Comparing MCPE rate, Heat Rate, and Fixed Rate electricity products in Texas

When comparing electricity rates it often times is missed that a comparison should be done with different standard proven products out on the market. Sometimes a heat rate price is a good decision for a commercial business but not for June 2007. The Heat Rate is at historical highs right now.

 In comparison to heat rate pricing you could get your business into an energy rate that uses the market clearing price. As an example, a heat rate price would look like this as of May 16 2007. : 9.03 cents\kwh. In Comparison an MCPE rate when using historical data would look something like this: 6.98 cents\kwh. Right now a fixed rate product is about 9.07 cents\kwh. Now consider that heat rate is not a fixed price. It is variable. Why would you get into a heat rate product that is so close to the price of a fixed rate that has no risk of changing throughout the year? There is just no incentive to do so because the price is almost the same.

 Take a look at MCPE. We have an annualized average rate of 6.98 cents\kwh. Compare this with the other two products mentioned and you can see that the MCPE electricity rate in comparison to the others provides the incentive to get in and stay in for awhile. The likelihood that it will increase 2 cents within a month is very unlikely. The change is gradual enough to gauge your risk tolerance and determine when you want out.

Take a look at what MCPE looks like with todays pricing using historical data over a 12 month period.

The MCPE electricity rate in Texas in comparison to the fixed price energy rate and the heat rate is far better then any other option in the market.