Archive for Texas

We’ve talked about smart meters a few times here on ElectricityBid.com. Following are a few more facts about them that you may not know.


When You Can Expect to Receive Your Smart Meter

Smart meter distribution is being done in phases. And in some jurisdictions, customers have already received theirs.

If you haven’t received yours yet, you can find out when it’s coming. You can contact your Transmission and Distribution Utility (ie, your TDU), your local municipality or your co-op to find out about their smart meter distribution plans.

How Much Will Smart Meters Cost

The costs will be shared by all consumers and will be paid for over a period of time. How/why?

In 2005, the Texas legislature deemed that the Pub­lic Utility Commission (PUC) could authorize electricity suppliers to assess a surcharge to consumer bills that will pay for Smart Meters over time.

FYI, this surcharge will only be charged to consumers who actually receive a smart meter, NOT to all electricity consumers.

Save on Your Texas Electric Bill beyond Smart Meters

While smart meters will save consumers money, it’s not the only way to garner savings. Another way is to switch to a low-deposit or no-deposit electric service plan.

If you have less than perfect credit or a low income, traditional Texas electric companies have a range of low-deposit and no-deposit electric service plans that you may qualify for. They’re worth looking into, especially if you’re currently using a prepaid electric service plan. Why? Because prepaid electric service rates are much higher than what you’d find with a traditional Texas electricity supplier plan.

Call your Texas energy company to find out which low-deposit and/or no-deposit electric service plans you may qualify for.

Categories : Texas
Comments (0)

If you’ve taken the time to look at any part of your energy bill other than the “Amount Due” line, then you know that it can be downright confusing. The reason is Texas electricity companies speak a different language than their customers.

Customers speak in terms of, “How much do I have to pay?” Energy providers speak in terms of X cents for a kilowatt hour (kWh). No wonder confusion reigns.

How to Save on Electricity Costs in Just a Few Minutes

Investing just a few minutes in understanding the lingo of energy providers can go a long way in helping you to save on your monthly electric bill. Why? Because once you understand how companies bill, you can know what to look for when you do some comparison shopping for Texas electric companies.


A kWh is simply a commercial unit of electric energy. Each kWh costs money. Depending on where you live, it can be anywhere from 8 cents to 15 cents or more.

To reduce your energy costs, simply look at your “Total Usage” and work on reducing this. For example, if you and your family used 1,100 kilowatt hours last month and you were paying 10 cents per kWh, then your monthly bill would be $110 (10 cents x 1,100 kWh); plus taxes and service fees, of course.

To save money, you can reduce the amount of kWh you use and/or shop for a Texas electricity company that offers lower rates (eg, one that charges 8 cents/kWh instead of 10).

How Would You Like to Save 25% or More On Your Electric Bill?

If you’re on a prepaid electricity service plan, you can easily save 20%, 25% or 30% or more by shopping around because you’re probably paying at least double (and maybe even triple) what others are paying by being on this type of plan.

Nowadays, traditional Texas electric companies offer a multitude of ways to save, eg, the Texas LITE-UP program. It’s a no-deposit electricity plan that gives consumers a discount in five of the most high-use months of the year (May through September).

With the hot summer months just around the corner, ask your Texas electric provider for qualifying details on plans like these — and make the switch if you have to.

Categories : Texas
Comments (0)

Steps to Produce Your Own Electricity

If you want to save money and not have to depend on electric suppliers for all of your electricity needs, making your own electricity is one of the simplest things you can do.  Constructing your own solar panels is affordable at less than $100, and easy.  Whether you want to put your own electricity in your shop or storage shed, or generate power that opens your garage, you can do whatever you like – even rely solely on your own electricity, so that you can live independent of the electric company.


See the Warnings section.

Steps

Determine Your Needs

  • Determine what your needs are, but don’t deny yourself if it is important to you.
  • Plan a way to extend your electricity if you underestimate your needs. 
  • Plan thoroughly – don’t forget well pumps and other necessities.

Decide Why You Are Generating Your Own Electricity

  • Is saving money your primary focus?
  • Are you mainly preparing in case a disaster occurs?
  • Are you trying to become self sufficient?

What Do You Need the Power For?

  • Water/Well
  • Lighting
  • Refrigerator,
  • deep freeze or other appliances
  • Entertainment purposes
  • Vehicles than run on electricity

Determine if Survival Requires

  • The biggest television
  • An automatic ice maker in your freezer
  • Grow in Small Increments

You don’t have to swallow all the costs at once, so you may determine that installing your own electricity in stages is right for you.  Simply start small, and as you go along your confidence will increase so that you can go bigger.

  1. When you shop for grid-attached rooftop systems, make sure that you choose one that includes the capability to expand.
  2. Whether you have a grid up or not, you cannot run an automatic gate off of solar power.
  3. Trailers and Rev’s require at least 60 watts of solar power if they are equipped with deep cycle batteries just to keep the batteries charged when not in use.  If you are going to use it and not run a generator each day, think in terms of 200-400 watts.
  4. A garage or shed that is detached from your home that is without power or needs an electric door opener can be run off solar for a cost less than what you would pay an electrician to wire it to your main residence.
  5. A well pump is essential so that you have water if the power goes out.
  6. Specific circuits in your home may be isolated and placed on a battery/inverter.  Examples of this would be:
  • Only the lighting circuits, so that your home can have light at all times
  • The circuit that supplies your computer room, so you don’t have to worry about power interruptions
  • The alarm system
  • Heaters or pellet stoves that are powered by gas or propane
  • Circulating fans
  • Stoves, water heaters, ovens that are equipped with electric ‘brains’, but powered by gas/propane

Shop Around

If you have a local ‘alternative energy’ dealer, don’t assume they will give you the best deal or the best system, or offer you a bargain.  Usually, you will find they are harder to deal with.

  • Be well informed and armed before you discuss your needs with a dealer.  You will likely experience that they are as ruthless and hard to negotiate with as a car salesman.
  • Prior to visiting the dealer, make sure that you know what you are talking about.  Do your homework ahead of time!
  • Salesmen can come in handy when it comes to state and federal rebates for alternative energy installations – after all, they aren’t all bad.
  • Shop around and don’t get in too big of a rush.  You want the best equipment at the lowest possible cost after shipping, taxes, etc.
  • Consider watching a solar dealer’s business, particularly the guys in the pickup trucks, if you aren’t exactly a ‘handyman.’  Often, you can hire the dealer’s help to install hardware for you – and you can be sure they know what they are doing.
  • Some contractors are more experienced than others, so either make sure you hire one with experience, or barter for a better price if the ‘handyman’ is lacking a bit in the experience department.

Maintenance

  • Anything will fall apart if you don’t take care of it
  • Before you buy, consider how long it should last.  Sometimes, being tight now will cost you later.
  • Try to set up a budget for costs related to maintaining your system for the long term.
  • For larger installations, ask your agent about insurance coverage.  It would be a shame if you lose the results of your efforts because your home owner’s policy does not cover it if a disaster destroys it.   
  • Prepare for the things that can go wrong (and will, eventually).
  • Determine if it is really worth the trouble to you.  Some people want automatic convenience, no matter how it happens.  Generating your own electricity requires a little planning and daily thought.

Conservation

You actually can run everything you own on solar, wind and water, but let’s be realistic.  Most people would find it beyond their budget to install a system that can handle air conditioners, electric rangers, refrigerators and all of the other appliances that are used on a daily basis.  These appliances draw large amounts of current that prohibit most renewable systems from being able to handle them.  If you do have a local solar dealer that runs his entire business off of solar panels and keeps it frigid in the warm months and toasty in the colder months, it probably cost an arm and a leg in hardware and a great deal of their own time to install.

  • Each dollar spent on conservation means that you spend two or more dollars less on generation equipment to run your home.
  • Comfort vs.. Luxury vs.. Ideology
  1. Micro-hydro power, wind and photovoltaic panels are not realistically able to heat or cool your home within reasonable budget limits.  If money isn’t an issue, they can maintain a comfortable temperature in your home, but likely you will be looking at a grid-tie solution due to the excess power that is generated, which batteries cannot soak up quickly enough.
  2. Solar water and air heaters heat the water or air through direct sunlight, and not through an electrical circuit, but many do work well.
  3. When the batteries are charged on a wind generator, the load must be put somewhere, and this can be a water heater, although the ‘diversion’ load won’t make the water hot by itself.
  4. Unless you are made of money, it isn’t likely that you will be able to heat or cool your entire home with the size of solar or wind system you could comfortably afford. 
  • Smaller refrigerators that open from the top tend to be the most energy efficient.  Determine what groceries must be kept cold, along with the food items you simply like cold.  Decide if some foods can be placed in a chest type freezer, or if re-arranging your kitchen layout is an option to consider.
  • Refrigerators that are powered by gas, electric or heat are still available in today’s market, something you may want to consider.
  • On non-grid systems, refrigerators, washing machines and other appliances that are 12/24 volt can have substantial power, unlike their AC counterparts.  This can be achieved by cutting the inverter ‘middle man’ out of the equation.  While 10-15% of a large load equals a good deal of wasted energy, 10-15% of a small load is a small price on an inverter.
    Inverters

Getting AC appliances and running them off of an inverter is much less expensive and more convenient than running an entire household off DC.

  • The inverter is made in to the system that ties the power to the grid on a grid-tie system.  The inverter is then connected between your home and the power company’s meter.  Usually, these inverters can handle the power output requirements by being chained together.
  • Smaller inverters can run individual household circuits, and are usually more cost-efficient than one large converter.
  • Inverter, generator and grid circuits must not mix on non-grid-tie systems where the grid is used to supplement generated or stored power.  Examples of this would be:

Certain household circuits like kitchen and air conditioning or a battery charger can run off of grid/generator power, but other circuits that are supplied by inverters must be isolated from the grid power.

Backup

A self contained power system is not always reliable, because the elements are not always reliable.  Consider this:  Water is not always flowing, the wind doesn’t blow constantly, and the sun doesn’t shine every day of the year.

  • Grid

For those who are already power customers, a grid is the least costly solution for most people.  The customer installs one type of power, for instance solar, and ties the package to the grid.  At times when there is not sufficient power coming in, the grid makes up for the shortage.  When there is excess power, the grid buys it.  With larger systems, the power meter can consistently run backwards.

  • Storage

Getting connected to the grid can be very expensive if no power service is located near you, as can connecting an outbuilding to the house.  If a power service is not nearby, it is much more cost effective to make and store your own power.

Since the batteries used will basically be lead-acid deep cycle batteries, they can gas off of hydrogen, which means they should never be stored in your home.  Different battery types require different kinds of charge cycles, so be certain the charge controller will handle your type of battery, and that the controller is correctly configured for your battery.  You cannot mix and match batteries.  Usually, new batteries that are the same type as the old ones do not work well.

All batteries, even those that are ‘maintenance free’, should be inspected on a regular basis, as should their connections.

If deep cycle batteries are deep cycled beyond 20% depth of discharge often, they don’t do well, and the life of the battery will be shortened considerably.  They last much longer if you deep cycle them only occasionally, and cycle them shallowly the rest of the time.

Amp-hours is how deep cycle storage is rated, so the formula to figure this is:  Multiply amp hours by the number of volts (12 or 24) and divide by 1000 to get rough kilowatt hours.  To take the kilowatt hours and convert to amp-hours, simply multiply by 1000 and then divide by 12.  You will need approximately 83 amp/hours of 12 volt storage if you determine your daily use to be 1KWH.  Since you never want to discharge past 20%, you will need 5 times that amount or roughly 400 amp-hours to deliver that amount of juice.

In order to charge, more power is needed than the batteries you have are rated for.  So, if you can remove 1KWh off of the batteries over night, it’s important that you be fairly sure it can be put back in the next day with your normal use.  If you cannot achieve this, your batteries will last only a short time and will be discharged constantly.

Wet cells, or cells that are flooded are the most common, and need to be serviced.  You can add distilled water since the tops come off; occasionally these batteries need an equalize charge in order to remove the sulfur from the plates, which helps keep all of the cells in a similar condition.  In wet cell batteries that are high quality, some have independent 2.2 volt cells that can just be replaced should they go bad.  As they gas off, ‘maintenance free’ batteries will lose water that cannot be replaced because the caps do not come off, meaning the cells will eventually dry out.

You can not service gel batteries, and charging problems are unforgiving.  Using a charger that is made for a Wet cell will cook off the gel from the plates, and gaps between the plates and the electrolyte will form.  The entire battery will go bad once one cell has overcharged because of uneven wear.  They work okay as part of a small solution, but are not advised for larger solutions.

Absorbed Glass Mat (AGM) batteries are great, but more expensive than the other types of batteries.  They last a long time and there is no possibility leakage, although they do gas off if overcharged too often.  When not cycled too deeply and charged in the correct manner, AGM batteries have a long life and do not need service.

If you are thinking of using car batteries, they do not work well in instances where deep cycle batteries are called for, so leave them for your car only.

  • Generator

A generator may be necessary if you want a backup in blackout/disaster situations, or if there is no grid.

You will need to devise a way to make power when all else fails.  Drawing batteries dead is something you want to avoid, and deep-cycling your batteries too often will mean replacing them frequently, or being left without any power source.

Batteries are necessary even with a generator in an off-grid system.  Light loads on a generator, such as running household lights, are handled inefficiently by most generators, while charging batteries places a normal load so that the generator works efficiently for the fuel it uses.

Power may falter when switching on a power-hungry device to a generator, which is slow to react when the load changes.

If you try to use a small generator that is usually available at your local hardware or home supply store that is designed for emergency use, it won’t last long for supplying power on a daily basis.

Not only do large household generators cost a ton of money, they can also be deadly.  If an electrician pops a service disconnect and doesn’t realize there is a backup generator, it can kill him. Most run off of diesel, LPG or gasoline, and start automatically if the grid power is interrupted.

When compared to household generators, those designed for trailer/RV/marine use do a good job.  They are quiet, small and made for constant use, and affordable as well.  These generators are designed to run on demand for hours at a time and last for years.

  • Solar Power

Solar panels should face south for the maximum amount of sun exposure (in southern hemisphere, north facing and facing up near the equator).

It is helpful if your area receives mostly clear weather throughout the year; however, lightly overcast conditions can be beneficial as well.

Adjust your solar panels at the best angle according to your latitude.

Solar panels can point straight up at any latitude if it is the only option, but be aware that you will need more panels and may lose some efficiency.

Fixed mounts can either be placed on an existing roof or may be built on to their own structure.  If they are built on to their own structure, batteries may be housed and a charge controller underneath.  When they are located near the ground and have no moving parts, they can be easily mounted and maintained.

Tracking mounts are mechanical and can be easily damaged during severe weather.  Moving parts are also subject to wearing out, but these mounts do add efficiency by following the sun.  They also often cost considerably more than what you would spend by just adding a couple more panels to a fixed installation.

If a solar panel is rated for ‘100 watts’, that doesn’t necessarily mean it will deliver that amount.  It all depends largely on the weather, how you had to mount the panel, and where the sun is riding depending on the season.  You will need additional power.

  • Wind Power

There are numerous types of wind generators.

  1. Some can be purchased pre-packaged and for less money than equivalent output of solar panels
  2. Car alternators can be used to make a wind generator, but you need relatively high winds for it to operate efficiently

According to where you live, a wind generator may need to be prohibitively high up in order to work

A specialized charge controller with a ‘diverter load’ may be needed.  This is usually a large resistor, but may be a 12 or 24 volt electric water heater element.

Research and shop carefully.  Wind generators can create a noise problem.  Neighbors might also consider it an eyesore.

Birds can fly through a wind generator and get injured or worse.

If you live in wide, spacious areas with little to block the wind, you are in luck.  You need a constant wind, but combined with solar power is often best, so that you have power on sunny days when the wind is low and windy days when it is cloudy.

  • Micro-Hydro

With this model, you will find a variety of options ranging from a fairly robust and intricately designed system to a propeller that is homemade and connects to a car alternator.

Unless you have a stream or spring year round, or live on the river, Micro-Hydro probably won’t work for you as flowing water is a necessity.

TIPS

  • You can find a ton of good information and articles on the internet, however most of them will be targeted toward selling a solution offered by a particular company.
  • It may be that neighbors are will to go in together in order to pay for a power system in a remote location.  You may need a home owner’s association or some other similar structure, based on what is agreeable to all who are involved.  Also consider the possibility that some may move in the future.
  •  ‘All In One’ systems do exist, but be warned – these are usually overpriced, too small or a combination of the two.
  • If you have some knowledge related to electrical circuits, putting this information to work for you is not difficult.
    WHAT YOU SHOULD CONSIDER
  • Consider solar energy first if you live in an area that is usually sunny.  The same goes for wind power; if you live where the wind blows most of the time, consider this first.
  • Micro-hydro may be a better solution for you than solar and wind combined if you are lucky enough to have access to flowing water.
  • A combination of power sources is most effective.
  • Those whose homes are supplied with electrical power provided by a utility company should consider a ‘Grid Tie’ solution.
  • Consider a self-contained solution if you are not connected to the electrical grid and/or you live in a remote area, or you want renewable power back up.

COST AND MAINTENANCE

Up Front Cost

  • Supplying all the needs of a household will be costly, no matter what system you use.
  • If utilities are not already installed right to your doorstep, the cost of connecting new construction to the grid will be more expensive than what it costs for you to make the installations necessary to generate your own power.
  • The system can be financed in a number of different ways, and some power sources provide tax/handout benefits.
  • If the money spent just doesn’t make sense, does it justify itself in some other way such as . . .
  1. Immediate access to power when there are no utilities?
  2. Offer you peace of mind?
  3. Perhaps you like the idea of not having wires run through your property.
  4. Maybe you just want to brag – some folks do, and making your own power is certainly something to brag about.

WARNINGS

  • Always be certain to check zoning laws and CC & R’s, and check on local building codes.
  • To some, solar panels are just unattractive.  Others who may benefit from wind generators may find them both unattractive AND noisy.
  • Some people may make waves about you using water if you don’t have the ‘rights’ to it.
  • Whatever you decide to install to generate power, don’t assume that your homeowner’s insurance covers it – make certain it does.
  • If you are really not at all knowledgeable about working electrical theory or the safety hazards, learn about the facts before you have someone else do the work.  Here is a list to guide you:

You can severely damage the property, like burning the house down, creating a leak in your roof, or even frying your own body parts.

You may be responsible for someone falling off the roof, being electrocuted or having improperly installed materials falling off on to someone.

Batteries that short out or are unvented can explode.

Severe burns or blindness can be the result of splashed battery acid.

If jewelry comes into contact with high amp DC power, it can cause severe burns or even stop your heart.

Make certain warnings are posted for electrical service people if power is back-fed through a generator or grid-tie inverters to the circuit panel.  If there are no warnings posted, it is possible a service man could be electrocuted because he assumes there is no power after shutting off the service.

This is no joke.  Those purple panels and harmless looking spinning wheels can really kill you.

THINGS YOU’LL NEED

Categories : Texas
Comments (0)

If you’re a Texas electricity account, it behooves you to know when your contract expires – otherwise you could face a huge increase in your monthly energy bill. Following is why.

 Let’s say your contract with your current Texas electricity supplier is about to expire. You’ve done your homework, and want to switch electric companies to save more money. Did you know that it can take 45 days or more for this switch to take place? Why is this important?


It means that you run the risk of missing your switch date, which means you can roll over into a more expensive plan.

 Another thing to be aware of: Your contract with your energy company starts on the meter-read date, not the date you sign the contract. Many customers have reported that their electric companies gave them the wrong contract expiration dates. This is because some of them are confused by when a customers’ contract begins and ends.

Many of the problems like this crop up with fly-by-night energy companies that don’t have solid procedures in place to prevent things like this from happening to customers. These are by and large electric providers that came on the scene when Texas deregulated its electricity market in 2002.

They cost consumers money in a number of ways, eg, charging double or triple via pre-paid electric service plans.

Traditional Texas Electric Companies Provide Stability

Conventional electric companies in Texas have long since worked out problems that many of the “here today, gone tomorrow” energy companies have never even faced yet. And that’s why they remain reliable choices for today’s energy consumer.

Categories : Texas
Comments (0)

Energy experts, consumer advocates and state regulators across the board agree that competition has meant lower electric rates for the vast majority of Texas customers.

Are You Costing Yourself Money Each Month?

If you’re still paying more for energy it could be your own fault. Why? Because in order to realize savings on your Texas electric bill, you must actively take advantage of the fact that you can choose your electricity supplier.

When Texas deregulated its electricity market in 2002, for the first time it gave many consumers the right to choose their electric provider. Another thing it did was make electric companies move into the 21st century by introducing many energy saving plans that are kinder to the wallet of the consumer.

But many consumers still haven’t switched. Hence, they don’t know about electric plans that can save them money like:

Money-Saving Texas Electricity Programs

The LITE-UP Texas Program: Did you know that savings are passed along to consumers five months out of the year with this plan? And, that it’s a no-deposit electric service plan?

The Weatherization Program: Under this program, low-income residents can get an energy audit or their home. This is a process whereby experts determine how/where your home can be more energy efficient eg, caulking doors and windows to prevent heat/cooling are from escaping. When/if deficiencies are found, weatherization measures are implemented to increase the energy efficiency of the home.


This can save you hundreds of dollars per year on your electricity costs.

Many consumers who are eligible for programs like this may be stuck in prepaid electric service plans. They needlessly pay double or triple per month what other consumers pay, all because of past credit or income problems.

Now, there are options for Texas electric consumers, as the aforementioned programs highlight. But, in order to get the savings, you must first shop around for an electricity supplier.

Categories : Texas
Comments (0)

When Texas deregulated its electricity market in 2002, it brought a flood of new energy suppliers to the market because customers were allowed to shop for a provider, much like they would for any other service for their home. And, while competition is a good thing, it’s a double-edged sword.

Following are two reasons to stick with a traditional Texas electric company

New Plans: Many conventional energy suppliers were forced to innovate when the market was deregulated. In order to hold on to customers, they had to offer new plans, policies and procedures. This is one of the positives for consumers to come out of it.

For example, if you had credit problems in the past, you would most likely have had to pay a deposit to open get service. Now, traditional electricity suppliers offer options like no-deposit electricity accounts. While certain guidelines apply, they open the door for consumers who would have few choices in the past.

Stability: Traditional electricity companies are stable entities. They’ve been around a while and are unlikely to be folding. New companies coming on the marketing offering extremely low prices and shiny new plans can’t prove this, and it can leave consumers high and dry if/when they go under.


One of the tactics many new businesses use to gain market share is to undercut other suppliers on price. They even operate at a loss sometimes in “hopes” that they can carve out a large enough slice of the pie to be viable “down the line.”

But, what if they don’t make it? What if they become insoluble before they gain solid financial footing? Many don’t have the reserves to see them through prolonged tough times – and boy has the American economy seen its share of this lately.

Do you really want to risk coming home to no lights, heat/AC, hot water, etc. because your electric company went under?

If these companies are dangling prepaid electric service plans, no-deposit electric plans and/or industry carrots in front of you to get you to sign on with them – be wary. You want to know that they’re going to be around when the carrot is gone.

Categories : Texas
Comments (0)

If you want to save on your monthly Houston electricity bill, one way to do it is to lock in your rate. Following is how and why.

 Harris County Texas electricity rates are largely determined by the rise and fall of natural gas prices. Almost three quarters of the electricity used by the state’s main grid comes from plants that are powered by natural gas. Hence, when natural gas prices rise, it costs power plants more and those costs are passed along to consumers.


 Houston Texas deregulated its electricity market in 2002. Because consumers were free to choose their electricity provider – for the first time for many — lots of new energy companies sprang up. A more competitive market means that many Houston electricity suppliers are reluctant to raise rates because they are afraid of losing existing customers to the competition.

 All of this is good news for consumers because many Texas electricity suppliers offer them money-saving opportunities, like locking in a fixed rate, to save money.

Other Ways Competition Has Affected the Texas Electricity Market

 In the past, many Houston consumers had few options if they struggled to pay their electric bill and/or open an account with an energy supplier. For example, take consumers with bad credit. In almost all cases, they were required to pay a deposit to open an account.

 And these were none too cheap; deposits were often hundreds of dollars. This forced many to get prepaid electric accounts – which meant they paid two to three times what others were paying for electricity.

 Now, traditional Texas electricity suppliers offer many options for disadvantaged consumers, eg, those with bad credit, senior citizens, low-incomes, etc.

 If you fall into one of these categories, ask your Texas electric provider about the LITE-UP Texas program and other no-deposit electric service plans like it that provide monthly financial relief.

Categories : Texas
Comments (0)

When Texas deregulated its electricity market in 2002, it gave consumers the right to choose their electric supplier. Because of this, many new companies sprung up. To date, there are more than 100 registered retail electric companies in Texas – all competing for your business.


If you’re like most consumers, you just don’t have time to research every single energy provider in the state, but you still want the best deal for you and your family. So how do you choose?

One of the first things you should look for is stability because if your electric company goes out of business, it can be a nightmare. Following is why and what happens when an energy supplier goes out of business.

If your electric provider goes out of business, the Public Utility Commission of Texas takes over customer accounts and selects a provider – a Provider of Last Resort (POLR). What is a POLR?

A POLR is any firm qualified under Texas law to provided electricity services to consumers. They act as sort of a safety net for consumers in the event that their current electricity company goes out of business. While on the face of it, this is a good thing, it can lead to some unhappy customers. Why/how?


They may not provide the same level of service as your previous electric company;

Their rates may be higher;

Their contractual terms may not suit your needs; and/or

They may not have programs for consumers to help defray the cost of electricity.

Prepaid Electricity Plans; No Deposit Electricity Plans; Plans for Seniors; Etc.

When you choose an electric company, you do so based on your individual needs. What if you have bad credit and in the past had a prepaid electricity plan that was costing you double or triple what others were paying? You chose your last electric company because they allowed you to get off this type of plan.

But, the POLR you’re forced to go with because your last company went out of business may have different rules.

This is why it pays to choose a Texas electricity company that is stable and has been around a while. Most of these conventional companies have no-deposit electricity service plans, plans for seniors, victims of domestic violence and other options for consumers who face challenges.

So do your due diligence – and choose your Texas electricity supplier wisely.

Categories : Texas
Comments (1)

Sometimes, Texas electric rates skyrocket up for no apparent reason. And, sometimes they go down; again, for no apparent reason. Here we’ll explain why this happens. That way, you can choose the best Texas electricity company for your family’s needs and budget.

The Variables That Determine Whether Texas Electricity Rates Go Up or Down

There are a number of variables that determine whether Texas electricity rates go up or down. Following are three of the most important, ie:

I. The Price of Natural Gas: In Texas, electricity is generated to a large degree by natural gas. So, if the prices of natural gas fluctuate, then so does the price of electricity.

II. The Heat Factor: Approximately two-thirds of the power plants in Texas consist of coal and natural gas. This is important to know because the heat factor is what it costs to convert coal and natural gas into usable electricity for consumers.

Hence, even when the price of coal and natural gas is stable, rates can still go up because the cost of converting it can skyrocket.

III. Consumer Usage: If there is a very hot summer, a lot of customers crank up the AC. And if winter is extremely cold, many turn up the heat. When everyone is using their electricity – in volume – at the same time, this can cause rates to go up. Conversely, when temperatures are more mild, usage is lower. Hence, Texas electric rates are lower.

How to Keep Your Texas Electric Rates Low

Many consumers with bad credit or low incomes may be on prepaid electric service plans, paying two or three times more for electricity than consumers on other plans.

If you fit one of these categories, ask your electricity company about the LITE-UP Texas program. It helps to defray the cost of electricity by giving discounts to consumers on their bills five months out of the year.

Also, there are other programs like no-deposit electric plans and assistance for seniors, victims of domestic violence and others that can help as well.

Ask your Texas electricity supplier for details how to qualify for these payment lowering plans.

Categories : Texas
Comments (0)

Texas deregulated its electricity market in 2002. This gave consumers the right to choose their electricity provider and many have taken advantage of this privilege to shop for cheaper rates. But, the cheapest Texas electricity supplier may not be the best one. Following is one reason why.


When Texas deregulated its electricity market, not only could consumers switch providers, but new companies were free to start offering electricity as well. Many of these new, smaller electric providers have what seems like unbeatable deals. But, many of them also have a small amount of operating capital. Hence, when they go out of business, they leave customers stranded.

When this happens, the Public Utility Commission of Texas takes over these customers and sticks them with what’s known as The Provider of Last Resort (POLR). A POLR can be any company that is qualified under Texas law to be an electricity supplier. The bad thing for consumers is, there’s no guarantee that you will receive the same rate that you had with your last provider.

So when shopping for Texas electricity companies, price should be just one of the considerations you’re looking at; stability should be near the top of your list as well.

One of the Easiest Ways to Save on Texas Electricity

Stay away from prepaid electric service plans. Many consumers choose these plans out of desperation or fear that they don’t have other options. They may have credit problems that make them ineligible for a regular electric service account. Or, they may have income qualification problems that make “pay as you go” programs like prepaid electric service plans appealing.

What many don’t realize is that they’re paying double or triple what other customers are paying. Furthermore, traditional Texas electricity companies have programs that can help customers with credit and/or income problems with their electric bill. For example, the LITE-UP Texas programs.

For five months out of the year, customers under this program receive a discount on their electric bill. And if you qualify, you don’t have to pay a deposit.

Ask your Texas energy supplier for details on plans like this that can help you if you’re having problems paying your electric bill.

Categories : Texas
Comments (0)