Texas electric customers are being urged to be vigilant when it comes to watching their bills and contract, to make sure they aren’t rolled over onto a higher variable rate at the end of a term contract, or get subjected to large monthly swings in their variable rate without notice.  Horror stories include rates jumping from 12¢ to 19¢, and bills spiking from $98 to $360.

 

The problems are one of the many reasons it pays to shop for electricity with an expert like SaveOnEnergy.com, who can not only find you a cheap electricity rate, but help you determine when your contract expires, and ensure a smooth transition onto a new, low fixed rate without any nasty surprises.

 

As previously noted, the Texas Public Utility Commission is working to change the market rules so that customers receive standard notices about their contract expirations, so they don’t get pushed onto higher prices.  However, as things stand now, what happens when a customer ends a contract can vary by electric company.  The better electric providers notify customers on their bills and through separate mailings, warning them about contract expiration, and typically offering a new rate.  However, even these messages can be overlooked (when on a bill), or thrown out as junk mail (when sent separately).  Other electric suppliers only send customers emails (to an address which may be out of date), or do not provide any notice at all, because they believe the original contract, which enumerated provisions for what happens at the end of the contract term, provided sufficient advanced notice.  It all means too many Texans end up paying more than they expect — and need to — for electricity when their contract expires, all because they weren’t aware it was time to shop again.

 

Even when customers do their homework and know their contract is about to expire, they still sometimes fall through the cracks and end up paying higher rates because of the current switching process.  Right now, it can take over 45 days to switch an electric provider — meaning if you switch in the final month of your contract, you might “miss” your switch, and roll over onto an expensive product even though you did your homework.  The Public Utility Commission is working to make the switching process faster (to just a few days), and advanced meters will soon make switching almost instantaneous.

 

Complicating matters is that even electric companies aren’t sure when contracts sometimes end, which makes it nearly impossible for customers to be certain about switching at the correct time.  The reason is, while a customer contract is signed on a certain date, it actually starts on a customer’s scheduled “meter read” by their local utility, which is when switches normally occur to coincide with the end of a billing period.  While a schedule of meter reads by customer ID number is published for electric companies, it can vary due to the workload of the utilities, emergency work and restoration, and other logistical reasons.  That means a customer’s contract end date, and date for a new switch, isn’t always exactly known.

 

Customers can avoid any potential rate hikes, and the hassle of finding a new electric provider, by using an expert like SaveOnEnergy.com to find the best electric rate.  SaveOnEnergy.com can make sure a customer’s switch is timed exactly at the end of a contract term, so customers don’t end up paying higher rates, while also avoiding any possible fees for early termination.  The energy experts at SaveOnEnergy.com screen all their recommended suppliers to weed out any fly-by-night companies, ensuring customers only buy from stable, financially sound electric companies.  Using SaveOnEnergy.com to help you navigate the complex electricity market not only ensures you get the cheapest rate possible, but can make sure you don’t get any other nasty surprises along the way.

The landscape of the Texas electric market will soon be changing for residential and small business customers, as the Public Utility Commission is a step closer to finalizing sweeping rules changes meant to add to consumer information and protection.

 

 

During a PUC meeting last week, the Commission put the finishing touches on revising rules that set requirements for retail electric providers to disclose pricing and other important information to customers; how they label their products; and what notice customers are given when their product is about to expire.

 

 

The biggest change that will be readily apparent to consumers is a new, PUC-determined separation of products. Currently, customers can choose from a wide variety of fixed-price products and variable-priced products, with a host of “hybrid” products in between, combining elements of both basic types.

 

 

In order to standardize the definitions of each product type, and to make sure customers know what they’re buying, the PUC is about to set specific rules for each product. Although the Commission is still working on final language for the rules, the PUC agreed last week to create three types of products for the Texas retail electric market :

 

1. A “fixed rate” product: A fixed rate product would include a price for each month of the contract term that is the same throughout the contract term, except the price may change due to changes in fees from the local wires company (like Oncor) who delivers power, the state’s power grid manager (called ERCOT), or other new government fees. Fixed rate products would have to be at least three months long.

 

2. An “indexed” product. An indexed product could vary each month, and would be linked to a defined, publicly available index, such as the cost of natural gas, or the cost of power in the wholesale market.

 

3. A “variable-priced” product. Like an indexed product, a variable-priced product could have a rate which changes month to month. However, unlike the indexed product, which only changes due to changes in another commodity that the product is linked to, a variable product could change at the discretion of the electric company . Variable-priced products could only be month-to-month, because of the possible price changes customers could experience. Furthermore, electric providers will have to inform residential customers of the historical prices for variable-priced products.

 

 

Customers should start seeing the new product labels in the electric market in about five months, as electric suppliers are given time to change their contracts and other materials to conform to the new rules.

 

 

While the new product types from the PUC are meant to simplify things for customers, the electricity market will still be a confusing and opaque place. That’s why using an expert like SaveOnEnergy.com to help you find a cheap electric rate can make things so much easier. With SaveOnEnergy.com , you can browse through the best offers of several vetted and screened electricity providers any time day or night from the comfort of your own home, without the hassle of calling each electric provider directly, waiting for a quote, and then researching their background and reputability. SaveOnEnergy.com does all the legwork, scrutinizing electricity suppliers for financial stability, high levels of customer service, and history in the market, so only the best are recommended to you.

 

 

And best of all, SaveOnEnergy.com simplifies finding the best electric rate by allowing you to easily compare the best rates, giving you the power of competition with just a few clicks of the mouse.

Even as oil recorded its worst week in a month, some pundits are raising the alarm about $200/barrel oil in the near future, once the global recession eases. 

 

The reasons are several — production cuts, lack of investment, and expected demand growth as the economy recovers.

 

It means Texas electric customers should take advantage of today’s low energy prices now, by locking in a low, fixed rate for electricity using SaveOnEnergy.com.  SaveOnEnergy.com allows customers to use the power of competition to find the lowest rate, all from the comfort of their own home in just a few minutes.  By finding a new energy provider using SaveOnEnergy.com, customers will be assured of not only a cheap electric rate, but also of receiving energy from a reputable, financially sound supplier with a history of healthy operations in the market.

 

As for oil, some analysts say it could eventually top $150 or $200 a barrel.  At those prices, customers at the pump will be paying well in excess of the record $4.11/gallon national average set last summer.  Oil is trading just above $40/barrel today.

 

Pundits point to slowing capital spending by oil producers as one likely culprit that will move prices higher.  Lower prices and the credit crisis have compelled explorers and producers to pull back on planned operations.  Royal Dutch Shell has already shelved a near-doubling of production in Canada’s oil sands, because today’s lower prices do not support the investment.  Marathon Oil intends to slash capital spending by 15% this year.

 

Smaller oil producers could reduce investment 30%, Oppenheimer & Co. analyst Fadel Gheit predicted.  Smaller producers account for the bulk of the nation’s oil and natural gas production, but such smaller and independent companies have been hit hard by the credit crunch.  The frozen credit markets have forced them to postpone or cancel planned investments due to a lack of available financing.

 

Sean Brodrick, a natural resources analyst at Weiss Research Inc, said canceled or postponed oil and gas projects could cut global oil output by 7% or more in 2009.

 

While domestic producers face frozen credit markets and large conglomerates slash spending, the OPEC cartel is about to start its biggest single production cut in history.  OPEC controls approximately 40% of world crude supplies.  Meanwhile, the nationalization of the oil industry from Saudi Arabia to Venezuela has shuttered large swaths of proven reserves to Western companies like Exxon and ConocoPhillips.

 

Pundits say all these woes will mean higher prices at the pump, and another round of price shocks for consumers.

 

“Demand will start growing, supply will start coming down, and you’ll have that intersect again where prices will take off dramatically,” warned Bruce Vincent, president of Houston-based Swift Energy Co., an independent producer.

 

The futures market is already taking note.  While a barrel of light, sweet crude for February delivery costs about $50, the market for September oil is already over $60, the AP reports.

 

That means electricity prices could soon follow oil’s rise, and that Texas customers should not pass on today’s low prices.

SaveOnEnergy.com, which lets Texas electricity customers find the best electric rate, is kicking off the new year with a fresh look to its website, but still brings customers all the savings and service thousands of Texas electric customers have already realized through the site.

 

SaveOnEnergy.com has been saving Texans money on their electric bills for six years now.  Its industry-leading commercial exchange program allows Texas businesses to get up to eight competing offers from pre-screened energy suppliers, all with a few clicks of the mouse, anytime day or night.  Businesses just enter a few simple details such as their address, service area, and monthly usage, and the information is instantly transmitted to eight competing energy providers.  These suppliers then contact the customer directly with their best rates, cutting down on time and effort customers have to take in finding the best deal out there, while assuring them of finding a competent, qualified energy provider that has been vetted by SaveOnEnergy.com’s energy experts.

 

Three new suppliers have been added to the commercial exchange portal for the new year, and each is a proven, reliable company that can offer Texas businesses savings on their power bills.  New to SaveOnEnergy.com are MidAmerican Energy, the national energy supplier owned by Warren Buffet, local stalwart StarTex Power, and Glacial Energy, another provider with a national footprint.  This trio joins SaveOnEnergy.com’s existing roster including TXU Energy, Reliant Energy, Cirro Energy, and Liberty Power, giving Texas business customers the power of competition and the ability to find the cheapest electric rate.  SaveOnEnergy.com has one spot open on its commercial exchange, and expects to have that spot filled in January.

 

All the energy companies featured on SaveOnEnergy.com have passed a rigorous qualification process to ensure customers only receive offers from proven, reliable electric companies.  SaveOnEnergy.com’s experts screen suppliers for financial stability, proven track records in the business, a strong management team, good billing systems and high levels of customer service.  Only the best providers make the cut, and customers can be assured that when they shop with SaveOnEnergy.com, they will not only get a great rate, they will get a great provider as well.

 

SaveOnEnergy.com plans to take its unique commercial exchange program to new states in 2009, which will likely include New York, Illinois, Washington, D.C., Maryland, and Connecticut.  Soon customers in those areas will be able to enjoy the power of competition and convenience of SaveOnEnergy.com, and get multiple competing quotes with just a few clicks of the mouse.

 

SaveOnEnergy.com also helps residential customers find the best rate, too.  Applying the same rigorous criteria to screen energy providers, SaveOnEnergy.com finds the best deals in the market, and recommends the best plans for customers.  Whether customers want a fixed, variable or green product, SaveOnEnergy.com finds the best of each type, and presents the best offers in an easy-to-understand format.  Residential customers can also choose products with bonus features, such as airline miles, gift cards, rebates, or other rewards.  It just takes a few minutes for residential customers to enter their service area and review the best rates on SaveOnEnergy.com.

 

SaveOnEnergy.com is launching its most aggressive marketing and advertising campaign ever in 2009, including TV, radio, outdoor signage/billboards, print ads, venue sponsorships (such as the Nokia Theatre in Dallas), and internet marketing campaigns.  It’s all to get the word out that Texans can save money by shopping for a better electric rate, and that they don’t have to take a lot of time to do it.  SaveOnEnergy.com makes shopping a breeze, and helps Texas customers find the best electric rate.