Houston Electric Power - historical rates? (Howe: how much, month-to-month, bankrupt)

[JerryM100]

We moved to Houston (Cypress area) last December and are absolutely loving it. Yeah, it's getting kinda warm but I don't have to work outside and I will take a few months of heat to avoid tons of snow and months of below freezing temps of Kansas City.

But when we came I was confused about the deregulated power situation so I just went with the big kahuna, Reliant, on a month to month plan. Now we are getting into summer and I feel a need to lock in a rate with a cheaper provider.

I have read many (MANY) power-related threads here on City-Data/Houston and I really appreciate the many regular posters here. But here is my question now - does anyone have any historical data for how much the rates vary seasonally? I mean a table or a graph of anybody's rates year over year. I am just looking for some context to judge the rates I can get now (about 11 cents) but how much do they increase in the peak summer heat, and if I lock in for 6 months how much lower do they go in the winter months?

Without getting into another discussion thread about this company or that, what are average rates over the course of a year? I can compare the companies on my own, just need some context by which to know what is a good rate for what time of year, and how long to lock in for.

Thanks in advance!


Jerry in Cypress

[predatorprey]

Power to Choose

I have found that energy rates are generally highest during the summer months and lowest in the winter months. I'd avoid locking rate during summer.

[piyf]

It's all over the place here. A few years ago they were in the 15-20 cent range. I would get off a month to month and lock in the longest rate I could at anything below 9 cents.

[JerryM100]

But we are having some early heat now before the peak of the summer. Should I lock for 6 months now at 11 cents or stay on my month-to-month plan with Reliant thru the peak summer months and lock later in the year? I am thinking I should change providers to someone else to get a lower rate, and then lock for a short duration (can't find 3 months so I will go with 6 months).

Anybody got any data?

Where is "tmanta"? I recall seeing that he did some multiple regression analysis a while ago. Have you got any basic average rate data over time?

Jerry in Cypress

[piyf]

Again, research them and look over all their charges and pick the lowest per month that offers a long contract if you plan on staying at your current residence for that entire time. 11 cents, I would find someone else. That's waaaaaaaaaaaaaaaaay to high.

[Mr. Football]

12 month fixed contracts.

Best time to lock-in is Feb-April.
Go to PowertoChoose.org to shop the prices.

I've been with several REPs over the years, I always choose the lowest rate around Feb/March. Currently with Amigo and they're about the lowest now as well, so I'll probably re-up with them.

[Hawk11ns]

Average rate for a month to month plan is about 9 cents/kwh. A yearly rate is about 9.5-10 cents/kwh. The two year contract rate is usually 10.5-11.5 cents/kwh.

The cost of energy always goes up in the long run due to growth of demand. As such, you can expect to pay more for the longer contracts yet at the same time they will insulate you for when prices swing wildly and go above the term price of the contract. However, electric companies are very good at predicting the cost of electricity over the next few years, especially ever since the ENRON fiasco. With this in mind, I would just stick to one year contracts with a company that is not new or currently on the verge of collapse. Direct Energy is a good one.

Also, if you sign up with a company that shuts down or goes bankrupt then you automatically get switched to Reliant Energy as they are designated by the PUC as the "Provider of Last Resort." When this is done you are placed on a default plan with a default cost of ~23 cents/kwh. Choose wisely my friend.

[drdavis2]

Answers a question first raised in 2011
[url]https://centerpointenergy.secure.force.com/ElectricPriceTrendsSummary[/url]