Electricity Prices on The Rise in Texas

Electricity rates are rising and this is due to what appears to be a new trend in natural gas prices.

Natural gas prices seem to be on a new push on that upward trend that could likely see it hit much higher prices than most consumers are used to.

In Texas about 40 percent of your electric bill is affected by the price of the natural gas.

chartIf you look at this weekly natural gas chart you can see the trend as it has developed over the last few weeks.

What do you think? Are natural gas prices headed for a continuing steep rise up or will they drop back down?

Usually when a commodity retraces 50 % or more of it’s previous large loss it will continue to retrace and make up 100 % of that loss.

This does not always happen but as you can see from the dip down and slow retracement above 50 % of that large gap down has been recovered.

Natural gas is a very unpredictable commodity so it is hard to know for sure what may happen but I expect to see it hit $5 mmbtu in the next 5 months.

What does this mean for the commercial or residential electricity service consumer?

I would spend today comparing prices using our website tool at the top and order electric service now while natural gas is still below the $5 mmbtu mark.

You will likely be locking in before the trend up takes effect again and you will be in a good spot for the next year or two as far as electricity price is concerned.

Also, it is worth noting that the cost of converting natural gas to electricity is up as well. This price factor is called “heat rate” and is on a trend up.

Before we see higher gaps up in price go ahead and check out our price comparison tool and lock in your rate today!

Using American Fossil Fuels Instead of OPEC Imports to Drive Down U.S. Energy Prices

pickensNo that picture is not Jimmy Carter but Texan, T. Boone Pickens, the natural gas king of Texas. Pickens has an answer to America’s energy crisis during a recent TED talk.

Why are our electricity prices, gasoline prices, natural gas prices, and basically all our energy prices cheaper than they are in Europe?

The reason they are cheaper is because we have such a huge stockpile of American based fossil fuel energy that the imports simply represent a way for us to stockpile even more of our own resources.

Even still our prices could be much lower but we refuse to back off of OPEC oil but instead allow our enemy to become rich in the process.

T. Boone Pickens out of Texas is most recently known for his plan to build a huge West Texas wind mill farm that connects to some of his natural gas power generation plants.

Since wind mill farms must rely on back up power from natural gas it made perfect sense to Pickens to create a large wind farm that connects to his natural gas power and then send all this power across the state into North Texas.

What ended up happening was that Pickens could not find a way to make wind power affordable enough to justify the enormous cost of building and maintaining these gigantic eyesores and so ultimately the large investment in windmills was scrapped at $150 million price tag.

You can’t say he didn’t try to make wind energy work because he blew quite a bit of money on the project.

Pickens is a proud believer in man made global warming but what he is more concerned about is our problem of strengthening our enemy by buying mideastern OPEC oil.

in 1912 America decided to choose crude oil and coal over the dirtier whale oil. Now Pickens sees a new decision point in history.

He wants America to make a drastic change from oil which costs 3 trillion dollars a year in which 1 trillion goes to OPEC.

He believes we should make a choice to go with American natural gas and reject buying OPEC oil to safeguard the U.S. national security.

Because we are buying so much OPEC oil we have basically caused a historical transfer of wealth to the mideast which in turn causes a cycle in which we are policing the world because of it.

Did you know there are only 12 aircraft carriers in the world and 11 belong to the U.S.? Of these carriers, 5 are tied up in the mideast.

The purpose of the carriers is to insure the shipping lanes stay open and oil is readily available when we need it.

The U.S. uses 25 % of the worlds oil and of this 70 % is used for transportation. The problem with solar and wind is that 70 % is for transportation which cannot utilize wind or solar effectively.

Pickens explains that we must address energy for transportation to stop our reliance on OPEC oil. Pickens explains that natural gas is 25 % cleaner than oil at a 130 octane and is simple to use without the need for a refinery.

Natural gas is cleaner and can be used directly in our vehicles for immediate cleaner energy in the U.S. environment and also allows us to avoid the reliance we have on OPEC oil.

One immediate answer is to retrofit the large trucks that drive on our interstate highways. There are 8 million trucks on our highways that if we used natural gas we could cut our imports yearly by 3 million barrels or a 60 % decrease in reliance on OPEC.

If you look at the natural gas we have in the U.S. we have quite a bit more than the total amount of oil they have in the mideast.

It costs the U.S. a billion dollars a day for oil but that cost could be dramatically dropped simply by starting with the retrofit to the 8 million trucks on our highways.

Pickens lost 150 million on his windmill farm idea. He explains you cannot do a wind farm deal with natural gas under $6 mmbtu.

He has now modified his plan to start with retrofitting 18-wheelers on the highway and believes this fuel will be what he calls a “bridge fuel” to the eventual reliance on solar and wind renewable energy as it comes down in price.

He admits that solar and wind will always remain a very small part of total world energy use even out into the future and he asks future minds to come up with a solution to make solar and wind a viable energy solution.

He lost $150 million on wind trying to make that work and he explains that it just doesn’t work at this time in history and until it does natural gas is where we need to be headed for electricity generation, car transportation and trucking.

In summary, even though he makes his money in natural gas he has a very sensible approach that solves many problems in the process instead of creating so many as we have seen with this Administrations blunders with solar, wind, and electric cars. Do I have to name Fisker (bankrupt), SunPower, Solyndra(bankrupt) and Beacon as just a few examples of wasted tax payer dollars.

Eats Up CO2 and Creates Useful Energy All At The Same Time

A materials scientists has recently disclosed some startling findings after an experiment where he discovered a way through chemical reactions to eat up carbon dioxide and at the same time create a solid very useful material full of energy.

Now creating a solid from carbon dioxide is nothing new but here is the important aspect to this: What usually happens when creating a solid from fossil fuels like oil and natural gas is the release of more carbon dioxide into the atmosphere then you started with.

This release of even more CO2 into the atmosphere defeats the purpose of creating the solid filled with energy if it is creating more of a CO2 hazard. The governments at this point will not approve of anything that will result in more unwanted CO2 then is necessary.

What Michigan Technological University was able to do is to develop a heat releasing reaction between carbon dioxide and Li3N that forms two chemicals: amorphous carbon nitride (C3N4), a semiconductor; and lithium cyanamide (Li2CN2), a precursor to fertilizers.

The team of scientists led by professor Hu found that the reaction converts CO2 to a solid material which is useful in and of itself.

The really exciting part is that the solid CO2 material is full of energy and when adding CO2 to less than a gram of Li3N at 330 degrees Celsius you get surrounding temperatures of energy that is 1,000 degrees Celsius, or 1,832 degrees Fahrenheit, which is about the same temperature of lava exiting a volcano. The publication is available at The Journal of Physical Chemistry

Now I am yet to be concerned that man is creating a horrible global warming scenario that will kill the earth of all living things in the next 20 years as some alarmists keep reporting.

This latest scientific breakthrough however, is a great thing in helping the environmental activists and their causes as there is a meaningful practical value this latest carbon capture experiment offers the world.

If the activists would spend more time on creating solutions like these I think their cause would be accepted a lot easier. Think about it, let’s spend money capturing CO2 emissions and at the same time use that physical carbon dioxide solid created through the process to create tons of cheap affordable energy. Both industry and environmentalists seem to win in this situation regardless of what extreme ideas they might hold to.

Momentis is a new Electric Service MLM Work From Home Energy Company

Momentis I just found another MLM energy company today called Momentis. I clicked on the link and the person who signed up for this opportunity must have already quit because the link was invalid.

This company is powered by an electric company that has been around for awhile now called, Just Energy.

I have talked to commercial businesses about Just Energy in the past and from my knowledge they have been very aggressive. They had feet on the street sales guys canvasing business districts offering their rates.

This practice is typical of even TXU and Reliant Energy so there is nothing wrong with this I just say this to explain Just Energy has and will try anything to be competitive hence why they are in MLM.

Momentis is an MLM company powered by Just Energy and they don’t just sell electric service but also natural gas, TV, internet, and phone.

If you are wondering about this opportunity and how it compares to the rest I have news for you. As far as I am concerned I already kind of know what the compensation plan will look like before even looking.

It has become increasingly predictable what these companies compensation plans look like. The main thing I would worry about is if the company will allow you to keep whatever ranking you achieve when they eventually change their compensation plan or add more positions.

Think about this, most of these MLM energy companies adjust their plans by adding a new rank in the mix. This dilutes your stake in the money pool and continuously makes it harder for you to remain at the top.

Some MLM companies will vet you and keep you in whatever position you achieve and will not allow a new rank to push you down but will in fact promote you to that new level that did not exist when you first joined.

What companies look out for you in this way? Not many.

Regarding the compensation plan it appears it looks similar to many, such as Ignite Energy, The Green Mountain Energy MLM, and a few others. You basically get very little compensation for actually signing up electric service customers directly.

You get bonuses for signing up customers within 30 day time slots. For each 5 additional customers you get in 30 days it appears they pay you $100. That means you are getting $20 a customer one time. You also get $1 a month for each active customer you personally maintain that you have signed up directly.

Overall the compensation you get for the direct work you put into getting active customers is very little compared to other MLM companies I know about.

The real money comes in by building large active down-lines of representatives that are selling the opportunity. The reason this is where the good money comes in is because large bonuses are paid out when new recruits join.

The site does not go into how much the Myteam bonuses are or how much the myLeadership bonuses are which is curious to me but I suspect they are fairly big in the $100 – $300 range.

Keep in mind to get these bonuses your recruit has to pay a large upfront membership fee and sign up 2 customers in 30 days. Once this happens you get the initial $100 mentor bonus. The additional bonuses are paid out as your recruits qualify for more levels and are trained.

This compensation plan is very similar to many others. The hard part is in building a down-line that is very active. This is very hard to do but can be done. I produced a video that explains what the long term goal should be with anyone considering joining an MLM company. For most of us including myself it is far beyond something I would want to get involved in.

 

Don’t Get Bitten This Winter By Your Variable Electric Rate

Variable electric rates are not all bad but there are problems with them that if not understood can leave you like many others, very confused when your rate goes up.

As the name implies a variable price does not guarantee by any means that your price will always stay the same or go down but never up.

The variable price is just as likely to go up as it is to go down.

Most electric companies in Texas will give you an introductory rate when getting you to switch to their variable price. The rate looks exceptionally low compared to locking in at a much higher fixed contract for 12 months.

Many people simply see that cheap variable intro rate and sign up. Once your rate goes up and you realize it has gone up it is usually too late to switch away before you get a sticker shock electric bill in the mail.

It is possible that 45 days of electric usage could have accumulated during the time your price was jacked up. Since you get billed every 30 days you will likely disconnect a week or so after that.

You will get billed at the higher rate for over a month before you can switch away and this may have caused you to spend $200 or more than you were planning on.

If your price follows an index like natural gas you can rest confidently when your rate is high because you know you will be rewarded when commodity prices come down.

The problem is that most providers do not make it very clear how their variable price works and so you really have no assurance of anything.

To save you all this headache try a fixed rate like what I usually go with. I sign up for 12 months on a fixed plan and have no worries for a year. At the end of the year I get a reminder email to shop prices and I simply renew with who I consider to be the best provider for another year.

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

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