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Old 09-04-2012, 06:36 AM
 
Location: Wonderland
67,650 posts, read 60,875,858 times
Reputation: 101078

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Someone posted that Austin is about to get a 30 percent increase in electric costs on October 1. Some towns in Northeast Texas are getting a 20 percent increase starting October 1. Are you in an area that is also about to be hit with this upcharge?

I think this is significant, and yet I have seen no media coverage about this. In fact, it seems to be being downplayed. Your thoughts and observations, please. Any links to any additional information would be appreciated!
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Old 09-04-2012, 06:43 AM
 
Location: Wonderland
67,650 posts, read 60,875,858 times
Reputation: 101078
Just found some interesting articles.

Texas' electricity price cap to rise 50% | Top Stories | News from Fort Worth, Dallas, A...
This article tries to tell us that though the "ceiling" on costs has been raised, that doesn't mean that consumers will actually see an increase. Well, they need to tell that to my electric provider, who just sent out a letter warning that our bills are about to go up 20 percent.

TX Electricity Rate Increase
This article states that the "average home" will see about a $15 per month increase, rising to a $40 per month increase over the next two years. Damn. That's significant.

More bad economic news. Just what we need.
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Old 09-04-2012, 08:56 AM
 
3,309 posts, read 5,771,340 times
Reputation: 5043
Quote:
Originally Posted by KathrynAragon View Post
More bad economic news. Just what we need.
Ain't that the truth!

I haven't heard of anything in my (Burleson), but I'm on co-op and that helps. Of course, when prices start going up, it will catch us too. Like everything, if they see they can make it fly in one area, the others jump right quick on the bandwagon.

Natural gas is cheap right now, so go figure. It seems like everything these days has to be so damn political and add in the stupid media hype, it's becoming increasing hard to figure out the truth on anything.
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Old 09-04-2012, 11:02 AM
 
Location: Wonderland
67,650 posts, read 60,875,858 times
Reputation: 101078
Quote:
Originally Posted by lonestar2007 View Post
Ain't that the truth!

I haven't heard of anything in my (Burleson), but I'm on co-op and that helps. Of course, when prices start going up, it will catch us too. Like everything, if they see they can make it fly in one area, the others jump right quick on the bandwagon.

Natural gas is cheap right now, so go figure. It seems like everything these days has to be so damn political and add in the stupid media hype, it's becoming increasing hard to figure out the truth on anything.

Sheeze, you got that right.
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Old 09-04-2012, 11:12 AM
 
18,127 posts, read 25,272,176 times
Reputation: 16833
Quote:
Originally Posted by KathrynAragon View Post
More bad economic news. Just what we need.
Thank the republicans that are in power in Texas...
mainly George Bush, for deregulating the electricity in Texas.


Deregulated electricity in Texas - A history of retail competition

Quote:
When Gov. George Bush signed Senate Bill 7 into law, he instituted what some have called America’s most audacious experiment in the deregulation of electric power. Gov. Bush was clear about his intentions. “Competition in the electric industry will benefit Texans by reducing rates and offering consumers more choices,” he said..

No longer would the production and sale of electricity be considered monopoly enterprises. Instead, SB 7 called for “the establishment of a fully competitive electric power industry” where market forces dictate prices and service. The companies that own, operate and manage the transmission and distribution system remained regulated — but most regulation of companies that produce and sell electricity would end.

SB 7 states “the Legislature finds that the production and sale of electricity is not a monopoly warranting regulation of rates, operations and services and that the public interest in competitive markets requires that… electric services and their prices should be determined by customer choices and the normal forces of competition.” The Legislature ordered far-reaching changes to the market.
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Old 09-04-2012, 12:26 PM
 
Location: Wonderland
67,650 posts, read 60,875,858 times
Reputation: 101078
Quote:
Originally Posted by Dopo View Post
Thank the republicans that are in power in Texas...
mainly George Bush, for deregulating the electricity in Texas.


Deregulated electricity in Texas - A history of retail competition
Electric companies are private companies. They can charge what they want.

The answer to everything isn't "let the government take care of it for us." I for one intend to shop around for better rates from a competitor.
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Old 09-04-2012, 01:11 PM
 
2,206 posts, read 4,746,469 times
Reputation: 2104
Guys this is just a lifting of the CAP on wholesale prices on the spot market.This is not a rate increase.

The primary spur to this is the EPA and the new rules for both Mercury and Cross-state pollution. This will shut down some plants or increase the costs due to the need to put in scrubbers.

The secondary reason is that the current price caps on wholesale electricity on the spot market reduce the incentives for producers to build new plants.

Third, the state continues to grow.

Fourth, more gas plants are needed to help cover the huge increase in wind power and the resulting variation in supply.

Texas' electricity price cap to rise 50% | Top Stories | News from Fort Worth, Dallas, A...

Quote:
The Texas Public Utility Commission voted Thursday to raise the wholesale electricity price cap by 50 percent Aug. 1 in hopes of spurring construction of power plants.
TX Electricity Rate Increase

Quote:
The misleading headlines of late have been alluding to the PUC plan to raise (triple) the cap on wholesale rates from the current $3,000 per megawatt hour to $4,500 in the summer of 2012 and to $9,000 per megawatt hour by 2015.....Texas electricity officials hope the increased price cap will incentivize producers to build new power plants to help fill the need in Texas for more power. Lack of incentive is a serious problem for the Texas power grid. Deregulated electricity in Texas means the state relies on private investment to ensure that power plants are built. Like any other free market, producers produce their product (in this case electricity) in hopes of reselling it at a profit to consumers.
But recent market conditions have spooked would-be electricity producers.



The large drop in natural gas prices in recent years has squeezed the margins out of the electricity production business.
Private capital that might otherwise have been used to build new power plants is being put to use in other ventures that promise higher returns, lower risk, or both.


This leaves operators of the Texas grid in a difficult situation. The Texas economy continues to stubbornly grow. This creates more and more demand on the grid. However, at the current rate of investment supply is not going to keep up.
The take away is that the academics identified some problems with the market in TX, and the PUC and the Governor's office made some adjustments. This is a sign of good governance.



If you have a variable rate plan, then you might get hit. If you have a long-term fixed rate plan, then stay locked in.


To put things in perspective, Texas' generating capacity is greater than Illinois and New York's combined. And it will continue to increase.
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Old 09-04-2012, 04:28 PM
 
26 posts, read 117,355 times
Reputation: 83
In Amarillo we have one electric co. We do not have a choice of companies w/various rates we can choose from. So that to me means we do not have de-regulation of electric cos. in the Panhandle. Yet 94 miles to the south of us in Quitaque, we have a choice of 5 to 7 companies to choose from. We use WTU down there.
The elec co here in Amarillo put in for a 17% rate increase about a year ago which was turned down but it went up at a less rate. I expect it to go up anytime here.
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Old 09-04-2012, 04:45 PM
 
Location: USA
4,433 posts, read 5,345,000 times
Reputation: 4127
Quote:
Originally Posted by Dopo View Post
Thank the republicans that are in power in Texas...
mainly George Bush, for deregulating the electricity in Texas.


Deregulated electricity in Texas - A history of retail competition
Dopo you are at it again! Look below...

Quote:
Originally Posted by TX75007 View Post
Guys this is just a lifting of the CAP on wholesale prices on the spot market.This is not a rate increase.

The primary spur to this is the EPA and the new rules for both Mercury and Cross-state pollution. This will shut down some plants or increase the costs due to the need to put in scrubbers.

The secondary reason is that the current price caps on wholesale electricity on the spot market reduce the incentives for producers to build new plants.

Third, the state continues to grow.

Fourth, more gas plants are needed to help cover the huge increase in wind power and the resulting variation in supply.

Texas' electricity price cap to rise 50% | Top Stories | News from Fort Worth, Dallas, A...

TX Electricity Rate Increase


The take away is that the academics identified some problems with the market in TX, and the PUC and the Governor's office made some adjustments. This is a sign of good governance.



If you have a variable rate plan, then you might get hit. If you have a long-term fixed rate plan, then stay locked in.


To put things in perspective, Texas' generating capacity is greater than Illinois and New York's combined. And it will continue to increase.
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Old 09-05-2012, 08:31 AM
 
2,206 posts, read 4,746,469 times
Reputation: 2104
Long term this will drive down the prices. Natural gas is very abundant now and will be for the next 20 years due to fracking.
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