Comments on: Natural Gas Prices and Texas Electricity http://www.electricitybid.com/electricity/index.php/2008/06/29/natural-gas-prices-and-texas-electricity/ Compare TX electricity rates and companies Fri, 20 Jan 2012 20:30:14 +0000 hourly 1 By: kdmcdonald http://www.electricitybid.com/electricity/index.php/2008/06/29/natural-gas-prices-and-texas-electricity/#comment-6891 kdmcdonald Thu, 17 Jul 2008 15:16:41 +0000 http://www.electricitybid.com/electricity/?p=234#comment-6891 I was not taking about the contract term rates but the usage rates. Example. You will sign up for variable or 6 month contract or 1 year contract or 2 year contract, doesn't matter. The rates will be say 18.7 if you use under 500kWh, 17.5 if you use under 1000kWh but over 500 kWh, and 17.1 if you use under 1500 kWh but over 1000kWh. So if you use less you are charged more per kWh. I was not taking about the contract term rates but the usage rates. Example.

You will sign up for variable or 6 month contract or 1 year contract or 2 year contract, doesn’t matter. The rates will be say 18.7 if you use under 500kWh, 17.5 if you use under 1000kWh but over 500 kWh, and 17.1 if you use under 1500 kWh but over 1000kWh.

So if you use less you are charged more per kWh.

]]> By: Jim Smithies http://www.electricitybid.com/electricity/index.php/2008/06/29/natural-gas-prices-and-texas-electricity/#comment-6890 Jim Smithies Tue, 01 Jul 2008 17:12:24 +0000 http://www.electricitybid.com/electricity/?p=234#comment-6890 The reason a shorter term contract is more expensive then a long term is because the electricity contracts have a direct relationship with natural gas futures contracts. An electric agreement is nothing like a cell phone contract. Texas electric companies work from very small margins. If they were to make a 12 month contract look like a 36 month contract they would be losing money. Right now a 6 month natural gas futures contract is more expensive then a 36 month futures contract. Last year it was exactly the opposite. Electric rates all relate to what the natural gas commodities market is doing. The reason a shorter term contract is more expensive then a long term is because the electricity contracts have a direct relationship with natural gas futures contracts. An electric agreement is nothing like a cell phone contract. Texas electric companies work from very small margins. If they were to make a 12 month contract look like a 36 month contract they would be losing money.

Right now a 6 month natural gas futures contract is more expensive then a 36 month futures contract. Last year it was exactly the opposite. Electric rates all relate to what the natural gas commodities market is doing.

]]> By: kdmcdonald http://www.electricitybid.com/electricity/index.php/2008/06/29/natural-gas-prices-and-texas-electricity/#comment-6889 kdmcdonald Tue, 01 Jul 2008 17:08:05 +0000 http://www.electricitybid.com/electricity/?p=234#comment-6889 They say demand is part of the cause of higher electricty prices. If that is so and the PUC is suppose to help regulate prices, why is every single rate plan advertised with higher rates for the less you use? If you wanted to at least help keep rates lower in general wouldn't you incentivize using less instead of more? They say demand is part of the cause of higher electricty prices. If that is so and the PUC is suppose to help regulate prices, why is every single rate plan advertised with higher rates for the less you use? If you wanted to at least help keep rates lower in general wouldn’t you incentivize using less instead of more?

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