Customers in Dallas/Ft. Worth Could Have New Opportunity to Earn Money for Reducing Load

By Tracy Hodge on January 25, 2012

Medium and large commercial electric customers in the Dallas and Forth Worth areas may soon have a new opportunity to save money on their electric bill by curtailing load at the request of Oncor during peak times.

Oncor currently runs a ” Commercial Load Management ” program which pays participants for each kilowatt (kW) of reduced load during curtailment events — which are times during which Oncor instructs participants to reduce, or curtail, load.  Participation is currently capped at 50 megawatts (MW).

Under the 2011 Commercial Load Management program, Oncor paid $20 per kW for unscheduled curtailments called by Oncor (which are called with one hour’s notice), as well as $10 per kW for scheduled curtailments during testing.

Due to the generation capacity shortage expected in Texas energy  this summer (which SaveOnEnergy.com has previously noted here ) Oncor has proposed to the Public Utility Commission (PUC) increasing the Commercial Load Management program by an additional 50 MW for the summer of 2012.  This would provide the Oncor service area with an extra “cushion” if demand is projected to exceeded supply, and could help avoid rolling blackouts .

Oncor’s request must be approved by the Public Utility Commission .

Although not explicit, it appears that the terms for the incremental 50 MW of Commercial Load Management curtailable load would be the same as for the existing Commercial Load Management program, including payments for load reductions.

Under the program, eligible “Curtailable Load” must produce savings through an interruption of electrical consumption during the summer peak demand period, and project sponsors must commit to making the “Curtailable Load” available for one peak season.

Eligible “Curtailable Load” is considered to be load listed on the project application that will be available for curtailment.  This could be building(s) or individual end-use equipment that creates demand reduction during the summer electricity peak demand period.

Other requirements include:

• Loads must be located in Oncor’s service area and serviced by an Oncor electric meter

• Loads must have at least 700 kW of electric demand

• A single project may involve more than one customer facility

• Loads must be able to reduce electric load within an hours notice during the on-peak demand period, defined as the hours between 1:00 p.m. to 7:00p.m., Central Standard Time, Monday through Friday, June through September, excluding weekends and federal holidays.

• Each project must achieve a total estimated demand savings of at least 100 kW during the on-peak demand period. 

• Load reductions must be verified by Oncor.

• Each participating site must have an interval data recorder (IDR) meter

Posted in | Leave a response

Shoulder Months Less Price Friendly as Grid Changes, Shop for Low Electric Rate Now

By Tracy Hodge on January 18, 2012

Electricity demand within the Electric Reliability Council of Texas (ERCOT), which covers about 80% of the state, increased 5 percent in 2011, ERCOT recently reported .

A forecast for a similar high level of load in 2012 means that electric rates will likely rise with increased demand, and that customers should shop for a low electric rate now on SaveOnEnergy.com .

Net energy for load for 2011 was 335,000 gigawatt-hours (GWh), compared to 319,097 GWh in 2010 and 308,278 GWh in 2009. 

April had the highest energy increase compared to the previous year with 14.4 percent, followed by July which increased 12.2 percent compared to last year, ERCOT said.

The April statistic is telling, and should prompt customers to check their electric rate now and lock-in a lower price, before energy prices increase.

Typically, the spring and fall are good times to shop for electricity in Texas , because the months are known as “shoulder” months, which have moderate temperatures and do not cause high spikes in electric usage due to excessive air conditioning usage in the summer or electric space heating in the winter.  Because there is less demand for electricity in these shoulder months, power prices are typically lower.

However, as shown by the spike in last April’s electric usage, that paradigm is shifting, and the so-called “shoulder” months are no longer as solidly reliable for having favorable electric rates as they once were. 

One of the reasons is the higher amount of wind power on the grid.  Wind generation’s output is variable, and although complex models forecast the production from wind generation, changes in weather can drastically alter wind generation’s output in a short period of time.  This can leave grid operators scrambling to replace these “lost” megawatts due to a reduction in wind power .  When this happens, and other power plants have to “turn on” on short notice, wholesale electric prices can spike, leading to higher retail rates.

While wind’s generation output varies throughout the year, there is less margin for sudden changes during the “shoulder” months, ironically, because demand for power is lower in these months.  That’s because most generators perform needed maintenance on their power plants during the shoulder months — in the fall and spring — because the grid can afford to have several thousand megawatts “off-line” for maintenance since peak usage is not expected.  When plants are undergoing maintenance, they typically cannot start-up on short notice to respond to rapidly changing conditions, such as reduced wind output.

Having so many megawatts off-line during the shoulder months means there are fewer power plants able to respond to a sudden drop in wind generation on short notice, which can cause shortage conditions and lead to higher energy prices .  In contrast, in the summer, nearly all generation is ready to come on-line to meet peak demand, with plants taken out of service only for emergencies, so shifts in wind power can be more easily filled during the summer.

Indeed, prior to last year’s rolling blackouts during the February cold snap, the most recent rolling blackouts in Texas had been in April of 2006 — a shoulder month — because unseasonable heat and air conditioning use sent power demand past forecasts and the amount of generation available to respond.  Rolling blackouts are always accompanied by record electric prices , because they indicate a shortage of electricity .

This is all to say that if Texans are holding off on shopping for an electric rate until the spring, there’s a risk that prices may spike in the shoulder months.  With today’s electric rates still at historic lows, there is no upside to waiting three or four months to shop for power, and customers should instead use SaveOnEnergy.com to get a low rate while still available.

Posted in , | Leave a response

Texas Drought Could Mean High, Volatile Electric Rates This Summer

By Tracy Hodge on January 11, 2012

Last week, SaveOnEnergy.com noted that even with a stay of federal environmental regulations, which will keep more Texas power plants online this summer, Texas electric rates are still likely to rise because the supply of generation only marginally exceeds forecast demand.

One of the reasons for this is the prolonged drought Texas has experienced, and its impact on power generation and electricity production, which was examined by the state senators earlier this week.  Even recent heavy rains in some parts of the state, including Houston, have not eased the statewide drought conditions.

Many types of power plants rely on large amounts of water for cooling, and without adequate water, these plants cannot generate electricity .

“If Texas’ drought persists, it could pose a risk to electricity generation if there isn’t sufficient water to produce the power the state needs,” the Abilene Reporter-News reported.

“The drought is already having a ‘slight impact’ on electricity generation, according to testimony from Trip Doggett, the chief executive of the Electric Reliability Council of Texas (ERCOT), which operates the state’s electric grid.  He anticipated that problems would remain slight through the summer, but if the drought continues into next year, ‘the consequences are likely to become more severe,’” the Texas Tribune reported.

If power plants are unable to obtain cooling water due to the drought, that means they could be forced to reduce operations or shut down completely.  With such a small margin in excess power capacity currently in the state, even small reductions in generation due to the drought could have huge implications in both reliability and market energy pricing . 

This summer, Texas saw wholesale prices routinely hit the price cap of $3,000 per megawatt-hour (the equivalent of $3 per kilowatt-hour) even before the drought affected most plants.  If Texas has a repeat of last year’s extreme heat, coupled with the continued drought, electric prices may spike even more repeatedly, which will drive up retail electric rates .

That’s why it’s important to shop for a low electric rate with SaveOnEnergy.com now, while low rates are still available.  Electric rates are still at historic lows, and shopping for a new energy provider now means customers can avoid any future price increases. 

Electric providers competing for customers on SaveOnEnergy.com are still offering rates as low as 8 cents per kilowatt-hour — less than what electricity cost 10 years ago — in both the Dallas and Houston regions, making now the perfect time to shop.

Posted in , | Leave a response

Texas Electric Rates Still Set to Rise Despite Stay of Costly Environmental Regulations

By Tracy Hodge on January 4, 2012

Although a federal court recently stayed implementation of new federal environmental regulations which threatened Texas with the loss of power generation and rolling blackouts, keeping those megawatts on the grid will not fundamentally change the expectation that Texas electric rates are due to rise this year, particularly for the summer, due to a remaining imbalance in power demand and supply.

The stay of the EPA’s Cross-State Air Pollution Rule will mean more electric generation capacity will remain on the Texas grid during the next six to nine months as the regulations are litigated in court.  Already, Luminant has announced plans to maintain the operation of 1,200 MW of generation it had previously said it would close due to the new federal rules.

While keeping this generation online will help Texas make it through the winter and summer without rolling outages, it doesn’t mean Texans will have relief from the expected rise in electric prices coming to Texas, for several reasons that SaveOnEnergy.com discussed a few months ago .

That’s because, while the added generation will help Texas keep the lights on, conditions will still be scarce, and supply will still only outpace demand by a small margin.  Essentially, conditions in 2012 will be similar to those in summer of 2011, when Texas risked rolling blackouts on a daily basis due to a lack of available generating capacity.  Under these conditions, wholesale electric rates routinely hit the equivalent of $3 per kilowatt-hour last summer, while the lowest retail electric rates in Texas are currently 8 or 9 cents per kilowatt-hour.  Similarly high wholesale pricing can be forecast to be repeated this summer, which may lead retail electric providers to increase their retail electric rates to account for the higher expected wholesale prices.

Also, most of the generation that was due to retire, but that will remain on the grid under the EPA’s stay, was coal-fired generation.  Typically, these units do not set on-peak electric prices in Texas , which are set by gas-fired generation.  The return of these coal units, while displacing some higher-cost generation, won’t lead to a fundamental change in the drivers of on-peak Texas electric rates .

The good news is that while electric rates are still under upward pressure, they haven’t increased materially yet.  Customers can still shop with SaveOnEnergy.com to find a low electric rate in the 8-cent range, and to choose a plan that lets them avoid the expected rate hikes in the future.

Posted in | Leave a response

Start the New Year by Saving on Your Electric Bill with SaveOnEnergy.com

By Tracy Hodge on December 28, 2011

Who doesn’t want to start the new year by saving money?  And unlike losing weight or kicking a bad habit, this is a new year’s resolution you can keep, thanks to SaveOnEnergy.com which makes it quick and easy to save hundreds, if not thousands, on your electric bill .

In many states including Texas, Pennsylvania, and Illinois, customers can shop for their energy supplier , just as they can choose their long distance carrier, cellular provider, or internet provider.  However, because shopping for a low electric rate is still new to most customers, most residential and small commercial customers haven’t shopped for a competing energy provider , and are leaving hundreds of dollars on the table.

Consider Texas, for example.  If you haven’t shopped for a new electric provider , or just haven’t shopped for a few years, you could be paying a rate as high as 12, 13, or even 15 cents per kilowatt-hour. 

Depending on your city and local wires utility, shopping for a lower electric rate with SaveOnEnergy.com can result in a residential electric rate as low as 8 cents per kWh, if not lower.

For the average Texas residential customer using 1,000 kWh per month, switching to a new energy provider offering a low rate of 8 cents per kWh, versus 13 cents per kWh, results in monthly savings of $50, or annual savings of $600. 

The best part is that realizing these savings is quick and easy when using SaveOnEnergy.com .  With just a few clicks of the mouse, customers can shop for a lower electric rate at any time day or night, when it’s convenient for them.  SaveOnEnergy.com provides customers with an easy to understand comparison of the best electric rates in the market, from only trusted and reputable providers.  When customers choose the best electric rate for them on SaveOnEnergy.com , signing up with their provider takes just a few minutes, and then the lower rate takes effect automatically — no coupons to clip or rebates to mail-in.

So start the new year by taking just five to 10 minutes to check your electric rate and compare it with the low electric rates on SaveOnEnergy.com .  You’ll likely find a low electric rate than can put hundreds of dollars into your pocket to start the new year.

Posted in , | Leave a response

Competition Bringing Lower Electric Rates to Texas as Prices Rise Nationally

By Tracy Hodge on December 21, 2011

The competition in Texas’ electric industry, which allows customers to choose their electricity provider , has resulted in Texas electric rates falling over the past few years — during the same time that electric rates are on the rise nationally.

The Association of Electric Companies of Texas (AECT) recently noted that from August 2006 and August 2011 (the latest data available), the national average electric rate for residential customers rose by 11%, according to data from the Energy Information Administration (EIA).

However, during this same time period, the Texas statewide average residential electric price fell by 14%, according to the EIA data.

And rates fell even more in parts of Texas where customers have a choice in their electricity provider .  AECT noted that when comparing competitive offers from electric suppliers as archived by the state’s Public Utility Commission, the average residential offer in Texas’ competitive electric market dropped by 32% from August 2006 to August 2011.

The data once again shows that customers save money on their electric bills when they can choose their energy supplier can get competing electric companies to offer them lower rates.

Although opponents of such electric choice continue to spread myths about electric competition, AECT’s data confirms what is evident in other data sets and comparisons as well. 

As recently noted by SaveOnEnergy.com , Texas electric rates are lower today , thanks to competition, than they were 10 years ago before competition — and that’s even without adjusting for inflation.

Furthermore, despite much noise to the contrary, SaveOnEnergy.com noted that electric rates in Dallas and Houston, where customers can shop for their electricity provider , are lower than in most of the “regulated” (or monopoly) areas of the state, including utilities like El Paso Electric and Entergy Texas, munis like Austin Energy, and cooperatives like CoServ.

Posted in , , | Leave a response

Rate Hike for Austin Energy Customers Shows Danger from Monopoly Power Provider

By Tracy Hodge on December 14, 2011

The massive rate hike looming for customers at Austin Energy, which SaveOnEnergy.com first told you about this fall , is “Exhibit A” in how customers are better off when they can choose their electricity provider , and a reminder of how bad things were under the monopoly utility system which existed in all of Texas prior to 2002.

SaveOnEnergy.com noted in September that Austin Energy’s rate case would force some customers to subsidize lower electric rates for other customers.  This doesn’t happen when customers can shop for their electric provider , as customers can choose a new provider if any electric company is making them subsidize another customer’s rates.  SaveOnEnergy.com also recently noted that electric rates at Austin Energy are higher than rates in parts of Texas open to electric choice — and that’s before the impending massive 23% Austin Energy rate hike for residential customers .

But that’s only a fraction of the problems facing customers at Austin Energy, who have no choice and must buy their electricity from the city-owned monopoly utility. 

For starters, Austin Energy’s electric rates pay for more than just electricity — they’re used for a variety of pet projects by city politicians.  This means Austin’s electric rates are higher than they need to be, but customers can’t avoid this over-charging by switching to a lower-priced competitor like they can do in Dallas or Houston where customers have choice.

The Austin American-Statesman noted that, “Many Austin Energy customers might not know it, but they pay for much more.  New streetlights.  The city’s economic development office.  Research into sickle cell anemia.  And a green-living expo, among at least $130 million in spending last year that has little or nothing to do with electricity , according to some city officials and civic activists.”

This is even worse for customers who live in Austin Energy’s service area but not within the city limits of Austin.  These customers are forced to pay higher electric rates to Austin Energy, but since they live outside of the city, receive no benefits from any electricity revenue Austin Energy funnels into the city’s coffers.

A website dedicated to protesting the Austin Energy rate hike says that $100-$150 million annually is diverted from Austin Energy and put into the general funds of the city.  This same site noted that over 50,000 customers who live in the monopoly Austin Energy service area aren’t eligible to vote for City Council.

If a customer feels they’re being overcharged in Dallas, Houston, Corpus Christi, or another part of the state where Texans have a choice in their energy provider , they can “fire” their current provider and switch to one of over 30 competing electric suppliers offering low rates to win the customer’s business.  But in areas of the state still closed to competition, like Austin, customers have no recourse, and cannot avoid paying higher electric rates , even when unjustified.

Posted in , , | 1 Response

Blackouts Possible in Texas This Winter and Next Summer; Pushing Electric Rates Higher

By Tracy Hodge on December 7, 2011

Back in November, SaveOnEnergy.com warned customers that all indicators are that Texas electric rates — which have been at record lows for about the past 24 months — will rise in the near future, because of looming generation capacity shortages under which demand for power will outstrip supply.  Customers can avoid these expected electric rate hikes by shopping for a new energy provider with SaveOnEnergy.com now, while rates are still low.

The fears of higher electric rates were further confirmed last week as ERCOT, the independent entity which manages most of Texas’ electric transmission grid, reported bleak outlooks for both the forthcoming winter, and the summer of 2012.

In ERCOT’s winter assessment of capacity and demand for power, ERCOT expects that, under normal weather conditions, the winter peak demand should be around 53,600 megawatts (MW).  Available resources, based on normal generation outage rates, will be approximately 64,000 MW, meaning there will be sufficient capacity.

However, under extreme weather conditions, the winter peak demand could be approximately 60,000 MW.  Available generation resources during such extreme weather, based on above normal generation outage rates, could dip to approximately 57,000 MW, meaning ERCOT would be forced to institute rolling blackouts similar to those which occurred last February.

As for the summer, the 2012 “reserve margin” is projected at 12.1%.  The reserve margin is the amount of “extra” capacity on the grid, above the level needed to meet demand.  ERCOT has set a target reserve margin of 13.75% for reliability purposes, in order to account for extreme summer heat, unplanned generation outages, or other conditions which may either cause electric demand to spike, or the available generating capacity to fall.

ERCOT’s summer forecast, under normal weather, is for a peak demand of 64,618 MW, and capacity of 72,444 MW.

Since the expected summer reserve margin is below the 13.75% target, ERCOT warned Texas electric customers that there may be, “a repeat of this year’s emergency procedures and conservation appeals.”  Rolling outages could be required if summer power demand outstrips available generating capacity.

Whenever electricity demand approaches, or outstrips, the amount of generation on the grid, the wholesale electric price in Texas jumps to $3,000 per MWh, which equals $3 per kWh.  This is the price cap set in the wholesale market, and reflects the “scarcity” of capacity during times when demand is higher than available generation.

In contrast, most of today’s lowest retail electric prices are in the 8 <b>cent</b> per kWh range for residential customers, and even lower for businesses.  In other words, when demand outstrips the available generation supply, the price of electricity increases by 3,750%

When prices jump to $3,000 in the wholesale market, as they are expected to do frequently in 2012, retail electric providers are forced to raise their electric rates .  That means the days of 8 cent power for residential customers may soon be over.

However, customers can ensure that they are able to enjoy today’s low electric rates for as long as possible by shopping for a new energy provider with SaveOnEnergy.com , and locking-in that low rate for the future.  By shopping for a low electric rate with SaveOnEnergy.com , customers can avoid any impending rate hikes from Texas’ generating capacity shortage, and insulate themselves from the effects of the spiked “scarcity” electric prices .

Posted in , | Leave a response

Municipal Aggregations Deny Customers Full Savings from Shopping for Electric Supplier

By Tracy Hodge on December 1, 2011

A few weeks ago, SaveOnEnergy.com warned customers that opt-out municipal aggregations — in which customers are switched to an electricity supplier chosen by their city or town — do not produce the lowest electric rates for customers, and can lock customers into higher rates.

In most states, cities and towns don’t have the right to choose your electric provider any more than they are authorized choose your phone company or car insurance provider, but opt-out municipal aggregations are legal in places such as Ohio, Massachusetts, New Jersey, and Illinois.  They are especially growing in popularity in Illinois, particularly at ComEd around Chicago, and one of the reasons is because it’s a great deal for municipalities who can “skim” savings offered by electric suppliers for themselves, rather than passing the full savings onto customers.

Back in October SaveOnEnergy.com debunked the myths behind opt-out municipal aggregations, showing that they have no inherent cost advantage, and that customers can get the lowest energy rates by making electric companies compete for them individually with customized offers, rather than taking a blended “off the shelf” rate offered under a municipal aggregation.  Unfortunately, the problems with opt-out municipal aggregations are deeper, and there are even more reasons that the rates from municipal aggregations are higher than the rates customers can receive through SaveOnEnergy.com .

It is important to remember that with municipal aggregations, from a practical standpoint, it is the city who is the customer of the electric supplier .  The city, and not individual electric customers, negotiates with the suppliers, and ultimately chooses the winning supplier.  This means that electric suppliers spend all their efforts in trying to make the city happy in order to win the aggregation, and the city’s interests may not always align with what’s best for customers.

Because electric suppliers are so heavily focused on winning a city’s aggregation, they offer various incentives and other bonuses to the city itself rather than the individual electric customers — but these incentives are funded by skimming savings off of the rate offered to customers.

A common tactic used by electric suppliers in order to win a municipal aggregation is to offer the city a direct monetary grant — such as $500,000 — as part of their bid, or by offering to fund some other pet project of the city, such as a new building or fire truck.  Where does this money come from?  The savings the supplier would normally pass onto the customer.

Under this process, the winning municipal aggregation supplier might offer customers only 6% savings versus the utility’s electric rate , but it may, on the side, provide a direct grant of $500,000 to the city as part of winning the bid.  But if the supplier didn’t have to fund the grant to win the aggregation contract, it could pass on that extra money to customers through lower electric rates , perhaps raising the savings to 15%.

Indeed, the Illinois Daily Herald detailed this issue, as the village North Aurora confronted various aggregation proposals.

The Daily Herald noted that the village board, “discussed an option where, for slightly less savings, the village would have received grants back from the energy providers .”

As reported by the Daily Herald, Trustee Vince Mancini asked if the Illinois attorney general had issued any rulings about the legality of accepting such grants.

“There is a smell to it,” Mancini said.

Regardless of legality, it’s simply bad public policy and essentially denies customers the full savings that they could be receiving on their electric bill , instead funneling that money into the city’s coffers.  Customers who are promised savings under opt-out municipal aggregations need to shop around with SaveOnEnergy.com , to find out if aggregation grants have eaten into the total savings otherwise available in the market, and to check if lower rates are offered by competing suppliers.

Posted in , | Leave a response

Texas Electric Rates Lower in Areas Where Customers Can Shop

By Tracy Hodge on November 23, 2011

Contrary to claims by certain opponents of electric choice , electric rates in areas of Texas in which customers can choose their electric provider are lower than the old monopoly rates from 2001, and lower than rates in other parts of the state where there is no electric choice, including Austin and San Antonio.

As noted by SaveOnEnergy.com a few weeks ago, current Texas electric rates for parts open to customer choice are significantly lower than they were 10 years ago, right before competition started.

As to rates in other parts of Texas, the Public Utility Commission publishes a chart providing the average monthly bill for a residential customer each month.  These costs, which are provided for an average customer using 1,000 kWh, can then be translated into per kilowatt-hour rates simply by dividing the costs by 1,000, providing an easy comparison to electric rates available in areas of Texas that have electric choice , such as Dallas and Houston.

Here are the October rates (in cents per kWh) at several Texas utilities which do not offer choice, according to the PUC chart :

Austin Energy: 9.534¢

CPS Energy (San Antonio): 8.847¢

Entergy Texas: 11.469¢

El Paso Electric: 12.215¢

Southwestern Public Service (Xcel Energy): 8.893¢

Sharyland (Cap Rock area): 9.509¢

Most of these rates are substantially higher than the electric rates offered to customers in Dallas and Houston who shop for electricity on SaveOnEnergy.com , and none of the above rates from areas of Texas closed to choice are below the rates in competitive areas.

Specifically, by shopping with SaveOnEnergy.com , customers can find fixed rates at Oncor in the Dallas area as low as 8.2¢, which is below all of the rates from the non-choice areas listed above.  At CenterPoint in the Houston area, customers shopping with SaveOnEnergy.com can find fixed rates as low as 8.9¢, which is well below the rates from four of the utilities listed above, and about even with the rates from CPS Energy and Xcel Energy.

Although the electric rates of most electric cooperatives in Texas are not tracked by the PUC, many cooperatives have higher electric rates than the rates available in areas of Texas that have electric choice. 

For example, at CoServ, which serves the outer areas of Dallas, the current “all-in” residential energy rate for a customer using 1,000 kWh per month is about 13.6¢.  In contrast, as noted above, customers in parts of Dallas open to electric choice can find fixed rates as low as 8.2¢ on SaveOnEnergy.com , or 40% below the rate offered by the cooperative.

Posted in , | Leave a response

Page 1 of 22123451020...Last »