Choice of Power Company!

My Personal Experience

This Sunday's feature will address my personal choice.

I am choosing to respond to a few emails I have received recently questioning my choice of Glacial Energy as an energy provider. In researching all the utilities/energy providers serving the great state of Texas based on service and lowest price, I discovered that variable rates was consistently cheaper than fixed rates over an annualized period of time. This holds true especially for commercial users. It took me over two months of pricing analysis going back 5 years to come to the decision of which provider was top on my list. Personally, I had been consistently overcharged by the big two in the state and was very leery of the smaller mom-and-pop providers (one who is a friend of mine) trying to get my business. For those of you who question if Glacial Energy is a good company, you are definitely paying more for energy than I am.


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I have been with Glacial over two years now, and I highly recommend them to any commercial business that really wants to save money. They probably will not even require you to sign a long term contract to try them out. Call them and ask. Tell them I sent you!

Tired of B.S.!

Commercials About Energy! Who do they really benefit?

Sometimes I really get upset when I hear a commercial on the radio or TV that is pure BS.

The latest is from two large Texas utilities that are bad mouthing Variable Rate contracts. One even refers to Green Power as "cheap" right now. They are pushing fixed rate and calling them cheap as well. "Lock them in now before the prices start back up". Yes, they will eventually go up but not for a long time. Natural Gas is plentiful right and producers are weighing the benefits of continuing to drill since the economics are near break even or a loss in some cases. They are praying the economy improves so prices will again achieve the exorbitant levels of the recent past so they can pad their bulging pockets at middle class expense. Excuse me for digressing. Just remember that when utilities are pushing you toward a direction, it is in their best interest, not yours.


Bringing Meaning To Madness

Be vigilant, alert, when commercials are trying to steer you away from or toward a specific direction, and especially when they use terms that refer to your best interest, or save you money, or lock in now before.......

Switch Or Move In

So you are thinking about switching Retail Energy providers. Just what is a “switch”?

Switch Vs. Move In

A “switch” is a change of providers from one electricity company to another for a customer that already has electricity.

That's different from a “move-in” which is when a customer needing electricity is buying or taking over a business or starting a new business or moving into a new house.

What is the expected process time for these services to be completed?

A standard “move-in” still takes 3 to 5 business days. There are additional fees for an URGENT “move-in” which takes 24 to 48 hours (not counting weekends or holidays).

Rules and Regs

New Public Utility Commission (PUC) regulations for all residential and commercial customers govern “switch” process times. They should now be completed within a time frame of 1-7 business days (not the old 30-45 days). If a customer would like to have a faster switch, or a switch on a specific date, then they must request what is now called a “self-selected” switch date (formerly called out-of-cycle, or URGENT switch) which results in an extra, one-time charge from the local utility company (CenterPoint in the Houston area, or ONCOR in the Dallas, Ft, Worth area).

Please note that the new “switch” rules went into effect on Monday, August 17, 2009.

Caution

This is very important. If you are shopping around to find a new Retail Electricity Provider, you need to understand that “switches” are occurring faster, and therefore you need to be aware of your contractual obligations with your current Retail Electricity Provider and with your proposed new REP.

If “switched” too early, more than 14 days before end of term with current provider, you could be charged early termination penalties.

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Always read your contract and get your REP to confirm it for you.

The Shack

Do you shop at Radio Shack, the little store that from Fort Worth, Texas, that became a huge store? Pretty soon, you'll be calling them The Shack. Maybe you already call them that. A lot of people do.

Their marketing officer decided to "embrace the fact" that so many associates, investors, and customers dropped the Radio from the title long ago and just called them The Shack.

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Change is constant. Get used to it.

Alert: New Phone for CenterPoint

Just thought I'd make sure you Texas residents who use CenterPoint know that they've changed their phone numbers recently. You do read your statements, don't you?

If you live in the CenterPoint service area for electricity, your Emergency Outage number, effective August 1, 2009. These are the new numbers for CenterPoint service area: 1-800-332-7143 or 713-207-2222.

Even if you don't use CenterPoint as your Retail Energy Provider (REP), they are still the transmission service company for this area, and they're responsible for the power lines, poles, etc.

Your REP, whoever that is, should provide service information to you so you'll know what to do in case of Outages and other emergencies. You may want to contact your REP to confirm your emergency service phone numbers.

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You must read your electricity bill, even the small print.

Look To Your Windows

I'm always reading tips on how to save on utilities. I mean, as a Business Development Agent for a couple of Retail Energy Providers, I like to post information that can help my clients, both commercial and residential.

Practical? Hmmm

A lot of the stuff I read just isn't practical in today's world. Every ecology article or consumer tips list usually includes things like "line dry your laundry." Who, in this world of two career households, has time to lug a basket of wet clothes out to a clothesline and hang them, then take them in later, and iron them. Trust me, if you line dry clothes, they'll have to be ironed. If you line dry a towel, you can probably use it to sandpaper the deck.

Sure, it will save a lot of electricity, but who has the time or the inclination? Where I live, there are deed restrictions enforced by the community association that prevents you from even having a clothesline with laundry hanging on it. Most large metropolitan areas are like this too.

Grounded In Reality

So, for a tip today, I'll offer this. Think about the heat gain from your windows. Today's home decorating seems to call for minimal window coverings, or what I call naked windows. I've been in many homes that have nothing over the windows except a designer thing at the top. Oh, my wife said that's a window treatment or valance. Some windows have blinds or sheer curtains, neither of which provide a lot of insulation.

Here are some things you can do and they work for business or residential, summer or winter.

1. Install draw drapes that insulate. My wife watches those design programs on TV. She's always raving about the draperies that Candice Olson does on Divine Design, her favorite show. Take a tip from Candice and layer your window coverings with sheers and drapes as she does on many shows. Both of these can be drawn open to get maximum light on cloudy days.

2. If you insist on minimal window coverings, consider getting that tinted solar film. It needs to be applied by professionals but it will reduce your cooling costs.

3. It goes without saying that you should increase your insulation and every year check your caulking and weather stripping.

4. Oh, I've got to say this. Contact me and let me offer you the lowest electric rates possible with one of the Retail Energy Providers I represent.

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There are things you can do to reduce your expenses, but the most important thing is to take action.

Simple Things Save Money

Saving energy is a family responsibility. Depending on your current budget and spare time there are many things or projects that can be done to save on your electric bill.

Bonding Experience

Recaulking windows and replacing the weather stripping around your doors isn’t expensive, it just takes a little effort and focus. Get your kids involved. It's something you can do that can actually become a parent/child experience that's rewarding.

Use Fans

Ceiling fans add 4 degrees of wind chill to a normal room. So turn on the fan and raise the thermostat to save money since the fan uses 80% less electricity that the air conditioner. Raising the thermostat 1 degree will translate into a 7% savings of electricity use.

Hit That Switch

Simply turning off lights and fans when you leave the room will make another contribution to dollars saved each month.

Update Appliances

If you take electricity saving seriously and want to know about appliances, go with the Energy Star ratings when you replace an appliance. Watch this video for more information.

Look for more energy tips here.

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Think smart, take action, save money!

Long Term Contracts Require Thought

Were you guided into a long term contract decision by your electric provider? Did you make a wise decision or a decision based on advice from your current electricity provider who had their own self interest involved? Excellent questions.

Answers

In my blogpost Truth About Power, I mentioned that if a Retail Energy Provider (REP) is pushing fixed price deals, it's usually in their best interest, not yours. If you are one of the unfortunates who locked into one of these long term arrangements, you are dissatisfied and may want out.

Why Do You Want Out

Why would you want out of a long term fixed contract? Because you can save money over the course of the year with variable rates. Variable monthly wholesale prices beat fixed priced deals historically, time after time. How much money are we talking about? That depends on several variables including what you are paying now relative to market prices. (To understand this, see my blogpost Alphabet Speak: MCPE).

The chart I've posted above shows possible savings over the last six months relative to the Market Clearing Price for Energy. (Click it to magnify it.) If you are locked into a Fixed Rate, use the numbers above to determine if you are paying more than you should be. The amount under Savings is what you could be putting back in your pocket every month.

Read Your Electricity Contract

Read the contract carefully and focus on the termination clause. What is the length of the contract? What's the cancellation penalty in terms of dollars? If the contract does not allow early termination prior to expiration, there is not much you can do. Sorry! (Contact me when it's getting ready to expire, and we'll see if I can save you money.)

If the terms allow you to cancel early, there is usually a cancellation fee stated. If not, you can easily calculate the dollar amount it would cost to terminate the contract early using the terms of the cancellation clause.

Once you have figured out what the cancellation dollar amount is, compare it to what you would save each month with a variable rate contract. The difference will show you whether it's worth canceling early.

Here's How

Check your monthly bill Energy Charge to get a good idea of your average kW usage. Use your average kW usage times (x) the MCPE rate. Then multiply that number times the remaining months on the contract to get a fairly close estimate of saving. The decision should become very easy whether to cancel the contract and switch to a Retail Energy Provider (REP) who bills out at an MCPE rate. I represent a REP who does not charge penalties or have a cancellation fee. How refreshing!

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Remember, when using MCPE rates in Texas, your electricity bills should reach their highest prices in late July to early September during peak air conditioner load and then possibly again in late December to mid February with the winter heating load. Savings really are possible.

To Compare, Learn Billing Elements

Before you can compare one electricity provider to another, you must first understand your electric bill.

Let me break it down for you so you can compare apples to apples, so to speak, because electric utility bills can be confusing.

A good Retail Energy Provider (REP) will make it easy for you to understand your bill because the bill will be simple and clearly represent the different components that make up the charges billed to you. In fact, it might be said that the more complex the bill, the better the chance that you might find yourself being taken advantage of.

4 Components To Electric Bill

These are what you compare from one provider to the next in order to get the best deal from competing Retail Energy Provider (REP) companies.

Energy Charge

This is the actual negotiated rate per kwh. It's multiplied by the number of kwh's you used. This is what can be negotiated with the REPs competing for your account.

Utility Charges

The utility charge may be called TDSP Charges (Transmission & Distribution) or Demand Charges. These are the charges assessed to you by your service provider (not necessarily your Retail Energy Provider (REP). These charges may be calculated differently by different utility companies.

When it's called a TDSP Charge, it's most important to make sure that the REP states in their contract that they are passing these charges through to you from the utility company without mark-up. This charge cannot be negotiated.

When it's called a Demand Charge, the utility company will quote you a specific rate per KW (Kilowatt or KW, not to be confused with the kwh rate).

Monthly Customer Charge

This is a monthly meter charge that the energy company may or may not charge you. This is strictly an administrative fee.

Gross Receipts Tax/PUC Tax

This is a utilities tax assessed by the Texas Public Utility Commission (PUC). All energy companies have to charge the customer even if they qualify for sales tax exemption status. It's approximately 2% of your total electricity usage as a tax. Some energy companies list this as a separate line item on your bill, and some energy companies roll this tax into their energy rate. Either way, you end up paying it.

That's it. You see now that the two main items of concern are the Energy Charge, the one you can negotiate, and the Utility Charge, the one that you need to make sure is being passed through to you by your REP without mark up.

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Take your electric bill and shop around, comparing apples to apples. Then you can easily see whether you're getting a good deal from your electricity provider. If not, email me. I've got a great REP to recommend to you.

Change Brings Rewards

Why are people reluctant to change their Retail Energy Provider, commonly known as REP? Here are some of the reasons why, I think, people don't take action to save money on their electric bills.

Procrastination

Some people are just procrastinators like me. I try hard not to procrastinate but often end up doing that very thing either because I'm short of time, energy, or motivation.

Takes Too Much Time

Some people know they should change their REP, but they are too busy and don't have the time to research the different REPs.

Change Resistant

Some people are just plain resistant to change. It could be they have a false sense of loyalty to the company that provides their electricity. After all, they may have used that same electric company for years or even decades. Why rock the boat?

Action Needed

Regardless of the reason you've stayed with your long time electricity provider, this is your call to action to change. Action must be taken to achieve a better result. The first required action is to determine who is consistently providing not just electricity, because they all provide that, but to find out who gives quality service along with the best possible price.

Second, you must determine which REPs are financially stable and strong. You don't want to change REPs only to discover the one you selected has gone belly up. Do your own research or rely on someone you trust who has already done it and is willing to share it with you.

Benefit Of Changing

The biggest reason to initiate change is that you can probably save money. I mean, why pay more money when you can pay less? Yes, folks, there really is a wide variance in what Retail Energy Providers charge a consumer. Consumer Smith may use 1000 KWH of electricty every month and pay twice as much as Consumer Jones for the very same KWH.

Give Yourself A Raise

Take action and give yourself a raise today. If you own a small or large business or manage one for someone else and want to lower costs with a quality REP, email me to discuss your situation.

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Wake up, folks! It’s your money. Why give more than necessary to the power company? You deserve the best price, and the best service for your hard earned dollars.