“The whole business model of the industry is to get people in on the promotional rates and then jack up their rate when the promotional rates end,” said Trent Crow, a former JP Morgan energy trader and founder of Real Simple Energy, a website that helps consumers find low-cost electricity plans. “I don’t think people realize how much they are overpaying.”
Electricity or Gas Supplier License/Order #s: CA 1359, CTA0006, CTA0032; CT 01-06, 06-07-11, 06-02-17; DE 00-162; DC GA2012-12, GA06-2, EA01-5, GA 11-5, EA 06-5-4, GA03-5; GA GM-46; IL 02-0489, 03-0320, 16-0205,17-0330, 07-0498; IA G-0010; ME 2000-989, 2002-64; MD IR-3645, IR-655, IR-311, IR-500, IR-3644, IR-228; MA GS-053, GS-030, CS-015, CS-045; MI U-14066, U-14867, U-13660, U-13245; NE NG-0043; NH DM 17-024; NJ GSL-0074, GSL-0101, ESL-0016, ESL-0066, GSL-0132, GSL-0099, GSL-0150, ESL-0171; OH, 09-153G, 00-003E, 00-013E; OR ES4 (12-162); PA A-2016-2542899, A-125095, A-110036, A-2016-2547424, A-110110; RI 2379(Z1), D-96-6(E); TX 10014; VA G-26, G-34, G-36, G-51, E-11A
Texas deregulated most of the state's electricity markets in 2002, a move aimed at lowering electricity costs by letting consumers choose their own electric power providers and their own plans. Some parts of Texas continued to be regulated, including those whose power is proved by municipally-owned utilities, electric cooperatives and investor-owned utilities that operate outside the state's primary power grid.
The increase in retail rates come as companies prepare for surging prices in the wholesale electricity markets where they buy their power. Forecasts of higher than normal temperatures and record power demand are coinciding with the shutdown of at least three coal-fired plants, leading to concerns that temporary shortages on the hottest summer days could send wholesale prices, which typically average less than $50 per megawatt hour, spiking to $3,000 per megawatt hour or higher. (A megawatt hour is 1,000 kilowatt hours.)
The threat of price spikes have been long in the making, the result of changing economics of power production. The shale drilling boom produced record amounts of natural gas, which pushed prices to all-time lows and made gas-fired plants cheaper to operate than coal. Renewable energy such as wind is also producing abundant amounts of electricity at a lower cost than coal.
1. Contracts: Before, there were no contracts. You signed up or you didn’t. When it’s the only game in town, you have to play by their rules. Nowadays, you’ll see these ultra-fabulous rates bandied about but it’s only by carefully scrutinizing the fine print that you’ll discover those wonderful rates come with a one-year lock-down or other catches.
Take a few minutes to sit down and do some digging. Not only do you want to find out exactly which Houston power companies operate in your neighborhood and what it is they have to offer, but you want to find out which are the cheap power companies in Houston. You’ve just bought a home! You need to save as much as possible everywhere you can until you can get at least some of the move-in expenses paid down. Now, while it’s true that most Retail Electric Providers require a deposit if your credit is poor or you haven’t had a utility in your name, not all of them do. Even with those that do, some will accept a letter of guarantee, where someone else guarantees in writing that they’ll pay the bill if you don’t, in place of a cash deposit. This can be even more useful once you consider that the typical deposit is 1/5th to 1/6th of an annual bill – if it’s a brand-new home, it might be that the only record of use is that of the construction company and that would be a seriously large deposit, indeed!
Ready to shop? Below you’ll find available electricity rates in Houston. Search for plans by rate, term length or brand. If you have an apartment with a short lease, a supply plan with a shorter length might be the best for you. However, if you own a home and don’t plan on moving for a while, you can look for long-term plans. You have the power to choose!
Energy Ogre: Grab a recent electric bill and head to www.energyogre.com. Enter some basic information from your bill and within minutes, Energy Ogre lets you know if it can save you money. If it can, you pay the company for one year, either $10 a month or $120 up front. Once you sign up, the company keeps looking at energy plans to make sure you're always getting the lowest rate possible. When you sign up with Energy Ogre, your electric bill and the $10 monthly fee is set on auto-pay so you don't have to worry about remembering to pay each month. More info
If you’re looking for cheap electricity in Houston, TX, you’ve come to the right place. We compiled the best electricity plans in Houston from the top providers, ensuring that each electricity company we select meets our high standards for business stability, eco-friendliness, and transparent pricing. You can rest easy knowing you’re choosing the best from the best.
Partha Krishnamurthy, a marketing professor at the University of Houston, said he suspects that many people may be unaware they’re paying more than they need to for electricity, putting their bills on autopay and forgetting about the rates they pay. Most people don’t go to the trouble of changing banks, jobs or their electricity providers, for that matter, unless there are problems.
You have the power to choose your Houston electricity provider, so why should you choose Bounce Energy for your home? It all starts with the Bounce Energy Promise. The promise means you'll never be charged unnecessary fees. What's more, Bounce Energy will work to make sure you remain a satisfied customer starting the moment you sign up and following through with every renewal. Our dedicated customer service team, is always willing to help you and explore the plans available to determine which is electricity plan is right for your home. They're available online via chat, email, Facebook, Twitter and even over the phone, which means you can reach them however you'd like.
But in Houston, where there are 52 companies on Power to Choose each offering several different power plans, there might be too many choices. Economists have found that when confronted with a large number of choices, most people tend to do nothing. In one well-known behavioral economics experiment, researchers set out six samples of fruit jams at a grocery store, enticing 30 percent of shoppers to buy the product. But when they increased the number of samples to 24, only 3 percent of shoppers made a purchase.
Using an average of 1,063 kWh of power each month, Houston’s energy consumption rates exceed the national average by over 100 kWh. As a city however, it does manage to maintain a lower monthly energy charge than the rest of the US, incurring an average fee of $99 in comparison to the $112 national monthly average. To further save on their plans each month, residents can choose from a selection of Texas-based energy suppliers and service plans.