TXU to Cut Residential Rates

by | Jul 29, 2009 | Industry News

In a recent post in the Houston Chronicle it was revealed that TXU is decreasing their residential rates by as much as 15%, although in most instances the electricity service will lower about 10%. This comes on the heels to a bunch of billboards and articles that have announced that Reliant is also lowering their rates by 10%.

On the surface rates cuts for Texas energy are a great thing. And to be perfectly honest, lower rates will always be good news for Texans, and there’s no reason to look any deeper into that news. I will take the time to point out, however, that after a recent and short term spike in the cost of Natural Gas in the last month, things have gotten back to normal, which means that the prices to purchase natural gas have gone down. This in turn, lowers the cost of electricity to the customers. So it’s not really altruism or improved business practices that allows them to lower their prices, simply just a market correction back to what was normal in June and TXU (and Reliant) capitalizing on a marketing opportunity. But either way, good for TXU. The question for other customers to take note of is whether or not their provider is lowering prices as well. If not, well, then they should take a long and hard look at their electricity provider.

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