quote:

Non-Texans, please don't veer this thread off topic. The point of the thread is to get Texans to keep an eye on:

insuring their fixed contract doesn't expire when it's really high free market rates right now

getting them to switch NOW if they have a variable rate contract

keeping an eye on their retail electric provider and if they give signs of bankruptcy to jump ship before getting stuck with provider of last resort rates.

Plenty of other Texas storm threads to post in and it'd be appreciated if you don't derail this one.

New twist on what may be next electric catastrophe in Texas. As background, Texas wanted inexpensive power and we got cheap, unreliable power. The early 2000’s “successful” deregulation resulted in a weird hodgepodge of players (including companies splitting into 3 independent corporations):

power producers

transmission & distribution

“Retail” electric provider

If your "retail" electric provider didn't lock in enough power from a power producer then Monday they were buying market rate and may go bankrupt leaving its customers with "Provider of Last Resort (POLR)".

Here is the story from a local Houston NBC reporter that prompted the post:


Last summer, I had the choice of several dozen "retail" electric providers and today it's 7. In other words, that's lining up with what the reporter is saying. Also, I screwed up the timing and had let my old fixed contract expire for 21 days before switching to a new one so I know a little about getting the shittiest rate possible.

The $9 a KW buy through on Monday also jives with something I'm in the know on.

I'm kind of sleep deprived and stressed out. Anybody see any flaws in the logic?

This message has been edited. Last edited by: tatortodd, February 20, 2021 08:57 AM

I've been with Direct Energy for several years having free weekends and around 11 cents per kwh and it's worked out great for me. My contract was scheduled to expire in May but with Xiden taking office and his draconian energy policies threatning to run cost up I called last week and requested to renew early which they allowed me to for another two years. I'm glad I did now...assuming they don't go out of business.

Yeah, It happened to my neighbor.
He was getting $200 per day credit card alerts so he shut everything down, went to a friends house to wait it out and to give him time to find someone new.

Man that sucks worse than regular sucks.

This side of the Red River the electric and natural gas rates are regulated by the State Of Oklahoma. Most of our electric providers are part of the Southwest Electric Pool and that provided just enough buffer to squeak everybody by. IIRC the Southwest Electric Pool is in 14 States.

That provides a reliable countable dependable cost of electric and natural gas.

We had only a few hours of rolling electric blackouts. I had none at my home, no electric issues at all, and the natural gas stayed on, although both were on the edge of demand exceeding supply. We were asked to conserve energy, and I think most everybody cut their electric use at home as well as lowering our thermostats a bit. We made it through pretty darn well. I'm thankful for that.

I remember very well when Texas was pushing the idea of deregulating the utilities and figured it would not benefit the consumers. Consumers and businesses were told it would save them money being able to shop for the best prices. Wrong Wrong Wrong. Just as I feared, the consumers got screwed.

I have a LOT of family and friends in Texas and they are now beyond royally pissed off.

I hope Texas can get this royal screwing taken care of. It's unconscionable that this was allowed to happen.
.

quote:

Originally posted by OKCGene:
Consumers and businesses were told it would save them money being able to shop for the best prices. Wrong Wrong Wrong. Just as I feared, the consumers got screwed.

Sounds a lot like the Affordable Care Act insurance marketplace.

quote:

Originally posted by texassierra:
I've been with Direct Energy for several years having free weekends and around 11 cents per kwh and it's worked out great for me. My contract was scheduled to expire in May but with Xiden taking office and his draconian energy policies threatning to run cost up I called last week and requested to renew early which they allowed me to for another two years. I'm glad I did now...assuming they don't go out of business.

That worked out well for you. It's just strange to me that you would have to be a proactive consumer of a utility service.

While making this post, a question came to mind. You buy your energy from company A and your neighbor buys his from company B. If company A bought only so much and that's how much they can put into the grid, what's to keep you from pulling more than what company A put in and you'll be essentially using company B's electricity?

Not that I would expect you to know the answer. I'm just wondering out loud.

I don't pretend to know how exactly these providers operate. I'm just dealing with the current system and attempting to cover my own ass in the future. If I were to guess I'd say these providers operate somewhat like hedge funds...most of the time they win and other times the circumstances go bad and they lose. I could be wrong though.

In TX, does the ratepayer have to choose a “retail” provider? Does the TX ratepayer have the option of being a direct customer or a distributor?

Sounds like generac will be selling a lot of nat gas powered generators.

quote:

Originally posted by texassierra:
I've been with Direct Energy for several years having free weekends and around 11 cents per kwh and it's worked out great for me. My contract was scheduled to expire in May but with Xiden taking office and his draconian energy policies threatning to run cost up I called last week and requested to renew early which they allowed me to for another two years. I'm glad I did now...assuming they don't go out of business.

Text deleted. No problem.

Non-Texans, please don't veer this thread off topic. The point of the thread is to get Texans to keep an eye on:

insuring their fixed contract doesn't expire when it's really high free market rates right now

getting them to switch NOW if they have a variable rate contract

keeping an eye on their retail electric provider and if they give signs of bankruptcy to jump ship before getting stuck with provider of last resort rates.

Plenty of other Texas storm threads to post in and it'd be appreciated if you don't derail this one.

This message has been edited. Last edited by: tatortodd, February 20, 2021 08:57 AM

Thanks for the heads up.
Checked & my contract (TXU) is through August.

Going from something like $0.11/kwh to $9.00/kwh would be pretty devastating.

quote:

Originally posted by divil:
In TX, does the ratepayer have to choose a “retail” provider? Does the TX ratepayer have the option of being a direct customer or a distributor?

IIRC, it's pretty much just for customers in areas traditionally served by investor-owned utilities. Municipal power systems and co-ops were exempted but could voluntarily allow competition.

quote:

Originally posted by OKCGene:

I remember very well when Texas was pushing the idea of deregulating the utilities and figured it would not benefit the consumers.
Consumers and businesses were told it would save them money being able to shop for the best prices.
Wrong Wrong Wrong.
Just as I feared, the consumers got screwed.

Easy there Okie, before you go all commie-socialist just know that the consumer makes the choice and you want them not to have that freedom?
If it weren't for this once every 25 year event then they would be paying much less than everyone else.
it happened, they gambled and are paying the price.
So you would want everyone NOT to have a choice, TO pay more everyday and to have guberment to dictate their terms so tax money can go get wasted.
Beautiful.

My provider (Champion) sent an email telling us that they were in good shape. Crossing our fingers!

quote:

Originally posted by wxdave:
My provider (Champion) sent an email telling us that they were in good shape. Crossing our fingers!

Got the same email from them. They've been great to deal with, and I sure hope they're right.

I was pushed into the POLR some years ago. Probably in 2008 or so.
The provider I was using was a few cents cheaper than other companies.

I received a notice that the provider "will be unable to comply with its obligations under the Standard Form Market Participant Agreement as of Close of Business on May 27, 2008. As such, NPC has asked ERCOT to proceed with a Mass Transition event pursuant to the ERCOT Protocols and Retail Market Guide."

Handed off to the POLR and my rate went from 8.9 cents per KWH to something like 36 cents per KWH.

Signed up with another provider at a more reasonable rate, but still got hammered for a month and the new provider was a lot higher than the one that failed.

Learned a lesson that the lowest rate is not the only thing to consider.

Thank God for Kentucky coal.

I've been solicited multiple times by fly by night power companies in the last 10-15 years since the derregulation. They would offer me a savings of 1-2 cents on my business over TXU. I'm glad I stuck with TXU, I'm comfortable they would be one of the last to go belly up.

Tommy

quote:

Originally posted by Fredward:
Thank God for Kentucky coal.

Sure. But if Joe OXiden has his way, you can kiss that Kentucky coal good-bye! It ain't GREEN!!