Not all Texas retail electric providers are created equal, SaveOnEnergy.com President and Chief Operating Officer David Roylance told a recent forum on electric choice hosted by the Dallas Morning News. 

There are over 100 energy suppliers in the Texas electric market, about 30 of which are marketing to residential customers.  “They’re not all created equal,” Roylance explained, even though the Public Utility Commission of Texas strengthened some rules for certification of energy companies last year.

Still, the Texas electric market has some energy suppliers which have stronger financial backing, and some that have higher levels of customer service.  While comparing the hundreds of offers listed on some electric rate comparison websites is not always easy for customers shopping for a low electric rate, it’s child’s play compared to the arduous task of performing due diligence before signing up with an electric company once you find a rate you’re comfortable with (things like checking the company’s financials, its complaint rate, its customer service, etc).  Much of this information is not easily accessible, and the information consumers can find may still be confusing due to the use of multiple names by certain electric companies.

That’s where SaveOnEnergy.com fills a gap for consumers, Roylance said. 

SaveOnEnergy.com is continuously vetting its energy providers every day, so customers can be sure that a provider listed on SaveOnEnergy.com is a reputable and competent provider.

SaveOnEnergy.com acts as a filter, weeding out the pretenders, and only providing customers with the best prices and best values from the best electric companies.

“We turn down more retailers than we accept, not only because they may not meet what we believe are the right thresholds to understanding the market, but also because they’re just not differentiated in their product,” Roylance explained.  If SaveOnEnergy.com already has a wealth of competing low-priced fixed rates, for example, Roylance said that adding another rate from a supplier that has done nothing to distinguish itself or add value for customers only creates more clutter for the customer.  Instead, SaveOnEnergy.com tells suppliers to come back with better offers, either lower prices, or some added benefit customers can receive for signing up, so customers can maximize their energy dollar.

Although SaveOnEnergy.com provides customers with an easy to use filter to find the lowest electric rates, Roylance said that there is still a “huge education gap” in customers’ understanding of electric competition.

That’s why SaveOnEnergy.com isn’t just a filter, but an advocate for customers in dealing with the energy companies — not only in getting customers a low electric rate, but in making sure the electric company lives up to its deal.

“We play a role in helping customers understand the market.  On the front end, by making the offers comparative, and on the back end, by making sure that customers are getting what they bought,” Roylance said.

Paying 13¢, 14¢, or even 15¢ for electricity, “is like paying $5 per gallon of gas,” Texas electric industry officials said last week in response to a number of high bills in the Killeen area, which is in the Oncor service area. 

Oncor has said that the main cause for the wide swing in monthly electric bills is the well-below average temperatures since December, compared to above average temperatures in December 2008.  While customers have complained about the accuracy of new advanced meters installed by Oncor, Oncor has tested nearly 500 meters and found that they were all within an accuracy tolerance of 0.2%, or more accurate that what state rules require.

However, as Oncor has been discussing the high bills with customers, it has become apparent that many of the customers are paying rates of more than 13¢ per kilowatt-hour (kWh) for electricity, or even rates as high as 15¢.  These customers have either never shopped for a new electric company, or haven’t shopped in more than a year.  Texas electric rates have fallen by about 50% in that timeframe, meaning customers are throwing money away by not switching to a cheaper electric company.

“Paying 13 to 14 cents per kilowatt hour is like paying $5 per gallon of gas.  Switching from 13 to nine cents, that can take a third off your bill,” Oncor’s Catherine Cuellar said.

“What struck me the most is how many people have not gone online and shopped for their best provider,” Oncor’s John Toone added, who has been meeting with customers during town hall meetings. “People need to shop for the right provider,” he added.

Customers who have had the same energy provider for years may see higher prices because they have not investigated lower rates, Toone said.

SaveOnEnergy.com allows Texas electric customers to quickly and easily compare the lowest electric rates of the best providers, which can save customers hundreds of dollars per year.

For example, the lowest rate on SaveOnEnergy.com for customers in the Oncor area is currently only 8.3¢, or 45% lower than a rate of 15¢.  Customers can find a secure, fixed-price plan using SaveOnEnergy.com for about 10¢.  The average customer using 1,000 kilowatt-hours per month would save $600 per year by switching to a rate that’s only 10¢/kWh from 15¢/kWh.  Switching to an even lower electric rate available on SaveOnEnergy.com would save even more money.

If it’s been more than six months since the last time you’ve shopped for an electric rate, you’re probably paying too much, as Texas energy prices have fallen drastically in the past year.  By using SaveOnEnergy.com to find the lowest Texas electric rate, you could easily pocket $30, $40, or even $50 per month in savings on your electric bill. 

SaveOnEnergy.com takes the guesswork out of finding the lowest electric rate.  Instead of having to sort a mountain of competing offers from dozens of electric companies, SaveOnEnergy.com takes the lowest rates from the best, most reputable energy providers, and stacks them up side by side, so you can easily find the rate that’s best for you.

That means you can compare energy prices in just a few minutes, instead of making it a massive, time consuming project.  Rather than spending hours trying to find some savings on your monthly expenses, SaveOnEnergy.com lets you, in just a few minutes with a few clicks of the mouse, find a low electric power rate that could save you up to $600 per year, depending on what your current rate is.  The last time most Texans thought about electric rates was in the summer of 2008, when electricity was in the news because of high price spikes.  If you locked-in a rate during this time, to avoid further price spikes, you may be paying 14¢ or 15¢ per kilowatt-hour.  Since the summer of 2008, Texas energy prices have fallen by more than a one-third, and low rates can now be found on SaveOnEnergy.com at 9¢ or 10¢.  Simply by switching from your current high Texas electric rate to a new low rate on SaveOnEnergy.com, you can capture these savings, and put more money in your pocket.

SaveOnEnergy.com doesn’t just let you compare low electric rates, however.  It also presents a straightforward comparison of other, value-adding options that Texas electric companies offer, which can stretch your hard-earned dollar even further.  For example, some energy suppliers offer bill credits for enrolling with them up to $75, or even one month’s worth of free electricity, which makes a low rate even better.  Other energy providers offer bonuses like gift cards or gift certificates, airline miles or free airfare, or other benefits for choosing them as your new provider.  These bonus features, which are easily identified on SaveOnEnergy.com, can help you make a choice between two electric companies with the same low rate, or a marginal difference between the two rates.  In this way, SaveOnEnergy.com saves you both time and money, by letting you compare all aspects of an electric company’s product — not just the rate — against its competitors, so you can easily find the plan that best works for you.

Last week the Public Utility Commission (PUC) of Texas imposed a total of $3.7 million in penalties on two retail electric providers related to their default in 2008, which left thousands of customers “stranded” and forced to pay a very high energy price.  The penalties are a reminder of the dangers of going it alone when looking for a lower electric rate, as history has shown that not all electric companies are equally dependable and stable.

The PUC’s fines date back to the high prices experienced by Texas customers in the spring and summer of 2008, and the failure of two energy providers: National Power Co. Inc. and Pre-Buy Electric LLC.  Both suppliers, prior to running into trouble, had some of the lowest electric rates in the market, enticing customers to sign up with these firms.  However, both companies lacked proper internal controls and risk management processes to serve customers reliably.  When wholesale electric prices soared, these companies had not hedged their purchases in advance, and could not cover the exorbitant costs of serving their customers.  The end result was that thousands of these companies’ customers, who had been promised some of the lowest electric rates in the state, were shifted to the emergency “back-up” electric company, known at the Provider of Last Resort.  In some cases, the rates customers ended up paying for the emergency Provider of Last Resort service was more than double the rate they were promised from their original electric company.

The risk of your energy provider going out of business is one of the top reasons you should not go it alone when trying to find the lowest electric rate.  There are about one hundred electric companies in Texas, most of which are new start-ups with little operational history or record.  Even the most diligent customers doing their homework will be frustrated by the lack of available information on energy suppliers, which makes evaluating the technical fitness and managerial competency of a potential provider difficult, if not impossible, for the average customer.  The less stable companies naturally try to lure in customers with tantalizingly low prices, but such offers are merely a mirage when the supplier can’t honor its commitment and forces the customer to pay a rate double the original price.

That’s where the industry experts at SaveOnEnergy.com can not only save you time by pitting the rates of the top energy suppliers against each other, but can also give you peace of mind that the low rate you find on SaveOnEnergy.com will be honored by your energy provider. 

With decades of experience in the energy industry, SaveOnEnergy.com’s experts screen every supplier against a rigorous criteria evaluating financial fitness, managerial competency, risk management, and internal controls so that only suppliers that can stand behind their rate are recommended.  By conducting a thorough audit of the supplier’s business practices and strategy, SaveOnEnergy.com determines whether the supplier is a viable provider, or rather is a fly-by-night operator with questionable operational practices that could lead to problems, even default, in a turbulent market.

By using SaveOnEnergy.com to find the lowest electric rate, Texas customers can be assured that their low rate will be honored for its full term, and won’t disappear at the first sign of market unrest.  SaveOnEnergy.com takes the risk out of shopping for a lower electric rate, and eliminates one of the many worries first-time shoppers have about switching electric companies.

With 2010 right around the corner, many Texas families will be looking at their household budgets for the coming year, and looking for ways to save extra money, especially in this recession.  By using SaveOnEnergy.com to find a low electric rate, Texas customers can save hundreds of dollars per year which can help pay off any Holiday bills and make tight budgets go farther in 2010. 

Many customers last shopped for an energy price in 2008 when prices were much higher than they are now.  Your electric bill will show your monthly rate for electricity, expressed in cents per kilowatt-hour, listed as “The average price you paid for electric service this month,” or a similar description.  This is the price you should use to compare with other electric companies, and how you can determine how much you’d save by switching to a lower rate.

For example, let’s say you’re a customer in the Dallas area, in the Oncor service territory.  If you were currently paying 14.0¢/kWh for electricity (a typical rate many customers had in 2008), and used 1,000 kWh every month, your monthly bill would be $140 ($0.140 x 1,000 = $140).

Now, consider some of the much lower rates available in the Dallas areas on SaveOnEnergy.com.  For example, using SaveOnEnergy.com to compare Texas electric power rates, you could find a six-month, fixed price plan with a rate for 9.4¢/kWh.  To calculate your savings, first calculate your bill with this new, lower rate under the same usage of 1,000 kWh ($0.094. x 1,000 = $94).  Your monthly bill would be only $94 or a savings of $46 every month, just for switching energy providers.  Over a year, this would equal a savings of $552, based on average usage of 1,000 kWh every month.  Savings for a typical 1,600 square foot home could easily exceed $900 per year.

If you wanted to lock in a lower rate for a longer period such as 12 months, you can still find substantial savings.  In the Dallas area, SaveOnEnergy.com shows a 12-month fixed rate of 10.1¢/kWh, a low rate that gives you both savings and price protection for one year.  Using the example above, if you switched to this rate, your monthly bill would be $101 ($0.101 x 1,000 = $101).  If you were currently paying a high rate of 14¢/kWh, you monthly savings would be $39, for yearly savings of $468. 

With household budgets tighter than ever these days these savings are invaluable, and the best part is saving hundreds of dollars on your electric bill can be completed in just a few minutes using SaveOnEnergy.com, without any hassle or risk.  Because SaveOnEnergy.com screens all its energy suppliers with rigorous criteria, you can be assured your selected energy provider is a stable, reputable company that will stand behind its rates with high levels of customer service.

The California electric utilities have given the first indication of how many customers will be able to shop for a lower electric rate under the state’s expansion of electric competition, known as direct access, which is subject to a cap. 

In filings with the state’s Public Utilities Commission, the three largest utilities reported, according to statutory criteria, their proposed cap levels for the amount of business customer load able to be served on direct access:

Pacific Gas & Electric: 9.5 billion annual kilowatt-hours

San Diego Gas & Electric: 3.5 billion annual kilowatt-hours

Southern California Edison: 11.7 billion annual kilowatt-hours

These cap levels must still be approved by the Public Utilities Commission.

Since annual electric usage among business customers varies wildly from millions of kilowatt-hours for heavy industries to just a few thousand kilowatt-hours for small businesses, it’s impossible to place any meaningful estimate on the number of California businesses that will be allowed to shop for a lower electric rate under the cap.

However, according to the Energy Information Administration, the average electricity use of a California industrial customer is nearly 650,000 annual kilowatt-hours.  At that rate, the number of customers allowed to shop for electricity at Pacific Gas & Electric would be limited to 14,000 customers out of about 1 million non-residential customers in its service area (or just 1%). 

Because the largest electricity users are always the first to shop for a lower rate (since electricity is a bigger cost for them), the shopping cap in California could quickly be reached as several very large industrials with extraordinarily large power usage take up all the room under the cap.  That could leave mid and small-sized businesses unable to shop for a lower energy price, even though they could save thousands of dollars from being able to shop.

That’s why customers need a partner like SaveOnEnergy.com to take advantage of their ability to shop for cheaper electricity as soon as it is enacted, which is expected in April 2010.  The experts at SaveOnEnergy.com can not only help your business find a low electric rate, but can streamline the shopping process so you can submit your switch to a new energy provider as soon as you are able, maximizing your chance to be allotted space under the direct access cap, and realize the savings available from shopping for electricity.

As California continues to move towards giving more business customers a choice in their electricity company, customers must take action to benefit from the competition among energy providers in order to get a low rate for their electricity.  As noted last week, all types of commercial customers, from large institutions like universities to small retail stores, can save thousands, if not millions, by simply shopping for a new electric service provider, and using competition to get a lower electric rate.

But since competition, or direct access as it’s known in California, has been suspended for eight years, most businesses aren’t even aware that they will soon be able to shop for a lower electric rate, let alone be ready to undertake the complex and time consuming process to compare different types of electric rates and products, vet potential energy companies, and make an informed decision about the best electric plan for their business.

That’s where SaveOnEnergy.com can provide invaluable assistance to California businesses searching for a lower energy price.  SaveOnEnergy.com makes finding a lower electric rate as simple as a few clicks of the mouse, taking the hassle and confusion out of shopping for a new energy provider.  And by pitting up to eight energy suppliers against each other in head-to-head competition for your business, SaveOnEnergy.com ensures that you’ll get the lowest energy price without devoting countless hours to researching and comparing suppliers.  With SaveOnEnergy.com, saving money takes just a few minutes. 

With SaveOnEnergy.com’s exclusive retail exchange portal, shopping for a lower electric rate for your business is a breeze.  All you need to do is enter some information about your business, such as location and electricity usage, and the information is instantly transmitted to up to eight competing energy suppliers.  These providers then contact you directly with their lowest offers, knowing that they’ll have to beat seven other suppliers in order to win your business.  This puts the power of electric choice at your fingertips, and takes the work out of saving money.

And because SaveOnEnergy.com screens all of its energy suppliers against a rigorous criteria, you can be sure that not only will you get a low electric rate, but you’ll also find a stable and financially sound supplier that provides high levels of customer service and innovative products. 

The experts at SaveOnEnergy.com can also help you compare different types of offers, and recommend which type of offer is best for your business.  Thanks to competition, electric companies can now offer customized rates with fixed pricing, variable pricing, blended pricing, and all kinds of individual solutions that best meet the needs of your business.  However, to the average customer not versed in the electric industry, all these options can be overwhelming.  By working with SaveOnEnergy.com, customers can receive an “apples-to-apples” comparison of different products, to decipher which product truly provides the lowest cost, so businesses can maximize the benefits of electric competition.

As we’ve noted the past two weeks, soon a lot more California businesses will be able to choose their electricity company under a process known as “direct access,” which allows new energy providers to compete for customers’ business.  That competition drives down power prices, and can save California businesses thousands of dollars, if not millions, on their energy costs.

In fact, many California businesses are already enjoying the savings possible from shopping for electricity, under a policy that grandfathered them and has allowed them to choose a competing energy company since the late 1990s, while other customers have been denied this right during a suspension of direct access.

Take, for example, the California State University (CSU) system.  Len Pettis, Chief of Plant Energy and Utilities for California State University, has said that, “[d]irect access has afforded CSU a portfolio of energy supply options and cost certainty not available from the utilities.”

In fact, CSU has saved over $30 million from shopping for electricity for nearly a decade — savings that have been used to help meet enrollment targets, save jobs, and reinvest in energy efficiency measures on campuses.

Bill Dombrowski, President of the California Retailers’ Association, added that, “California’s retail business owners overwhelmingly support a return to customer choice as a means to energy management.”

“Choice, or direct access as it is referred to, provides innovation and management opportunities that will translate into lower costs for goods,” Dombrowski explained, pointing to a problem under the current suspension of direct access.

“The problem today is that some retailers have it, but because of the suspension, others who want to exercise choice can’t have access to the same benefits.  Allowing all retailers to have the same low cost electricity options is a matter of commercial fairness,” Dombrowski noted.

Unfortunately, the bill expanding direct access (SB 695) does not extend the ability to shop for a lower electric rate to all non-residential customers, and only expands the amount of customers eligible to shop subject to a cap.  That makes it crucial for California businesses to be ready to shop for a new electric service provider in about March or April, when the California Public Utilities Commission will likely take the first step in allowing new customers to shop for electricity.  Working with SaveOnEnergy.com to monitor the re-opening of direct access and find the right supplier can ensure customers that they are able to switch to a lower electric rate immediately when the cap opens, ensuring they are not left out.

Still, even though it is limited, “[t]he passage of SB 695 enables California businesses to gain greater control over one of our largest costs – energy – allowing us to place greater focus on building our businesses and creating more California-based jobs,” said Glenn Barrett of SUPERVALU, Inc.

As noted last week, more California businesses will soon have an opportunity to save money on their electric bill by shopping for an energy supplier.  The California Public Utilities Commission moved a step closer to giving more customers the right to shop for electricity last week, by setting a procedural schedule for implementing a new, higher cap on the amount of customers who can shop for electricity.

California businesses will want to keep an eye on the middle of March, 2010, when the PUC expects to issue a final decision on how to expand the number of businesses who can shop for electricity.  The expansion of shopping, known as direct access, will occur over three to five years, but how fast the expansion occurs, and how customers may apply to be eligible to shop for electricity, need to be determined by the PUC.  Those issues will be addressed in the PUC’s March order.

Given the large savings that California businesses can expect from shopping for electricity, space available under the cap will likely go fast.  Customers will want to be ready to shop for electricity and submit a switch request as soon as possible to avoid getting locked out of the opportunity to choose their energy provider.  Working with SaveOnEnergy.com can facilitate the shopping process for customers, and prepare customers for finding a low electric rate and the right energy company. 

SaveOnEnergy.com’s energy industry experts can help customers navigate through the process of choosing an electric company, understanding their options, evaluating different product types, and screening potential suppliers ahead of the re-opening of the market.  Most California businesses have never shopped for electricity, or if they have, they haven’t done so for over nine years.  The market has changed a lot since then, with new players, more innovative but complex products and pricing plans, and more ways to customize rates to maximize savings for the usage and load patterns of individual customers. 

This maze of information would normally be daunting for any business, but will be especially overwhelming for businesses trying to make a quick decision on finding a new energy supplier, in order to avoid being locked out of the ability to choose their energy supplier under the new cap.  Working with SaveOnEnergy.com can take care of a lot of the preliminary groundwork needed to find a low electric rate and the right energy provider, ensuring California businesses are ready to sign up for a new, low electric rate when the market re-opens, and that they don’t miss out on an opportunity to save money.

Texas electric customers should take advantage of today’s low energy prices by shopping for a new electric company, to avoid price increases associated with winter gas use and expected economic recovery.

Last week, executives at NRG Energy, which owns Reliant Energy, said that they expect the costs of fuel and power to increase in 2010.  That may translate into higher retail prices for Texas electric customers in the coming months, meaning customers should lock-in a low, fixed rate for electricity at the bottom of the market right now.

Speaking to investors during a conference call, John Ragan, Chief Operating Officer at NRG Energy, reported that Reliant sees a developing trend of industrial expansion throughout the U.S., specifically in Texas.  Both the industrial production and ISM indices, which track industrial activity, show a strengthening trend in the past quarter, Ragan said.

Texas electric prices are closely linked with the price of natural gas since so much electricity is generated by gas-fired power plants in Texas.  Ragan said that the natural gas rig count, a leading indicator of natural gas price potential, shows that the number of operating rigs has materially dropped during 2009 as producers aggressively responded to lower prices and stopped drilling due to oversupply.  Rigs are about 50% down from their total a year ago, at around 730 from a peak of 1,600 in September 2008.  Ragan anticipates a gas market rebalance by mid to late 2010 as demand recovers and the impact of reduced rigs and lower supply allows for improved gas fundamentals, which will in turn put increasing pressure on energy prices.

Additionally, Ragan said that forward “heat rates,” a measure of anticipated future generation costs and electric prices, remain well supported, primarily driven by expectations regarding economic expansion and recent load growth, the current impact of capital constraints that will affect future generation projects, and the uncertainty around future regulatory and legislative actions.

These factors could lead to an increase in Texas electric rates, which customers can avoid by locking-in today’s low rates.  By using SaveOnEnergy.com to find the lowest electric rate, Texas customers can be assured of saving money on their electric bill and avoiding any rate hikes.  The best part is that SaveOnEnergy.com is simple and easy to use, and takes just a few minutes to compare prices from vetted and screened energy providers, so shopping for a low electric rate is hassle free for Texas electric customers.