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When Choosing a Retail Electric Provider

When negotiating Texas commercial electricity with a Retail Electric Provider such as TXU Energy through a power broker a commercial business must see a substantial savings difference than if they were to negotiate the same contract on their own. When using an electricity broker Texas companies benefit based upon the Texas aggregator or brokers business relationship they have with these electric providers. These Retail Electric Providers in Texas receive many of their new business leads from Texas energy brokers and so they fight very fiercely to win these deals. This business relationship only works for these Retail Providers so long as they continue to bid electricity quotes the lowest they possibly can.

An energy broker facilitates a buyers market for commercial companies so that they can be guaranteed the very lowest commercial Texas electric rate they otherwise would not be able to achieve on their own. Texas Retail Electric Providers like TXU Electric or Reliant Energy many times choose electricity brokers because they offer them the potential to win new business as long as they are able to bid competitively and beat out the other Retail Providers bidding on the same account.

Large Industrial Companies benefit the most when going through a Texas power broker. Many times an aggregation is not always the best choice for an industrial company. Several wholesale pricing strategies can be used to obtain a true discounted rate on electricity. Natural gas, heat factor and MCPE pricing often come into play when working out a pricing solution. Sometimes a sizable company can be placed with several others into a 50 megawatt wholesale block of electricity and obtain a rate that could never be achieved independently. We have a revolving database of companies to facilitate just this type of energy procurement strategy.

The Deregulation of Texas commercial electricity is beginning to cause some of the Texas Retail Electricity Providers to come up with a more competitive pricing strategy. When commercial electricity is negotiated through Texas electricity brokers it allows Texas companies to stay one step ahead of the game. Power brokers, who do not work hard for savings on electricity, are not working for you. A power broker should make energy in Texas as cheap for your company as possible by having qualified seasoned industry professionals on staff with a wide range of options to tailor-fit a pricing structure for each commercial business situation. Please call to get started.

Texas Historical Electric Rates

Natural Gas Spot Prices at the Henry Hub

How do Natural Gas Prices affect the electricity prices in Texas?

The reason Natural Gas prices affect the electricity prices in Texas is due to the kind of generation plants we use here. 47 % of these plants are Natural Gas power plants and the rest are primarily coal. When the storage is low the electric prices go up along with natural gas. If the weather is extra cold or very hot the Natural Gas prices go up and so do your electric rates. It all has to do with the supply and demand of natural gas and what surpluses are left in storage. The Natural gas storage report is a very good indicator of what to expect with electricity prices. When the storage report comes out, depending on if their is a storage surplus or a shortage the electricity prices will follow.

A handful of electric companies in Texas in the past did not hedge their energy after buying it correctly. When natural gas and fuel costs associated with the production of electricity rose these companies were upside down in an electric rate they could no longer make a profit on. These Texas power companies had two choices, eat the loss and potentially go bankrupt or break their customers fixed electric rate contracts. Tara Energy was the first energy provider to break their customers contracts, then TriEagle Energy. This practice stopped for awhile because of legal recourse by these energy providers customers. As of May 2008 with fuel costs and electric rates at historical highs a few providers have resorted to these same things. Riverway Power and National Power Company have both attempted to raise their customers fixed electric rates a few cents higher then what they contracted at. PreBuy Electric Company chose to eat their loss and have gone bankrupt as of May 2008. June 4 2008 Etricity also known as Hwy 3 is no more and as of June 9th 2008 there is a new rumor that Freedom Power of Texas has started disconnecting power to their electric customers. Some Texas electricity providers like Mega Energy have started putting a fuel surcharge in their fixed rate allowing them to raise the electricity price if fuel prices go up making the concept of their rate being fixed a bit confusing.