Archive for Rate Plans
Natural Gas and a Barrel of Oil Disconnect in Price Correlation
Posted by: | CommentsLast week we saw a complete separation of the correlation in price among natural gas and oil. Last summer (2008) there was a strict correlation as both natural gas and oil reached historic price levels with gas above $13 mmBtu and oil above $140 a barrel. This summer (2009) natural gas falls below $3 mmBtu and oil is traveling above $74 a barrel. Why are we reporting on natural gas price on an electricity rate site? Texas electricity has a 90% correlation with natural gas because 40% of our power generation comes from natural gas. Our peak demand load relies on natural gas in storage which means Texas can have volatile price swings especially in the summer when air conditioners get cranked on. The challenge is in keeping enough natural gas in storage to meet this peak demand. Right now we have plenty in storage which is why natural gas and electricity price continue to travel down. When natural gas price in Texas travel down it is a sure bet that electricity rates will follow.
Oil is not dependent on what natural gas price do but last summer with a little different as there were some powerful factors causing any fuel commodity to go up in price. Many blame it on investment banks using commodities as a kind of hedge against bad security investments. Others believe that investment banks who have interests in the raw materials of natural gas and oil were at the same time heavily advertising investment in commodities as an investment product. The conspiracy was that since these banks had interests in the raw materials they had a stronger incentive in selling the commodities similar to how they would sell securities to their investors. Anyone who bought at the top of the market lost any gains as the prices fell hard in just a few months. For those who were brave enough to hold on until even now we are about half way back up in oil price from the record $140 high. Natural gas prices however are still way down from their $13 mmBtu prices of last summer 2008.
Now is a perfect time for electricity consumers to lock into a term fixed electric rate while prices are low. Longer term contracts will cost you more because of the way these prices are based on the commodities futures markets. If you have to pay %10 more to sign a 3 year fixed electricity rate contract over a 1 year contract it is worth as you are locking in near a bottom. This will allow you to take advantage of getting in at the bottom of the Texas electricity market. Most people however prefer to go with the “cheapest price” which would be a 6 month or 1 year term although a year from now the argument could be made that electricity rates are unlikely to remain this low which would force you to renew at a higher price than even what the 3 year rates are currently showing. Because of this situation we are going with a 3 year fixed rate recommendation for our customers on which electricity rate contract to pick.
You can compare electricity rates in your area by clicking on the compare link above if you need to compare residential electricity prices in Texas. If you need a commercial Texas electricity rate comparison just click on our contact link above.
August 2009 Dallas Electricity Rate Comparison
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Today is August 14 2009 and we have gone out to the power to choose website to check on electricity rates from companies like Champion, Startex, Green Mountain Energy, Spark Energy, TXU, Ambit, Stream, Bounce, Texas Power and Reliant Energy. We checked on some other Texas electricity providers but these energy companies provide a good overall comparison of rates. We have sorted the electricity rates in order from cheapest to most expensive using the pricing available on the Power to Choose website.
Startex Power, Champion, and Green Mountain Energy, are some of the more popular electricity companies we recommend and Startex and Champion are currently offering some of the cheapest available electricity plans in the Dallas Texas area. There are no hidden fees or charges with Startex or Champion. If you use below 500 kWh per month than a $4.95 monthly service fee will kick in with Startex Power but other than that you are going to be good with the top two cheapest Dallas electricity plans in the chart.
This chart above is a historical snapshot of what Dallas residential electricity rates looked like for the month and day of August 14 2009. These charts sometimes help in determining the track record of a Texas electricity companies overall consistent performance in delivering a low cost electricity price to Texas energy consumers. To see a current comparison of our recommended electricity companies in Dallas Texas please click on our Dallas electricity comparison link by clicking here.
April 2009 Houston Electricity Rates
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We have compiled a list of some of the best and worst residential electricity rates in the Houston Texas area. You will find this detailed list below. The best Houston electric rate at this time is with Champion Energy - Learn More. Reliant Energy and TXU Energy again remain at near the bottom of this list. Trickster Electric Company is near the top although we have received several complaints that Trickster raises the electric rate through TDSP related charges once the customer gets the electricity bill. Because of this we want to warn customers about the potential of Trickster’s (name withheld by legal) electric rate being higher then what it appears. If you are one of Trickster’s customers that thought you were going to be charged one rate but once you received the energy bill were charged a much higher energy price then please feel free to comment below. Read below from one of our readers and a customer of Trickster (name withheld by legal):
If TXU Energy or Reliant Energy called asking you to renew at an electric rate several cents higher then where the market is currently at we recommend checking out our recommended Houston electric providers on the top left of this page. All fees and charges are disclosed.
January 2009 Houston Residential Electric Rate Comparison
Posted by: | CommentsClick Here and Compare January 2008 Houston Residential Rates
Houston residential electric rates have steadily come down this month and when comparing to the summer of 2008 they are several cents cheaper. This last summer we had one of the worst electricity rate spikes in the history of Texas. Because residential electricity rates in Texas have come down so much since this summer we recommend signing up for atleast 1 year. A 1 year fixed electric rate insures that your Houston electricity rate is locked in for the duration of the term.
Houston Electric Service More Expensive then Dallas Rates
In Houston rates are a little higher then they are in the Dallas Texas area and other deregulated electric service cities in the state. Houston’s congestion and line loss issues on their poles and wires contributes to a higher electric rate in comparison to other cities regardless of the electric provider in Houston you go with.
TDSP, Pole and Wires Charges, and Comparing Electricity Rates
When comparing residential electricity rates in Houston do not be confused when looking at commercial energy prices. Commercial energy prices usually just show the “energy only” portion of the rate. When you look at a rate comparison chart showing several commercial energy providers the rates will look much better then they do when looking through residential electric service rates. The reason for the difference in price is that the Texas residential electric rate is an all in rate that includes the pole and wires charges and the “energy only” charges. The commercial rate isn’t any cheaper it just doesn’t have the pole charges included.
Are Commercial Electric Rates Intentionally Deceptive?
Commercial energy providers in Houston are not trying to be deceptive when the rate that is quoted does not have the pole and wires charges included in the energy rate. The reason for this difference is because the electricity provider does not know what the pole and wires charges will be immediately for a Texas business. A Texas chemical plant may pay a penny on top of the “energy rate” while a Curves fitness studio may pay 9 cents kWh for their pole charges. The pole charges are not known until an accurate estimate is completed based on several specs of the facility or the historical electricity usage is pulled from the electric utility in Houston.
All-In Energy Prices
The below Houston residential electric prices include the pole charges and energy only charges. These electric rates are all in rates that include all charges. You may browse through and pick the company, term and electric rate that meets your specific residential electric service needs.
Compare Houston Residential Electric Rates Below
January 2008 Update
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
May 2008 Houston Residential Electric Rate Comparison
Posted by: | CommentsWhat is Electricity Doing Right Now?
As of May 2008 Electric rates are currently close to a 3 year high and because of this Texas residential electric rates do not look so good right now. Many people would like to wait and renew when rates drop down but there is just no way to know when this will happen. Electric rates could hover at historical highs for several months before they drop back down to prices many people are comfortable paying.
Who We Recommend
We recommend signing a 12 month energy agreement and then trying again next year. Notice: Riverway Power recently cancelled their residential electric customers agreements in mid April according to several people who called in and left comments regarding them so we do not recommend using them as their fixed electric rate is subject to change. Our preferred electric providers at this time are Affordable Energy, Startex Energy and Bounce Energy Guaranteed No Deposit. All of these Texas electric companies have accurate billing, good customer service and low rates.
We are now approaching the end of the month of June and since writing this article rates have continued up along with a barrel of oil and natural gas. Oil and natural gas are trading at all time historical highs and the analysis shows that traders are hedging against a falling dollar by buying energy. The rise in prices can best be attributed to investors and traders trading up the price. This price spike will most likely be a bubble we will see fall but we have no idea when that will be. If you are buying Houston electricity you are exeriencing the worst of it. Houston electric rates are higher then they have ever been right now and higher then the rest of the state.
Spark Energy
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Spark Energy continues to have some of the lowest residential electricity rates in Texas. For those switching to Spark Energy who want to receive an immediate switch you can request an off cycle meter read. There is about a $15 charge for having the early meter read but if you are paying a high electric rate with an alternative provider it is worth getting off of their service as quickly as possible.
Switching early using an off cycle early meter read is a smart way to avoid staying on a high electric rate for more time thenyou need. Spark Energy offers a residential electricity rate of 12.3 cents per Kwh and for the TXU\Oncor area they have a commercial rate around 9.3 cents\kwh for those businesses using less then 500,000 kwh a year.
Cirro Energy, Customer Confusion Over Variable Electric Rate
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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.
Electricity Rates have come down after memorial day only a fraction.
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After the holidays many were anticipating a large drop in electricity prices not to mention gas prices. We did see a drop but not by very much. As consumers hold off on buying more energy they roll the dice anticipating that prices and rates will continue to go down. Unfortunately there is just no way to know if prices will go up or down. Speculating about the price of natural gas or electricity is like speculating about whether the stock price of google will be higher in two weeks then where it is at now. No one can really say if energy prices will go up or down in the short term with any certainty. If they could say this, they would be very wealthy people.
If your concerned about locking in at a bad rate then just sign up short term and have the contract expire during a time in the year where energy is not as in demand and hope rates will go down because of surpluses. This is the most optimistic outlook although there are many other factors that effect electricity prices then just the weather.Â
In summary, the best way to buy electricity is find the lowest rate at the time you need it at the best priced term. Right now a 12 month term has the best rates.
April 6th, 2009 at 2:33 am