Consumers in Houston, Dallas, Fort Worth and Corpus Christi were promised bargains on electricity when the Texas Legislature deregulated the electricity market. But 16 years later they're still paying more for electricity than their counterparts in cities Texas lawmakers exempted from deregulation such as Austin and San Antonio, according to the Texas Coalition for Affordable Power which analyzed federal electricity pricing data.
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Keeping on top: With deregulation, a whole host of electric resellers jumped into the market because there’s a whole lot of electricity to sell: if Texas were a country, it’d be the 11th largest electricity consumer in the world! Just by itself, it uses as much electricity as Spain or Great Britain! That means there’s a whole lot of information you have to find, absorb, and process to make sure you’re getting the best rate for your needs.
Even though customers in deregulated Texas markets routinely pay more for electricity, there is a bright spot. The gap between the average price paid for electricity between deregulated and regulated market has shrunk to 8.8 percent. In 2006, customers in deregulated cities were paying nearly 47 percent more for electricity than their counterparts in regulated cities.
Oncor, the state’s largest distribution utility which covers Dallas, Fort Worth and much of North Texas, has already agreed to pass all of the millions of dollars of expected tax savings along to consumers. Oncor agreed to pass the savings along to customers as part of a rate review which is a formal process in which the PUC reviews the appropriateness of rates being charged by the utility. No exact details have been determined with respect to how the savings will be passed along. The rate review was actually completed before the tax reform bill was passed but there was a commitment in principle to passing along the savings. It’s not yet know exactly how much Oncor will save from the lower corporate tax rates but with a $245 million tax bill in 2017 future saving are likely to be in the tens of millions of dollars.
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Energy sellers must provide collateral to ERCOT to cover expected future costs of buying wholesale electricity and if the companies don’t have enough capital, they get shut down. Breeze Energy, a Dallas-based electricity retailer that sold wind-energy plans to 9,800 customers including many in the Houston area, got caught in that financial squeeze when it defaulted on its collateral obligations.
One way NRG has expanded its customer base — it has about 30 percent of the retail electricity market in Texas compared to about 20 percent a decade ago —is by putting employees into retail settings such as grocery stores and discount stores to meet with consumers about the company’s electricity plan offerings. The face-to-face interactions have helped the company explain the range of current offerings, said Killinger. NRG also emphasizes the importance of buying power from a company with enough financial heft that it will be around in the future.
Buying your first new home build is no easy task. It’s months of inconvenience, annoyance, and slogging through a messy jobsite. It’s the phone ringing at all hours with nuisance questions. It’s running back and forth to the site for damage control, decisions, approvals, and inspections and in amongst it all, there’s the signing of check after check. A good amount of those checks are to cover the cost of on-site power.
There are a variety of different types of gas and electricity plan that are currently out there for prospective customers to consider. Some plans offer fixed rate deals , these allow you to be sheltered from price rises over an agreed period of time. Other plans allow you to manage your entire account online, making it easier and more efficient for you to handle your energy supply.
The more cool air you lose, the harder your air conditioning unit works and the higher your electricity bill will be. Install blinds, hang curtains or get storm windows made to keep cool air from seeping out. Even mesh screens, on the outside of your home, will help deflect solar radiation. You might even consider replacing old windows that leak cold air and let in heat.
3. Customer service: When the only utility available has lousy customer service, nobody is surprised. They don’t even pretend to care – they know they have you over a barrel. With all these new players in town, however, it’s a slap in the face to be treated like royalty until you’ve signed on the dotted line and now they won’t even return your calls or the person on the phone can’t string three English words together or if he does speak English, he’s brand new and panicking trying to pull up your account information.
Thanks to energy deregulation in Houston, customers are now able to look around for lower rates, as suppliers are competing with one another. Residents can shop and compare rates and plans because there are more options for energy providers in Houston, helping consumers save money every month by signing up for more reasonably priced energy plans. Find out what energy prices in Houston look like today.
Prices on longer term plans of a year or more have also risen significantly. Retail electricity providers are reluctant to discuss their prices — especially rising ones — but the Association of Electric Companies of Texas, a trade group, estimated that the rate on a one-year fixed price offer on the Power to Choose website has climbed more than 20 percent over the past year to an average of 11.1 cents per kilowatt hour.
With over 2.3 million residents, Houston is the largest city in Texas and the fourth most populated in the United States. Encompassing over six hundred square miles, Houston stands as the fifth most popular metropolitan area in the country and gets its name from the commander who won Texas’ independence from Mexico in 1836. The city lies in the southeastern portion of the state within a deregulated Electricity market and as such, allows residents to select an energy provider from the various service companies that serve the state.