Archive for Oncor
Texas Electric Meter Malfunctions and Incorrect Billing
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This article is written for the unlucky electric service customer that gets hit with an inaccurate electric bill because the electricity meter was malfunctioning and the meter reader had to estimate electric usage based on historical averages from the previous year. Sometimes an electric meter could be malfunctioning and show lower usage amounts than what the electric service customer is actually using. Months could go by before the meter reader realizes that the electric meter was showing a smaller amount of usage than what the consumer was using. When this happens the electric company can true up these charges and bill the customer based on a previous years usage amount. This means that you could have been charged $30 a month for several months but then the electric company sees the mistake and sends you a bill for $1000 to recover lost income from the meter malfunction. The dollar amount would be based on what you used historically the previous year and not actual usage. This historical usage estimate rule means that even if you were not staying at the home or business during the time your meter was malfunctioning you will still be charged based on last years historical usage averages.
You would be surprised but many people in this situation claim they were not in the house at the time in order to attempt to not have to pay a higher price when the utility figures out their mistake. I would not be shocked to get some comments below from people claiming this has happened to them and they were not present at the home and therefore should not have to pay based on last year’s usage. The utility will usually work out some type of payment plan so you can pay out the difference over time but you are unlikely to win the argument that you were visiting your sick grandmother during the time your usage was low when it was verified to be a meter malfunction.
Who is Responsible for Meter Malfunctions and Charges?
Ultimately the company responsible for the electric meter malfunctioning is the Electric Utility company also known as the TDSP company or the pole and wires company. In the Houston area the electric utility is Centerpoint Energy. In the Dallas area the pole and wires utility is Oncor Electric Delivery. These companies handle fixing the poles and wires, meters, and they own all the electric infrastructure that delivers the electricity to your home or business. Before you get all out of shape and frustrated with your retail electric provider like, Reliant Energy, TXU, Stream, Ambit, Liberty, Spark, Champion, or any of the 30 retail electric companies servicing Texas you should get your facts straight. The retail electric provider only has a few responsibilities. They buy commodities, hedge energy, and sell you that electric service. Another job the retail electric provider does is to bill you based on usage data they receive from utilities like Oncor or Centerpoint Energy. You see the retail electric provider is not in control of reading the usage data or that the usage is accurate. The utility is the responsible party that all complaints and issues regarding accurate meter reading and usage data should go to.
If your TDSP meter reading company has misread your meter data or the meter has malfunctioned and you feel that something should be done about it we recommend you contact that TDSP company and express your complaint and issue. These companies will send someone on site to investigate the matter. Someone will also follow up to explain how you will be billed or compensated for the inaccurate billing.
To contact Oncor: Oncor Electric Delivery
To contact Centerpoint: Centerpoint Energy
In Some Cases the Retail Electric Provider May Have Advertised a Rate Without the TDSP Charges Included
Sometimes the meter data is being read correctly but you still notice additional charges averaging 3 – 4 cents per kWh on top of the initial advertised retail electric rate you were quoted by a Texas electricity company. When this happens you are probably dealing with only a handful of electric companies that practice this form of electric rate advertising. Most Texas electricity companies will bundle the TDSP charges into the residential electric rate so you have a total all-in bundled rate to look at. This bundled rate allows the Texas consumer to be completely informed of what the total rate will look like with all charges included. This total bundled rate will usually be in the electricity facts label.
Some Texas electric companies we know who advertise residential electric rates without including the TDSP charges in the bundled rate are listed below:
These companies have received several consumer complaints from their customers on our site claiming that they thought they had signed up on a bundled rate but found additional charges they were not aware of when receiving their first months bill. Since most Texas electric providers include all charges in a bundled format in their advertised rate on their site or other advertisement it has confused many consumers who than sign up with companies like Liberty Power who do not include the pole and wires charges in their advertised energy price.
Comparing Electric Rates With All TDSP Charges Bundled into Rate
If you would like to compare Texas electricity rates for residential homes and apartments that have all TDSP charges bundled into the rate then we recommend using the chart below. The comparison chart has several reputable electric companies in Texas without a history of hiding certain fees and charges from their customers. You can compare electricity prices with confidence when picking a provider from the chart below.
TDSP Meter Surcharge Being Felt by Texas Energy Consumers
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The TDSP Smart meter surcharge is being felt by Texas residential electric customers as the Oncor utility area has rolled out the meter fee on all residential electric service customers in the Oncor Electric Delivery utility area. The below TXU Energy customer filed a complaint with the Public Utility Commission about the meter fee but is a little confused about TXU Energy’s role in the fee.
TXU Energy back in 2008 actually tried to work to have the PUCT reconsider the meter fee or atleast how the PUCT and ERCOT charged the customer for it. At the time TXU was objecting, the issue raised was how the public would perceive the additional charge. The meter fee would have a large impact on their core business. Most of TXU Energy’s customers are in the Oncor Utility area. A majority of Oncor Electric Delivery’s customers are located in the Dallas Fort Worth area. Most of TXU Energy’s customers are also in the Dallas and Fort Worth Texas areas. The TXU Energy customer quoted below did raise a valid point about TXU Energy’s electric rate being quite high. There are actually much cheaper Texas electric rates out there than what TXU electric company is currently charging and you can check these out on the top left of this page or click below on our Dallas electricity rate comparison link:
Dallas Electricity rate comparison
What many energy consumers are just not aware of is the fact that the advanced meter fee is not a product child of TXU Electric Company. This meter fee also known as a smart meter fee is also not the product brain child of Oncor Electric Delivery even though Oncor will be rolling it out. Oncor is not TXU and TXU is not Oncor. Oncor Electric Delivery maintains and services the pole and wires as well as reads the meters for all retail electric providers and electric service customers and several years prior to deregulation went under the name TU ELectric as did TXU Energy. Oncor and TXU are seperate companies that cannot favor one another although they are owned by the same holding company, Energy Futures Holdings. Recently as of 2009 Oncor was mandated to pass these smart meter TDSP charges onto the retail electric providers like TXU and Reliant Energy. TXU and Reliant are not responsible for these charges but they get blamed for them because they have a large customer base in the areas that have been hit by this meter fee. Oncor Electric Delivery is also known as the Dallas and Fort Worth area TDSP company. TDSP stands for transmission and distribution service provider.
To Whom it May Concern
I am writing this letter to protest the “Monthly TDSP Meter Surcharge” of $2.21 that appeared on my TXU Energy bill (Invoice #054200111455) for May 2009. I believe the charge is for the new type of digital meter that when installed allows the utility company to read the usage amount each month automatically, a huge benefit for the utility company, but not for the customer. The customer can also use the digital meter to determine how much electricity each appliance in his home is using. Big Whoop…I don’t care. This type of meter has not been installed at my apartment complex; however, I am being charged for it. Since when, is it allowed to charge for a utility’s capital expenditures before the benefit has been received by the customer? In the future, are the electric utilities going to be allowed to charge the customer for each individual pole replaced?According to news reports, Texans pay the highest electric utility rates in the nation. My bill states that I pay13.95 cents per kWh excluding taxes. That’s way too much. It appears that the PUC simply rubber-stamps any rate increase or new “made up” category that utilities such as TXU requests. In the recent past, utilities such as cable companies were not allowed to provide “additional” services, such as high speed internet, to only the affluent sections of a city (this is called “cherry picking”). All sections of the city would receive the new services, and customers would only be charged for new services when new services were available to the customer. I do not have access to the new digital meter technology and therefore, I should not have to pay for it. In addition, the rate charged by a utility should include all capital expenditures it makes to deliver its product.
The “Monthly TDSP Meter Surcharge” is unjust and I refuse to pay it. The PUC is supposed to represent the public, not the electric, telephone, and cable monopolies. Just because Energy Future Holdings paid too much to acquire TXU is not a justification for the PUC to grant special rate increase for bogus surcharges that have never been charged in the past.
What course of action should the PUC take? Eliminate the TDSP Meter Surcharge and reduce the electric utility rates paid by customers, especially residential customers. These charges are unjust and excessive.
Sincerely,
Charles
Dallas Texas 75220
November 2008 Dallas Residential Electric Rates
Posted by: | CommentsWhat to do When Locking in Dallas Residential Electric Rates for November 2008?
The energy markets have been steadily declining and have started to hit some historical short term lows. If this trend continues we could see some very good residential electric rates but trying to pick the bottom of a trend is an impossible task. If you are waiting to do something I would recommend making your hunch and going ahead and signing up on a term even if just for a few months. The reason you should lock into something is due to the high price of a month to month rate. Residential electric providers in Dallas will generally offer a low first month rate on a month to month type of electric service plan but will then raise the rate dramatically after that first month. To avoid a high rate hike you should lock into some type of monthly term. If you are risk averse I would go with atleast a 1 year plan and if you are willing to roll the dice and try again in 3 months I would go with a shorter term like a 3 month or 6 month fixed rate.
November 2008 Residential Electric Rates Comparison Chart
The residential Dallas electric rates below serve as a historical marker of where rates have come as of November 2 2008. These rates will most likely change as the month progresses but you will find indicative prices as of Nov 2 2008 to help you in your shopping and comparing process. If you wish to see current Dallas electric rates we recommend checking this page out: Dallas residential electric rates
Dallas Residential Electric Rate Chart
If you are looking for a comparison of Dallas commercial electric service you can find it here: Dallas Commercial Electric Service
If you were looking for Residential Houston Electric Service you will find it on this page: Houston Residential Electricity Comparison
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October 2008 Dallas Residential Electric Rates
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If you are confused about electric rates in Dallas and surrounding Oncor utility area we have a great comparison chart below comparing mostly fixed rates with several different electric providers. These electric rates are residential rates. There are a few variable rates in the mix because those companies only offered a variable electric rate so we listed their only option. The rates are designated as to whether they are a fixed electric rate or a variable rate. I recommend to avoid signing up on a variable rate because the month after you sign up on that rate plan the electric rate could do just about anything. A variable electric rate has taken many residential customers by surprise this summer when rates trippled in price. A fixed electric rate is a much safer way to lock into an energy rate because you know exactly what price you will pay the entire term of your contract.
Current October 2008 Residential Electric Rate Comparison
These rates are updated as of October 2 2008. Because residential electric rates change every few weeks these rates will be a little higher or lower as the month continues. This comparison chart will serve as a good indicative comparison of where residential electric rates are at for the month of October 2008. You may click on the links on this comparison chart and sign up online to receive a slightly lower electric rate then calling these providers on the phone. By signing up for electric service online you keep the electric companies costs low for aquiring a new customer and they reward you by giving you a slight discount then if you were to call and speak to a customer service rep over the phone. Signing up online also allows you to take advantage of online discounts that are not promoted when calling the providers on the phone. When you call an electric provider on the phone they expect to close about 70 % of those customers who call in. Because of this most providers will try to sell you a higher electric rate then is available via online discount offers.
The companies offering the cheapest rates for the month of October are Startex Power – Sign up Now
Public Utility Commissions (PUCT) Answer On “Is Deregulation Working?”
Posted by: | CommentsPublic Utility Commission of Texas Talks Straight
The PUCT today explained why deregulation may not be working as planned in some areas of the state of Texas. There is not a whole lot of data prior to Texas deregulating the electric rates in 2002 but what information we do have has remained inconclusive at this point. Right after deregulation we saw several large electric monopolies become deregulated. “Deregulated” just means that the state of Texas has unbundled the pole and wires charges from the “retail energy rate”. The reason they unbundled the rate is because the pole and wires company is an altogether different operation from the energy trading desk that buys energy in the form of natural gas and other commodities and resells it as electricity to commercial and residential customers. Once the rate was unbundled any new Texas electric company that wanted to could open up business and sell the retail energy to customers while the same pole and wires company you have always used passes through the pole charges onto the electric bill with no markup. If you have picked an alternate electric provider since deregulation you can actually still see the pole and wires company number on the bill in case of an electric outage. The number on the bill helps to confirm to Texas energy customers that they still deal with the company they always have when it comes to the electric service infrastructure and transmission.
An Example Of A Deregulated Electric Utility
TXU Electric Company was deregulated back in 2002 and as you may or may not know they kept their same name when they became an independent Texas electric provider. That means that their pole and wires company was called TXU and their retail energy company was called TXU even though they legally could not be affiliated with the pole and wire division. They were basically two altogether separate companies because legally there could be coercion if they were still affiliated. Imagine if you switched to a different retail electric provider and “TXU” the pole and wires company decided they would get you back by raising your TDSP charges on your bill which covers the pole, wires and meter maintenance? This would be a good way to keep people from leaving TXU since pole and wires charges can sometimes make up 50% or more of your Texas electric bill.
TXU Electric Delivery Had To Rebrand
What ended up happening because of continuous fear and confusion, because the name was so similar to the old monopoly, was a complete rebrand of the pole and wires part of the company. TXU Electric Delivery had to rename themselves “Oncor Electric Delivery” in order for people to distinguish between TXU (The Retail Electric Provider) and TXU (The Pole and Wires Company or TDSP Company, now called Oncor). Even after reading this lengthy explanation many people will still have no idea that TXU just sells the electricity (a paper transaction bought and sold on commodity markets and hedged) and no longer maintains the poles, lines and meters. Even as of today you will still see TXU Electric Delivery as a brand name for Oncor Electric Delivery even though they are no longer called that. Oncor even owns the name “TXU Electric Delivery” although imagine if Microsoft found a company using their brand name even if not in the same line of work? Microsoft would sue their pants off and the company would immediately need to cease and desist all use of their brand name. This is not the case with Oncor as they use Oncor and TXU interchangeably which helps in the confusion process and brings in multiple electricity customers back to TXU Energy Retail Electricity. It would appear that Oncor using TXU as a part of their brand name is an effort to help TXU Energy Retail gather new and existing customers even though they are no longer the same company. Many people call TXU Energy to have their electricity turned on thinking they are calling the poles and wires company. TXU Energy signs the new customers up left and right because of this confusion process and there does not appear to be any end in site. The rate is usually not very competitive in comparison to other retail electric providers in Texas and neither does it need be considering that these customers are signing up on a brand they believe to be their only choice in “turning on new electric service”.
Example of An Alternate Texas Residential Electric Provider To Compare With TXU: Startex Power is currently the cheapest provider: learn more and Champion Energy comes in second place.
Oncor Maintains The Poles, Wires and Meters
So what have we learned? Oncor reads your meter and maintains the electric infrastructure in North Texas. They are the ones who pass through your TDSP charges on a 1 to 1 basis on your retail electric bill. The reason they are called pass through charges is because most retail electric providers like, TXU Energy, Gexa, Startex, Spark, Champion, Bounce Energy and multiple others do not markup the TDSP charges from Oncor but pass them through on a 1 to 1 basis. There are a few Texas electric providers who do in fact markup the TDSP charges while offering a competitive retail electric rate. What ends up happening is you believe that Oncor has past through those charges with no additional markup on your bill, which is the only company who can since they own the electric infrastructure in North Texas. You receive a competitive retail electric rate with no indication, except in fine print in the energy contract, that the TDSP charges have been marked up by the retail electric provider (not Oncor). This allows a few retail electric providers to come away with extra profit margin until the PUCT of Texas makes this an illegal deceptive trade practice. Until the PUCT does something about it some electric providers will continue to do this until bad publicity catches up with them.
No Historical Data On TXU Energy Electric Rates Prior To 2002
There is not a lot of data showing what the last previous 2 years prior to deregulation showed for what electric rates were at for TXU Energy. This information would be useful in understanding what the Texas retail electric rates have done before and after with TXU since deregulation began in 2002. What we would need is the electric usage data file going back before 2002 for a particular company or residence. This can be obtained from Oncor Electric Delivery in the Dallas and East Texas area and from Centerpoint Energy in the Houston area. We would then need some corresponding electric bills prior to deregulation. Any electric bills before 2002 will prove helpful. We can then compile the data and give some estimates of what electric rates have done before and after Texas deregulation in regards to TXU Energy. We would also take into account what natural gas prices have done since deregulation began. There was a time right after deregulation when natural gas spiked up to some historical highs which caused electric rates to drastically rise. This rate spike made it look like deregulation was having the opposite effect that the state of Texas was expecting.
If you have old electric bills and usage data please feel free to fax it to 1-903-484-9222 and we can use it in our analysis. We appreciate your help in this matter.
Texas Deregulation Debate, What Is the Current Controversy?
The debate right now is whether or not Texas deregulation actually caused electric rates to go up instead of down. Many people believe that NOT breaking up the monopolies would have been a better choice. Their reasons have to do with several factors.
Factor 1
One reason has to do with the natural gas spike back in the beginning of 2002. Natural gas has a 90% correlation with electric rates in Texas. Because natural gas spiked so did Texas electric rates and this was at the same time Texas unveiled deregulation. Timing was very bad in this case in giving the Texas public the perception that deregulation works to reduce electric rates.
Factor 2
The second popular reason is that city municipalities and coops near deregulated towns often pay a few cents kWh less for their electricity then the deregulated city next door. These city owned municipalities and coops give the public the perception that deregulation has done nothing but raise rates. The factor that people are not recognizing is that the prior monopoly retail electric providers like TXU, First Choice Power, Entergy, WTU, Reliant, and CPL may have had abnormally higher electric rates then some of the smaller city owned coops and municipalities. The only way to know for sure if this is the case is to provide historical electric usage data and historical electric bills prior to 2002 from one of these retail electric monopolies also known as Texas Affiliate electric providers. You can send us your historical bills and usage data and we would be glad to investigate.
Fax : 903-484-9222
Factor 3
Another point to consider in regards to factor 2 is that not all city owned municipalities and coops have cheaper electric rates then the deregulated Texas electric providers. Take for instance the city of Garland Texas. The city of Garland has many times had higher electric rates in comparison to competitive Texas electric companies like Champion Energy or Startex Power. There are several other municipalities that have historically had much cheaper electric rates then the competitive Texas electric providers in the deregulated counties of the state. One such provider is in the cities of Longview and Marshall Texas. SWEPCO also known as AEP is not deregulated in these areas and is a few cents cheaper then cities just outside of it like Tyler Texas. The only explanation as to why they are able to provide a cheaper electric rate would be related to less advertising dollars spent at competing against multiple other electric companies. Texas has made the record books at being the most competitive electricity market in the world and AEP SWEPCO has avoided the issue of needing to compete with other providers by having absolutely no competition in this area of Texas. They also have the added pressure of needing to keep the rate low so that the city does not decide one day to deregulate the area because of being overcharged by their monopoly electric company. Longview must also contend with the fact that by deregulating the area they could bring in new businesses and jobs to the city which gives them more tax dollars. In the end a Texas city or county may decide to deregulate because the electric rates would be cheaper, they could add tax revenue and new jobs, and the possibility that Texas Energy lobbyists have swayed them.
Oncor Electric Delivery
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There are energy efficiency programs for manufacturers in cooperation with the state of Texas and Oncor Electric Delivery previously TXU Electric Delivery. Oncor serves the Dallas Fort Worth metropolitan area of the state and can assist in retrofitting a manufacturing facility with the needed demand saving devices and measures to drastically cut the cost of the facilities electricity. In some cases a return on a minimum $10,000 investment in energy saving steps can show a 50% return on investment in 1 year. Try making that in the stock market in a year!
Generally money is enough incentive to get started. Where do I start?
To get started you need to become familiar with Oncor Electric Deliveries steps. There are a few pages of application information you need to fill out regarding the facility to qualify and inform the Oncor agent who will be assisting you along in the process of adding 10′s of thousands of dollars to the bottom line. This doesn’t just benefit you but benefits Oncor as well and the state. Less plants and electricity infrastructure needs to be built if demand loads are reduced in energy consuming facilities like manufacturing facilities. The Energy delivery company have just as much to gain as you do and are required by the state to meet a certain goal each year so if you don’t find them first they may eventually be calling or knocking on your door.
If you want to take advantage of some load management programs to bring down the electricity demand used in the facility during peak demand times then you can effectively add even more dollars to the bottom line. Oncor has a few steps you can take to benefit in this way as well with their load management program.
Again, these programs are for the Dallas and Fort Worth Texas area for industrial and manufacturing facilities. These services are mainly free services with a small investment from the company which is usually recouped in less then a year.
If you have further questions about this or need help with the process you can give us a call and we can do the leg work for you.
Speak to one of our energy consultants at 1-800-971-4020