Another Free Market Failure Accusation About Texas Electricity Deregulation

Clean Coal Power Mike Norman with the Fort Worth Star Telegram hits on the topic of if Texas deregulation is really working. I assume he places blame on deregulation as the reason for the Texas power supply failure because the title of his article states, “The Texas free market for electricity just isn’t cutting it“. Maybe he is just meaning that as good as deregulation is it can’t stop the EPA and other non-governmental organizations from halting all oil based energy production thereby raising consumer costs. Deregulation being a failure is a popular argument because any time prices go up or supply capacity is reached we hear about it from the political side that benefits the most from this view.

Is deregulation to blame for every time something bad happens in the deregulated Texas electricity market? No you can’t always blame it on deregulation but it is a piece of the puzzle so yes it is to blame sometimes. The main problem with deregulation isn’t inefficiencies building electric grid infrastructure and power production as this gets approved by the state and then shutdown by the EPA and federal government, not deregulation. Texas has broken up the generation companies and such away to allow new investors to come in and build power facilities but not many have filled this hole left open for increased competition. I think new investors have not come in because you are talking about investing in and building highly federally regulated things like coal, natural gas, and nuclear power facilities.  What new investors want to do what TXU just got shutdown by the EPA for trying to do? I see problems with how some retail providers try and use tricks to market their electric rates but regarding power supply being built out the bottleneck seems to be in government regulation still being in the mix too much.

Even if the market was regulated again under one monopoly per electric utility area you would just as easily be able to blame brownouts and blackouts on the monopoly regulated electric utilities just like deregulation gets blamed for things now. I don’t think Mike is trying to place all the blame on deregulation but he is pointing out that you will see an electric bill increase regardless of the provider you choose because of some recent failures in the Texas deregulated market. You see you very likely will find more non-negotiable ERCOT related fees on your electric bill eventually because of lack of electric supply available to meet demand but who is really to blame for this?

Mike explains that a free market should work in theory because investors are encouraged to place their money where the highest return will be received and in so doing offer just enough electricity to cover the demand as well as spikes in demand. In a perfect system the investor is rewarded a maximum profit for producing just the right amount of power with very little waste left over.

The problem Mike sees with the current deregulated market in Texas is that power plants break down or have to be shutdown to fix or maintain it resulting in loss of supply. If Murphy’s Law is in effect and a power demand spike occurs around the same time as a maintenance shutdown all of a sudden there is not enough power to go around for everyone.

These imperfections are problems that political powers bring up in order to fault the great electricity deregulation experiment of 2002. Will this blame game reverse deregulation in Texas? I really doubt that deregulation can be reversed anytime soon. There is huge public support for energy choice in Texas. Many people can show you on their electric bills how they have saved money because of deregulation simply from using our Electricity Bid website.

Is Deregulation to Blame for Lack of Sufficient Power Supply in Texas?

The problem we are faced with in regards to electric power supply in Texas for 2012 is unreliable power supply due to not enough power plants in operation. Is deregulation responsible for this lack of power?

No! In fact TXU was approved for and planning to build 11 new coal fired power plants that utilized clean burning technology and significantly reduced pollution from these plants compared to the old mothballed coal plants from the past. The prior mayor of Houston and Democratic nominee for governor of Texas, Bill White complained in 2010 that these plants were unnecessary but now they seem all too necessary. ERCOT predicts very tight power supplies this summer and this has politicians frantic but I’m sitting here wondering why we didn’t just get started on those 11 coal plants in 2010?

I think what Pat said has a lot to do with our problems…..Pat Ennis with Priority Power Management said, “”I’m not the smartest guy around, but I’d be willing to bet that… we’re not going to have any coal plants built here in Texas for a long time — between the EPA and the environmentalists, coal is kind of a no-no.”

The state of Texas has been contending with attacks from the Environmental Defense Fun and the EPA in regards to an argument that is mainly about the states CO2 emission levels. Instead of focusing their argument primarily on pollution like mercury levels and other scientifically verifiable pollutants they were able to stop 11 new coal fired power plants from being built by TXU because of a global warming argument.

Many scientists and climate scientists non-affiliated or backed by the United Nations IPCC organization disagree that global warming has a negative environmental impact or that man has anything to do with it. Over the last decade their has been a decline in average global temperatures and so to even argue CO2 levels to prevent Texas from expanding their power capacity only serves to hurt these environmental activists causes.

What Can Texans Do to Increase Power Supply?

Does anyone remember back a few years ago when TXU proposed building multiple state of the art clean burning coal power plants? These power plants would have significantly updated the power infrastructure in Texas but the plan was shutdown because of environmental nut jobs. Even though the power plants would have been state of the art cheap coal power with significant reductions in pollution compared to current coal power plants in operation the plan did not go through. The state of Texas must fight the EPA and federal government politically where it hurts and take back our state and its ability to provide power to our citizens.

Even with an unsatisfactory amount of power generation plants built in Texas we have seen a steady increase in large commercial and industrial facilities building on-site power grid infrastructure that are little mini power generators for their companies. These miniature power generators also known as distributed generation systems account for a large portion of the overall electricity consumption in Texas. During peak demand periods in the day these generators can turn on resulting in no need for the state to start rolling blackouts in residential neighborhoods.

The Texas demand curtailment program has been a huge success. Companies are paid to enroll in a program that they do not even have to participate in when and if they are asked to turn off their power for maybe only 20 – 30 minutes in the span of 1 month. The program is enrolled to it’s limits each time Texas opens it back up. What does this mean? There are likely more than enough large commercial and industrial facilities that would jump at the chance to shutdown production for a short interval in exchange for being paid by the state of Texas to do so. Consider that many large companies like this shutdown once a month anyway to test their back up generators so why not get paid to do this?

Solar generation at this time is not a good option for solving the states problems but has limited uses.  As we have seen, large federally backed companies like Solyndra have not even been able to stay a float because of the expense it costs to produce cheap affordable power using solar. Hey I am a fan of solar but like most people I can’t afford to build a solar off the grid system on my home or business. If I can’t afford the system like most of us why would you think the federal government can? We are at record breaking tax deficits in the beginning stages of an economic collapse and those tax dollars are to be used for things that are considered affordable and have at least a 10 year return on investment. Wind power is a partial option but is only viable to use in combination with natural gas power generation as it can share in the control systems and connections to the grid.

The smart meters, and energy efficiency programs utilities across the state offer continue to assist in teaching home owners how to make their homes more efficient and lower their monthly energy bill. These programs should continue to be encouraged and promoted through local electric utilities that control the power infrastructure.

Deregulation Gives Freedom of Choice to McAllen, Texas

Before 2002, Texas electricity was regulated. This meant that your McAllen, Texas service provider was determined by your location. You had no choice in who provided your electricity. You had no choice in what rates you paid. If you wanted electricity in McAllen, Texas, you had to accept the area provider, no exceptions. All of this changed when Texas electricity became deregulated. Deregulation gave the power of choice back to Texas residents, where it belonged.

Deregulation lets people choose who provides their electric service. Just as you get to choose whom you buy your telephone service from, you can choose who powers your home. No longer are McAllen, Texas residents stuck with one rate. You can choose any area provider and since the providers compete for your business, you can choose a low rate.

Our comparison chart makes it easy to make the switch. With our chart, you can compare the electric rates of providers in the McAllen, Texas area. You can quickly see who has the lowest rate. You can see where you current provider stands in the price of their electricity. You are under no obligation to switch providers – our comparison chart is simply a tool to provide you with useful information.

The choice is yours. You have the freedom to choose your McAllen, Texas electric provider. You have the power to save money on your electric bill. Use our comparison chart and see for yourself just how much money you can save. It only takes a few seconds and it costs nothing to compare electric rates.

Lubbock, Texas Electricity Companies, Rate Plans, and Energy Conservation

Lubbock TX electricity companiesToday is an age of “living green”. Everyone is encouraged to do his or her part to save the environment. Residents of Lubbock, Texas need to make sure they do their part, too. One way to “live green” is to conserve energy by changing your consumption of electricity. In some countries, citizens are forced to conserve energy. There are even some places where the government dictates when people can take hot showers! In the land of the free, residents of Lubbock, Texas make their own choice about energy conservation.

If you want to do your part for the environment, there are various ways to save energy. One of the easiest ways is to turn off the lights. Often, people have several lights on in their homes, even in unoccupied rooms. By turning of lights that are not being used, you can save much-needed energy. Watering your lawn in the morning or evening is another way to save water and energy. The cooler morning and evening temperatures prevent the water from evaporating quickly, allowing your lawn to absorb more moisture.

Conserving energy leads to lower electric bills. In Lubbock County Texas there is no choice to choose a competitive electricity company as this area of Texas did not opt into electricity deregulation.

If you want to choose an alternate electricity supplier other than South Plains Electric Cooperative you unfortunately have no choice.

For new service or to inquire about an existing account, call (806) 775-7766

Global Warming Legislation may raise your Lubbock Texas electric rates

South Plains Electric Coop has taken steps to ask the EPA and federal government to pause their request for electric coops in Texas to meet global warming regulations involving emissions standards and retrofits on power plants, and transmission facilities.

Because electric coops serve a small amount of customers in their specific location they do not have the funds to adhere to expensive government regulations. When EPA regulations require your Lubbock electric coop to fix global warming they are asking the coop to spend millions of dollars to fix something that is still up for debate as to whether it even exists.

A recent news story admits that the research and numbers that produced the research article on global warming done by Al Gore and top scientists that led to his Nobel Peace Prize was way of the mark in regards to the factual data and numbers.

This recent discovery regarding Global Warming muddies the water even further on whether electric coops in Texas really need to spend this kind of money to control CO2 emissions into the air.

If TX electric coops do have to make these CO2 emissions changes it will drastically raise coop electricity rates that do not have the same economies of scale as do TXU Energy and Reliant Energy that have several million customers.

South Plains Electric Cooperative is joining with electric co-ops nationally to ask Congress for a much-needed timeout—a two-year moratorium on EPA regulations of carbon dioxide emissions. The agency’s regulation of power plant emissions under a law never intended for that purpose will certainly add costs to electricity generation and drive your bills higher.

A delay would give Congress the opportunity to fashion climate change legislation that protects you, our members, and keeps electric bills affordable. You can help by contacting your elected representatives in Washington and letting them know the importance of this issue.

Ambit Energy a Scam or a Great Opportunity?

Texas Electric Company Deregulation

Electricity deregulation in Texas has provided some great opportunity to investors and small business owners in the state looking for a new way to make some money. Ambit is one of over 40 Texas Retail Electric Providers in the state selling retail commercial and residential electricity.

 

Ambit Energy Electric Company

The problem is not so much of an issue for those needing to have their electricity turned on or even by the company Ambit Energy but by those who think they have a good chance of becoming a millionaire or at least rich after the process of signing up to become an independent representative for Ambit Energy, Ignite, Affordable, or any of the other direct sales and MLM companies out there selling electric service in Texas.

The danger in this way of thinking is that if it is supported by some of the company’s spokesman it allows the beginning people in the MLM company to become wealthier while the new people signing up make more for their sponsor’s then they will for themselves. A better approach is to see this as a part time thing you might be able to make some extra cash with. An income report from the company showing just how many people make over six figures with an MLM company is a great way to decide if you have a statistical chance of making an opp like this work even if giving it 40 hours a week.

Not all Ambit Energy sales reps profit through their compensation plan in a dishonest way by promising new recruits hundreds of thousands and millions of dollars. If you do want to sign up with Ambit Energy we  encourage you to sign up with Ambit through a sales consultant of theirs that approaches the business in an honest and ethical manner. Our opinion is that you should sign up on their affiliate program which offers you the opportunity to sign up electric service customers directly without the need to build a downline. We believe you will save yourself much time and money by going directly for the customers rather than trying to make the MLM downline work in your favor. We have met and talked to a few Ambit Energy people that are honest and ethical about this opportunity and do not make outrageous claims. We believe these are the people you should associate yourself with if you decide to do this opportunity.
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What you will not find in the Ambit training material are some of the tricks of the trade that some of the seasoned MLM’ers use to make the MLM opp work. Many successful MLM’ers stack sales representatives and put customer’s under them if necessary to make the whole MLM sales structure pay out correctly so that you do make money. This idea is not discussed by Ambit Energy’s corporate offices as it is borderline illegal to structure the business to primarily build up independent sales reps with no emphasis on customers. The truth is although some of the top guys stack reps under other reps to build up their sales commissions they rely on these sells reps to sign up their friends and family. All of this primarily helps these super MLM sales people. If a new Ambit Energy sales rep wants to make the kind of money these guys make they would need to pull off some of the same type of stunts. Traveling the state, stacking reps and being that charismatic spokesman for the company is usually what it takes. The problem is that these techniques are not always explained  in the sells pitch and most people walk away thinking that the business will be easier than it really is. The truth is that the time it will take to make a truly successful business with Ambit through an MLM downline could be better spent starting a more traditional business or signing up on Ambit Energy’s affiliate plan and just sign up customers. The typical example pyramid chart showing what could be possible in a perfect world scenario is not an accurate representation of what someone in an MLM opp can expect. An income disclosure statement showing exactly how many people make over six figures would be a helpful guideline in deciding if this is right for you.

Many See the Ambit Energy Pyramid Scheme as Old Hat Hyporama

The Office scene about a calling card pyramid business shows that the amazingness of the MLM compounding effect has lost some of its luster as many have tried and been burned by pyramid schemes. The law on what denotes a pyramid scheme and what does not is open for interpretation but as a rule to make it legal a genuine product is required. The Ambit Energy Company opportunity is a great way to make money if you are realistic about how much you can make with something like this and it helps if you go ahead and decide if the affiliate or MLM based business model is best for you. In our opinion Ambit’s affiliate option is the best way to go.

Reality is Many MLM Companies Like Ambit Don’t Make It

Many of these types of MLM companies go out of business or bankrupt due to a concentration on recruiting reps while the customers dry up. Excel Telecommunications was one of the more successful MLM companies of the last 20 years in a deregulated industry and is a perfect example of an MLM company growing into a thriving success only to eventually implode on itself later. By having a concentration focused on recruiting new reps the whole MLM may topple down. Because there is a high percentage of this risk you could very easily be wasting 5, 10, 15 years building a business that will have nothing to show for you when it finally goes out. This is a warning when working with any MLM company including  Ambit, Affordable or Ignite Energy, Amway, Quickstar, Mary Kay and so on. You can make money with these companies but is it really worth the investment in time and personal relationships that could become ruined in the process by promising riches? If you choose to sign up with one of these MLM companies we encourage you to concentrate your efforts in signing up electric service customers and consider the downline part of the business an added bonus. By concentrating most of your efforts on building a downline you will find that most people in the business do not make enough money to justify the time spent in building their MLM structured sales team.

The downline you create may pay out decent money to some of the top people in your up-line but you or those you recruit will not see most of this money in most MLM type businesses. Instead of making money through sales associate recruiting we recommend just signing up people to the product or service in this case it being Texas electricity service.

Some other MLM or Direct Sales companies in Texas are, Zurvita Energy, Ignite EnergyAffordable Energy, and New Age Power Brokers.

Some other traditional Texas electric companies: Bounce Energy, Spark Energy, Champion Energy, Startex Energy and many more.

Electricity Bid helps you find an electric rate and provider to save you money and keep life simple.

Get in touch with us!