cent for cent which company has the cheapest rates? I just bought a house and need to set up my utilities. thanks!
I've gone there many times but still can't really figure out who has the best deal. Are fixed plans better? I'm using Stream Energy now and I hate them. They never notify me by email when a bill is due.
i've dealt with a few companies and their all roughly the same to me. you sign a contract for a fixed rate, they'll have a clause that'll allow them to charge you more. you sign with a lower rate, they'll charge you for other misc charges.
Okay, still go to the Power to Choose website... it's always brought up in these threads and it's the best place to start because it shows everything available in Texas. Things you need to clarify when asking for opinions though: First: In which service territory are you located? Centerpoint (Houston area)? Oncor (TXU-Dallas area)? etc. Who has the cheapest rates is almost entirely dependent upon the area in which you reside. Second: If you go to Power to Choose, select your service territory, and pull up the spreadsheet that shows all the providers and plans in your area, you'll see a mix of "Products". You'll see variable rate plans (typically with no term length) where the prices fluctuate with the market. You'll also see fixed price plans of varying term lengths. Additionally, you'll see products that incorporate a renewable energy component (typically not as cheap). What you decide upon here depends on your view (or the view of someone you trust) about where energy prices are going. If you believe that energy prices are going up, and you prefer price stability --you may want a fixed price product that lasts a certain amount of time. If you're of the mind that prices may be relatively high now compared to the future, you may elect either a variable rate, or a shorter term fixed price (so you can lock in a lower rate in the future). It all can be confusing, but essentially what it does is forces the consumer to start thinking about their energy usage habits and making more informed decisions. Third: Think about the provider itself. Certain names will be more familiar to you -- typically the incumbent providers. While they catch their share of bad press, in some ways they do, for a lack of better words, have their crap together operationally. They've been around long enough to smoothe out the bumps. On the other hand, they're often a little more expensive. Some of the other newcomers are very reliable too and their rates are going to be cheaper. Fourth: Related to number Three, are the cancellation fees. If you get over to a provider and figure out you hate them... whether it's bad customer service, more expensive than you thought, too long a term, etc., you may have to pay a cancellation fee to switch away to someone else. How much is that flexibility worth to you? Hope this helps... Let me know if you have more questions though, because I can talk about this all day.
That clause you're referring to is typically reflective of "pass-through" charges from the utility. Basically, you're agreeing to pay the supplier's rates (which they know) plus the additional utility transmission and distribution fees and fuel factor (which are known at the time, but may change in the future). If, and when they do change, the supplier has to pass along those increased charges because they don't know them ahead of time (and often can't effectively hedge them).
I would add to that that there are actually levels of service. Tier 1 providers (I believe Reliant is one) can handle anything that comes up related to your electricity, and you don't need to talk to CenterPoint directly about anything. A Tier 3 (I don't know where Tier 2 falls) will refer you to the TDSP if you have a power outage, a broken meter, etc. Tier 1s also do complex billing for commercial customers, but that's probably not relevant here. Who you choose will have no effect on the reliability of electricity coming to your house. But, levels of customer service can differ. My company (Gexa) had a crisis a year or two ago when the average wait time on the phone was 45 minutes. They've fixed that now and it probably won't be a problem in the future. But other little companies might have the same problem. They can also have billing mistakes. Some companies also will have online self-service where you can see/pay bills, monitor usage, and so on. The other problem with little companies is the hassle if they go out of business. After Katrina, 6 companies who hadn't hedged properly were snuffed out. Their customers were automatically moved to other companies and were put on a 18 cent rate. I think companies probably won't charge such a punitive rate to free customers in the future, but you never know. Anyway, go to powertochoose. That really gives you the best information for your zipcode. Go month-to-month if you like. The difference is that when you buy 12 months, the company can hedge for 12 months and thereby guarantee you that price. If you're month-to-month, the company has to hedge your electricity month-to-month, so you have a little more voltility. But, the price isn't very volatile anyway. Electricity-generation is fuel-diversified to give it a little stability. I don't think the company will suddenly kill you with rate hikes if you're mtm. If a rate hike is not driven by the market, they can't raise without losing you to competitors. If it is a general increase in costs market-wide, a fixed rate plan will only save you until your 12 months is up.
All I want to know is the savings really worth the downgrade in customer service, billing error and whatever negatives associated with a small company?
i'm with amigo energy, 100% green. no bill complaints, and i'm on a fixed 13 cent/kwh rate... sure i may pay a bit more on a fixed rate or on a "green" plan but i feel better about it. the customer service is kinda lacking though.
Personally, I don't believe so. I tend to be a little wary of the lowest-price offers I see out there because they often go along with a combination of longer term contracts (not for me - I'll be buying a house soon, but haven't narrowed it down enough yet) and exorbitantly high cancellation fees. I am fairly conscientious about conserving energy in the first place (I haven't had an electric bill over $200 in several years, and they mostly range from $40 to $100 throughout the year). For me, switching to a really cheap / no frills provider doesn't net me the same volume of savings that someone who uses $250-$500/month would be seeing. Even many of the newer, smaller companies are moving to a recommended/mandatory online bill-pay system as it's cheaper to operate then a full-service call center. You can now pretty much do everything online when it comes to switching, bill pay, customer service, etc. That allows them to keep their own costs down and charge a little less. If you're not the sort to call the company every time you think your bill looks high in the summer (or winter for that matter), how important is that call center to you? Like roderick_98, I went with a shorter term Green product that's not the absolute cheapest out there (still under .13/kWh for the next few months), but as more people opt for Green, the costs will likely come down over time.
anyone ever done the ONE RATE EVERY MONTH deal? i just got an offer from TXU. is it a good deal? how do you know what will be your monthly rate and how do they determine it?
Presumabably, it's a monthly rate based on the market price of gas. The monthly rate is probably calculated off the monthly closing NYMEX gas price plus some fixed charges * your monthly usage. edit: Benefits of this type of product are mainly that you aren't locked into a contract term length. There should be some details on the plan on their website. BTW, I think most bigger suppliers are offering similar products now, so this is hardly unique. Other positives/negatives: by floating with the market prices, you're assured that you'll not be locking in a rate that's higher than the market price. On the other hand, you can't lock in a lower rate either. If there's a major disaster where NYMEX jumps way up (think Rita/Katrina), you as a smaller residential customer would see increases, but nothing of the magnitude that a big industrial customer could see. All in all, it's good for flexibility. And it's good if, as a market watcher, you believe that prices are going to be relatively stable or going down. If you think prices are going up, and there are available, but shorter-term lower fixed prices available that fit your other requirements, you might elect to go that way. It frankly doesn't make sense to ride the market when prices are going up, if you can lock in something cheaper that's not too restrictive.
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