Texas electricity consumers should prepare to pay higher energy prices from this summer if a new policy under consideration is passed.
What the PUC proposes
Plagued by frequent blackouts and energy shortages in the past, especially during the months of summer, Public Utility Commission (PUC) of Texas has hinted at considering price rises to address the growing concern over Texas’s energy reserves. This state agency, which is in charge of overseeing the electricity market of Texas, signaled in April this year that it may opt for new rules to address the power problem. However, the PUC stood by the expected price rise which the new rules may trigger, as the excess money is set to support additional generation construction. This, the PUC believes, will not only solve the existing power problem, but also help secure the framework needed to meet requirements in the future.
Here’s an overview of some of the proposals set to be considered by the PUC:
- Price cap set to increase: By August, the price cap in the wholesale energy market may be increased to $4,500 per MW/hour, which will be far higher than the present cap of $3,000.
- More price cap rise in future: During the forthcoming years, the PUC would consider increasing the cap further, and it may ultimately exceed $10,000. If this happens, the Texas price cap would become more than similar caps existent elsewhere in the US. What’s more, it could bring the state in line with Australia, where an extremely high cap of $12,500 MW/hour exists.
Impact of these proposals
Though PUC can’t help but consider these proposals to address the state’s ongoing generation challenges, there’s already panic amongst household and businesses as Texas electricity price rise will hit both these sectors considerably. So, whether you are a commercial client or a household one, brace yourself to pay much more for meeting your Texas electricity needs.
Criticisms
Some opponents of these proposals say that the changed rules will only help power generators, who will be making truckloads of money by milking the common man. Creating a panic wave amongst Texas electricity consumers is also criticized by some experts monitoring the Texas electricity scene.
Solutions
Since Texas electricity rates will rise sooner or later, it pays to adhere to simple rules of power conservation and if possible, switch to solar power to meet some of your needs. However, the government should encourage such practices by offering tax rebates and discounts.
As far the PUC is concerned, it will have to take some decisions that won’t go down well with the public, but are in the interest of the state nonetheless. Still, it’s the responsibility of PUC to look for the most cost-effective solution that doesn’t create an unnecessary financial burden on its citizens. In fact, cost of Texas electricity and reliability/feasibility of the new rules in the long run should both be considered before giving the seal of approval to the proposals.
So, only time will tell how Texas electric consumers are affected, depending on what the PUC decides to do about the state’s power scenario.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Using Smart Meters to track your electricity usage
Though smart meters have been getting a lot of media attention recently, only a handful of customers belonging to the deregulated regions of Texas actually use them. However, before going into the details of how these devices can help consumers of Texas electricity, let’s take a look at what they are all about.
What are Smart Meters
Transmission and distribution utilities of the state use these digital devices to calculate electric consumption. Also called digital meters or advanced meters, these devices are substituting the old analog boxes, which you can find attached to the outside of business offices and homes.
How to use Smart Meters
You should register a new account online at https://www.smartmetertexas.com. For this, you will need your smart meter number and the EISD number for your apartment or home. You will also need your Smart Meter ID, which you can find listed on the right side of your electricity meter attached to the outside your home. You can check your monthly bills or log into your account with your electricity provider to get the EISD number. It is this unique EISD number that your TDSP (Transmission and Distribution Service Provider) and Electric Reliability Council of Texas (ERCOT) use to track your electricity consumption, which is then linked to your bill.
Once you have all the above mentioned information, you can log in with your username, and click the Usage link to see your home’s usage. Usually, the information listed is almost 2 days behind the actual date. For example, if you log in on a Wednesday, you can see your usage information from Monday.
To get an idea of your Texas electricity usage, you can select three types of graphs. The monthly usage graph displays the monthly electricity consumption of your household and goes back an entire year. For an overview of the month, you can see the graph showing daily totals, where a summary of usage for every day is shown side by side for the past month. Another graph, showing 15 minute segment breakdowns, can be used to ascertain the hours when your usage of electricity becomes much more or much less than the average consumption.
Advantages of Smart Meters
By making you aware of your electric consumption, the smart meters can help you to plan and budget for your utilities better. Though you may try to lower your Texas electricity bills with conservation, you start looking at things differently when you have real data in front of your eyes. Starting from knowing whether you are using more electricity in the mornings or evenings, to taking steps for cutting down your bills by planning your laundry in the weekends, remembering to turn the fans and lights off when you are not in the room, or investing money to buy energy efficient drapes, you become more earnest in your endeavors and can make well-informed decisions.
Conclusion
Even though some Texas electricity consumers are against the smart meters, you can benefit a lot from them if you learn to use them the right way and make decisions based on the data displayed by them.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
A significant amount of business costs for almost all Texas businesses is related to electricity. So, if businesses could save on their electricity costs, they can reduce their total costs considerably. Though during the days before the energy regulation came into effect, it wasn’t possible for business enterprises to control their power bills, they can do so now as they have a direct say over various aspects of such bills.
If you too are a Texas based business owner and want to know more about how Texas electric deregulation can help you exercise control on your business electricity consumption, the following steps can help:
- Exercising the right to choose: Since an increased number of service providers are in the market these days, thanks to the deregulation, there exist a growing competition among the business energy suppliers. This has shifted the power to the consumer who can now shop for better deals, thus exercising control over this otherwise expensive utility service. You too can shop around, compare prices and other offers to select an REP that offers better deals, thus helping you to have control on your electricity bills.
- Form groups to get good deals: An ideal way for businesses to save on their electric bills is to form solid groups, which can then discuss favorable terms with the selected suppliers. A few businesses can pool together to form such groups, and then bargain to get better deals. Since a pool of commercial energy clients is hardly ignored by utility providers, this would act as a powerful tool of controlling your business electricity bills.
- Selecting your energy providers: Before energy deregulation, the customers were at the mercy of the electric companies who often inflated bills and made the customers pay high rates. However, now businesses have the power to opt for their preferred energy providers. With a lot of players in the market, each of which offers something or the other to lure customers, a more favorable environment has come into existence under the new regime. So, as a business owner, you no longer need to put up with nondescript electric companies. Rather, if you are not satisfied with your present company, you can easily switch over to the next available choice that suits your purposes and budget the best.
- Getting to know about your consumption patterns: With EFL, businesses can now track their electric consumption well, know about the rates, payment schemes, fees, other charges, terms and conditions etc. This clarity will help them to prepare better budgets for their power consumption and control the costs.
- Make energy efficient choices: An era of energy efficiency has been ushered in by the energy deregulation, which in turn has brought down the instances of electricity wastages. Since the market has become fiercely competitive, energy providers are forced to offer better value and enhanced customer services. This has encouraged better innovations, which has significantly improved efficiency. Since improved efficiency makes businesses optimize their electric consumption and reduce wastage, they end up with decreased electricity bills. As a result, they can exercise better control on their utility costs.
So, keep all these points in mind and explore ways that can help you reduce your business electricity bills.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Though Texas energy deregulation has strengthened the consumers’ position by making them knowledgeable and arming them with the power to choose their Texas Electric supplier, many consumers are wary of making the switch. Most of these people often ask how practical it is to switch their supplier despite the benefits that such a move may bring their way. If you too belong to this league, here are some points that will help you decide.
Though you can switch your supplier to benefit from a lower rate plan of another electric company, you should remember that it would take some time to see how much money you are saving. Most people expect an overnight difference in their utility bills but the reality is quite different.
Let us consider an example to make the picture clear. Say, you decide to switch your service on the first of a month to a Texas Electricity Provider offering the lowest rate. Subsequent to your sign up, a third party verification service will verify if you want to make the switch for sure. Considering some calls may be missed during this period, we can estimate the entire process to take a week. So, the verification gets completed on the 7th of the month. Now, since there’s a compulsory 10-day right to rescind period, you can switch on the 17th at the earliest. However, your current billing cycle should be finished before the switch. Considering the worst case scenario that your billing cycle began on the 16th, you will have to wait till the next month’s 16th day to make the actual switch. This way, you would need to wait till the 20th of the subsequent month before you get a bill that reflects the savings from switching to the lowest electricity rate. Therefore, after making the switch, it would be around 45 days before starting with the new company and almost 3 months (80 days) before you get to see the actual savings.
Early termination fee is yet another aspect that makes many consumers stick to their present Texas Electricity Company. Since most contract terms often don’t disclose fully or keep it vague when it comes to the charges, fees, as well as other terms and conditions for an REP and a plan, many consumers are at a loss and don’t know how much they will be charged if they terminate their contracted rate plan to switch to a different REP. So, they take the safest route out to stick to the present company, even if it means paying more for their Electricity.
Perhaps you are now thinking that it’s really a tough task to switch Texas Electricity Companies, but the reality lies in the fact that if you make the switch and are ready to wait, you are bound to reap the benefits of lower Electric Rates.
So, if you have been paying high rates for your Electricity and thinking that switching electricity companies is not practical, wake up to the real picture and make your move now. Exercise your right to choose and save money on your utility bills, the chance of which the energy deregulation has brought your way.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
What are TDSP charges in Texas?
If you go through the electricity quotes given by different companies in detail, you will often notice a charge in addition to the energy rate. Interestingly, this charge is not included in the energy rate but is included in the total cost. While it may seem to you that the service provider is actually trying to make their rates look better by keeping this separate, it is not the case. In fact, these are TDSP charges, also called pass through charges.
Meaning of TDSP
After the deregulation of the Texas electricity industry, it has become possible for all consumers to purchase power from providers of their choice, based on their needs and budget. However, irrespective of whom you choose as your retail electric provider, you will require a Transmission and Distribution Service Provider or TDSP, who is involved with the physical aspect of providing electricity to Texas electricity consumers. In short, these are people who are in actual charge of the various poles and lines that provide electricity to the consumer, including its maintenance. In addition, these service providers also read your electricity meter, with regard to your actual usage and send the details to the Retail Electric Provider (REP).
Understanding TDSP charges
Essentially, these TDSP companies do not directly bill the Texas electricity consumers for their services. In fact, they charge the REPs for their services. The REP, in turn, transfers this charge to the consumers, which gets reflected in their bills. Texas TDSP charges are applicable to all consumers, irrespective of which Retail Electric Provider they choose. It is also important to understand that even where these charges are not mentioned separately, they are included in the bill. Therefore, in case TDSP charges are not mentioned separately in your electricity bill, you should scrutinize your utility bill to find them included along with the energy rate.
Calculating TDSP charges
When going through different Texas electricity quotes, it is possible that you will find different TDSP charges mentioned by different REPs. There are several reasons for such differences, all of which comes down to how these charges are calculated. In short, understanding the factors that are involved in calculating such charges will help you appreciate the difference better.
- Public Utility Commission of Texas Rule: Primarily, the Texas TDSP charges are calculated based on the rules and regulations of the Public Utility Commission of Texas Rule. These rules are extremely complicated and constantly changing. This is responsible for the subsequent changes in your charges.
- Actual Usage: In addition to these rules and regulations, the TDSP charges are calculated based on your actual usage. So, if you use more, you pay more and if you use less, you pay less. Under these circumstances, it is no surprise that the quotes are different from your actual bill.
While it is not really necessary for companies to demarcate TDSP charges separately in their bills, knowledge of the same is important to help you understand your electricity bill better. Moreover, knowing about TDSP charges would also help when companies try to increase their profit margin by adding onto these charges. While this is not really illegal, it is not ethical. Knowledge and understanding of these Texas TDSP charges will definitely help you choose the perfect service provider for your electricity needs.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Energy company rates
If Texas is your place of residence, you should pay attention to how much you are paying for your electric bills. Previously, PUCT (Public Utility Commission of Texas) used to set rates for your electric bills. However, since the deregulation of electric prices, Texas electricity companies now set the prices, which vary based on type of plan and by provider. This makes it important for you to know about energy company rates, and shop around to get the best deal that suits your needs and budget.
Knowing about REPs and how energy company rates may vary
Before knowing about how Texas energy company rates may vary, you should have a clear understanding of how electric choice in the state works.
To begin with, you can take your pick from several Texas electric providers based on your preferred criteria. While price seems to the utmost important criterion while comparing energy company rates, other factors like green power, stability, etc also play a major role. Once you have chosen your Texas electric provider, it would sell you your power, and pay your local utility (CenterPoint, Oncor, etc.), which in turn would transmit the power to your home. However, you just need to pay your electricity provider, and not to the wires utility. It should be noted here that since the local utility still owns the lines and is in charge of its maintenance, you need to contact them in case there’s an outage or other emergency.
If you haven’t chosen an electric provider before, it’s likely that you are still with one of the old utilities (often called legacy providers), which had been operating even before Texas was opened to competition. These providers used to charge rates set by the PUC until January 1, 2007 that marked the end of the transition period. However, ever since then, these legacy providers have got the power to charge a rate determined by the market, which means you may be paying a higher rate and should shop around now to save on your electric bills. Since switching suppliers won’t cost you additional money, getting favorable energy company rates has become easier these days.
One thing to be kept in mind, while shopping for pocket friendly energy company rates, is that depending on the utility area, your legacy providers may vary. For example, if you live in the Houston region and are served by CenterPoint, Reliant Energy is your legacy provider. However, for those in Dallas who are served by Oncor, TXU Energy is the legacy provider.
Online comparison of energy company rates
Several energy websites offer you the ability to search online for energy company rates based on your zip code, nature of use (residential or commercial), names of service companies etc. You may even shop around and compare no-deposit, variable, fixed, and green Texas electricity rate plans using such online tools. Once you select the criteria and hit the search/compare button, you will get a neatly organized chart of energy company rates, which would help you to narrow down your choices, ask questions to the shortlisted companies, and finally choose the one that best fits your requirements.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
Best electricity provider in Texas
While shopping for electricity services, you need to understand the choices available in order to find the best electricity provider in Texas. However, with many suppliers offering varied plans to woo customers, it often becomes a daunting task to select the right one. So, here are some aspects that you should consider to make a wise decision:
Types of electricity rates
Your quest of finding the best electricity provider in Texas starts with identifying the electricity rates best suited for your needs. Usually, Texas electricity suppliers offer three types of electricity plans namely fixed, variable, and green energy . While a fixed electricity rate usually remains the same during the entire term of your contract (though minor exceptions may be there), a variable rate can fluctuate every month based on the method selected by the Retail Electric Provider (REP). Green energy or renewable energy plans are offered to promote a greener planet and carbon offset solutions.
Fixed rates would help you to keep your power costs within your budget as you are certain of paying a fixed rate as long as your contract is valid. However, in case market prices fall, you won’t be able to enjoy the slashed rates until your existing contract expires. Though indexed and variable electricity rates can be beneficial during price falls, you may end up paying more every time there is a price rise due to natural disasters, extreme weather conditions, or market conditions. So, while selecting the best electricity provider in Texas, make sure that you understand how the rates can change and what factors can trigger such change, and then assess what is right for your needs.
Green/Renewable Energy Options
The best electricity provider in Texas should ideally have a substantial amount of its electricity generated by renewable resources, like hydroelectricity, wind, landfill gas, solar, geothermal, or biomass. Some REPs may even use natural gas, which is considered to be a clean and green fuel. So, if you want to contribute to the environmental cause while choosing your Texas electricity suppliers, remember to find providers who use these green/renewable resources when researching your options.
Contracts and Terms
While some Texas electricity suppliers may offer you “month-to-month” plans, where no minimum contact period exists, some others may have plans with contract periods as long as three years or even more. In case of the latter ones, you may have to pay a penalty if you opt out of the plan before the contract period ends. So, understanding how your electricity prices will change at the end of the contract period and asking about the terms of penalty would be a prudent choice to avoid legal/monetary complications.
Electric Assistance Programs
Some states like Texas offer different types of assistance programs for customers who are disabled, aged, belong to the low-income group, or are victims of family violence. It’s most likely that your electricity provider can provide you additional details regarding this program.
So, assess a utility supplier on all these aspects to find the best electricity provider in Texas.
About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com
