Monthly Archives: April 2010

Commission Report Recommends Sweeping Changes in Texas Electricity Groups

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This is a fantastic article from the Ft. Worth Star Telegram that I think everyone should check out. It has lots of potential good news for consumers in the Texas electric market. The article discusses the sweeping changes that were recommended by the Sunset Advisory Committee, a group created by the Texas legislature in 1977 to police government and public agencies to eliminate waste and inefficiency. And yes, I realize the irony of the statement in saying that one government agency is going to effectively eliminate overlap and bad policies in another government agency. That being said, the changes suggested in this report are fantastic news for the everyday consumer, although we might not ever be able to tie any benefits directly to these changes (assuming these changes are adopted).

So what are these changes suggested by this commission? First off, the report suggests that the PUC need to be given more teeth to effect changes and levy fines against criminal behavior of people working to fleece the electricity market for profit. This suggested change comes from a 2008 case where Energy Future Holdings was accused of withholding electricity from the market to drive up prices. Energy settled without admitting any wrongdoing, and paid a 15 million fine. The case suggests that the fine was 3 million less than the profits the company made, and more than 40 million less than the 57 million consumer might have overpaid in elevated electric rates. So basically, they got caught with their hand in the cookie jar, and the only punishment that had was to give back some of the cookies they stole. Hardly an impediment on behavior to keep them from doing it again in the future. They didn’t even have to admit to any wrongdoing. In the future, if these changes take place, the idea is that the PUC would be able to actually fine these companies enough money to actually hurt them and alter bad behavior. For companies that are still claiming they are having a hard time making a profit, this could be a huge game changer for the benefit of Texas consumers. If this policy IS adopted, the only question would be whether or not they actually use it, akin to the Death Penalty in college football. Which brings us to the next, and even bigger point.

For the longest time in the worlds of business and government, there have been conflicts of interest in people making the laws, those enforcing them, and those making money in the marketplace. A perfect example is the American political system, full of lobbyists, campaign contributions, and politicians inclined to work in the best interests of those that contribute to their political careers. The Texas electricity market is no exception. The Sunset report urges that ERCOT (Electricity Reliability Council of Texas, responsible for maintaining the grid and transporting electricity over power lines to customers) be given more independence, and most importantly, a new board of operators. Currently most of the 16 members of ERCOT are all pulled from the energy industry and all have financial stakes in the decisions of the council. So it’s the inmates running the asylum. The report suggests all members with industry ties be removed, and the PUC be given more oversight into the actions of ERCOT…particularly since their budget has more than quadrupled in the last ten years.

For the record, the PUC has endorsed the findings of the report. Next up are public hearings, which will take place in May, where the findings will officially be presented to the PUC and ERCOT, and for the Texas Legislature to vote on during next year’s session. So between now and then, consumers just cross their fingers.

Market Prices: Green Energy Plans 4/28

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Today’s Wednesday, so the Shopping guide is going to take a look at the 100% renewable green electricity plans. There’s some extremely cheap plans on the market this week, in some instances cheaper than some of the standard plans from other providers. As always, anyone interested in shopping for these plans should check to make sure that the rates aren’t just promotional rates that will expire and go up after the first month or two.

Cheapest Green Energy Variable Rates:

  • Dynowatt – 8.3
  • Southwest Power & Light
  • YEP – 8.7

    • Cheapest Green Energy 3 Month Fixed Rates:

  • Southwest Power & Light – 9.6
  • YEP – 9.7

    • Cheapest Green Energy 6 Month Fixed Rates:

  • Southwest Power & Light – 10.0
  • Champion Energy – 10.0
  • YEP – 10.1

    • Cheapest Green Energy 12 Month Fixed Rates:

  • Tara Energy – 9.8
  • YEP – 9.9
  • StarTex Power – 9.9

    • Cheapest Green Energy 24 Month Fixed Rates:

  • Tara Energy – 10.2
  • Kinetic Energy – 11.0
  • Southwest Power & Light – 11.3

    • Tons of low rate long term plans here, particularly from Dynowatt, Southwest Power & Light, YEP, and Tara Energy. Hopefully this shopping guide is helpful to everyone this week.

    Market Prices: Fixed Rate Plans 4/27

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    Here is a look at today’s prices for the different fixed rate plans available in the market for deregulated Texas electricity.. As always, below is a sample of the most common different term lengths for Fixed Rate plans, and the best deals on rates we’re seeing this week. As always, I hope this electricity shopping guide helps people choose a good plan that will get them through the summer months with as much money left in their pocket as possible.

    Cheapest 3 Month Fixed Rate Plans:

  • Bounce Energy – 8.4
  • Texas Power – 8.4
  • StarTex Power – 8.4

    • Cheapest 6 Month Fixed Rate Plans:

  • Texas Power – 9.1
  • Champion Energy – 9.5
  • StarTex Power – 9.5
  • Simple Power – 9.5

    • Cheapest 12 Month Fixed Rate Plans:

  • Texas Power – 9.3
  • Brilliant Energy – 9.3
  • Spark Energy – 9.3

    • Cheapest 24 Month Fixed Rate Plans:

  • Tara Energy – 9.7
  • Champion Energy – 10.0
  • Brilliant Energy – 10.0

    • Looks like Texas Power and Champion Energy are making plays this week for drawing in customers with the lowest prices in the market.

    Market Prices: Month to Month Plans 4/26

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    Below is this week’s look at the different electric rates for the Month to Month plans available in the Texas electricity marketplace. The list of plans below covers the best prices for both Variable rate plans and Indexed rate plans. As always, check to make sure the rates listed are more than just promotional rates that will increase after the first few months.

    Cheapest Month to Month electricity plans:

  • Dynowatt – 7.8
  • APNA Energy – 7.9
  • Southwest Power & Light – 7.9
  • StarTex Power – 7.9
  • YEP – 8.0

    • And just for fun, we have a couple of the most expensive month to month plans for comparison…

    Most Expensive Month to Month plans:

  • Texpo Energy – 12.7
  • Reliant Energy – 12.4

    • Green Energy Link Roundup

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    So, there’s always a lot of stuff at foot in regards to Texas electricity and the green market. Keep in mind, most of these links aren’t really anything that relates directly to the customer in terms of their monthly electricity bills, just kind of a link dump of some of the green energy articles and topics I’ve seen browsing the internet recently.

    Wind Surpasses Oil in Texas – I wanted to put a question mark at the end of this link to express my own opinion on the subject. However, this article deals with how big wind energy is becoming in the state of Texas, and how it’s creating jobs. Farmers can get money for allowing wind farms to be set up on their land and then still use most of the land for crops. It doesn’t really compare wind to oil, only implying that in the future wind electricity in Texas might be more important to the economy of Texas than oil.

    Texas Writing the Book on Wind Power – Here’s another article on Wind energy in Texas. It discuses some numbers on wind energy in Texas, including what it means in terms of generation and money, as well as mentioning how other states are yet again looking towards Texas as a model for wind electricity moving forward. It also points out some interesting things, such that the Texas electricity grid might actually not be able to handle all of the available wind energy potential that exists without massive upgrades, as well as the fact that it’s still dependent upon fickle weather. It’s a great article, definitely worth a read.

    Green Cleaning Tips – Our friends over at Bounce Energy have put together a tips sheet for some things people can do to “clean greaner” (my quote, not theirs). Basically, it’s a list of household items that are environmentally friendly you can use to clean, and probably save money on expensive cleaning products at the same time. They also have some Cool Earth Day Promotions on Electricity listed in the previous link.

    Reliant Buys Green Energy Credits – Reliant is also getting in on the Earth Day green electricity bandwagon by announcing that they’re buying wind energy for all of their residential and small business customers in honor of Earth Day. Promotion for Earth Day only.

    San Antonio Solar Power Plant Ground Breaks – Even though it doesn’t effect anything other than the customers of CPS energy San Antonio, and as a result not the customers in deregulated electricity areas of Texas, I figured it was worth noting that they have broken ground on the largest solar farm in the state of Texas.

    Oncor and Their Communication Problems

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    Recently, I wrote and submitted an article to some online outlets about some of my observations and opinions about Oncor and how they communicate with their customers, a prime example being how they’ve handled the very vocal backlash they’ve received for their new Smart Meters. In my opinion, a huge part of Oncor’s problems stem from poor communication with their consumers. Anyway, I took a look at some of the problems, offered up some theories on why the problems might exist, and specifically offered up some thoughts on the Smart Meter issues, including the possibility that the Smart Meters are creating higher bills for customers, not because they are malfunctioning, but because Oncor has been giving away free electricity for decades. I’ve linked the article below, I hope everyone finds it informative.

    http://www.buzzle.com/articles/oncor-tdsps-and-their-complete-inability-to-communicate.html

    Market Prices: Green Energy Plans 4/21

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    Here’s our look at the different prices on the green plans that are available this week. It includes month to month electricity plans, as well as several different long term fixed rate electricity plans. As always, check to make sure that the prices listed aren’t promotional prices for the first few months. As always, the only plans listed are plans made of 100% green energy.

    Cheapest Green Month to Month Plans:

  • Dynowatt – 8.3
  • Southwest Power & Light – 8.6
  • YEP – 8.7

    • Cheapest 6 Month Fixed Plans:

  • Champion Energy – 10.0
  • Southwest Power & Light – 10.0
  • Dynowatt – 10.1

    • Cheapest 12 Month Fixed Plans:

  • Tara Energy – 9.8
  • Champion Energy – 9.9
  • YEP – 9.9
  • Kinetic – 9.9
  • StarTex Power – 10.0

    • Cheapest 24 Month Fixed Plans:

  • Tara Energy – 10.2
  • Kinetic Energy – 11.0
  • Southwest Power & Light – 11.3
  • Gexa – 11.3

    • I left off the 3 Month Fixed Green plans because, well, there were only 3 REPs offering those plans right now, Gexa, YEP, and Southwest Power & Light. If you’re looking for that specific kind of fixed rate plan, feel free to look them up and see who’s cheapest.

    Marktet Prices: Fixed Rate Plans 4/20

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    Here’s this week’s shopping guide for Fixed Rate plans in the Texas electricity market. Hopefully this well help anyone shopping for new electricity providers and plans lock in some low rates before the summer heat kicks into overdrive.

    Cheapest 3 Month Fixed Plans:

  • Bounce Energy – 8.4
  • Gexa Energy – 8.5
  • StarTex Power – 8.8

    • Cheapest 6 Month Fixed Plans:

  • Champion Energy – 9.6
  • Texas Power – 9.6
  • Southwest Power & Light – 9.6
  • Amigo Energy – 9.6
  • Dynowatt – 9.6
  • Cirro Energy – 9.6
  • Simple Power – 9.6

    • Yeesh. Seems like half the market has a 9.6 priced 6 month plan.

    Cheapest 12 Month Fixed Plans:

  • APNA Energy – 9.3
  • Spark Energy – 9.3
  • Brilliant Energy – 9.3

    • Cheapest 24 Month Fixed Plans:

  • Tara Energy – 9.7
  • Brilliant Energy – 10.0
  • Cirro Energy – 10.1

    • Market Prices: Month to Month Plans 4/19

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    It’s Monday, so it’s time to look at this week’s look at the market prices for all of the different month to month plans in the Texas electricity market. As always, make sure that the rates aren’t just promotional rates when you sign up for service with a specific electricity provider. Here’s a snapshot of the best prices in the market:

    Cheapest Month to Month Plans:

  • Dynowatt – 7.8
  • Southwest Power & Light – 7.9
  • StarTex Power – 7.9
  • YEP – 8.0
  • Bounce Energy – 8.3

    • And just for Fun here’s the most expensive plans in the marketplace.

    Most Expensive Month To Month Plans:

  • Texpo Energy – 12.7
  • Reliant Energy – 12.4

    • And there’s a handful of other providers at 12.1.

    Chronicle Examines Difficulties of Being an REP

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    Here’s an article by Loren Steffy that was recently in the Houston Chronicle.. It’s a fantastic article, and one of the few articles I’ve ever come across that does a great job of illustrating the difficulties of being an REP (retail electricity provider) in the Texas deregulated electricity arena. Even though electric resale has been an open marketplace for almost a decade, many people still don’t really understand the differences and nuances that exist in who sells the electricity to customers and who provides service and infrastructure for electricity. Many people, even those who understand that the market is deregulated, still abstractly think of anything electricity related as handled by “their electric company.”

    What makes this article so unique is that it actually seems to paint a picture of the difficulties many of the REPs have to deal with to keep their doors open and run a successful business, whether you’re a former incumbent like TXU or Reliant, a specialized provider like Green Mountain Energy, or Mid Majors like Champion Energy, StarTex Power, or Bounce Energy. One of the often cited advantages to a deregulated market is that it forces the REPs to be more efficient, more cost effective, and to promote creative thinking that benefits the customers. But this article points out some interesting difficulties that might arise in doing that.

    First, lets set the stage. The article points out that the natural gas market has finally righted itself since the huge increases that caused to much dismay and casualties in 2008. Prices are now reasonable, and after several REPs were bankrupted by the high prices, this summer finally looks like the perfect stage is set for proving the advantages of a deregulated electricity market and the benefits to customers. Things have stabilized, and most of of the REPs are in good enough shape to concentrate on their business and their customers, which was the ideal setup that people were looking for in a deregulated market. So what’s the problem? Well, new PUC rules might be making it difficult for smart and savvy businesses to really separate themselves.

    Case in point, StarTex power came up with a great idea to differentiate themselves as a company by notifying customers when their contracts are about to expire. They felt this was a great idea, unique to them, that would really set them apart from a customer service perspective in the Texas electricity market. Especially since now the only real way that REP’s have to differentiate themselves from their competition is customer service, creative marketing and promotions, and the plans they offer to customers. And the margins are so thin in many cases on the cost of some plans, that it’s difficult for the REP to make any money. So what was the result of StarTex’s great idea? It was so good that the PUC took it and made it mandatory for all electricity providers.

    Now there are two ways to look at this, and both of them are fair. After several REPs went out of business in 2008 and the end result being that the people hurt most by the inflated prices were the customers, it’s good to see the PUC taking an active roll in trying to look out for the consumer. But at the same time, StarTex lost any kind of benefit from having a great idea and consumer friendly policy they came up with benefit them as a company, and that is the kind of innovation that this electric market was supposed to be all about in the first place. Tough luck, StarTex, it hardly seems fair.

    The article also discusses the impossible situation that many REPs are placed in regarding customers who don’t pay their electric bills and then switch to other providers (which currently can’t deny someone service except with the worst kind of credit). REP’s are stuck holding the bag, and this happens much more frequently than anyone would think. Currently there’s a law on the table that would not allow customers to switch REP’s until they have paid their outstanding bills, but there hasn’t been a vote on that yet. There’s also some talk about Smart Meters, but to be perfectly honest, I’m kind of sick of talking about that

    It’s a great article, everyone should check it out and give it a read, although I’ve covered most of the highlights here, there’s more information worth checking out.