As oil prices continue to fall and recede below $50/barrel, so are Texas electric prices, and customers still have a great opportunity to shop for a long-term, lower rate.  And the ability of Texas electric customers to choose their energy provider is keeping rates lower than what they would be under old-style monopoly regulation, new studies from separate groups confirmed last week — even when comparing higher prices seen this summer.

 

First, The Analysis Group compared the current electricity prices that Texans are paying with what rates would have been if customers could only buy their power from the old TXU or Houston Light and Power.  The analysis confirmed that electric competition is saving Texans real money.

 

If customer choice had not been implemented, prices since 2001 in the Dallas and Houston areas would have doubled, and would exceed 20¢/kWh, The Analysis Group determined.  Based on adjustments for today’s higher fuel and labor costs, regulated rates for residential customers today would be 20.28¢/kWh at TXU and 21.67¢ at Houston Light and Power.

 

That’s significantly higher than the low prices available today, and anywhere from 6¢ to 8¢ more than the prevailing rates under competition, which average in the 12-13¢ range.  Moreover, under the old monopoly system, customers would be paying higher rates with no alternative to choose from.  With competition, not only do Texans get lower prices, they can shop around for electric companies offering renewable energy, rewards and loyalty points, and higher levels of customer service.

 

A second study by the Northbridge Group confirmed that Texas electric rates are not raising any faster than similarly situated states that depend heavily on natural gas to fuel their power plants.  The study found that rates in regulated and deregulated states tracked each other very closely from 1997-2007, and that deregulation is not responsible for higher prices in Texas.

 

Texans still need to take action to enjoy the benefits of competition and lower prices, however.  Many Texans still have not switched their energy provider, and remain with their old “legacy” electric company from the monopoly era.  In doing so, customers are paying more than they need to for electricity.

 

While electric choice may seem like a complicated and time-consuming task, SaveOnEnergy.com has made it easy for Texans to take advantage of competition and find cheaper electric rates.  SaveOnEnergy.com works with several reputable and stable energy providers to find the lowest rates and best products in the market, and then makes it easy for you to compare and select them in the comfort of your own home.  With just a few clicks of the mouse you can compare different options and pick the right electric plan for you, making saving money on your electric bill a breeze.

Continued negative economic data is pushing energy prices down further, giving Texas businesses more opportunities to lock in a cheaper electric rate through SaveOnEnergy.com. 

 

 

Even though OPEC is racing to cut production again, it doesn’t appear the cuts will prevent oil from sliding to $50/barrel, as sharply lower retail sales have spooked the market and cast serious doubts on economic growth, and demand for energy. 

 

The U.S. Commerce Department said Friday that retail sales fell by a record 2.8% last month, surpassing the old mark of a 2.65% drop set in November 2001 in the wake of the September 11^th terrorist attacks. 

 

The news prompted OPEC to schedule a second emergency meeting in as many months to shore up prices, but the previous production cut failed to stop oil’s slide, and prices have fallen another 8% since the meeting.  It’s unlikely further action will stop the bleeding either, given global recessionary fears.  Oil fell to $56 during Friday trading, nearly two-thirds off its summer high of just under $150.

 

Meanwhile, higher-than-expected storage injections of natural gas pushed NYMEX natural gas prices down to $6.05/MMBtu in Friday intraday trading — again, well off historic highs seen earlier this year, although prices rebounded a bit later in the day.

 

It all means Texas customers who have not taken advantage of the current buying opportunity still have a chance to find a cheap electric rate and lock-in savings. 

 

Texas business owners can leverage the power of competition to find even lower electric rates using SaveOnEnergy.com’s exclusive retail exchange portal, which lets electric companies compete head-to-head for the customer’s business.

 

The best part is it’s fast and easy, while still giving business customers the best electric rate with reputable, proven energy suppliers.  It takes just a few minutes to enter the business’s address and usage information on SaveOnEnergy.com’s online exchange portal, and the data is instantly transferred to energy providers in real-time.  Energy suppliers then contact the customer directly with their best energy prices, cutting down on the time and hassle it takes to shop for electricity.

 

Current electric prices are at levels that were unthinkably low just three months ago, and businesses have a real opportunity to cut back on expenses in a struggling economy where every penny counts.  SaveOnEnergy.com is a quick and easy way to improve your business’s bottom line, and make sure you’re not giving up an advantage to your competitors by paying more for electricity than you need to. 

 

 

The Public Utility Commission of Texas (PUC) is moving forward with reforms meant to prevent electric customers from paying the highest rate for power if their energy provider goes out of business and customers are forced onto emergency service. 

 

Last week, the PUC approved a draft to revamp what is currently known as “Provider of Last Resort” service, or POLR service.  POLR service is where customers end up if their chosen electric company goes bankrupt or leaves the market.

 

Under the current rules, the POLR rate is set at a variable price tied to the wholesale energy market, plus a 20% mark-up to cover the risk electric companies serving as Providers of Last Resort take on.  However, that means the POLR rate is the highest in the market, and extremely volatile. 

 

Some 40,000 Texans were hit with extremely high POLR prices never seen before in the Texas market this summer, because five electric companies went out of business and left customers stranded.  The rates were higher than normal because of extreme volatility in the wholesale market, with record high prices.

 

The PUC is trying to prevent customers from seeing those prices again.

 

Under the proposal issued last week, the PUC would try to put more stranded customers with an electric company that charges a lower rate.  The PUC would encourage more “volunteer” Providers of Last Resort, who would charge a month-to-month market rate without the current mark-up.  Mandatory Providers of Last Resort — electric companies pressed to take on stranded customers — would also only be allowed to charge a monthly market rate without the current mark-up.  The only time the mark-up would be permitted would be for extremely large transitions, where the Providers of Last Resort would be forced to buy large blocks of extra power for hundreds of thousands of new customers on very short notice — an expensive proposition.

 

Another alternative suggested by the PUC is giving customers transitioned to a Provider of Last Resort a short period — say 30 or 45 days — to find a new electric company before having to pay the marked-up POLR price.  During this period, customers would not have to post a deposit with their Provider of Last Resort either.  During the troubles this summer, customers in some cases were faced with having paid three deposits:

1)      First to their original energy provider who went out of business, with the deposit not refunded or refunded very slowly;

2)      Second to their interim Provider of Last Resort to prevent disconnection of service;

3)      And third to a new energy provider if customers wanted to switch away from the POLR to another company with a cheaper electric rate.

 

The proposed rule would attempt to address that situation.  The PUC also suggested it may decide to waive special fees so that customers can switch electric companies immediately to leave POLR service and find a cheaper electric company, instead of waiting for their monthly meter reading.  Typically such accelerated, or out-of-cycle, switches cost the customers money.

 

While the PUC is aiming to reform the emergency service rules, the Commissioners recognize that the best solution is for electric companies to not go out of business, so customers never have to deal with having to be transitioned to a Provider of Last Resort.

 

The best way customers can protect themselves is by choosing an energy provider that is financially strong with a proven track record in the market.  That can be difficult and time consuming for customers, but there’s an easy way to find a good, reputable electric company.  SaveOnEnergy.com, which lets customers find the cheapest electric rate online, screens all its energy providers so only financially robust and reliable companies are recommended.  The energy experts at SaveOnEnergy.com conduct painstaking research of all the energy suppliers in the Texas market to find out which ones are the most financially sound and competent.  That means when you find a cheap electric rate on SaveOnEnergy.com, it’s with a company that can stand behind it, not a fly-by-night operation that will leave you stranded.