What's the point of Utility companies like Gexa, Amigo, Direct Energy...

[TX_PWR]

Originally Posted by ottc777

when Centerpoint is the one that provides, maintains and provides the electricity to our our homes and businesses.
Are the other companies simply for billing and for providing confusing bills to customers to hide the high amount Centerpoint charges by Texas law per customer for this service and give a false sense of choice?

Here is a great high level summary of deregulation in Texas.

Texas Deregulation


You are mostly correct, as Centerpoint owns the wires and "delivers" electricity from a power plant to your home. Retail electric providers handle purchasing the power, billing, and customer service.

Centerpoint has to remain regulated because of the infrastructure involved. It doesn't make sense to have 2 sets of wires spread out across the state.

[Lowexpectations]

Originally Posted by DSL_PWR

It's called choice. Makes people think they are able to pick something for themselves instead of going with the main [bad, money robbing, fee charging] company.

Funny thing is that I think 6 or 7 of the 'other' providers in the houston area are owned [wholly or in part] by NRG so it's a mute point. You wind up paying them anyway, most just don't know it.

Another reason I just stick with Reliant/CenterPoint.

Moot point

[txstate]

That's a good question what really is the point especially if CNP still has the final say with everything?

[Lowexpectations]

Originally Posted by txstate

That's a good question what really is the point especially if CNP still has the final say with everything?

How do rates vary if centerpoint has final say?

[crone]

Centerpoint generates and distributes. All the others just do billing. I do not know anything about electricity. Telephone billers could buy from AT&T for 15-20 % less than customers. If you had a whole subdivision or apartment complex, good money could be made off of that 15%

[War Beagle]

It's right-wing smoke and mirrors to make people think they have a choice and and for Republican politicians to be seen as doing something "free market". I suspect that it's actually a way to create more entities than can make political donations.

BTW, this is a libertarian with some fascism thrown in for good measure writing this.

[Augiec]

Originally Posted by TX_PWR

It's called Deregulation, and has actually been very beneficial. The key here is "participation." If you don't utilize your right of "choice," then you hurt the entire framework. Look at how many people who live in other areas of Texas, or even other states, that receive high bills, poor customer service, and have no alternative.

The problem with the TCAP study was our population's lack of participation. There is still a significant percentage of customers in deregulated areas that have never switched providers. REPs are in the business of making money, and they will gladly continue charging grandma her original 17c/KWh rate.

Cities like Austin and San Antonio don't have a choice (for better or worse).

This is going to sound socialist of me, but why not just give something like electricity back to the government (which has no profit incentive)?

Didn't we pay for the infrastructure through taxes? Or did Centerpoint foot the bill in the Houston area?

To me deregulation *MAY* have saved me a little bit of money, but that's only because I create outlook reminders when my contract expires and shop around zealously. I'd rather spend a couple of cents more per kwh and know that I'm not getting ripped off by some friend of the governor's who opened up some crony middle man shop.

[LonghornHotspur]

Originally Posted by crone

Centerpoint generates and distributes. All the others just do billing. I do not know anything about electricity. Telephone billers could buy from AT&T for 15-20 % less than customers. If you had a whole subdivision or apartment complex, good money could be made off of that 15%

Centerpoint does not generate. Dereg was all about splitting the three portions of the power business; Generation, Transmission and Distribution, Retail.

Generation is competitive, with players like NRG (Reliant parent), Dynegy, Calpine, private equity owned plants, etc. They sell the power they generate in an open market.

T&D is a regulated monopoly of Centerpoint; the fees to move power to you are set by the PUCT

Retail is, as mentioned, competitive with REP's like Gexa, NRG (Reliant), Infinite, etc., all offering plans to consumers via powertochoose. They acquire the power they sell to you in an open market.

[crone]

Originally Posted by LonghornHotspur

Centerpoint does not generate. Dereg was all about splitting the three portions of the power business; Generation, Transmission and Distribution, Retail.

Generation is competitive, with players like NRG (Reliant parent), Dynegy, Calpine, private equity owned plants, etc. They sell the power they generate in an open market.

T&D is a regulated monopoly of Centerpoint; the fees to move power to you are set by the PUCT

Retail is, as mentioned, competitive with REP's like Gexa, NRG (Reliant), Infinite, etc., all offering plans to consumers via powertochoose. They acquire the power they sell to you in an open market.

Thanks for tutorial.

Question, when there was a hot spell and the producers could not make enough electricity for the need, was it Centerpoint buying electricity from Mexican producers? I thought the producers also had to provide within a specific area.