What Energy Company Should We Use?

[leekellerking]

I have a question for the group mind. :zen:


We are buying a house in New Territory (closing Wednesday, God willing) and we have to order electricity. Our agent suggested Direct Energy, which is who she uses, but after reading ZXDavid's thread on getting ripped off by Direct on commercial service http://www.twtex.com/forums/showthread.php?t=15163) I'm not so sure.

So, who is using what providers in the Houston/Sugar Land area? How happy are you?

My wife says not to go with Centerpoint (formerly Reliant) as it is more expensive, but I don't see that it is THAT much more expensive than Direct? We could also go with TXU, or any of a group of lesser known providers.

What does the collective wisdom think?

Thanks,


Lee

[bluedogok]

The only complaint that I have ever heard about TXU is a gripe about perceived cost, every other provider seems to have complaints about the rates not being what they stated, billing issues and such. I had TXU when I lived in Dallas (TU Electric at the time) back when choice was not available, if we were to move to a choice area (locked into Austin Electric here) TXU would be the one that I would go with.

For me maybe it is a "go with what you know" versus what might be, electricity is one of those things that I would rather not try out.

[sherob]

I've had TXU since dereg... have been very happy with them. I just couldn't take Reliant(HL&P) rate increases anymore... and don't tell me that Reliant customers don't pay for that name on the stadium :trust:

Centerpoint is the company that manages the poles and lines to your house(delivers the power). They are also the gas company(old Entex).

[Tchuck]

The best place to compare Retail Electric Providers (REPs) is on the powertochoose.org website. This website is either run or sponsored by Electric Reliability Council of Texas (ERCOT). Deregulated electric power is only available in the ERCOT service area. On this website you put in your zip code and the authorized REPs and their current offers come up. Be sure to read the contract carefully as some contracts allow rates to change monthly, most though will notifiy you one month in advance of rate changes. Also look at cancellation charges, some are zero some are $100 or so.

[Texas T]

Deregulated electric power is only available in the ERCOT service area. My results...
No Electricity Supplier Alternatives

Your search has found no Electricity supplier alternatives to your current utility at this time.

The Public Utility Commission of Texas has postponed the beginning of retail open access in Southeast Texas indefinitely.

[wonder91178]

I was just reading this article the other day, in case it helps your dilemma...

Light switches on a dime

TERESA McUSIC
The Savvy Consumer

http://www.dfw.com/mld/dfw/business/16551704.htm

Ten-cent electricity is back in North Texas, but should you buy it?

This month, with electricity now fully deregulated in the state, four of the 17 electric retail providers are charging 10 cents per kilowatt-hour to 10.8 cents. That's 30 percent lower than the highest-priced offers of 16 cents.

Meanwhile, about 845,000 customers in North Texas have switched from TXU to another retail provider, or about 33 percent of the market, according to an October report from the Public Utility Commission.

Should the other 1.72 million start shopping?

Offering the lowest-cost, month-to-month plans are Reliant Energy, StarTex Power and Amigo Energy, all in Houston, and Commerce Energy in Costa Mesa, Calif.

But before racing to sign up, consider that the plans are tied directly to the price of natural gas. About half of Texas' electricity comes from natural gas.

"Natural-gas prices have continued to fall pretty consistently over the last seven months," StarTex CEO Robert Zlotnik said. "Our pricing is the cost of natural gas plus our overhead. As the price of natural gas drops, we pass that savings on to our customers."

The reverse is true as well: If the cost of natural gas rises, so will your electric bill. Customers have to decide whether they can handle the price swings. Two big players, Reliant Energy and Commerce Energy, are also offering low-cost products that track gas prices.

Commerce, which began during California's deregulation and is now in 11 states with 161,000 customers, began offering its 10 cent per kWh residential variable product this month, a spokeswoman said.

Reliant, with 1.9 million customers in Texas, will post its new PowerTracker plan Monday for an initial 10.3 cents, said Matt Benner, senior vice president for retail marketing.

Reliant's new rate is based on a formula using the New York Mercantile Exchange natural-gas futures' contract price and a multiplier that reflects changes in market conditions.

The rate also depends on the customer's electric utility service area.

The new plan isn't for everyone, Benner said.

"Like any adjustable-rate product, you have to have the flexibility and the cash flow to cover it," he said. "The price changes every month, and it can change rather dramatically."

None of these plans has long-term commitments or cancellation fees.

TXU Energy also has a market-tracker plan that follows natural-gas prices. But this product has a 24-month contract and a $200 cancellation fee, and it costs 15 cents a kWh right now. The plan caps its rate and provides protection from short-term spikes.

The regulated "price to beat" rate, gone this month because of deregulation, would have 11.5 cents per kWh based on current natural gas prices of about $7 per million British thermal units, said Clarence Johnson, director of regulatory analysis at the Office of Public Utility Counsel in Austin.

Gas prices are much lower than the historic high of $12 seen after Hurricanes Katrina and Rita in 2005, he said. So the 10-cent price is a favorable rate, he said.

"People have already experienced gas prices as high as they are going to see for a while," Johnson said. "It's probably unlikely you are going to see prices go that way again, although you can never guarantee anything. Gas prices are extremely volatile."

Because of the volatility, the lack of a minimum term may help consumers, he said.

"If prices get to the point beyond their tolerance level, they could leave the rate," he said.

Carol Biedrzycki, founder of Texas Ratepayers Organization to Save Energy, said changing plans won't appeal to typical consumers.

"It's hard to work up enthusiasm for a rate plan that doesn't offer any stability," she said. "Now you have to add keeping track of natural gas prices along with your kids getting their homework done and finding out what's on special at the grocery store."

Biedrzycki said people tell her that they want stability and predictability in their energy bills.

"I don't think the average consumer wants the hassle of monitoring their electricity providers every month," she said.

A big question now is whether these lower-rate plans will influence the price of longer-term electricity contracts or more costly month-to-month plans.

"If these plans start picking up significant market share, it could have some impact on the pricing premium in other plans," Johnson said. "A lot depends on how competitive the market really is."

To date, the deregulated electric market has not moved prices as much as it should have, he said. Biedrzycki agrees that consumers must pressure the market for lower prices.

"This market has a lot of room to lower prices, but it's just not happening," Biedrzycki said. "It would be nice if someone would just lower prices of a standard service contract."

That may not happen until consumers embrace lower-cost plans in bulk, she said.

"What we're dealing with in a competitive market is that consumers have got to vote with their business on what they like and don't like," Biedrzycki said.

WHO'S OFFERING WHAT

Four electricity sellers are offering a rate of about 10 cents per kWh, but the rate is tied to the price of natural gas and can change quickly. The rate is based on using 1,000 kWh per month.

10.3 cents

Reliant Energy,

866-222-7100,

www.reliantenergy.com. Plan becomes available Monday.

10.4 cents

Commerce Energy, Costa Mesa, Calif.: 877-226-5425, www.commerceenergy.com. Includes $4.95 monthly service charge.

10.8 cents

StarTex Power,

866-917-8271,

www.startexpower.com.

10.8 cents

Amigo Energy,

888-469-2644,

www.amigoenergy.com. $6.95 charge for using less than 500 kWh.

SOURCES: Reliant Energy,

Commerce Energy, StarTex Power, Amigo Energy

FOR MORE INFORMATION

Natural-gas prices can be tracked on several Web sites, including www.futuresource.com.

For a good consumer brochure on residential natural gas prices by the Energy Information Administration, part of the Energy Department, go to http://www.eia.doe.gov/neic/brochure/oil_gas/natgas06/natgas.html.

Begin your search for electric retailers at the Public Utility Commission's consumer Web site at www.powertochoose.com.

[sherob]

If Entergy/Gulf States is your carrier, then you are SOL. If Centerpoint is your carrier, you have options.

They are working on integrating Entergy/Gulf States into ERCOT.

[rfwjr]

I have been with Gexa for about 6 months, they were cheaper than Centerpoint and I get 2 Continental One Pass miles for each dollar I spend. I have not had any problems with them at this point.

[leekellerking]

I have a question for the group mind. :zen:


We are buying a house in New Territory (closing Wednesday, God willing) and we have to order electricity.
Lee

In the interests of simplicity (and reducing my wife's work load) we have decided to go with Direct Energy. Thanks for all your input. It was appreciated.


God bless,

Lee

[Faylaricia]

I use Green Mountain. Not the cheapest but compared to others, still competetive and it is environmentally friendly. I have had it for years and never had a problem once, not the slightest.

[Jack Giesecke]

www.dynowatt.com Saved me about 100 bucks a month last summer. I was on CPL for years, had no other choice. Far as I know, these companies get their power from the grid, so how can any of 'em claim to be "environmentally friendly?" Maybe our resident power company employees can answer this one, not that I really care. My Scot/German genes make me look at the bill, not the trees. :rolleyes: Anyway, if a big business tells me they're "environmentally friendly", my BS flags go up. If you're a business, you watch the bottom line, profits are king all BS aside or you don't stay in business. If it costs less to be "green", sure, but that is rarely the case.

[Eulogite]

The best place to compare Retail Electric Providers (REPs) is on the powertochoose.org website. This website is either run or sponsored by Electric Reliability Council of Texas (ERCOT). Deregulated electric power is only available in the ERCOT service area. On this website you put in your zip code and the authorized REPs and their current offers come up. Be sure to read the contract carefully as some contracts allow rates to change monthly, most though will notifiy you one month in advance of rate changes. Also look at cancellation charges, some are zero some are $100 or so.

:clap: You are either in the business or a very wise consumer. :clap:

Senate bill 7 forbids me from participating in this poll.

[Faylaricia]

Far as I know, these companies get their power from the grid, so how can any of 'em claim to be "environmentally friendly?" Maybe our resident power company employees can answer this one, not that I really care. My Scot/German genes make me look at the bill, not the trees. :rolleyes:

GreenMountain is a BP company and they use windpower. Also, may check your German genes, lately, Germans have become extremely environmentally friendly. :trust:

[bluedogok]

As posted above, the "Green Energy" is from renewable sources such as wind or solar of which wind being the most common in Texas. I really don't know of any providing solar here for large scale use. Therefore the power that they provide to the grid is "Green Energy" just like TXU and others provide power to the grid from either coal-fired, natural-gas fired, hydroelectric or nuclear sources. So while it may be true that someone using a "green provider" isn't actually using "green power" per se, their use goes against the credits of their provider to the grid. In Patricia's case that is Green Mountain so in effect she is using the credits they provide and it is therefore "green power".

At least that is how I understand that system working......

[Faylaricia]

As posted above, the "Green Energy" is from renewable sources such as wind or solar of which wind being the most common in Texas. I really don't know of any providing solar here for large scale use. Therefore the power that they provide to the grid is "Green Energy" just like TXU and others provide power to the grid from either coal-fired, natural-gas fired, hydroelectric or nuclear sources. So while it may be true that someone using a "green provider" isn't actually using "green power" per se, their use goes against the credits of their provider to the grid. In Patricia's case that is Green Mountain so in effect she is using the credits they provide and it is therefore "green power".

At least that is how I understand that system working......

From what I understand, they funnel the energy from their powerplant into the regular grid via contracts with the local grid provider. Here is a listing of where the energy is produced. http://www.greenmountain.com/about/facilities/index.jsp

[Eulogite]

Actually, Faylaricia's wind-generated electrons contain a "genetic" code that sends them directly to her meter.

[Fbronco86]

TXU is supposed to be the cheapest from what I hear. I just got a new casa and signed up with TXU.

[mhutch]

I use green mountain. a few extra bucks and it balances my conscience with my 14 mpg suv.

[igo-wfo]

A friend switched to Reliant, they created 2 accounts for her, could not delete one of them, and promptly shut her power off yesterday at 4 P.M.
Did not get it back on until about noon today.

And she is current on her account(s).
All this after speaking to several CSRs and SIX supervisors.

This is in addition to our experiences with them that pretty much parallel the above.

They may be cheap, but no way in..well, you know... would I even consider them until they get their customer service/billing problems solved.

We are with TXU, but are shopping around.

[Tchuck]

You are either in the business or a very wise consumer.

Part of my job at one time was to keep up with electrical deregulation and eventually secure deregulated contracts for electrical power for the company.

Only ERCOT which is entirely in Texas is deregulated. ERCOT is totally controlled by the Public Utility Commission of Texas. Other areas like the Woodlands and Huntsville are not in ERCOT, they are in one of the interstate FERC (Federal Electrical Regulatory Commission) controlled by Uncle Sam. I've not kept up with FERC in a few years, but I doubt any of the FERC areas around Texas are deregulated yet.

If you are in an electric cooperative in the ERCOT region your coop can opt out of deregulation. In 2001 all the coops opted out.

Regarding your electrical supplier, called a REP (retail electric supplier), they put into the grid to equal what they sell. If you buy Green Mountain power, then Green Mountain supplies the electrical grid with the power that you consumed.

I'm stretching my memory, but about half of the electrical power in ERCOT is natural gas the remainder nuclear and coal. Gas at its current price has the highest cost of power generation, but is the quickest to build and lowest relative capital cost. Electrical power costs in ERCOT tend to follow natural gas pricing with some lag on going up and coming down.

My suggestion is if you are in ERCOT, buy the cheapest with no cancellation costs and fixed pricing for some term. If you are not in ERCOT, you have no choices in Texas

[Jack Giesecke]

GreenMountain is a BP company and they use windpower. Also, may check your German genes, lately, Germans have become extremely environmentally friendly. :trust:

Mine are old school, and you mix in Scotish blood, well, good thing I'm not Jewish is all I gotta say....:rofl: Think I ride that little 80 mpg 200 around all the time to save the whales??? Guess again. :rofl:

[Eulogite]

I like the gas tracker rates, currently $.103/kwh. It will fluctuate with the price of natgas, but there's no contract and you can bail anytime. Of course, actually getting your account to change could take six weeks. Still, the rate right now is saving 33%.

[DFW_Warrior]

Weird, I switched from TXU to Reliant and I have saved money every month so far. I think I'll just stick with them until they give me a reason to want to go somewhere else.

[ST/SV]

Like Sherob stated earlier on in the posting, Centerpoint is not a provider here in Houston, Centerpoint actually broke away from Reliant during deregulation about 5 years ago, They are separate companies with no ties anymore. Reliant and all the rest of the providers are running power thru Centerpoints lines. I've worked for HL&P-Reliant-Centerpoint for 36 years. Even after 5 years of dereg., Almost every day I talk to someone on the job and they will have something to say about the light bill they got from Centerpoint and I have to correct them that they are not getting a light bill from us. The poll is wrong. It should not say Centerpoint, It should say Reliant. The only bill you would be getting from Centerpoint is a natural gas bill.

[lddave]

ST/SV is right about Centerpoint.
Reliant only produces locally a small amount ( couple of hundred megawatts) of the power it sells here.
Keep buying power no matter from who, it is good for me, I work at the largest fossil fueled generating station in the U.S.(3671 megawatts) which is located near Houston.

[Texas T]

I wonder if I can convince my employer to sell to the employees at a discounted rate?
http://www.dallasnews.com/sharedcontent/dws/bus/stories/012807dnbuswalmart.14c8bed.html

[tracetrimble]

I'm reviving this thread for some more recent knowledge... I got slammed (IMO) by Green Mountain recently, and I'm now paying about 15¢/kwh, which is about 40% more than I could be paying.

I am thinking that rates will go even lower than they are now (~11-12¢ on the low end), so I don't really want a long contract, but I do like the idea of a fixed rate for some time.

I'm looking at StarTex Secure 6, Dynowatt 6 Month Rate Escape, Gexa Guaranteed 6, and TXU Market Edge.

I also HATE deposits of any kind, and all plans are vague about whether you will have to pay one or not. I suppose I have to call each company to find out for sure for my case? My credit has always been near 800, yet TXU charged me a deposit when we switched to them when we moved in '05, and then kept it because we paid a couple days late once. That's BS IMO.

[Jack Giesecke]

YOU got slammed?:rofl: :doh: Dynowatt went from 13.5 to 25 cents and I got stuck with three bills right in the middle of summer, one of 'em over 500 bucks! I FINALLY got on Gexa at 13 cents after messing with TXU for two months and them dropping the ball.

We'll see what happens again when 2 years are up, but at least it won't happen in the middle of summer this time.:doh: My luck, I guess rates are going to drop with the price of oil, now. I can't win for losin'.

[lddave]

In Texas the price of electricity follows the price of natural gas.

[DaveC]

If you are not in ERCOT, you have no choices in Texas

Not so true.

http://solar.sharpusa.com/solar/home/1,2462,,00.html

life expectancy of equipment versus cost you well always pay the same amount over time. The excess you sell back to the power company.

:ponder:

[Jack Giesecke]

In Texas the price of electricity follows the price of natural gas.

However, seems like the price of NG follows the crude market for some oddball reason, maybe same market forces or something, I don't know.

[Hemibee]

If Entergy/Gulf States is your carrier, then you are SOL. If Centerpoint is your carrier, you have options.

They are working on integrating Entergy/Gulf States into ERCOT.

Lets hope and pray that never happens.

[prhaussies]

My electricity is provided thru Mid South Synergy. We are part of the rural co-op system and have excellent service and an average rate that is very competitive. Ike hit here Saturday morning and we were back up Monday afternoon.
By the way, the Co-ops were against this free market idea. Since many of the free lance providers have gone belly up, maybe they were right. It's hard to beat grass roots stuff!!! RH

[shadow247]

Weird, I switched from TXU to Reliant and I have saved money every month so far. I think I'll just stick with them until they give me a reason to want to go somewhere else.

Had Reliant for a year at the last apt, no problems at all. I even forgot to give them my forwarding address and they were nice enough to call before sending my account off to a collections agency for not paying the final bill. I signed up with them for the house I am moving into, hope they are as good to me this time as the last.