Horrible Electricity Rates in Texas - Deregulation raised prices? (Houston: calculation, taxes)

[JamesAbilene]

Originally Posted by bellestaroftexas

just switched online a few minutes ago from First Choice Power to Reliant. after one more big electric bill, i just got sick of it..will see if this is better

Good luck. I have been on Reliant for two years. About two weeks ago, I received a letter from them that they would be sending me a change in terms, which I haven't seen yet, and that once I receive it I had until July 28 to cancel their service without a fee. I am assuming it will be either a rate increase or a substantial rate increase or they would not make that deal. I have decided to go to wind generated power. In Abilene, we can get it for about 10.5 per KWH. However, I will have to wait until Reliant sends the letter to me. I don't want to pay a penalty to change my contract.

[Pontificator]

I moved back to Texas in recent years, after nearly a decade in Alaska. I was completely shocked to learn that Texas rates were about 50% higher.
Now, I can only reminisce about that 10 cents per KW hour that I found so shocking. I just locked into a "bargain" of 15.2 cents in my area, west of Ft. Worth. Wowza!

[NWPAguy]

Deregulation is part of a capitalist economy. If the state controls utility prices, any difference between what you pay and the actual cost is made up by the state (read: from YOUR TAX DOLLARS). For example... if it costs the power company 15 cents to make and generate one KWH of electricity for you, and they need 3 cents per KWH for operating profit (which all companies must have in order to remain operating), the cost per kilowatt hour that will be charged is 18 cents. If your bill says that you're only paying 12 cents per KWH, SOMEONE has to be making up that other 6 cents. It'd be the state government, and ultimately that bill goes to you anyway.

When electricity is deregulated, power generation companies have to compete for your business. If you have five companies in a deregulated market out there and the cheapest rate you can find is 18 cents per KWH, you can bet that the other companies cannot lower their rates anymore or else they would to win business. I don't care what utility companies say... NOBODY buys utilities on "service". I encountered this once as a maintenance man for a nursing home... I had to order diesel for the generator and I had to shop suppliers to find the best price... one yellow pages ad said "Don't let price alone determine your fuel oil supplier!". Translation: "We ain't the cheapest". Diesel fuel is diesel fuel no matter who sells it... and that is almost universally true, especially since the companies usually buy their fuel from the same refiners anyway. In the same vein, electricity is electricity and everybody is going to try to get it as cheaply as possible. If your electric rates have gone up, realize that the higher prices reflect the actual costs of operating the companies and producing the power. The fuel they use to make electricity is now much more expensive than it ever was, and that has an effect on the cost of electricity.

I don't care if the cost of electricity in Missouri is less than 4 cents per KWH. Someone is paying for it somehow. You never get anything for free.

By the way, I'm a future Texan and I'm telling y'all to do your research. If you don't like the price of electricity, switch companies or use candles. 18 cents per KWH is still an incredible deal for what you get... even if I am used to paying 5 cents per KWH (and I am). If you don't like the price of electricity, purchase solar panels for your roof or a small wind turbine for your back yard. You may generate enough power from that for the power company to pay YOU every month!

[catman]

Originally Posted by NWPAguy

If you don't like the price of electricity, purchase solar panels for your roof or a small wind turbine for your back yard. You may generate enough power from that for the power company to pay YOU every month!

That's a great idea, but those things aren't cheap, and I don't know that the neighborhood association would go for it, especially the wind turbine. Also, are solar panels impervious to hail damage? We get a lot of that here.

I hope you aren't saying that there just couldn't possibly be any collusion between energy providers as to a minimum rate that none of them will go beneath. Of course I can't prove it, but it's a possibility. I didn't notice tax rates going down when electricity was deregulated.

[NWPAguy]

Originally Posted by catman

That's a great idea, but those things aren't cheap, and I don't know that the neighborhood association would go for it, especially the wind turbine. Also, are solar panels impervious to hail damage? We get a lot of that here.

I hope you aren't saying that there just couldn't possibly be any collusion between energy providers as to a minimum rate that none of them will go beneath. Of course I can't prove it, but it's a possibility. I didn't notice tax rates going down when electricity was deregulated.

Fretless bass forever, eh? I'm a bass player myself but have never tried a fretless... I should, sometime.

Neighborhood associations might not go for a wind turbine. The solution to that problem is simple- don't live in a neighborhood that is governed by an "association". Your property should be your property.

As far as solar panels being impervious to hail damage, I guess it'd depend upon how well they were made and out of what they were made. I can't answer that question because I'm not an expert... but I can't believe that there are no "hail-resistant" solar panels out there.

I'm not saying that there cannot be collusion between power providers as to a rate that they cannot go beneath. However, you have to understand that the rate one company charges you may be different from the rate that same company would charge the same type of residential customer in a different town. Power lines have a certain level of internal resistance... meaning that the lines themselves will dissipate some of the generated power, and the further the power has to travel along those lines to get to you, the more power the central plant has to generate in order for a KWH to reach your house. That's why electric rates are so nebulously defined.

Besides, power companies are companies just like any other companies are. Some are efficiently run, and some are sloppily run. The companies that are not run well will have to charge more and will ultimately go out of business if they don't get with the program... leaving only the best companies surviving. It's just common sense capitalist economics at work again.

[NOTAM]

some of us have no choice-we are not in the position to buy our own house, or qualify for a mortgage so we rent/lease homes...so we cant do those kind of energy saving things. and even with my making a good salary as a Registered Nurse, things are getting really tough regarding getting mortgages...they need just about perfect credit. look at our housing market-folks who never thought they would foreclose or file bankruptcy are going thru it. home ownership aint that easy in todays economy. for the first time, i am thinking renting is better, for now

[Steel Man]

I'm sure glad San Antonio has not deregulated. We have one company (City Public Service) and our rate went up last month to a little more than 11.6 cents per kWh. And since it is owned by the city, CPS contributes more than 40% of the city budget.

[jimboburnsy]

Originally Posted by catman

That's a great idea, but those things aren't cheap, and I don't know that the neighborhood association would go for it, especially the wind turbine. Also, are solar panels impervious to hail damage? We get a lot of that here.

I hope you aren't saying that there just couldn't possibly be any collusion between energy providers as to a minimum rate that none of them will go beneath. Of course I can't prove it, but it's a possibility. I didn't notice tax rates going down when electricity was deregulated.

Solar is great but the shortcoming at this time is battery technology. We just aren't where we need to be with batteries for solar to be a viable option. A little patience...

In the meantime, NWPA is right. Deregulation just seems so terrible because we're paying for all of the power costs up front rather than in installments. And its absolutely true that market competition is a good thing for you and me.

[j96g]

I pay a fixed 12 cent/kw rate, but my plan is up for renewal. I have first choice power.

[cwh]

Originally Posted by Steel Man

I'm sure glad San Antonio has not deregulated. We have one company (City Public Service) and our rate went up last month to a little more than 11.6 cents per kWh. And since it is owned by the city, CPS contributes more than 40% of the city budget.

Are you sure that is right? Our last bill was still about 6.5 cents per kwh, the same as it has been for years. I heard there was going to be 5% raise in rates, but not a 5 cent raise in rates.