Month to Month Green Electricity Plans:

Bounce Energy – 7.1

Kinetic Energy – 7.4

Southwest Power & Light – 7.6

YEP – 7.9

Dynowatt – 8.4

Texas Power – 10.0

Long Term Fixed Rate Electricity Plans:

Mega Energy – 6 Month Fixed Plan – 8.0

Amigo Energy – 6 Month Fixed Plan – 8.2

Southwest Power & Light – 6 Month Fixed Plan – 8.3

Mega Energy – 12 Month Fixed Plan – 8.7

Amigo Energy – 12 Month Fixed Plan – 8.9

APNA Energy – 12 Month Fixed Plan – 9.1

Mega Energy – 24 Month Fixed Plan – 9.6

Brilliant Energy – 24 Month Fixed Plan – 9.8

APNA Energy – 24 Month Fixed Plan – 9.9

Long Term Fixed Rate Green Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 9.2

YEP – 6 Month Fixed Plan – 9.4

Mega Energy – 6 Month Fixed Plan – 9.4

Tara Energy – 12 Month Fixed Plan – 9.5

Southwest Power & Light – 12 Month Fixed Plan – 9.6

YEP – 12 Month Fixed Plan – 9.7

Mega Energy – 12 Month Fixed Plan – 9.7

Amigo Energy – 12 Month Fixed Plan – 9.7

Tara Energy – 24 Month Fixed Plan – 10.0

Mega Energy – 24 Month Fixed Plan – 10.2

Southwest Power & Light – 24 Month Fixed Plan – 10.5

Market Rates: Houston Electricity 1/25

Good morning, everyone. The entry for the Texas electricity shopping guide we’re examining today covers the Houston electricity market (Centerpoint TDSP), which is right in the middle of electricity rates in Texas. The rates listed below are the lowest starting point for Houston electricity plans from some of the most recognizable electricity providers in Texas. Listed below is a sampling of Houston electricity plans, including month to month electricity plans, long term fixed rate electricity plans, and environmentally friendly green energy plans. It’s a great place to start your shopping.

Month to Month Electricity Plans:

Kinetic Energy – 6.7

Reliant Energy – 6.9

Mega Energy – 7.0

StarTex Power – 7.1

Southwest Power & Light – 7.1

YEP – 7.2

Month to Month Green Electricity Plans:

Kinetic Energy – 7.4

Bounce Energy – 7.5

Southwest Power & Light – 7.6

Reliant Energy – 7.6

YEP – 7.9

Dynowatt – 8.6

Long Term Fixed Rate Electricity Plans:

Reliant Energy – 6 Month Fixed Plan – 7.9

Mega Energy – 6 Month Fixed Plan – 8.0

Amigo Energy – 6 Month Fixed Plan – 8.2

Mega Energy – 12 Month Fixed Plan – 8.7

Amigo Energy – 12 Month Fixed Plan – 8.9

Brilliant Energy – 12 Month Fixed Plan – 8.9

Mega Energy – 24 Month Fixed Plan – 9.6

Brilliant Energy – 24 Month Fixed Plan – 9.7

APNA Energy – 24 Month Fixed Plan – 9.9

Long Term Fixed Rate Green Electricity Plans:

Southwest Power & Light – 6 Month Fixed Plan – 9.2

Reliant Energy – 6 Month Fixed Plan – 9.2

YEP – 6 Month Fixed Plan – 9.4

Mega Energy – 6 Month Fixed Plan – 9.4

Tara Energy – 12 Month Fixed Plan – 9.5

Southwest Power & Light – 12 Month Fixed Plan – 9.6

Amigo Energy – 12 Month Fixed Plan – 9.7

Mega Energy – 12 Month Fixed Plan – 9.7

YEP – 12 Month Fixed Plan – 9.7

Tara Energy – 24 Month Fixed Plan – 10.0

Mega Energy – 24 Month Fixed Plan – 10.2

Southwest Power & Light – 24 Month Fixed Plan – 10.5