Archive for Cirro Energy
October 2008 Houston Residential Electric Rates
Posted by: | CommentsHurricane Ike, Electric Comparison, and Relief from Summer Rates
Houston had a major issue with hurricane Ike this last month and surprisingly it had little effect on electric rates. A lot of oil and gas infrastructure was shut down but nothing was destroyed. This still usually has a negative impact on the price of electricity but because oil and natural gas is being swayed by several other factors in the trading commodities market the electric rates did not spike up.
Electric rates in Houston have come down way below their highs this summer when rates were at historical all time highs. That price spike in the summer was related to natural gas prices rising in the commodities sector beyond any level they have seen before. This had about a 90% correlation with the price of electricity. To complicate matters Houston residential electric rates were higher then usualy because several providers had bought electricity on the MCPE ERCOT market and could not meet their financial responsibilities. These electric companies also had no hedging in place so if an electric customer in Houston was on a variable electric rate they may have seen their rate tripple during this time.
Electric Rates Look Much Better From Summer Prices
Take a look at our Houston Texas electric rate comparison. We have rates listed from cheapest to most expensive. Most rates are fixed and there is a designation in the chart to differentiate between a fixed rate or a variable rate. I do not recommend signing a variable Houston electric rate contract as it is subject to change without notice. You may click on the links in the chart below and sign up online at these discounted online electric rate prices.
Houston Residential Electric Rate Comparison Chart
Cirro Energy
Posted by: | CommentsCirro Energy Appears To Be The Lowest
Many people have called me quoting Cirro Energy who offers what seems to be a low fixed rate for 12 months and 24 months. After examining the terms of service I found that the rate is a variable rate. What ends up happening is a customer signs a contract that locks them into the rate for 12 or 24 months and they have no guarantee what the rate will do. This protects Cirro Energy if the rate goes up or down but not the customer. Cirro still makes their retail margin on the rate but the customer cannot get out of the contract without penalty if the rate were to go up. The purpose of signing a contract is to lock in for a period of time against future electric rate price volatility. By Cirro offering a variable rate for a term you must sign and lock into I believe they may be knowingly or unknowingly confusing the customer to thinking they are signing into a fixed rate. Stay away from this rate product as it is not a fixed rate and Cirro can change the rate without notice at any time.
I have added a company in the chart below to compare with Cirro Energy called Startex Power. They have a very low fixed electric rate in comparison with some of the other retail electric providers. You will do much better to lock in at this low fixed rate then to get in on a variable rate that can go up on you. If you would like to participate in a low variable rate Startex offers one that has a promo rate the first month in the 9 cent range and then follows the natural gas and Texas spot price market after that. Historically you would pay about 12 – 12.5 cents on their variable rate but you are not locked into a contract. I would only recommend this rate product for those who don’t want to be locked into a contract. Otherwise, you should get on a fixed rate product for a 12 or 24 month term with Startex.
| Retail Electric Provider | Product Name | 1000 kWh | 1500 kWh | Fixed or Variable | Term | |
| Startex Power | Star Seasonal Saver 1 Year Plan | 11.1 | 11.1 | Fixed | 12 | |
| Startex Power | Star "Fall Frenzy" 8 Month Plan | 10.4 | 10.4 | Fixed | 8 | |
| Cirro Energy | Smart PassSM 12 | 10.9 | 10.8 | Variable | 12 | |
| Cirro Energy | Smart SaverSM 24 | 12.2 | 12.2 | Variable | 24 |
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Cirro Energy Residential Electric Rates
Posted by: | Comments
817.929.7095 tel
903.484.9222 fax
Understanding Cirro Energy’s Variable Rate Plan
I was speaking with a few different people today regarding the Cirro Energy Residential Electric Rate. The electric rate was quoted to me in the TXU\Oncor area which is the Dallas area as being at 10.45 cents per kwh for 12 months. The lady said this was a fixed rate for 12 months. This would be a great energy rate for 12 months if this were in fact true. I haven’t seen a 12 month rate that low in a couple months. I went out to the Cirro Energy facts label to verify if this was accurate. The facts label shows that the 12 month rate is a changing rate. Prior to the decrease to 10.45 cents a kwh the rate was at 11.36 cents kwh. So far the rate does not seem that bad but the rate also includes a $5.25 monthly customer service charge if you do not use over 1,000 kwh of energy a month. There is also a $4.95 monthly meter read fee that all customers must pay. This is more then $10 a month in additional charges a Cirro Energy customer might have to pay in addition to the kwh charges. At the least the customer will need to pay the $4.95 meter read fee in additional charges. If you end up having to pay both of the extra charges your rate would be around 11.4 cents kwh. This is comparable to other fixed rates but for a variable rate plan you are locked in to this would be terrible. You are locked into a rate you have no idea what it will do. A variable rate plan should let you out at any time. The provider is protected but you the consumer are locked in regardless of what the market may do. Because of the advantage the energy provider has you would expect to see a variable rate like this a little lower then 11.4 cents on the first month since you can already lock in at this price on a fixed hedged energy price. I would recommend avoiding this rate plan as it is bent more in the advantage of the electric provider then the consumer.
Trying To Get Accurate Rate Plan Information
I tried to get information on what customers have historically had to pay after the 1st months electric rate from Cirro Energy but they were unable to provide to me this information. The 12 month variable rate plan seems a little fishy to me and I would not contract in for 12 months on a rate you have no idea what it will do over the entire 12 month term. If the company would provide some historical data on how the energy rate performs I might be more inclined to appreciate the variable rate but there is nothing available and the extra charges you have to pay are abnormal in comparison to some of the other Retail Electric Provider’s out there in the Texas market.
Comparable Alternative to Cirro Energy’s Variable Energy Rate
If you need something lower but comparable to the Cirro Energy 12 month variable rate plan we have a suggestion. Startex Power has a variable plan that allows you to follow the market but does not lock you in to a term contract.
If you would like to be on a month to month with no contract they offer a 1 month promo rate at 9.4 cents kWh and after that they charge a no contract rate that changes each month with the market.
http://www.startexpower.com/pages/check_availability.aspx?promo_code=EC1
 After the 1st month which is just a promo rate you can track historically what the next month’s rate has looked like below:
Cirro Energy, Customer Confusion Over Variable Electric Rate
Posted by: | Comments
Power To Choose had Cirro Energy listed on their website with a Residential Electricity Rate for 12 months at 12.3 cents\kwh back in June of 2007. This tied with Spark Energy who also had a 12.3 cents per kwh energy rate. After looking closer I noticed that you can only qualify for the 12.3 cents\kwh rate with Cirro if you are using more then 500 kwh a month in electricity. Since then Cirro Energy was advertising only a variable 12 month rate on Power to Choose but would show it as a 12 month term. Mind you I had multiple people call me to complain about Cirro because they thought they had signed up for a 12 month fixed rate not noticing they were being locked into a rate that can change at will by Cirro Energy for any reason the energy company decides. I received enough of these calls to realize that most people who signed up with Cirro seemed to be under the impression that their electric rate was locked in for 12 months.
817.929.7095 tel
903.484.9222 fax
Another bad aspect to the Cirro Energy residential electricity rate was the early termination penalty. Back in June of 2007 they would charge an electric customer 1 months average electricity bill if you were to cancel. This could be $200 – $500 for some residential customers who use a lot of energy. On a more positive note an apartment customer might only have to pay $50 – $75 to cancel since they do not use as much energy. Since June of 2007 Cirro’s early termination penalty is more in line with other electric providers. They now offer both a fixed rate and a variable electric rate.
In comparison to Cirro Energy, Startex Power has a competitive electric rate worth looking at. They have standard fixed rate terms without monthly service charges. Another electric rate plan that is good for those looking for a guaranteed no deposit plan is with Bounce Energy. The electric rate is not dependent upon the amount of electricity used unless you are using under 500 kWh a month. Most people do not use under that but if you do there is a $4.95 monthly fee.
Cirro Energy has announced as of August 2008 that they are being bought out by a large electric company named Dominion Retail with over 1.7 million residential and commercial electric service customers throughout the USA. My guess is that the churn rate of electric service customers has been increasing and electric companies like Cirro are looking to sell out. After reaching critical mass it actually does make sense to sell out. I wonder if this sell out is foreshadowing what is to come in the Texas retail electricity market?
Remember telecom long distance deregulation? AT&T, MCI, and Sprint. The market became pretty thin and volume ended up making or breaking these companies. Once the companies got too big and their customers started jumping ship to the next best provider they couldn’t justify the size of their companies infrastructure any longer. These companies began losing money and selling off and downsizing.