May 20, 2007 admin

TXU Energy Market Tracker

TXU Energy Market Tracker

I was looking at the TXU market tracker product today and I noticed that on powertochoose.org they show the market tracker rate at 11.4 cents\kwh for a residential electricity rate. The problem with this is that this product follows the natural gas market which is currently over $8 mmBTU. The 11.4 cents\kwh rate is only if you are using 2,000 kwh a month for your residence and if natural gas is trading between 5 – 6 $mmBTU which it is no where near and probably won’t be for a couple of years.

TXU Energy Dallas
How does TXU Energy compare to other electric providers in the Dallas area?

According to the natural gas futures market which is what all the electricity providers use to create their electricity products they sell, you will receive your best fixed price rate when locking in on a 12 month fixed rate plan (as of May 2007). The 12 month May and June 2007 natural gas futures shows the best price among several of the other terms available.

Many ask why the natural gas market has anything to do with electricity? There is a 90% correlation with natural gas prices and electricity in Texas and this is why you hear about the two different types of energy spoken about together often. As of May 2007, the best residential fixed price electricity rate for 12 months is around 12 cents\kwh. Spark Energy offers a rate around this price with no monthly base charge.

Electricity Facts
TXU Energy Market Tracker+SM

Service Area – TXU Electric Delivery €“ May 2007

NYMEX Natural Gas Futures
Contract Expiration Price ($mmBTU)
Average
annual price per kWh:

500 kWh 1000 kWh 1500 kWh 2000 kWh
May Price/kWh for Monthly Usage Shown 12.5¢ 11.4¢ 10.8 ¢ 10.5 ¢
Tier 10 12.001 and Above (Price Protection Cap) 17.0 ¢ 16.0 ¢ 15.6 ¢ 15.4 ¢
Tier 9 Between 11.001 and 12.000 16.6 ¢ 15.6 ¢ 15.2 ¢ 15.0 ¢
Tier 8 Between 10.001 and 11.000 16.0 ¢ 15.1 ¢ 14.6 ¢ 14.4 ¢
Tier 7 Between 9.001 and 10.000 15.5 ¢ 14.5 ¢ 14.1 ¢ 13.8 ¢
Tier 6 Between 8.001 and 9.000 14.6 ¢ 13.6 ¢ 13.2 ¢ 13.0 ¢
Tier 5 Between 7.001 and 8.000 14.0 ¢ 13.0 ¢ 12.6 ¢ 12.3 ¢
Tier 4 Between 6.001 and 7.000 13.4 ¢ 12.4 ¢ 12.0 ¢ 11.7 ¢

Tier 3

Between 5.001 and 6.000 13.0 ¢ 12.0 ¢ 11.6 ¢ 11.4 ¢

DETAILED BILLING COMPONENTSFixed Monthly Customer Charge: $8.34 per Month

Monthly Base Consumption Charge: On-Peak (June-Oct) Off -Peak (Nov-May)
First 500 kWh 4.0 ¢ 3.8 ¢
501-1,000 kWh 3.9 ¢ 3.2 ¢
1,001+ kWh 3.8 ¢ 2.6 ¢

Monthly Natural Gas Component Charge:

NYMEX Natural Gas Futures Contract Expiration Price ($mmBTU) On -Peak (June-Oct) Off -Peak (Nov-May)
Tier 10 12.001 and Above (Price Protection Cap) 11.50 ¢ 11.410 ¢
Tier 9 Between 11.001 and 12.000 11.10 ¢ 10.988 ¢
Tier 8 Between 10.001 and 11.000 10.70 ¢ 10.239 ¢
Tier 7 Between 9.001 and 10.000 10.30 ¢ 9.475 ¢
Tier 6 Between 8.001 and 9.000 10.00 ¢ 8.093 ¢
Tier 5 Between 7.001 and 8.000 9.70 ¢ 7.067 ¢
Tier 4 Between 6.001 and 7.000 9.40 ¢ 6.130 ¢
Tier 3 Between 5.001 and 6.000 9.10 ¢ 5.756 ¢
Tier 2 Between 4.001 and 5.000 8.80 ¢ 4.732 ¢
Tier 1 Between 0.001 and 4.000 8.25 ¢ 3.781 ¢

Your bill will be calculated by summing the Monthly Customer Charge, plus your consumption multiplied by the sum of the Monthly Base Consumption Charge and the Monthly Natural Gas Component Charge. Each month you will also be billed all applicable taxes. This price disclosure is an example based on average usage patterns €“ your actual price for electric service may be different depending on how and when you use electricity. Specifically, this is a variable price that includes a seasonal Monthly Base Consumption Charge and a seasonal Natural Gas Component Charge that will reflect the last settled price of the NYMEX Natural Gas Futures Contract at contract expiration for the billing month (which is established by NYMEX in the final week of the month preceding the billing month), adjusted to allow a maximum movement of two Tiers each month and capped to provide further price protection.
To view the current Monthly Natural Gas Component Charge that reflects the last settled price of the NYMEX Natural Gas Futures Contract please refer to: www.txu.com/plans and refer to the TXU Energy Market Tracker+SM section.

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

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