Competition Bringing Lower Electric Rates to Texas as Prices Rise Nationally
The competition in Texas’ electric industry, which allows customers to choose their electricity provider , has resulted in Texas electric rates falling over the past few years — during the same time that electric rates are on the rise nationally. The Association of Electric Companies of Texas (AECT) recently noted that from August 2006 and August 2011 (the latest data available), the national average electric rate for residential customers rose by 11%, according to data from the Energy Information Administration (EIA). However, during this same time period, the Texas statewide average residential electric price fell by 14%, according to the EIA data. And rates fell even more in parts of Texas where customers have a choice in their electricity provider . AECT noted that when comparing competitive offers from electric suppliers as archived by the state’s Public Utility Commission, the average residential offer in Texas’ competitive electric market dropped by
Rate Hike for Austin Energy Customers Shows Danger from Monopoly Power Provider
The massive rate hike looming for customers at Austin Energy, which SaveOnEnergy.com first told you about this fall , is “Exhibit A” in how customers are better off when they can choose their electricity provider , and a reminder of how bad things were under the monopoly utility system which existed in all of Texas prior to 2002. SaveOnEnergy.com noted in September that Austin Energy’s rate case would force some customers to subsidize lower electric rates for other customers. This doesn’t happen when customers can shop for their electric provider , as customers can choose a new provider if any electric company is making them subsidize another customer’s rates. SaveOnEnergy.com also recently noted that electric rates at Austin Energy are higher than rates in parts of Texas open to electric choice — and that’s before the impending massive 23% Austin Energy rate hike for residential customers . But that’s only
Municipal Aggregations Deny Customers Full Savings from Shopping for Electric Supplier
A few weeks ago, SaveOnEnergy.com warned customers that opt-out municipal aggregations — in which customers are switched to an electricity supplier chosen by their city or town — do not produce the lowest electric rates for customers, and can lock customers into higher rates. In most states, cities and towns don’t have the right to choose your electric provider any more than they are authorized choose your phone company or car insurance provider, but opt-out municipal aggregations are legal in places such as Ohio, Massachusetts, New Jersey, and Illinois. They are especially growing in popularity in Illinois, particularly at ComEd around Chicago, and one of the reasons is because it’s a great deal for municipalities who can “skim” savings offered by electric suppliers for themselves, rather than passing the full savings onto customers. Back in October SaveOnEnergy.com debunked the myths behind opt-out municipal aggregations, showing that they have no inherent
Texas Electric Rates Expected to Rise, Customers Must Shop Now with SaveOnEnergy.com
Executives with several major Texas electric companies have all said recently that they expect Texas electric rates to rise in the near future, meaning that customers need to shop now with SaveOnEnergy.com while rates are still low. Texas electric rates have remained low and relativity stable for the past few years, thanks to low natural gas prices, reduced demand due to the recession, and temperate weather. That changed, however, this summer with the record-breaking heat which plagued Texas for nearly two months, which sent wholesale energy prices skyrocketing. Meanwhile, Texas electric demand is growing again as the economy recovers, putting an additional strain on the electric grid. Finally, new federal environmental regulations threaten to shutter a significant number of power plants in Texas. This reduced generation capacity will only push the electric grid further towards a supply/demand imbalance, pushing prices higher. Many Texas electric companies have recently reported quarterly earnings,
Two Texas Retail Electric Providers to Cease Operations; S&P Sees More Exits Looming
In what may be the first of several, two Texas retail electric providers have filed with the Public Utility Commission to relinquish their electric provider certificate and withdraw from the market. Meanwhile, a new report from Standard & Poor’s Ratings Services says that small retail electric providers , “may have trouble surviving” in the Texas energy market . SaveOnEnergy.com has alerted Texas electric customers over the past few weeks of the precarious financial situation that some of the electricity providers may be in, due to the extreme heat and the volatile wholesale energy pricing during August, and that customers should check to make sure that they are with a financially stable electricity company . Now come tangible signs of these problems. Two Texas retail electric providers — Pocket Power (organized as Monongahela Communications LLC) and Chain Lakes Power (which traded as Simple Power) have filed to relinquish their supplier licenses at
Storm Safety Tips – Play it Safe
The recent severe storms in the Southern part of the United States have left entire neighborhoods destroyed by tornadoes and flooding. Thousands of people have been affected by these natural disasters. In light of this devastation we want to educate you and make sure you know how to stay safe when severe weather strikes. Before the Storm Preparation starts before the storm. Take a proactive approach to surviving a disaster by getting your house, yard and family ready before the storm hits. Make a plan and prepare your home. Make sure everyone knows emergency phone numbers, and when to call them. Learn evacuation routes and establish meeting places in case family members are separated. Keep an emergency supply kit on hand. Make sure it includes: portable radio, flashlights, batteries, first-aid kit, non-perishable food and drinking water, emergency cooking equipment and essential medicine. Power outages often accompany severe weather like wind,
Default of Abacus Energy Shows SaveOnEnergy.com Screening Process Protects Customers
On Wednesday evening, February 9, Abacus Resources Energy, a retail electric provider in the Texas energy market, defaulted on its financial obligations to ERCOT, the organization which administers the state’s electricity market and grid. As a result, nearly 8,000 customers of Abacus Energy faced the potential of being transferred to the backstop electric provider, known as the Provider of Last Resort, which may charge a rate much higher than the customer’s current rate or other rates in the market. Two retail Texas electric providers stepped in and purchased these customers from Abacus Energy, thereby preventing a transition to the Provider of Last Resort, but these last-minute transitions to a new electric provider , especially under such “fire sale” circumstances, have in the past been rocky and confusing to customers, so all is not well. Abacus Resources Energy had repeatedly tried to gain a listing on SaveOnEnergy.com , but was each
SaveOnEnergy.com Helps Pennsylvania Energy Customers Sort Through Hundreds of Suppliers to Find the Right One
With electric rate caps expiring for the remaining 60% of Pennsylvania customers on January 1, 2011, dozens of new energy providers are flooding the market trying to profit from switching customers to a lower energy rate . While that’s good news for customers because it means competition will drive electric rates down, it also means customers must be vigilant in finding a reputable supplier among the over 100 electric companies now vying for customers’ business. The Pennsylvania Public Utility Commission reports that there are 124 active and licensed electric generation suppliers as of June — an increase of nearly 50 suppliers since the start of the year, as new competing energy providers eye serving customers hoping to avoid utility rate hikes of up to 30% by switching electric suppliers . There’s about 20 more suppliers with license applications still pending before the Public Utility Commission, and there could be as
Only SaveOnEnergy.com Can Provide Pennsylvania Businesses With Low Electric Rates from Up To Eight Competing Suppliers
Pennsylvania businesses looking to save money on their electric bills when rate caps come off at the remaining utilities — including PECO in the Philadelphia area — will be bombarded with offers promising lower electric rates from new electric generation suppliers as well as these suppliers’ marketing agents and brokers. However, only SaveOnEnergy.com , an independent consultant, can provide customers with low electric rates customized for your business that result from competing energy providers battling head-to-head to win your business. Only SaveOnEnergy.com’s exclusive retail exchange portal assures customers of finding the lowest electric rate s in the market, and not the higher rates of a broker’s preferred supplier. Starting January 1, 2011, business customers at PECO, Met-Ed, Penelec, and West Penn Power (Allegheny Power) are likely to see electric rate increases as high as 30% if they stay with their utility for their electric supply. Fortunately, with competition among new
SaveOnEnergy.com Forces Energy Suppliers to Innovate, Treat Customers Well
During last week’s KEMA executive forum in Irving, Texas — a gathering of thought leaders and movers and shakers in the retail energy industry — executives all called for more innovation — both technological and in customer service — to support the growth of retail energy choice in America. With its unique connection to customers, providing them with a one stop shop to compare competing energy plans and find the lowest power rate , SaveOnEnergy.com is poised to be a driving force in making retail energy providers live up to their promises of innovation, and provide a better customer experience to energy consumers. Chris Weston, CEO of Direct Energy for just under a year, keynoted the KEMA conference by telling energy companies that they have to be, “better with the service we provide to our customers.” Furthermore, to fend off opponents of choice in the energy industry, Weston stressed that