It won’t come as a surprise to Texas small business owners, but rising energy prices are second only to health care costs as the top problem facing small businesses, according to a recent study by the National Federation of Independent Business (NFIB). Some form of energy costs were ranked as a "critical" problem by 58% of business owners. According to NFIB’s Energy Consumption poll, energy costs are one of the top three business expenses for 35% of small businesses.

NFIB isn’t telling business owners anything new by reporting that energy costs have increased rapidly over the last two years and even more so in the last six months. Small business owners are not able to adjust the price of their goods and services quickly enough to match the steep energy price increases without hurting their customer base, NFIB noted.

Business owners are also not able to change business practices fast enough to offset the increases. For example, NFIB reported that most owners cannot afford to buy new, more energy efficient equipment if current equipment still has useful life. "They are effectively caught in a squeeze that only time and/or good fortune will release," NFIB warned.

High electricity rates particularly impact retailers and non-professional service providers, such as auto repair shops, barber/beauty shops, theatres, restaurants, motels, and delis, NFIB found.

Texas small businesses at least have the power to take control over one facet of their energy costs by choosing a low-cost electricity provider . But small businesses, according to the Texas Public Utility Commission (PUC), have not historically shopped for a lower electricity rates in as high as numbers as their larger competitors. Instead, they’ve stayed with their old "legacy" provider who sold them power before customer choice began. The PUC found that more customers who shopped paid lower electricity rates , while those who stayed with their legacy provider typically were paying the highest rates.

Not only does that mean small business owners are paying more than they should for power by not shopping, it also means they are losing an advantage to their competitors who do go out and scour the market for cheaper electricity .

Of course, large corporate conglomerates have entire staffs devoted to energy management which allows them to devote the time needed to compare energy prices and energy providers . Small business owners, busy ringing cash registers or stocking shelves, find it harder to cull through hundreds of offers from nearly one hundred Texas energy providers .

That’s where SaveOnEnergy.com can help small business owners. SaveOnEnergy.com provides a one-stop shop for small business owners to receive and compare custom electricity offers from eight energy suppliers , just like the big guys.

SaveOnEnergy.com’s exclusive commercial retail exchange portal allows small business owners to shop for cheap electricity with one-click of the mouse, so they can get back to running their businesses. SaveOnEnergy.com’s online exchange puts small business owners in charge, and lets them buy electricity on their time and terms. Business owners just enter some information about their electricity bill, location, and any special requests for the type of product they’re interested in, and they’ll receive up to eight quotes from competing electric companies . And SaveOnEnergy.com vets their suppliers to ensure they’re financially sound providers with good customer service. That gives small businesses piece of mind, and frees them from having to devote time and resources trying to track down whether an electric company is stable and reliable.

SaveOnEnergy.com gives small businesses the power to save money on electricity without having to take time out of keeping their businesses running. That makes them more competitive and puts them on equal footing with the big guys.

High electricity rates are here to say and are a national phenomenon. Staff at the Federal Energy Regulatory Commission (FERC) reported Thursday that they see, "significantly higher power prices that will last for years," and that the trend is, "universal around the country."

Essentially, FERC found higher prices to be inescapable because of higher fuel (coal, natural gas, etc.) prices and higher construction and raw material prices (copper, aluminum, nickel, etc.) caused by worldwide demand and increasing demand for electricity here at home. Add in uncertainty over climate change legislation, and you have a recipe for persistently high power prices .

The effects are starting to be felt by consumers nationwide. While electricity rates may lag in some areas, utilities across the USA are raising power prices up to 29% , mostly to pay for soaring fuel costs and to build new plants and refurbish an aging power grid. According to USA Today, "Even more dramatic rate increases are ahead. The mounting electric bills will further squeeze households struggling with spiraling gasoline prices."

While retail electricity rates may ebb and flow in Texas, the data shows over the long run they won’t be immune from these pressures, and are set to keep rising along with prices across the U.S.

Natural gas, the primary fuel for Texas power plants, will continue to be the leading fuel for new capacity over the next half decade, FERC reported. But FERC also found future natural gas prices to be as high as $13 for the coming winter, and remaining as high as $10-11 through 2010. That’s compared to a cost of $6 just last year. It’s just another confirmation that electricity rates aren’t going fall anytime soon.

But while customers in most states have little choice but to grin and bear ever-increasing prices, Texans do have a tool to at least shield themselves from future increases by shopping for a fixed-price term product. Most energy providers offer plans lasting 12 or 24 months which provide protection against rising power prices, and some energy suppliers offer 36-month or longer term deals on a custom basis.

SaveOnEnergy.com provides customers with an easy online portal to review and evaluate fixed-price electricity plans. Since SaveOnEnergy.com pits electric companies against each other in head-to-head competition, customers are assured the best rate for their fixed prices, and can evaluate value-adding features such as airline bonus miles.

The analysis from federal regulators and other market experts regarding ever-increasing electricity prices shows there’s little downside to shopping for a fixed-price electricity rate right now. While Texans don’t want to lock-in a high rate at the height of the market, no one sees significantly cheaper electricity rates in the near future. Finding a good fixed-price rate on SaveOnEnergy.com will actually shield customers from the trend of rising prices and provide budget certainty that’s only available in markets like Texas where customers have the freedom to choose their electricity provider .

Even though the Public Utility Commission and the state’s grid operator are rushing to fix problems that have caused Texas electricity rates to soar, the changes aren’t guaranteed to bring lower prices, and may even carry unintended consequences that still result in high electric rates for customers who haven’t locked-in a fixed price.

While the news is filled with reports about regulators trying to calm the wholesale market, Texas businesses should remember that even with the changes, the wholesale electricity price will still be designed so that, at times, it hits $2,250 per Megawatt-hour, or about 30 times higher what may be considered a "normal" price. All that means is that businesses should still be looking for fixed-price deals to avoid summer price spikes and volatility to avoid being left open to anymore unexpected turmoil in the wholesale market.

Last week proved again that as businesses shop for a good fixed rate, they need an expert to help them avoid picking an unreliable or unhealthy energy provider. Riverway Power became the fourth electric company to fail, stranding over 6,000 customers on high-priced Provider of Last Resort rates. Some 40,000 customers of four different energy suppliers have shared that fate, exposing them to prices as high as 30¢ per kilowatt-hour, or nearly triple the average rate.

High electricity rates and market turmoil make the commercial retail exchange program at SaveOnEnergy.com more important to businesses than ever. Not only does it pit eight electric companies against each other to save businesses money on their electricity bill, SaveOnEnergy.com only uses qualified, financially sound energy providers , so customers won’t make the mistake of choosing an energy supplier that is forced to declare bankruptcy.

Even if the Public Utility Commission fixes the problem of unprecedented prices in the wholesale market, the summer still promises to see extremely high prices. The Market Clearing Price for Energy (MCPE), or spot market price, will still be allowed to rise to $2,250/Megawatt-hour, meaning customers who buy on the spot market will be exposed to wild price swings, as the spot market price normally falls around $50, with $100 considered a high price seen at peak times. All the factors driving high electricity prices remain — record natural gas and oil prices, hotter weather, increased electricity demand, and a congested power grid. What regulators are doing is making sure prices don’t go above the $2,250 cap, which has happened because of some quirks in the system. But that’s still a high and volatile price.

And the question of unintended consequences looms as well. The solution being considered by regulators is a highly complex, complicated mechanism. While it might fix one problem, some industry experts have questioned whether it will transfer high costs from one area to another, in affecting the value of so-called "Transmission Congestion Rights," or instruments that protect power marketers from paying certain costs when the grid is overloaded. A few industry experts are blaming a little-debated March decision concerning the wholesale market "shadow price," or price arising from congestion, for the spot market prices in excess of $4,000 that have caused the turmoil. It just shows how in a system as complex and interdependent as an electricity market, one small change can wind up having big consequences. The price protection offered from fixed-price electricity products is more appealing than ever in light of this uncertainty.

Through SaveOnEnergy.com’s commercial exchange, Texas businesses can find the cheapest electricity available while getting a product that fits their needs and risk appetite. The custom energy prices available through SaveOnEnergy.com can fix all or part of a business’s electric usage at a fixed price to give the business budget certainty.

Two more Texas energy providers have bit the dust as record price volatility wreaks havoc on the market. Customers of eTricity have been switched to high-priced Providers of Last Resort (POLR), a safety net service designed for when an energy supplier goes out of business, while Riverway Power declared bankruptcy to avoid that process. With two prior failures at the end of May, four electric companies have recently failed, forcing about 35,000 customers onto the high-priced POLR service, where the average monthly bill could triple for some customers up to $300. Market experts predict more defaults among marginal energy suppliers if the wholesale market doesn’t calm down.

Customers on POLRs are being urged to switch quickly to find a lower electricity rate , but how do they avoid picking another clunker? Some websites, which claim to help customers pick the best electric company , prominently featured some of the now out-of-business providers like Riverway and National Power.

That’s what makes SaveOnEnergy.com different. It only lists offers from qualified energy suppliers to ensure customers aren’t left in the dark. Electric companies are screened by SaveOnEnergy.com’s industry experts, and only stable, financially healthy providers with seasoned, competent management are recommended. Energy suppliers must also have outstanding customer service, substantially lower rates, and innovative products and features.

SaveOnEnergy.com knows that teaser offers promising low prices may not be all they’re cracked up to be if the energy supplier can’t make good on the offer, and leaves the customer stranded and paying 30¢/kWh power, when most rates are less than half that.

That’s a sentiment echoed by one of SaveOnEnergy.com’s qualified suppliers, MXenergy, which called for tighter rules in the market.

"People are surprised to learn that the lowest price is not always the most reliable," MXenergy CEO Jeffrey Mayer said. "Customers know they shouldn’t buy their life insurance from the lowest cost carrier, and now they are learning to be cautious about whom they choose to supply them with power."

The energy suppliers on SaveOnEnergy.com are all battle-tested providers that know how to survive the ups and downs of the market. They aren’t new start-ups promising low electricity rates without having seen the volatility the market can bring.

Electric companies making the SaveOnEnergy.com cut include some of Texans’ traditional providers from before competition (TXU Energy and Direct Energy, which bought the old CPL and WTU utilities), competitors that have been around since the market opened six years ago (like Cirro Energy, Commerce Energy, Green Mountain Energy and Gexa Energy), and newer competitors who have entered Texas after successful operations in other states (like MXenergy and Hudson Energy).

While regulators have been urging POLR customers to switch to cheaper plans, customers who have doubts about the strength of their energy supplier should consider switching as well, to avoid the same fate as the 35,000 customers recently dropped to POLRs. While you might pay a few cents more upfront to switch to one of the energy providers vetted by SaveOnEnergy.com , switching now could save you from paying 30¢ for a month’s worth of power, and also gives you a chance to lock-in an electricity rate now before the summer price spikes really kick in.

For customers that have been dropped to a POLR, they can speed their transition to a new, cheaper energy provider by requesting an off-cycle meter read, and waiving a mailed notification about the supplier switch. Many electric companies will now offer to waive the typical off-cycle meter reading fee for POLR customers as a goodwill gesture and to win the customer’s business.

Electric companies say that most Texans switch their energy supplier in the third quarter of the year, after they receive their first summer bill for usage during June — when air conditioning load and higher summer power prices give homeowners a heftier bill. With consumers being hit on all sides from record gasoline prices to rising food prices, homeowners can’t afford to wait until receiving that first high summer bill to seek out savings in the electric market. They need to find a better, more secure rate now, before running up their meter, and SaveOnEnergy.com offers a quick, hassle-free method for consumers to compare prices and find the best rate.

Residential electricity prices have skyrocketed in Texas from a confluence of factors – higher prices for natural gas, oil and coal, plus “congestion” in certain parts of the electric system, which has kept cheaper power from reaching metro areas like Dallas and Houston. Just look at these residential price increases for the cheapest market offer from January of this year to today:

Region Corpus Christi (AEP Texas Central) Houston (CenterPoint) Dallas/Ft. Worth (Oncor) Texas-New Mexico Power: Abilene (AEP Texas North):

Price Increase 28% 28% 27% 18% 13%

  

The most worrisome part for consumers is that those price spikes have come when prices are usually calmer – before summer heat puts severe strain on the electric system and causes more expensive power plants to generate electricity. If those are the spikes the market saw when it’s supposed to be quiet, there’s no telling how high Texas electric rates will jump in the heat of the summer – especially if a hurricane threatens to disrupt Gulf of Mexico energy supplies.

But customers can’t just blindly pick their energy provider. The dangers of going it alone hit home twice recently as two energy suppliers have defaulted, leaving about 23,000 customers to pay the most expensive electricity rate in the state.

The good news is that SaveOnEnergy.com vets its energy suppliers to ensure they’re reputable, financially sound companies that have high levels of customer service and satisfaction. They’re not going to drop out of the market and leave customers stranded because they can’t pay their bills.

And despite the run-up in prices, customers can still get attractive, term deals on SaveOnEnergy.com, and can lock in a favorable rate to avoid summer price spikes.

One of the best offers may be Direct Energy’s 12-month price protection plan in the Dallas-Ft. Worth area (Oncor), given that the region can be hit by higher prices when the electric grid is congested. Direct’s price protection plan includes a rate of 13.5¢ per kilowatt-hour, a good deal considering that fixed rates may be well on their way past 15¢ in that region. Direct’s offer is the clear bargain among 12-month offers in DFW.

The Houston (CenterPoint) and Corpus Christi (AEP Texas Central) regions have higher prices because it’s tougher to move power into those areas. However, rates are still below the highs seen in the last period of volatile energy prices in 2006, and consumers still have a chance to lock-in a reasonable rate to avoid summer price shocks that cold reach 18¢ or even 20¢. Hudson Energy offers the lowest 12-month rate in both regions, at 15.0¢ in Corpus Christi and 15.3¢ in Houston.

The best deals are available in the Abilene area (AEP Texas North) and the Texas-New Mexico Power region where plentiful wind power is keeping prices down.

Gexa Energy boasts the lowest 12-month plan in the Abilene region, at 12.3¢. The plan also includes an extra value in allowing customers to earn American Airlines or Continental frequent flyer miles simply for using electricity. Additionally, Gexa offers a pretty cheap, 100% renewable power product in the Abilene area for only 12.7¢, a modest premium for green power that includes all the airline mile bonuses of Gexa’s standard plan. Commerce Energy offers an attractive 24-month plan for only 12.6¢ that gives customers added price protection.

For Texas-New Mexico Power customers, Gexa offers a great rate of 11.9¢ for its 12-month plan with airline miles. With energy prices rising unabated, a plan below 12¢ probably won’t be around much longer.