Amarillo, Texas Benefits from the New Nodal Market Structure

amarillo texas electric rates

Xcel Energy Services Inc. on behalf of Southwestern Public Service Company is headquartered in Amarillo Texas and is a fully integrated investor-owned electric utility that generates, transmits, distributes, and sells electric energy to approximately 386,000 energy consumers in the Panhandle and south plains of Texas and eastern New Mexico. Amarillo is not within the Texas Electric Reliability Council of Texas footprint. Amarillo Texas is outside the main electric grid that is used by the rest of the state of Texas.

Because Amarillo Texas is a part of the Southwest Power Pool and not ERCOT they are not subject to participate in the advanced meter program ERCOT is doing or the nodal market system that is revamping the ERCOT electric grid.

A new wholesale market structure will bring positive changes for consumers outside of Amarillo, Texas. The Electric Reliability Council of Texas (ERCOT) is set to change the current zonal market to a more efficient nodal market. You may be wondering exactly what this is and what it means to you.

In essence, the transmission grid in a zonal market is divided into different zones. The electricity in all of the units within one zone is dispatched at one price. A nodal market is laid out to match the transmission grid instead of breaking it up into zones. The value of electricity for every location, outside of Amarillo, Texas, is determined by various factors.

As confusing as this sounds, the benefits of a nodal market include more efficient dispatch, better price signals and the ability to “lock in” prices for electricity the day before it is actually delivered. The nodal market is much more precise and advanced than the zonal market.

If you have not compared electricity rates for Amarillo, Texas lately, now would be a good time although because Amarillo does not participate in the competitive Texas electric market you will not be able to change providers. The new market is sure to bring changes in the rates of area providers surrounding Amarillo. If you have a few minutes to spare, you can compare rates with our comparison chart but keep in mind if you are in Amarillo you can compare but you cannot switch to a new electric provider because Amarillo Texas has not opted into electric choice at this time.

Our unique comparison chart lists area electricity providers and their current rates outside of Amarillo Texas. You can see at a glance who has the lower rates and we even connect you to each provider’s website for further investigation.

If you prefer you may also call us at 1-800-971-4020

Take advantage of the new nodal market being implemented in Texas by using our comparison chart to find the provider that fits your electricity needs and budget outside of Amarillo Texas.

Blu Power of Texas, Letting Customers Go

Other No Deposit Guaranteed Electric Providers

Since Blu Power closed down in Texas we recommend other electric companies for those needing to avoid a deposit. Blu Power sold pre-paid electric service although there is now an electric provider in Texas that will allow you to sign with a no deposit or low deposit depending on your credit. The plan was called the “Fresh Start Plan” but that plan has been discontinued. We compare several prepaid providers using our compare tool at the top right. You can use it right now to find a provider that will work with your credit situation.

5 Texas Energy Companies out of Business in Texas

Another electric company in Texas were hit by the index market skyrocketing prices when they couldn’t afford the wholesale market financial requirements. The MCPE market spiked and they were not able to afford to keep their customers. They have started the process of letting all 2,000 of their customers go who are primarily Texas prepaid electric service customers. These Blu Power Customers will be getting back any money owed to them by Blu Power of Texas according to the electric company. Blu Power has said that many of their customers owe them money then they who owe their customers.

When Will it End?

With this now being electric company number 5 now out of the electric business you begin to wonder when this going out of business thing is going to stop? How many other small electric companies got into this business over their head? Some of the Texas electric companies came into the Texas market without a good understanding about just how volatile the Texas energy market is as well as what kind of capital investment you need as leverage against the hottest summer and the coldest winter to continue to stay in business.

Blu Power Electric Service Customers

If you are a Blu Power Electric customer we recommend checking out some of the discount electric rate offers we have at the top left of this page. If you have any questions please feel free to give Electricity Bid a call at 817-929-7095. Further questions can be answered by the PUCT (Public Utility Commission of Texas). Some of the other providers that have gone out of business in Texas for similar related issues are, National Power Company and Riverway Power.

Champion Energy

Champion Energy is a large wholesale energy provider and operates primarily in the commercial sales arena. There are several smaller Retail Electric Providers who buy their energy from Champion and resell it under an alternate name. Champion Energy consistently provides competitive pricing to commercial businesses in Texas although with any electric company certain risk management policy changes can make their prices more or less competitive throughout the year.

For large commercial accounts there is usually the option to have a blend of multiple energy products to bring down the overall cost of the energy you will be paying for throughout the year. Champion Energy can assist in procuring your energy using both MCPE index pricing along with a fixed price product at the right percentage to benefit you the most based on market conditions. Eisenbach Consulting can assist in managing the risk and converting over part of a blended product when opportunities arise in the market to lock in more of the rate to a fixed energy product.

You can learn more about Texas Electric Companies and Choices by speaking to an energy consultant at Eisenbach Consulting.

 

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

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