“Captive” Customers Upset with Lack of Choice at Austin Energy
Last month, SaveOnEnergy.com told you about looming electric rate hikes at Austin Energy, where customers cannot choose their electric provider , and are instead subject to the city monopoly for electricity . Now, more customers are speaking out against the rate hike, as they see lower electric rates in parts of Texas where customers have a choice in their electric supplier . ” Austin Energy’s rates are soaring, while rates elsewhere are declining. State officials will want to know why Austin Energy’s residential rates have escalated sharply because statewide average rates have dropped by 14 percent and are still falling,” one customer wrote to the Austin American Statesman . The customer notes that Austin Energy, under its new energy rate proposal, would impose an “inclining block” rate structure on customers, where higher levels of usage pay a higher per kilowatt-hour rate. In parts of Texas open to competition, like Dallas and
Shoulder Months Less Price Friendly as Grid Changes, Shop for Low Electric Rate Now
Electricity demand within the Electric Reliability Council of Texas (ERCOT), which covers about 80% of the state, increased 5 percent in 2011, ERCOT recently reported . A forecast for a similar high level of load in 2012 means that electric rates will likely rise with increased demand, and that customers should shop for a low electric rate now on SaveOnEnergy.com . Net energy for load for 2011 was 335,000 gigawatt-hours (GWh), compared to 319,097 GWh in 2010 and 308,278 GWh in 2009. April had the highest energy increase compared to the previous year with 14.4 percent, followed by July which increased 12.2 percent compared to last year, ERCOT said. The April statistic is telling, and should prompt customers to check their electric rate now and lock-in a lower price, before energy prices increase. Typically, the spring and fall are good times to shop for electricity in Texas , because the
Texas Drought Could Mean High, Volatile Electric Rates This Summer
Last week, SaveOnEnergy.com noted that even with a stay of federal environmental regulations, which will keep more Texas power plants online this summer, Texas electric rates are still likely to rise because the supply of generation only marginally exceeds forecast demand. One of the reasons for this is the prolonged drought Texas has experienced, and its impact on power generation and electricity production, which was examined by the state senators earlier this week. Even recent heavy rains in some parts of the state, including Houston, have not eased the statewide drought conditions. Many types of power plants rely on large amounts of water for cooling, and without adequate water, these plants cannot generate electricity . “If Texas’ drought persists, it could pose a risk to electricity generation if there isn’t sufficient water to produce the power the state needs,” the Abilene Reporter-News reported. “The drought is already having a ‘slight
Texas Electric Rates Still Set to Rise Despite Stay of Costly Environmental Regulations
Although a federal court recently stayed implementation of new federal environmental regulations which threatened Texas with the loss of power generation and rolling blackouts, keeping those megawatts on the grid will not fundamentally change the expectation that Texas electric rates are due to rise this year, particularly for the summer, due to a remaining imbalance in power demand and supply. The stay of the EPA’s Cross-State Air Pollution Rule will mean more electric generation capacity will remain on the Texas grid during the next six to nine months as the regulations are litigated in court. Already, Luminant has announced plans to maintain the operation of 1,200 MW of generation it had previously said it would close due to the new federal rules. While keeping this generation online will help Texas make it through the winter and summer without rolling outages, it doesn’t mean Texans will have relief from the expected
Start the New Year by Saving on Your Electric Bill with SaveOnEnergy.com
Who doesn’t want to start the new year by saving money? And unlike losing weight or kicking a bad habit, this is a new year’s resolution you can keep, thanks to SaveOnEnergy.com which makes it quick and easy to save hundreds, if not thousands, on your electric bill . In many states including Texas, Pennsylvania, and Illinois, customers can shop for their energy supplier , just as they can choose their long distance carrier, cellular provider, or internet provider. However, because shopping for a low electric rate is still new to most customers, most residential and small commercial customers haven’t shopped for a competing energy provider , and are leaving hundreds of dollars on the table. Consider Texas, for example. If you haven’t shopped for a new electric provider , or just haven’t shopped for a few years, you could be paying a rate as high as 12, 13, or
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
Blackouts Possible in Texas This Winter and Next Summer; Pushing Electric Rates Higher
Back in November, SaveOnEnergy.com warned customers that all indicators are that Texas electric rates — which have been at record lows for about the past 24 months — will rise in the near future, because of looming generation capacity shortages under which demand for power will outstrip supply. Customers can avoid these expected electric rate hikes by shopping for a new energy provider with SaveOnEnergy.com now, while rates are still low. The fears of higher electric rates were further confirmed last week as ERCOT, the independent entity which manages most of Texas’ electric transmission grid, reported bleak outlooks for both the forthcoming winter, and the summer of 2012. In ERCOT’s winter assessment of capacity and demand for power, ERCOT expects that, under normal weather conditions, the winter peak demand should be around 53,600 megawatts (MW). Available resources, based on normal generation outage rates, will be approximately 64,000 MW, meaning there
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 Lower in Areas Where Customers Can Shop
Contrary to claims by certain opponents of electric choice , electric rates in areas of Texas in which customers can choose their electric provider are lower than the old monopoly rates from 2001, and lower than rates in other parts of the state where there is no electric choice, including Austin and San Antonio. As noted by SaveOnEnergy.com a few weeks ago, current Texas electric rates for parts open to customer choice are significantly lower than they were 10 years ago, right before competition started. As to rates in other parts of Texas, the Public Utility Commission publishes a chart providing the average monthly bill for a residential customer each month. These costs, which are provided for an average customer using 1,000 kWh, can then be translated into per kilowatt-hour rates simply by dividing the costs by 1,000, providing an easy comparison to electric rates available in areas of Texas