Texas Electric: What Happens If You Don’t Choose a Provider?

 

With all the talk about choosing your electricity provider, many still haven’t done it. “So,” you may be wondering, “what happens if you don’t exercise your right to choose your Texas electricity company?” Following is some insight.

When you elect not to choose your electric provider, your service will be supplied by what’s called an Affiliate Retail Electric Provider. Who/what is this?

An Affiliate Retail Electric Provider is an entity associated with the original Retail Electric Provider (REP) that services your area.

If you don’t know which company this is, you can find out by logging on to sites like ElectricityBid.com. You can speak with a representative there, or plug in some info like your zip code to find out which Texas electric companies service your area.

What You Give Up by Not Choosing Your Texas Energy Company

The most important thing you give up is energy savings. Why/how?

Conventional Texas electricity companies offer so many money-saving plans for all types of consumers. For example, if your credit has gotten a little dinged up in the last few years – and many have seen this happen with the raging foreclosure crisis and steep job losses — you may think that the only plan you can get is an expensive one like a prepaid electric service account.

This is far from the truth.

With no-deposit and low-deposit electric plans like the Texas LITE-UP Program, energy savings have never been easier to get.

FYI, the Texas LITE-UP Program gives discounts to customers from May through September on their electric bill.

So “choose to choose” your Texas electric provider. Sites like ElectricityBid.com make it so easy. Literally, with a few clicks of the mouse, you can be on your way to reducing your monthly electric bill.

Compare Electricity Rates in Texas – Click here

Gulf Oil CEO says gas could hit $1 next year

The Trend is Down

Natural gas and oil have been on a trend down together at the end of this year and the latest forecast from industry professionals is that they could fall even further this year. The trend has continued beyond many experts predictions and there is no way to guess as to when this trend will start its reverse. Based on trend alone we can guess that the Gulf Oil CEO is right when he predicts gas will reach $1 by next year. If this is the case Texas electric rates and natural gas will most likely fall as well by the end of next year. We have forecasted that natural gas will continue to fall for the next 10 – 12 months. Natural gas prices falling provides the added benefit of bringing down Texas electric rates with it and this could potentialy bring us 8 – 9 cents kWh residential electric rates in Dallas for a 1 year fixed rate term. This is only speculation that rates will fall like this but wouldn’t it be great to lock in for 1 year at 8 cents kWh for an “all in” electric rate?

What’s Next?

There is no point on holding off on locking into an electric rate unless you believe you have a hunch on what electric rates are guaranteed to do. Because there are no guarantees it would be best to lock in to a fixed rate even if just for a short term. There are 6 month fixed rate if you would like to wait awhile and see what happens as the year progresses. Sometimes you will find that when at the beginning of the year you checked rates you could get a cheaper 6 month rate that 6 months later a 1 year contract is the cheaper contract while a 6 month rate is more expensive. Why is it that monthly terms vary back in forth in price like this? Energy commodity futures determine if a 6 month rate or 12 month rate will be the more expensive rate. All Texas electric provider prices fall in line with the futures commodity market prices. If a 6 month rate is the most expensive electric price then you can expect that signing on the more expensive rate will likely be in your favor as the expectation is that rates will be much lower in 6 months.

Chancing it with the Cheapest Rate

In the other scenario if you saw that a 12 month electric rate was more expensove then a 6 month rate then you can bet that 12 months from now you may be able to lock in at a better rate then you could 6 months away. Statistically you are buying the best insurance by locking in at the more expensive term. If you are a risky person then by all means always lock in at the cheaper rate but if you want protection then choose the more exensive monthly or yearly term.

Texas Power Dipped Down, Will It Go Back Up?

News Stations Notice Freaked Out State Of Residential Home Owners Facing Higher Electric Rates

News stations in Texas have spotted an increased anxiety level among residential electric customers who began shopping for a cheap electric rate when their energy contract expired in March. In March electric rates in Texas hit a 3 year historical high. Many people rememeber when electric rates were this high back in 2005 when Hurricane Katrina came through and wiped out some of our states energy infrastructure. Plants came off line and supply and demand issues caused Texas Power rates to spike to abnormally high levels. Over the year 2005 MCPE prices averaged over 12 cents kWh. Fixed electric rates in Texas are around 10 cents kWh and MCPE variable electric rates still average around 7 cents kWh. Imagine if MCPE rose to the levels of Hurricane Katrina levels. Fortunately Texas is not faced with a crisis like that of Hurricane Katrina and we have enough natural gas power plants and other power generation facilities to provide the needed energy production Texas home owners and businesses will need throughout the coming year.

Texas Electric Rates Have Dropped But Is It Just Temporary?

Electric Rates in Texas have dipped down and are now steady at lower levels but they look like they could possibly remain flat or hit a new high again in the next month or two. I ultimately believe they will head back down in the 8 cent a kWh range but when this will happen is anyones guess. Texas electric rate prices are just the same as a stock or commodity price. No one can really tell you what they are going to do and when they will come back down. The question you should ask is how long are you willing to wait? Texas Power prices can remain at above average prices for several months. If we have a milder summer then expected they could come down but even then other factors could potentially keep that from happening. Also pay attention to the fact that there are about 8 different factors that effect Texas electric rates and these have a compounded effect depending on which ones are happening at the same time.

What Is Everyone Else Doing About These High Texas Power Prices?

Sit tight Texas home owners and commercial businesses if you want to wait it out because it could be awhile before we see 8.5 cents kWh. If you have a high risk tolerance then you may be able to wait it out. For those residential home owners looking for a cheap electric rate you might want to try getting on a 3 month fixed rate with Startex Power and then try again in 3 months. If you just don’t want to deal with the headache of signing up for the short term then get on a 12 month electric contract and try again next year. 12 month fixed priced Texas electric rates right now are running at about 13 cents a kWh in Houston and a little cheaper in the Dallas area.

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

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