Deregulation in Tyler Texas News
Starting in 2002 Smith County Texas deregulated their electricity market allowing several Retail Electric Suppliers to compete with each other as well as the incumbent providers. The incumbent electric providers were the monopoly electric companies that controlled both the poles and wires and the energy provider. Now that there is competition in East Texas, the prior monopolies have over 40 Retail Electric Providers they have to price against. Commercial electricity in Texas has become very competitive.
Texas Commercial Aggregation Services
Commercial companies in Tyler have several options as far as providers but it is important to know what energy rate products are out there when negotiating a rate. If a commercial company is using 500,000 kwh or less a year then their energy rate will usually not be as competitive as a larger account using say 3,000,000 kwh a year. To receive the competitive electric rates that a larger facility would receive a smaller facility can be combined into an aggregation with multiple other companies. By doing this your small usage is seen as one large account to the providers. Instead of offering a meager amount of usage to the electric company you can offer enough energy that the Retail Provider can simply buy a block of wholesale electricity and pass the savings on to the companies in the aggregation that are cooperating together.
The aggregation is put together by Eisenbach Consulting (a licenced aggregator in Texas). This aggregator who is regulated by the PUC has been doing this since Texas deregulated back in 2002. They continue to add volumes of businesses to existing aggregations coming up on contract end dates, and as they do the electric usage grows larger. With larger usage presented to the electric providers there is greater leverage in negotiating a lower electricity rate. Eisenbach Consulting can assist in the explanation of how the process works and what exactly is needed to begin the process. If you desire to be a part of one immediately you can sign up online by submitting both the LOA and POA forms via fax which are found on the following page:
Aggregation SIgn up page
If you do not wish to be a part of an aggregation you can send us the Letter of Authorization form for the request of historical usage. This form allows us to request your historical electric usage from the utility. We use this data to give to the providers so they can tailor make an electric rate for your company based on the way you use your commercial electricity.
For those who just want to keep up with electric rates in Smith county we have an electricity rate comparison rate chart. Here you can visit the site monthly to see where electricity rates are at and when they might be heading up or heading back down. Monthly Electric Rate Chart
For the commercial company who wishes to follow the electricity market daily you can submit the LOA form to us and we would be happy to provide you a daily comparison of multiple electricity rates from competitive electricity providers. Another option is to follow the natural gas market. Electricity in Texas currently has a 90% correlation with natural gas prices. By watching the percent of change in Natural Gas you can see where electric rates are headed. This however is not always accurate as the heat rate that converts natural gas to electricity can sometimes offset a drop or rise in natural gas. NYMEX natural gas price.
There is one last option to consider when choosing an electricity rate in Tyler Texas and that is an MCPE rate. This is a rate that is basically made from the settlement market on the Texas ERCOT managed grid. Electric companies settle their electricity usage they need or don't need on this market. It is entirely different then the natural gas based electric rates. The rate changes every 15 minutes and over the last 2 1/2 years has averaged far lower then fixed price contracts.
Whatever you decide on doing, please don't hesitate to give us a call. Good luck on your electricity rate shopping!
