by admin / Posted: December 14, 2011 · /
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Variable electric rates are not all bad but there are problems with them that if not understood can leave you like many others, very confused when your rate goes up.
As the name implies a variable price does not guarantee by any means that your price will always stay the same or go down but never up.
The variable price is just as likely to go up as it is to go down.
Most electric companies in Texas will give you an introductory rate when getting you to switch to their variable price. The rate looks exceptionally low compared to locking in at a much higher fixed contract for 12 months.
Many people simply see that cheap variable intro rate and sign up. Once your rate goes up and you realize it has gone up it is usually too late to switch away before you get a sticker shock electric bill in the mail.
It is possible that 45 days of electric usage could have accumulated during the time your price was jacked up. Since you get billed every 30 days you will likely disconnect a week or so after that.
You will get billed at the higher rate for over a month before you can switch away and this may have caused you to spend $200 or more than you were planning on.
If your price follows an index like natural gas you can rest confidently when your rate is high because you know you will be rewarded when commodity prices come down.
The problem is that most providers do not make it very clear how their variable price works and so you really have no assurance of anything.
To save you all this headache try a fixed rate like what I usually go with. I sign up for 12 months on a fixed plan and have no worries for a year. At the end of the year I get a reminder email to shop prices and I simply renew with who I consider to be the best provider for another year.
by admin / Posted: October 12, 2011 · /
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DPI Energy is one of the popular prepaid electric companies in Texas but like many prepay companies there are often challenges with staying within PUCT rules and regulations to operate as a licensed Texas electric provider. DPI Energy’s owner, Amvensys Capital Group LLC. has requested PUCT approval to sell all of DPI’s units to TruSmart Energy Holdings LLC.
One of the PUCT points when a change of ownership is made is that it is not used to get around a rule or regulation while yet still maintaining similar management or ownership however behind the scenes and hidden they may be. From the PUCT research they conclude that the sale appears to consistent with the terms if the settlement agreement from Sept 15th 2011 as written about on the PUCT website.
Once the PUCT staff have received all exhibits and schedules of the sale agreement they will be able to make final recommendations to the commission of the sale and proceed with allowing it to take place. The change of ownership application was received on October 6th and is being reviewed. The staff has until October 24th to file recommendations regarding this sale. So long as the commission finds that the sale agreement complies with the terms of the settlement previously established by the commission and DPI they sale and change of ownership should go through.
There will be a change in ownership and control as well as technical and managerial qualifications. TruSmart will show proof of shareholder equity in TruSmart no less than $1 million dollars and a stand by letter of credit payable to the PUCT commission of $500,000. These requirements insure that the electric customers and ERCOT are protected against possible bad execution, default, and bankruptcy of the electric provider. TruSmart currently has Texas electric customers and is in compliance with all PUCT rules and has no history of default with their load servicing company.
This sale should be a big positive in an industry that has seen its fair share of prepaid electric companies keep prepayments and true-ups of their customers and close down business leaving the state with huge profits instead of selling when it was expedient and right to do so.
