Electric supplier questions (Houston, Midland, Center: house, to buy, costs)

[cottercutie]

OK I've read and read, but my eyes are bleeding and I think I"m only getting more confused.

We are moving to Columbus, TX from CT. We are deregulated here in CT, similar to TX, but I think it's a lot different. Our current retail supplier charges us 0.098/kWh, and our electric company charges us .13/kwh, to make a rate of about .212/kWH. Our bill averages about $180/month for 1200 sq ft 2br home (not including our heat). Our highest kWh usage was in the summer at 1483/kWh in August 2 years ago. We added a single window AC to help cool our 2 upstairs bedrooms at night since our CAC is single zone and struggles which dropped us down to a high of 1100kWh last year. We aren't the most frugal people when it comes to electricity or AC.


Our bill here in CT is still paid to the actual electric company every month regardless of who the supplier is, is this how it is in TX? Who do we call to get electric service turned on?


The retail suppliers I've seen on the Power to Choose site seem to charge about $0.09-.12/kWH. Is this the charge TOTAL per kWh? Or is it like CT and it's like half of what we'll be paying? How does this actually work?


The house we are moving to is well shaded, 1300ish square feet with Central heat/air. Should we be conservative and go with a shorter contract for usage under 1000kWh to start?

What companies are good to use/who to avoid if any?

I am so confused............

[War Beagle]

$0.09-.12/kWH is close to what you will pay. Most plans require a baseline usage each month (often 1000kWh). If you use less than that, you will probably have to pay a fee. If you use more, there is no fee. The fee essentially increases your kWh cost if you don't use much electricity.

The way deregulated electricity works in Texas is that there is one company that distributes the electricity (these distribution companies vary by region) and lots of companies that bill for it. Here in the Houston area, CenterPoint is the distributer. The only thing I pay CenterPoint for is natural gas. My electricity is paid to the retail company (common ones include Reliant, TXU, Gexa, etc.) These companies have nothing to do with your electricity aside from bill you for its usage. If there is an outage, that gets reported to CenterPoint.

In my opinion, it is a foolish system and a cynical attempt to trick people into thinking they have a "free-market" choice. They don't because electric distribution more or less has to be a monopoly to avoid infrastructure chaos. The only choice is who to pay for electricity. Its a scam of a system and is unnecessarily convoluted; regulated pricing would be much simpler (not often I say or type that).

[Cathy4017]

Originally Posted by War Beagle

In my opinion, it is a foolish system and a cynical attempt to trick people into thinking they have a "free-market" choice. They don't because electric distribution more or less has to be a monopoly to avoid infrastructure chaos. The only choice is who to pay for electricity. Its a scam of a system and is unnecessarily convoluted; regulated pricing would be much simpler (not often I say or type that).

You are absolutely right. Electricity is now more expensive and more convoluted/confusing than it ever has been.

They talk about conservation, being green, using less--yet if you do, you're penalized for using less than what they consider a mininum amount every month. It's just totally idiotic, and I'd prefer to go back to the old system where single large providers served different areas.

Now you have to call the actual electrical provider to report an outtage, not your biller---just as you have stated.

It's just a totally FU system, and we are not better off for it. Having to go to Power to Choose--and look at a bazillion different billers--most of whom have different tiered plans--makes it yet worse. I had a single provider and biller for 30 years in Midland before I left in 2007--and I didn't bother to go look at the other billers. If it ain't broke......

In NM, Farmington has its own electric coop, so I paid electric, water, sewer and trash all in one bill to that single provider. My bill for all THREE there was less than a single electric bill here most months.

The costs were reasonable--and I had the convenience of paying one provider, and knowing exactly whom to call if there were problems.

Add to that the insane process of car titles, licensing and registration--more expensive and more convoluted than NM ever was.

There are times I'm very sorry I ever came home, and I HATE to admit that.

[cottercutie]

So, wait...........

I'd only be paying about .09-.12/kwh?

That's like HALF of what I pay now...........

and to avoid a surcharge, I have to use MORE electricity?

And I call the billing supplier to turn service on?

[Dr.Mcninja]

Yes. The people you pay will turn it on.
Per kwh prices aren't bad. AC takes a lot of power here though, as the heat, humidity, and sun are significantly more intense than in CT.
I don't find it any more confusing than shopping different stores to buy products. All the TVs are made by Sony, or whomever. Some just sell them cheaper. Some have slightly different features (more renewable, etc).

Dave Lieber's Guide to Saving on Electricity in Texas | Watchdog Nation Columns