Ongoing fears of worldwide recession continue to depress energy prices, with natural gas, the driver of Texas electric rates, falling to a 13-month low in electronic trading.  Natural gas is hovering around the $6/MMBtu mark, the lowest level since September 2007.  Even a cut in oil production from OPEC could not reverse falling prices, as investors fear the economic slowdown will reduce demand for energy and erode prices.

 

While customers might wisely be out shopping for a lower electric rate amid the falling energy prices, they might run into a big barrier — some energy suppliers are suspending enrollment of new customers because of credit and financial problems.  That’s right; some electric companies are turning away customers, particularly commercial customers, because serving them on a fixed-price contract would entail higher credit obligations and risk.  It could mean customers end up doing all their homework, researching energy providers and looking for a quote, only to be told they can’t be enrolled.

 

Texas customers can avoid this frustration, however, by using SaveOnEnergy.com to choose their next energy provider.  SaveOnEnergy.com’s exclusive retail exchange portal takes all the legwork out of getting quotes and researching energy suppliers.  Instead of customers having to guess which suppliers are still accepting new customers, with SaveOnEnergy.com business customers simply enter their information on SaveOnEnergy.com’s website, and the information is instantly transmitted to several electric companies who are competing head-to-head, and want to enroll the customer. 

 

In the best of times, SaveOnEnergy.com’s exchange portal is a convenient way for businesses to shop for power any time of day or night, quickly and easily.  But with the turmoil in the financial and energy markets, using SaveOnEnergy.com to find the cheapest electric rate for your business is even more important.

 

First, SaveOnEnergy.com screens all its energy suppliers so only those with the utmost financial strength qualify to compete for your business.  SaveOnEnergy.com also only recommends electric companies with low prices, innovative products, and high levels of customer service.

 

Second, SaveOnEnergy.com now saves business customers from going on a wild goose chase, by putting business customers in touch with energy providers who want the customer’s business.  Customers using SaveOnEnergy.com’s exchange portal won’t run into the problem of having to navigate today’s confusing and uncertain marketplace, and won’t meet resistance from electric companies not interested in enrolling new customers.  SaveOnEnergy.com streamlines the process of shopping for electricity, and saves business owners the headache of trying to figure out which suppliers are taking on new customers, and which are on a hiatus.  With today’s present buying opportunity due to lower energy prices, SaveOnEnergy.com is a simple, hassle-free way to cash in on the falling prices.

 

One-year ago, Dallas-based SaveOnEnergy.com revolutionized the way Texas businesses shop for electricity, giving them the ability to conveniently leverage the power of competition to get the lowest electric rate.  It’s been a resounding success for businesses, with over 3,000 using SaveOnEnergy.com’s exchange portal to save on their electricity bills. 

 

Only SaveOnEnergy.com’s exclusive commercial retail exchange portal gives Texas businesses of all sizes the opportunity to receive direct competitive bids for their electricity service from several competing energy providers. 

 

“SaveOnEnergy.com’s service took the stress out of finding an electric provider for my new business,” said Metroplex-based small business owner, Susan Dequeant of Special Occasion Chocolates who used the exchange this August to lock in a 24-month fixed rate for her business. 

 

SaveOnEnergy.com’s industry-changing exchange portal lets energy companies compete head-to-head for the customer’s business, and makes it simple and fast for businesses to benefit from competition.  Business customers simply log on to the SaveOnEnergy.com website, enter their business and usage information, and the information is then delivered real-time to each of several participating energy suppliers.  The suppliers then evaluate the information and contact the customer directly, rather than making customers go through a middle-man. 

 

That drastically reduces the time it takes to find a new, cheaper electric rate, and lets businesses start saving money faster.  It also keeps them focused on running their business instead of searching for a new power provider.

 

“SaveOnEnergy.com’s savvy small-to-medium business owners and operators are among the most knowledgeable in the buying market in understanding the positive impact the exchange portal can have on their businesses,” noted J.P. Schlensker, vice president of sales at Cirro Energy, one of the energy providers vetted and approved by SaveOnEnergy.com.

 

SaveOnEnergy.com’s exchange portal only features premier energy suppliers that have a proven history in the electric market.  SaveOnEnergy.com only recommends energy companies that have robust financials, high levels of customer service, and innovative and low-cost products.  SaveOnEnergy.com’s screening process gives businesses using the exchange portal confidence they are getting quotes from only the best electric providers, and not fly-by-night companies which may not be around in a few months. 

 

It all means SaveOnEnergy.com’s exchange portal is the best way for business customers to get competing electric quotes.  Fast. Easy. Convenient.  SaveOnEnergy.com gives Texas businesses the power of competition.

Texas businesses still have a good opportunity to lock-in a cheap electric rate thanks to falling natural gas and oil prices, but businesses should not wait too long because OPEC is accelerating the date for an emergency meeting where the cartel is expected to cut production in hopes of raising prices, while gas producers are announcing plans to scale back drilling due to lower natural gas prices.

 

That means the window on lower energy prices may be closing, and Texas businesses should shop around for a cheap fixed electric rate now, before rates start rising again.  Natural gas, the driver of Texas electric rates, has fallen about 50% since summer spikes saw $13/MMBtu, and trading last week saw prices hit the $6.40 mark.  However, lower prices mean producers are starting to shut-in production wells because the price cannot cover extraction.  The Federal Energy Regulatory Commission last week reported several companies have announced plans to shut-in rigs, raising the specter of rising prices from reduced supply, while the total count of U.S. oil and gas rigs fell by 14 last week.

 

Meanwhile, OPEC moved a planned emergency meeting originally scheduled for late November up to October 24, in a response to the sharp decline in oil prices, with oil closing at $69 on Thursday, about $60 lower than recent highs.  Analysts expect OPEC to cut production 500,000 to 1 million barrels per day in an effort to raise prices, which would likely reverberate throughout the energy market.

 

With natural gas and oil supplies potentially shrinking in the coming weeks, the currently low electric rates may be put under pressure to rise as wholesale energy prices increase.  That means the opportunity to lock-in a long-term, fixed electric rate may be disappearing.  Texas businesses looking to save money on their electric rates should shop for the best rate now, before prices start rising again.

 

Cities and counties in Texas have realized the current buying opportunity, and are acting to lock-in today’s favorable prices.  Municipal leaders have recognized the “short-term window” of cheaper electric rates and are acting to save their taxpayers money by shopping around.

 

While cities can hire attorneys to draft custom Request for Proposals for their electricity deal, Texas businesses can get the same power of competition without forking over thousands in legal fees.  All businesses have to do is log onto SaveOnEnergy.com to quickly and easily get competing quotes from several screened and certified energy providers, ensuring that businesses get the best rate possible. 

 

SaveOnEnergy.com’s one-of-a-kind commercial retail exchange portal gives businesses bargaining power when searching for a cheap electric rate, and puts the power of competition to work for them.  It takes just a few minutes for business owners to enter their information on the SaveOnEnergy.com exchange portal, and energy suppliers respond directly with their best rate.  It means businesses can shop for the lowest electricity rate without having to spend thousands on consulting fees or lawyers, and can complete the process in just a few days, rather than having to spend weeks researching and vetting energy providers, because SaveOnEnergy.com ensures only the best, financially sound suppliers compete for you business.

Falling natural gas prices make now an excellent time for Texas businesses to lock-in a cheap electricity rate ahead of the winter season, when higher natural gas demand from colder weather could erase the slide in gas prices.

 

The economic slowdown has depressed natural gas prices from the highs seen during the summer.  Once topping $13 per million British thermal unit (mmBtu), natural gas has tumbled to just over $6.50/mmBtu, bringing down electricity prices with it.  Natural gas is down about 40% from the levels seen in January, when the recent run-up in gas prices started.  The fourth quarter of this year is an excellent opportunity to take advantage of these low prices, and avoid any similar spike in January of 2009 caused by weather or other market conditions. 

 

Falling oil prices also make this a good time to lock-in a cheap electricity rate, as intraday trading has seen oil hit $77.09, a level not seen since September of 2007.  However, OPEC has called an emergency meeting for November, at which time it will likely cut production to ease the oil price slide and return prices to the $100+/barrel level.  Any such action would likely move natural gas prices higher, meaning business owners have a brief opportunity to lock-in a good electric rate now before the oil and gas markets recover.

 

Even though the commodity markets are supporting lower energy prices, Texas businesses still need to make sure they’re finding the best deal out there.  But rather than taking days, if not weeks, to research over 100 electric companies in the market, and risk missing out on the current buying opportunity, businesses can simply use SaveOnEnergy.com to find the best electric rate quickly and easily.

 

SaveOnEnergy.com offers Texas businesses its one-of-a-kind commercial retail exchange portal to directly compare offers from several competing energy providers head-to-head.  All it takes is a few minutes and a click of the mouse, as businesses need to simply enter their address, service area, and monthly bill amount.  The information is instantly transmitted to several competing electricity companies, who then respond directly to the customer with their best deals.  SaveOnEnergy.com’s retail exchange portal cuts down on the time it takes to compare electric rates allowing business owners to shop for and compare rates on their own time.

 

More importantly, using SaveOnEnergy.com to choose an energy provider means an energy expert is vetting and screening your suppliers.  Businesses do not have to worry about locking-in a fixed rate with an energy provider that might go out of business in the next couple of months.  SaveOnEnergy.com’s energy market experts inspect each supplier to ensure they have the highest financial strength and fundamentals, and also only approve suppliers with low prices and high levels of customer service.  SaveOnEnergy.com’s retail exchange portal takes the work out of finding a cheap electric rate, making shopping a breeze for commercial electric customers.

The financial integrity of Texas energy providers is becoming a top concern for customers again after two of the top electric companies reported significant revenue losses related to Hurricane Ike, and are evaluating strategic options, including possible sale of the companies.  That makes vetting your electric company more important than ever, and SaveOnEnergy.com provides a simple, independent way to find a reputable, stable energy provider that won’t leave customers stranded.

 

A volatile spring in the Texas electric market saw about eight electric companies exit the business, either by dropping customers to expensive Providers of Last Resort (POLRs), or by selling their businesses to competitors.  Either way, customers may have lost their fixed-price electric rates they had originally contracted for.

 

Changes in how the wholesale market works made for a calmer summer, and it looked like the rash of failures in the electric market had been stopped.

 

However, that may change due to the devastation caused by Hurricane Ike, which has cost electric companies millions, and has put even the biggest, most well-known providers under a cloud of uncertainty.  Energy suppliers have been hurt not only because of lost sales due to outages, but because they bought power in advance to serve customers, then were stuck with that power that customers didn’t end up using.  Electric companies also had to set up emergency and temporary operations as their offices and employees lost power.  It all means that it’s been a rough third quarter for electric companies after a very bad second quarter, and the losses are piling on.  With credit markets tightening, electric companies have little recourse in looking to borrow to shore up their bottom line.

 

Reliant Energy, one of the dominant energy suppliers in the Houston area, announced that it is undergoing a comprehensive company re-organization after cutting revenue projections by $350 million due to losses from Ike.  The review includes selling to fewer of the largest business customers, in an effort to reduce collateral needs.  According to the Houston Chronicle, “renewing commercial customers may have to accept shorter-term contracts or deals structured so they bear more of the risk from changing commodity prices.”

 

Reliant has lost more than half of its stock value since Sept. 15, and investors slammed Reliant for its loss-prone retail business, questioning why the unit is not sold-off so Reliant can focus on owning power plants.  Reliant was forced to admit all options were on the table in terms of the future of its retail electric business, though it defended the value of the unit.  Nonetheless, many investors would like to Reliant sell the unit.

 

Meanwhile, another of the largest electric companies, First Choice Power, announced that it expects a $10 million loss in earnings from Ike. 

 

Both Reliant and First Choice Power are “incumbent” providers for certain parts of Texas, meaning they took over the customers of the old utilities like Houston Light & Power when competition started.  Because they inherited customers from the old utilities, many Texans see incumbent providers are more stable or reputable than many of the new competitors that entered the market in 2002.  However, with both Reliant and First Choice considering the future viability of their retail energy units, it’s clear that customers cannot just assume the companies they’ve always been with will be around in the next quarter or next year. 

 

Because of the complexity of the electric industry, it’s hard for customers to research an energy provider’s financial bona fides, especially when many are privately held.  That’s where SaveOnEnergy.com can help customers by vetting and screening electric companies, to get customers the best rates offered by the most reliable companies.  By using SaveOnEnergy.com to find the best electric rate, both residential and commercial customers can be assured their energy provider won’t abruptly leave the market and leave customers stranded on a higher rate.