This question has come up quite a bit recently because of the big drop in the energy markets. With the drop in natural gas and oil - many feel that resdiential electricity rates here in Texas should be much lower.
Well, credit helps run the electricity market in Texas and we all know what has happened recently in the credit world. In order to purchase power to sell into the market - Texas retail electric companies need credit to hedge the power they've purchased. Since the credit standards are much tougher, Texas electricity providers have access to less power and are less aggressive with their pricing at this time - simply because it's much harder to get.
So, are Texans paying too much for their residential electricity? I don't think so. The market is what it is - there are plenty of companies out there that rely on being the low cost provider. If they could lower their rates - they would. It's simply a tough market right now, plus prices have dropped 30%.
Anytime you see a drop of 30% - it's a good time to lock in. Will the credit markets get better and help lower electricity rates come to the market? That's certainly possible, but with the cold winter upon us there should be an increased demand for natural gas - thus an increase in natural gas and electricity costs. Do you know how long our nation will be in this credit crunch? I certainly don't.
My advice would be this - Prices are favorable right now and I'm recommending my clients lock into a rate for 12 or 24 months.
Wednesday, December 17, 2008
Tuesday, November 25, 2008
Holiday Shopping From Your Electric Bill?
The holiday shopping season is upon us and many consumers could find extra money for their holiday shopping budget in their electric bill.
The Friday after Thanksgiving is the biggest shopping day of the year. This time of the year is associated with deep discounts, early bird deals, and big sales. The economy has certainly put a damper on things this year and many of us are watching every penny we spend. Well, I’ve got some good news. If you have turned on the news or filled up your car recently you've noticed much lower prices are at the pump. In fact, yesterday I filled for only $1.57 a gallon when it was $4.09 a gallon less than six months ago. That’s a savings of forty dollars on one single tank of gas. Energy prices around the globe have dropped dramatically from their summer highs. Electricity prices have come down as well and if you are in a deregulated electric market like Texas, it’s a great time to lock in a lower rate. This will help you find those extra dollars for those fantastic holiday sales.
The problem is people don’t look at what rate they have with their current electric company. Similar to cell phone plans, you need to shop around and check rates to make sure you are always on the best rate/ plan available. What should you do? If you haven't check on your electric rate recently - you might be in for some holiday cheer. Go to: http://www.chooseenergy.com/ - Many electricity providers are offering rates up to thirty percent lower than their best prices just five months ago. Pair a much lower rate with some reduced consumption and you’ve got a recipe for hundreds of dollars in savings…just enough for that holiday budget.
The Friday after Thanksgiving is the biggest shopping day of the year. This time of the year is associated with deep discounts, early bird deals, and big sales. The economy has certainly put a damper on things this year and many of us are watching every penny we spend. Well, I’ve got some good news. If you have turned on the news or filled up your car recently you've noticed much lower prices are at the pump. In fact, yesterday I filled for only $1.57 a gallon when it was $4.09 a gallon less than six months ago. That’s a savings of forty dollars on one single tank of gas. Energy prices around the globe have dropped dramatically from their summer highs. Electricity prices have come down as well and if you are in a deregulated electric market like Texas, it’s a great time to lock in a lower rate. This will help you find those extra dollars for those fantastic holiday sales.
The problem is people don’t look at what rate they have with their current electric company. Similar to cell phone plans, you need to shop around and check rates to make sure you are always on the best rate/ plan available. What should you do? If you haven't check on your electric rate recently - you might be in for some holiday cheer. Go to: http://www.chooseenergy.com/ - Many electricity providers are offering rates up to thirty percent lower than their best prices just five months ago. Pair a much lower rate with some reduced consumption and you’ve got a recipe for hundreds of dollars in savings…just enough for that holiday budget.
FALL INTO LOWER ELECTRIC BILLS
The fall season is a perfect time to lock in a lower electric rate.
As a full-time energy analyst and business owner (http://www.chooseenergy.com/), people always ask me – when is it a good time to lock in an electric rate? Well, you can “fall” into lower electric rates if you lock in during the fall months. There are peeks and valleys (head and shoulder) months in regards to energy prices. Electric rates track closely with natural gas prices and historically the months during the fall are valleys or shoulder months which makes for a good curve when trying to determine when to lock in your electric rate.
So what should you do? There still seems to be a premium on pricing out in 2012 and 2013 so I would recommend signing either a 12 or 24 month contract at the present time. This is where the rates are most attractive and the best time to end your contract during these same shoulder months so you can renegotiate during the low season.
Just as the Internet has made it easier for people to compare mortgages, travel rates and other services, ChooseEnergy.com has developed a compare and buy site that offers a trusted and objective comparison of available Texas electricity providers for residential and small commercial customers. Not only do we select the providers that participate on our site, but we also show their most attractive rate plans for your home or business. Plus, as I mentioned the fall season is a great time to lock in a lower Texas electricity rate. Electricity prices usually track with natural gas costs, and natural gas is traditionally lower in shoulder months during the fall and spring season, before consumer demand increases during the cold winter months when consumers are using more natural gas.
As I mentioned in a previous post - just like cell phone providers – like AT&T or Sprint - Retail electric providers bid on customers’ electricity business. These providers can also personalize their bids to each customer or modify their offers and terms as often as they wish. For instance, electricity retailers may offer exceptionally competitive rates tied to longer term contracts (but we recommend not signing longer than 36 months at the present time) to attract customers in a targeted geographic area or offer a renewable energy product, like energy produced from wind, for the same price as you are currently paying.
It certainly pays to not only get the right offering that fits your home or business electricity needs, but also getting that offering at the right time. So do some shopping for your home or business during this holiday season and take advantage of fall electric rates.
As a full-time energy analyst and business owner (http://www.chooseenergy.com/), people always ask me – when is it a good time to lock in an electric rate? Well, you can “fall” into lower electric rates if you lock in during the fall months. There are peeks and valleys (head and shoulder) months in regards to energy prices. Electric rates track closely with natural gas prices and historically the months during the fall are valleys or shoulder months which makes for a good curve when trying to determine when to lock in your electric rate.
So what should you do? There still seems to be a premium on pricing out in 2012 and 2013 so I would recommend signing either a 12 or 24 month contract at the present time. This is where the rates are most attractive and the best time to end your contract during these same shoulder months so you can renegotiate during the low season.
Just as the Internet has made it easier for people to compare mortgages, travel rates and other services, ChooseEnergy.com has developed a compare and buy site that offers a trusted and objective comparison of available Texas electricity providers for residential and small commercial customers. Not only do we select the providers that participate on our site, but we also show their most attractive rate plans for your home or business. Plus, as I mentioned the fall season is a great time to lock in a lower Texas electricity rate. Electricity prices usually track with natural gas costs, and natural gas is traditionally lower in shoulder months during the fall and spring season, before consumer demand increases during the cold winter months when consumers are using more natural gas.
As I mentioned in a previous post - just like cell phone providers – like AT&T or Sprint - Retail electric providers bid on customers’ electricity business. These providers can also personalize their bids to each customer or modify their offers and terms as often as they wish. For instance, electricity retailers may offer exceptionally competitive rates tied to longer term contracts (but we recommend not signing longer than 36 months at the present time) to attract customers in a targeted geographic area or offer a renewable energy product, like energy produced from wind, for the same price as you are currently paying.
It certainly pays to not only get the right offering that fits your home or business electricity needs, but also getting that offering at the right time. So do some shopping for your home or business during this holiday season and take advantage of fall electric rates.
Wednesday, September 24, 2008
SaveOnEnergy.com ANNOUNCES STRATEGIC PARTNERSHIP
DALLAS — Sept. 24, 2008 – Dallas-based SaveOnEnergy.com announced today the company has launched a strategic partnership with Choose Energy (http://www.chooseenergy.com/). Choose Energy customers can now utilize the innovative commercial exchange portal launched by SaveOnEnergy.com in October 2007. The initiative between the two companies allows Choose Energy to focus on their residential expansion while utilizing the commercial driven technology of SaveOnEnergy.com’s exchange portal.
As the leading web portal connecting customers to suppliers, SaveOnEnergy.com has experienced significant growth and success in the last five years in Texas’ competitive energy market. SaveOnEnergy.com and Choose Energy are looking into their current expansion campaigns and expect the partnership to carry over into new markets as well. To date, both companies see New York as their next opportunity for market expansion.
“This strategic partnership with Choose Energy provides our proven technology and numerous options to their commercial customers while continuing to promote healthy competition within our industry,” said Brent Moore, founder and CEO of SaveOnEnergy.com.
“This partnership allows us to place more focus on our continued development around the residential energy space with increased offerings and services for the Texas homeowner. SaveOnEnergy.com’s commercial portal provides a valuable tool for our business customers – direct quotes from some of the largest and most competitive energy providers in the market today,” said Jerry Dyess, president of Choose Energy.
The first model of its kind in the competitive energy industry, SaveOnEnergy.com’s exchange portal allows energy suppliers to compete head to head for the customer’s business. Business customers simply log on to the SaveOnEnergy.com website (www.SaveOnEnergy.com), enter their business and usage information, and the information is then delivered real-time to each of the participating energy suppliers. The suppliers then evaluate the information and contact the customer directly.
Different than other online energy brokers, SaveOnEnergy.com no longer uses an internal direct sales force for commercial leads and now serves as a clearinghouse where suppliers compete directly for the customer’s business. The retail exchange format frees customers from time consuming efforts to locate competitive energy firms and solicit bids for their energy usage. With a click of the mouse, customers are contacted directly and receive real-time competitive bids.
As the leading web portal connecting customers to suppliers, SaveOnEnergy.com has experienced significant growth and success in the last five years in Texas’ competitive energy market. SaveOnEnergy.com and Choose Energy are looking into their current expansion campaigns and expect the partnership to carry over into new markets as well. To date, both companies see New York as their next opportunity for market expansion.
“This strategic partnership with Choose Energy provides our proven technology and numerous options to their commercial customers while continuing to promote healthy competition within our industry,” said Brent Moore, founder and CEO of SaveOnEnergy.com.
“This partnership allows us to place more focus on our continued development around the residential energy space with increased offerings and services for the Texas homeowner. SaveOnEnergy.com’s commercial portal provides a valuable tool for our business customers – direct quotes from some of the largest and most competitive energy providers in the market today,” said Jerry Dyess, president of Choose Energy.
The first model of its kind in the competitive energy industry, SaveOnEnergy.com’s exchange portal allows energy suppliers to compete head to head for the customer’s business. Business customers simply log on to the SaveOnEnergy.com website (www.SaveOnEnergy.com), enter their business and usage information, and the information is then delivered real-time to each of the participating energy suppliers. The suppliers then evaluate the information and contact the customer directly.
Different than other online energy brokers, SaveOnEnergy.com no longer uses an internal direct sales force for commercial leads and now serves as a clearinghouse where suppliers compete directly for the customer’s business. The retail exchange format frees customers from time consuming efforts to locate competitive energy firms and solicit bids for their energy usage. With a click of the mouse, customers are contacted directly and receive real-time competitive bids.
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