Thursday, September 10, 2009

Deregulation In Georgia

In order to understand the process of deregulation, the first thing you will have to know is exactly what this means. Deregulation is a way of making gas companies offer the consumer a more viable price for the service they provide. Including ways of promoting their business, such as specials for new customers, this saves the customer money by helping to lower the monthly rates they pay for natural gas.

Deregulation Bill Passed

Senate Bill 215 was signed in 1997 by Zell Miller, Governor of Georgia. The deregulation did not actually start until 1998. Atlanta Gas & Light was the seller and the distributor of natural gas before deregulation. This state was the first one in the U.S. to endeavor to deregulate natural gas.

After the Natural Gas Competition and Regulation Act (ACT) was passed, selling natural gas was offered to companies approved to do so. AGL still distributes the gas and maintains the pipeline for the service, but other marketers can sell the natural gas. One for example, is Stream Energy.

Who Regulates the Companies?

The Georgia Public Service Commission (PSC) is still responsible for regulating the gas to make sure the safest standards are in place. Georgia promoted the deregulation taking the initiative to get customers to choose the provider they wanted. However, those who did not choose were given a provider by the state.

Competitive Prices

One of the benefits of deregulation was the competition it provided. The previous way only allowed customers one choice, which was often expensive. By providing a choice, consumers are provided with gas that is considered excess. In short, the natural gas is available because it is not under contract to another company.

By comparing plans among the service providers, you may choose a rate for the natural gas you buy and opt to lock in the price. This is a fixed rate. The advantages to choosing this type of plan is you will know what you are paying every month. Even if gas prices rise, you have the rate locked in for the period of the contract. Some of these plans can be as long as 3 years.

If you decide to go with the variable rate, there are no contracts. This plan is one that offers a competitive price and is quite easily changed if you decide to switch to the fixed rate or cancel and go with another provider. The competition makes it possible to change energy providers without having to turn the utility off and wait to have it reconnected. Gas Georgia offers the option of comparing rates from different providers and their fixed rates.

Structure of the Natural Gas Market

Quite similar to other services provided, the natural gas market is based on supply and demand. The demand regulates the production of the natural gas and often results in higher prices. The supply of natural gas is not like other commodities where production can just be increased. With natural gas the drilling and permits can take time.

Also, the wells already in production are not guaranteed to be active. They may begin to produce less, which means drilling elsewhere for the natural gas that is being used by consumers. Adjusting the supplies to meet the demand is a complicated process. The recent state of the economy has resulted in a decrease in the demand.

Choosing a Natural Gas Provider in Georgia

This is an easy process that can be done over the Internet or the telephone. Once you have found the service provider you want all you have to do is put in your order. The enrollment service will result in a package being mailed to you specifying the terms as well as the contract if you opt for a fixed rate plan.

All marketers of natural gas are certified by the Public Service Commission to sell gas in the state of Georgia. The Commission has a scorecard they issue each month that answers questions received about the different marketers for natural gas. The card also lists any complaints they have received by the category. This includes deceptive marketing, service and billing. This allows the consumer to see which companies are doing the best job. Although, the complaints are not always the fault of the marketer and whether the complaints are valid cannot be determined until they investigate.

Deregulation has been a welcome change for the state of Georgia. The ability to choose the natural gas provider and type of plan is seen by many consumers as a welcome change from being tied to one company. The competition provides better rates, among other benefits for many natural gas consumers.

Wednesday, September 09, 2009

Deregulation in New York

In the mid-1990s deregulation in New York began when the state government began to implement policies to restructure the electricity industry. It was believed that this deregulation could help businesses and consumers save money on electricity in the State of New York in light of a flagging economy and increasing power costs at the hands of the monopolies granted to electrical utilities when power regulations were first enacted.

Even though the deregulation process has been ongoing in the natural gas industry for years as a result of oil embargos in the 1970s, little has been done with deregulation in New York concerning electric utility operations and rates until much later, since they are much more complex in terms of operations, rate policies and distribution among various power consortiums. As a result of this, experts believe that electric utility restructuring will have a far greater impact on electricity costs charged to consumers and the manner in which operations are handled in the coming years. To understand deregulation in New York, there are a few concepts that we need to understand better.

A utility provides a tangible commodity or service that is considered to be something vital to the well being of the general public in the state. These commodities are things like electrical power, water, or natural gas. The utility has the responsibility for producing the commodity, transporting it (in the case of electricity through the power lines they have erected and must maintain), and ultimately, distributing it on the retail level to the individual consumer through a meter and connections to the power grid owned by the utility.

It was ultimately determined by both state and federal lawmakers that it is in the public's interest to regulate how electricity is provided. To keep utilities from practicing price gouging like often happened in the early years the utilities were being built and to encourage widespread access by individual consumers, the government originally allowed individual utilities certain monopolistic rights to sell energy unchallenged within a specific territorial area, known in the industry as the "service area" or "franchise territory." In the times when the utility was first being set up, this monopoly allowed the utility to regulate prices any way they saw fit as well as enacting service terms and conditions that the consumer had no choice but to abide by if they wanted power.

Despite the safeguards set up at the state level that were supposed to be in place in the form of the state Public Service Commission, up until recently the consumer has had very little to say about the prices and rates charged by the utilities. The PSC was perceived as acting rarely in the interest of the individual consumer, and the consumer had very little recourse open since they had no other choice except to go with the one utility that was operating in their area.

Deregulation in New York was designed to allow the consumer to choose a power company which has a more competitive rate charged for Kilowatt hours (KWh). This offers a potential savings to the individual energy consumer because outside concerns can charge rates less than those set by the original territorial power provider. This also helps theoretically because a consumer is free to choose an electricity provider which produces electricity utilizing a more environmentally friendly renewable generation source like solar or wind compared to the burning of coal which accounts for over a third of all electrical power generated. New York is one of only 19 states which is implementing restructuring to a competitive market.

Despite deregulation in New York, the one wild card in the power equation is the cost the consumer is charged for the delivery of power. This delivery price is still determined by the local utility since they are mandated to maintain and effect repairs on the power lines in their service area should storm damage and outages occur. With this point in mind, the power consumer should be aware that it is possible to see delivery charges that actually exceed the cost of power used, thus affecting the actual savings that choosing a cheaper provider might afford, despite the fact that the laws enacted prohibit the local utility from adopting stranded costs or other surcharges.

This is one aspect that is not being made clear when consumers are being offered the choice of an electrical power provider. To be properly informed, consumers should carefully research delivery charges to get a better idea of what savings could be actually realized, making the choice of a power provider more realistic when it comes to optimizing deregulation in New York.

Saturday, September 05, 2009

American Electricity Deregulation

Today we will open a new series of post about electricity deregulation in America. We will discuss how deregulation has opened markets across the U.S. and their importance to American energy.
So please check back over the next serveral days as we discuss more on electricity deregulation in America.

In the1990s the Federal government embarked on a policy of deregulating the electricity industry in America. It was believed that this America electricity deregulation would help American businesses and consumers save money on electricity. Even though the deregulation process has been going on in the natural gas industry for well over a decade, little has been done with American electric utility operations and rates since they are much more complex to figure. As a result of this, it is believed that electric utility restructuring will have a far greater impact on facility energy costs for consumers and the way operations are handled in coming years. Before we discuss this deregulation, there are a few concepts that we better need to understand.

In the simplest terms, a utility is an entity which is created to provide a tangible commodity or service that is considered to be something vital to the well being of the general public. These commodities include electrical power, water, or natural gas. In addition, the utility has the responsibility for producing the commodity, transporting it (in the case of electricity through power lines they have erected), and ultimately distributing it on the retail level to the individual consumer through a meter and connections to the power grid.

Since utility service is such a vital need, it has been determined by both state and federal lawmakers that it is in the public's interest to regulate how it is provided. To keep utilities from causing the consumer to suffer price gouging and to encourage widespread access by individual consumers, the government originally gave individual utilities certain monopolistic rights to sell energy within a specific territorial area, known in the industry as the "service area" or "franchise territory." In the days when the utility was first conceived of, it was believed to be less expensive to provide any given mass market in a defined geographic territory with utility services from a single supplier because of the high cost of distribution. This monopoly was accompanied by the right of the utility to regulate price as well as service terms and conditions that the consumer had to abide by.

Because of their monopoly status in a given location, utilities are regulated at both state and federal levels. Federal jurisdiction regulates wholesale interstate transactions while state regulation deals more with consumer-level issues like rates and the quality of service. Despite the safeguards that were supposed to be in place in the form of a Public Service Commission, up until recently the consumer has had very little to say in the amount of rates charged by the utilities and had very little recourse open to them since they had no other choice except to go with the one utility that was operating in their area.

Recent America electricity deregulation legislation was designed to allow the consumer to choose a power company which has a more competitive rate charged for Kilowatt hours (KWh), offering a potential savings to the individual energy consumer. This also helps theoretically because a consumer is free to choose a utility which produces electricity using a more environmentally friendly renewable generation source for electricity like solar or wind generation as compared to the burning of coal which currently accounts for over a third of all power generated in America. Despite this deregulation, only 19 states have implemented or are implementing restructuring to a competitive market. The rest have either halted studies or have taken no steps to transition over despite advantages that the American power consumer could see.

One exciting development that could help to move the remaining states along the path to America electricity deregulation was the legislation that President Obama signed into being in June of 2009. This legislation included incentives for utilities that begin switching to cleaner, more renewable sources of generation like the use of solar or wind generators.

In addition, individuals like homeowners or businesses that install smaller generation systems will be offered monetary incentives to help pay for the costs of the initial system. This legislation also compels electrical utilities to purchase any excess wattage that the individual generates which is above and beyond what is needed to power the business or home. A net meter, a device that keeps accurate track of wattage bought from or sold to a utility, can provide not only a significant possible energy savings to the owner of the generation system (experts estimate a savings of between one to two billion dollars annually between the years 2012 and 2042), but also serves to provide additional energy that is not dependant on dirty, dwindling fuels like burning coal that not only is less efficient to use, but is also more costly in terms of the devices needed to be factored in to make them cleaner and less injurious to the environment.

The more clean generation systems that come online, the closer we will be to catching up with the countries that already are trying to switch over to renewable fuel technologies. As one expert put it, so long as the sun shines, there will always be a free source of fuel, either via sun or wind generation.

Thursday, September 03, 2009

How to Get a Tax Credit While Improving Your Home's Energy Efficiency

Summary: The IRS is offering incentives to make energy efficient improvements to your home. With Texas heat - these are some great ideas on how you can lower your Texas electric bill. But these come with strings and caveats. Be sure that what you are planning will qualify before you commit to the expenditure.

Uncle Sam is on your side when it comes to offering some tax credits for improving your home's energy efficiency. Unfortunately, he's only offering some credits and these come with a handful of strings. Still, a tax credit is better than no tax credit.

First, you need to know that energy tax credits can total 30% of expenditures (existing homes only for - windows and doors, metal roofs, insulation, asphalt roofs, ventilating, heating, and air conditioning systems [known as HVACs], non-solar water heaters as well as biomass Stoves) up to $1500 over a 2-year period (tax years 2009 and 2010). The credit is NOT for each year. Further, it is NOT for each adult owner of the home, unless they file separate income tax returns. A husband and wife filing a joint return, for example, could receive up to a single $1500 credit. Two adults (married or living together in the same home) could receive two such credits if they filed separate returns.

There are also longer-term and unlimited tax credits (30% of the cost, with no upper limit through 2016 for existing homes & new construction) for geothermal heat pumps, solar water heaters, small wind energy systems, solar panels, and fuel cells. However, the tax credit for fuel cells is limited to $500 per .5 kW of power capacity.

Note, too, that installation costs are only allowed for windows, doors, roofs and insulation.

And, to keep the confusion to a dull roar, you can only claim the tax credit for up to what you owe in taxes. Thus, if after other deductions you owe no taxes (even if you had tax payments withheld), you cannot claim the credit. And, if you don't owe enough taxes, you cannot carry over the credit (unless you install the items under "longer term" described above.

The good news is that you can claim both the $1500 credit and the unlimited credit as long as you satisfy the requirements for each.

Next, you will need to ensure that what you are doing qualifies for the credit. It's best to check with the company (or the manufacturer's web site) to ensure that they can provide a "Manufacturer's Certification Statement." The MCS is a signed statement that comes from the manufacturer, which certifies that the product is qualified for this tax credit. As with anything involving the IRS, be sure to save all receipts and the MCS, just in case the IRS requests them.

When you file your taxes, be sure to include a Form 5695. On the latest draft version of the form, the energy tax credit appears on line 52.

If you are thinking about this credit as a way of helping to offset the costs of viable energy-efficient home improvements, then you should visit the Energy Star web site to get more information. Check back periodically as the web site managers seem to be doing a good job of keeping information current and addressing questions. The web site's address is

http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

You might also want to read the IRS rules carefully and check with your tax advisor/accountant, if you have one.

Monday, August 31, 2009

Stop Air Leaks for an Energy Efficient Home

Summary: Air gets into and out of our homes from a wide range of places. Many of these can be fixed with some simple do it yourself handiwork. Undertake any of these and you'll start to realize instant energy savings on your Texas electric bill.

According to the U.S. Department of Energy, American homes lose energy from the following places (in decreasing order of importance): floors, ceilings and walls (31%), doors and windows (21%), heating/air condition ducts (15%), fireplaces (14%), plumbing penetrations (13%) and all others (6%). Recognize that these numbers may vary based on home type, age, geographical region and other factors.

For some of these problem areas, better insulation or more energy efficient windows or doors may yield significant savings on your Texas electricity costs. But, these can be costly. Instead, why not take a few simple steps to eliminate those pesky air leaks plus go to www.ChooseEnergy.com and sign up for a lower rate.

One of the easiest things one can do is recaulk windows and doors. In addition to eliminating air leaks, this can also eliminate water leaks. To do this, first remove existing caulk (don't just recaulk over existing caulk). You may need to use a putty knife, a window scraper, other blunt scrapper tool or even a screwdriver to loosen and remove the caulk. Be careful not to gouge the framing. Then clean the entire window or doorframe with rubbing alcohol or other cleaning compound to ensure good adhesion.

Reapply caulk (pushing the bead to ensure it gets into gaps). Be sure NOT to caulk window weep holes (small holes at the bottom of the window that allow for any condensation to drain). It's best to apply the caulk when outdoor temperatures are between 50 and 70 degrees Fahrenheit. In most locales, this is when most building materials are at the midpoint of their contraction and expansion range.

Choose the type of caulk and color that is best suited to your home and any associated remodeling activity. But in most cases, a paintable, light-colored caulk is what you'll want.

What works for windows and doors, also applies to skylights and any other places where gaps may occur. This can include places where air conditioning, phone or electric lines enter your home. You can now find special cover plates that be placed over the once massive caulked or sealed areas. You'll still need to seal these, but it looks a lot more attractive.

In your attic, crawl space and/or basement, you should plan to seal all air conditioning and heating ducts. Instead of caulk, however, duct tape can be used to seal seams of exposed ducts.

An even better approach (one that can reach all ducts) involves injecting an aerosol sealer into the ductwork. During the course of the process, the sealant collects at any leak sites, sealing them.

Finally, address weather stripping along the bottom of doors and windows. This can become brittle and/or damaged over time. Sometimes you can simply slide in a replacement piece. At other times you may have to tip out the window or remove the door from its hinges and then physically remove and replace the entire weather stripping unit.

Another easy-to-do sealant project involves eliminating leaks around electric outlets or switches on outside walls. Turn off electricity and carefully remove switch plate or plug covers. Feel for air leaks (especially in colder months). Then use foam inserts to cover much of the opening. You may also want to stuff insulation into gaps along the outside edges of the electric box or spray in some foam sealant. Wait a few moments and feel again for air leaks.

You can also undertake some temporary fixes, but nothing beats fixing leaks outright. Once you do, you'll start saving real money, really quickly on all of your Texas electric costs.

Friday, August 28, 2009

New Rules for Texas Electric Deregulation

In August of this year, state regulators have tightened the reigns on guidelines and rules for Texas electric retailers that deeply benefits the consumers and makes retailers face stricter financial standards to remain in operation. From the implementation of these new rules, Texas electric customers will be allowed a 14-day minimum notice before their contracts expire. Additionally, the Texas Public Utility Commission reduced the time it takes to change electric providers from up to 45 days to no more than 7.

Texas regulators decided to make these deregulatory changes in a direct response to problems stemming from last summer's loss of several electric companies after the wholesale power markets spiked. Loss of such companies caused Texas consumers to switch to plans with other electric providers, sometimes at significantly higher rates. It is worth mentioning that this occurred during some of the hottest weeks of 2008.

The New Rules

In order to remain in compliance with the new industry standards, electric retailers will now be required to maintain at least $1 million in equity. Additionally, they will also be required to show proof of investment grade debt ratings or that they hold at least $500,000 letters of credit. (Before, it was just $100,000.)

The changes don't come to just financials, either. The new rules also stem into the management branch of the electric companies. It is now required that company management have a specified amount of experience (in years) in the industry. To tighten the rules even further, regulators have mandated that someone on the Texas electric company staff must also have experience in both risk management and commodity hedging.

These requirements are based on the fact that many of the companies that went out of business in 2008 relied too heavily on a balancing market. The Texas power industry, though relatively small, can be quite volatile with drastic jumps. These businesses lost when they posted collateral based on the market which jumped causing the capital requirement to spike as well. It was a challenge that a handful of electric companies simply were unable to meet.

What Customers Will Note

The new rules for Texas deregulation will not only affect customer rights and companies from being sucked into the virtual black hole of a fluctuating market; it will affect the wording on their contracts and bills as well. Part of the new rules requires that the contract expiration be clearly explained and identified. The rules also require companies to clearly spell out fees, costs, and electric rates right on the monthly bill.

Though some Texas electric companies won't have to do much, as a few have already adopted such tactics before the rules became official, others will have plenty of work before them. The standardized communication will help consumers become better customers and improve their ability to compare one electric company to another.

What the Texas Public Utility Commission Does

The Texas Public Utility Commission (PUC) is responsible for regulating terms and rates for intrastate transmission services and distribution in relation to customer choice. It also monitors and oversees the market, fees, and industry standards. The PUC is also responsible for protecting the consumer through the adoption and enforcement of retail competition and renewable energy rules.

Wednesday, August 05, 2009

How Texas Electric Deregulation has helped Texas businesses and consumers

Texas Electric deregulation in Texas came into effect as of January 1, 2002. The deregulation itself is going to be phased in over several years, but the result of the deregulation itself is that most Texas power customers can choose where they get their electricity from, from a number of what are called "retail electric providers," or REPs. The so-called "incumbent utility" in an area still maintains and owns the powerlines, and it's the one you call if there is a power outage. That particular company is not subject to deregulation. To date roughly 85% percent of industrial and commercial customers have taken advantage of deregulation by switching providers at least on one occasion. Over 50% residential customers have taken advantage of the deregulation to switch to a competitive REP. What's so special about deregulation? Deregulation ensures that no single buyer or seller is going to have an unfair advantage in the market, basically a sort of "anti-monopolization" movement that helps ensure competitive pricing on Texas electricity.

Within deregulation was a concept known as the "price to beat," or PTB, a regulated rate concept that determined the pricing behavior of ex-utility providers. Typically, prices would have been determined by a transparent market and in fair fashion, not by an academic or political body. However, this wasn't quite going to work in Texas' deregulation, because incumbent electric companies could instantly cut their own prices to beat those of new deregulation entries, therefore in effect preventing competition and continuing in the monopoly. To that end, the deregulation in Texas also had a phase-in period whereby a price floor was established for incumbent electricity companies so that this sort of continued monopolization could not occur and new competitors could become established themselves. This was to last until January 1 of 2007.

Benefits to businesses: No bottlenecking, no loss of profits by being "down"Deregulation helps ensure that "bottlenecking" won't occur such as happened in the 2003 North American blackout and in California's electric crisis. And of course, this benefits businesses because they don't lose profits by going "down," as is inevitable during the times of these types of outages. With the Texas electric market deregulated, new firms have been able to enter into the marketplace, thus helping ensure an end to bottlenecking. Specifically, more than 60 startup firms have been established to date, nearly equally split among firms that are almost entirely focused on commercial usage and those that are focused on residential usage. In addition, deregulation has been of benefit to consumers because aggregators have advocated for consumers to negotiate low rates on the markets; these lower cost than get passed on to consumers with lower pricing.

With last summer price rises, is deregulation still a good deal? Spikes in Texas' electricity prices lst summer caused many to question deregulation's impact in a positive sense. However, even though previous assertions that deregulation would lower prices for businesses and consumers, more competition has probably meant that prices themselves HAVE indeed remained lower than they would had deregulation not been instituted. It should also be noted that wholesale electricity prices actually took a drop between 2005 and 2006, several years after the inception and implementation of the deregulation. In addition, even though some electricity comes from (currently cheaper) coal plants, Texas electric companies have to set their prices at the higher natural gas production level, because natural gas power plants are needed to supply growing demand. And again, as demand grows, natural gas is going to become an increasingly important supplier of electricity.

What cost savings has this had for consumers and businesses? When deregulation was implemented, prices are still somewhat less than they would have been had deregulation not occured. In addition, it should be noted that electric companies are still absorbing some of the price increases, since prices went up for customers an average of 43% between the years of 2002 to 2004, even though input costs, such as those from natural gas, rose by 63%. Therefore, you can see that some of these costs have been borne by the electric companies and not consumers, because of the increased competition. With the Price to Beat Program enforced through January 1, 2007, new competitors could enter the market safely without fear that incumbents would undercut them in price. This has also controlled prices and increased competition. And of course, that benefits both businesses and consumers because with lower Texas electric prices to pay, businesses can keep their own overhead costs low, and pass the savings on to consumers.

Environmental impacts: Deregulation has also allowed businesses and consumers to begin to take advantage of more environmentally friendly electricity suppliers, such as the wind turbine companies that have begun to jump on board. What this means, of course, is that these businesses have impacted the environment favorably -- but have been able to participate entirely because of the deregulation, which they may not have been able to do had it not happened. As of 2006, Texas surpassed California in its use of clean electricity generated from wind turbines. Other alternative energy sources are also in development, including solar and hydropower, biomass, and landfill gas.

Less electric consumption altogether - As electric prices have risen (even though, as stated previously, they would have arguably risen more in a market dominated by incumbents with no competition), consumers and businesses alike have jumped fully into conservation mode. This is something that may not have happened were electric prices not to have risen so substantially. And with businesses modeling this type of good behavior to consumers, this is truly responsible behavior that can only bring about good overall.

Friday, July 17, 2009

Texas Electricity Usage Records

Texas set a peak usage record this week of 63,453 MW on Monday July 13th. Due to this record heat wave that we've experienced the past few weeks, ChooseEnergy.com has also seen a dramatic increase in website traffic and residential and business customer sign ups.

With this records usage and record heat, we recommend everyone take a close look at that electric bill this month. Your usage and bill have both probably gone up quite a bit from last year. To determine your price per kWh - Take your energy costs plus service charges (less taxes) and divide that by the total kWh usage on your bill. Then go to: www.ChooseEnergy.com to see if you need to switch. It may even make sense to break your contract with your current provider (depending on what you are currently paying) pay the early termination fee and switch to a lower priced plan.

Prices are still very low - but usage is very high - so prices should increase very soon.

Thursday, July 02, 2009

What Effect Do Natural Gas Prices Have on Texas Electricity Costs?

You might not know about it, but the current cost of natural gas could have an effect on how much you pay for your Texas electricity, even if you don't burn gas. That's because fuel costs make up around a third of the price of Texas electicity generation. In the state of Texas, that price is mostly related to how much it costs to create Texas power by burning natural gas. So, when natural gas prices go up, your power bill does, too. This could cause some real confusion if you don't know how it works.

The 1999 Texas Electric Choice Act says that suppliers of retail electricity can change prices twice each year at predetermined times, basing their changes on what natural gas costs at the moment. That way, you'll alwyays know that your power price is closely related to the current conditions on the market. If you don't like the service you're getting or the price you're paying, the Act also allows you to look for a new Texas electric supplier who will offer the kind of pricing, terms, and service contracts that you like. If you prefer a supplier with more environmentally friendly generation methods, you can also take the time to choose someone who does this. To compare Texas electric suppliers for your home or business, go to ChooseEnergy.com.

So, how does that price get determined? First, a composite price for natural gas is calcuated from the NYMEX Henry-Hub natural gas index. A ten day period is chosen, and the closing forward twelve month prices for every business day out of those ten days will be averaged. Then, there's an examination of the price that's arrived at - if it's more than four percent higher than the price that set the fuel factor currently being used, the supplier can file for a price increase.

Then, the percentage by which the price of natural gas has increased is applied to the current fuel factor, and the new fuel factor is created. It takes either twenty days or forty-five days for the new factor to become effective - depending on whether or not the Texas electric supplier requests a hearing. When hearings are requested, the fuel factor doesn't affect your bill until the supplier wins the hearing, and the longer time period is the one that applies.

Increases might seem like they're really complicated, but the truth is that they're not. When natural gas gets more expensive, all electricity in Texas does, even if it's not produced by burning natural gas. So, next time your utility bill confuses you, make sure you consider this fact.

Wednesday, July 01, 2009

Be Cool Texas! ChooseEnergy.com Helps Texans Beat the Summer Heat

Texas online company Choose Energy (www.ChooseEnergy.com) announces that this summer, Texas can stay cool without breaking their bank as they make their own Texas electric supplier choices in the deregulated market. By making their own choices, residents of Texas can choose Texas power providers who offer them the best rates, meaning that they don't have to go broke as they turn up the air conditioning against the sweltering Texas heat. And Choose Energy helps them make the best possible choice of Texas electricity provider.

Choose Energy was founded in 2005 with the mission of providing an unbiased shopping experience among different Texas electric companies. Texas power consumers can do simple comparison shopping and competing Texas electric companies can bid for their business.

Residential as well as business customers now have a simple way to compare offers made by different Texas electricity companies; furthermore, switching to their preferred provider only takes a few clicks of the mouse. Choose Energy was created by energy professionals, who know better than anyone else how to help consumers save money on electricity while making informed choices based on accurate, up-to-date, comparable information. Choose Energy continues to innovate, as it is their mission to provide Texas power consumers with the most up to date information available to help them wisely exercise their power to choose.

The main idea behind Texas electric company deregulation was to give the customer more competitive prices, more choices, and more control. The competition between Texas power companies is now as fierce as the gunslinging in Wild West frontier towns. Choose Energy offers consumers a unique one-site advantage, meaning that they never have to leave the website to order their choice in Texas electricity service. At the company website, you can: Compare Texas electricity prices; Choose the Texas electric plan that is best for you; Order your electric service online from one site; and Save money on your energy costs.

You would receive a notice from your provider if this were going to happen (and even if there were some erroneous oversight and and you did not receive the notice, you would still have power). The PUC has listed a provider of last resort in case of just such an unfortunate event, and that company would become your provider until you can make a choice in a new provider.

So, Texas electric deregulation is a win-win situation for all involved--and Choose Energy (www.ChooseEnergy.com) helps your household or business win as big as it can.

ABOUT CHOOSE ENERGY - Choose Energy's industry-leading technology and ease-of-use energy shopping experience allows consumers and business owners to better manage their energy spend and lower their energy costs. www.ChooseEnergy.com is committed to being the foremost online source for residential and small business consumers to compare and select competitive energy services by continuing to innovate and further deliver our partners' services through an array of channels. This customer-focused commitment is backed by experienced energy resources, great services from qualified suppliers and powerful technology to enable real-time pricing, and efficient enrollment. Choose Energy is a privately held company based in Carrollton, TX.

Tuesday, June 30, 2009

Texas Energy Efficient Ideas For Your New Home

Whether your home is new construction of old – looking for these Texas energy saving ideas can save you thousands of dollars over the years. Certain things your home does not have already might be things you will want to change for energy efficiency and comfort.

Energy Star is a rating given to new home construction which means the home has gone through stringent requirements when it comes to receiving the energy efficiency rating.

Insulation, air sealing, window and door construction and sealing, along with appliances, lighting and ventilation systems are things that may be considered. Many building codes are including certain requirements for air sealing and insulation on new home construction in Texas, in an effort to save energy. By making sure these insulation and air sealing procedures are followed, you can be assured your new home is airtight and will keep the air in the house that you need for comfort and the outside elements where they belong. Make sure you check for air sealing tests on new home construction.

Thermal windows and doors are part of this equation, so if the house has passed air sealing, you don’t need to worry as much. You can have air sealing done on an existing home. By going through and sealing existing cracks and seams where drafts can come through, you can improve your energy bills dramatically.

Your ventilation system is another Texas energy savings component, and the newer HVAC systems are built for efficiency. Make sure you have the right size of unit for your home’s square footage or any energy savings will go out the window, and you will have hot and cold spots. A proper heating, ventilation and air conditioning system can save you up to 50% on your energy bill, versus older, inefficient ones.

Appliances are being made with energy saving features, as well. Energy efficient appliances can pay for themselves in a short period of time, through savings on your energy bill. Don’t forget to check your water heater for energy efficiency, too.

Your home’s lighting systems are important, and houses that are built to take advantage of natural lighting and natural heating or cooling may include skylights, tinted windows, shade trees, and have southern exposure.

Many homes are including solar panel systems to help generate power, and these can increase a home’s resale value and generate enough power for an entire house, depending on the size of the system.Also, using compact, fluorescent bulbs can offer cost savings, and outdoor lighting that uses solar power is a great way to save energy costs. They store the sunlight all day and use it each night. It used to be that ideas for energy efficiency involved turning your lights out when you weren’t using them and weather-stripping your windows and doors. While those are still good pieces of advice, you can realize larger energy savings that amount to more than 50% using these ideas.

Most new Texas home construction includes many energy efficiency features, but you may need to make conversations on older homes. Tax credits and utility rebates are available in many areas for many different types of systems and appliances. Now is a good time to take advantage of energy efficient ideas for your new home

Monday, June 29, 2009

What is Energy Star?

You've probably seen the now familiar blue and white logo with the word "Energy" followed by the outline of a star to indicate the joint governmental effort known as ENERGY STAR at least a few times over the past decade or so, but still may not be sure exactly what the program is all about. Created by the U.S Department of Energy and the U.S. Environmental Protection Agency (EPA) in 1992, ENERGY STAR aims to save consumers money while protecting the precious environment at the same time through the use of products and practices that are energy efficient.

While there's been quite a bit of attention on greenhouse gas emissions from vehicles, many people may be rather surprised to learn that their homes can actually cause twice the amount of air pollution as their cars do. Fortunately, the benefits of ENERGY STAR compliant appliances are becoming more and more known as we search for solutions to combat the growing problems of global warming and rapidly decreasing supplies of vital resources.

The Benefits of ENERGY STAR Rated AppliancesToday, the typical household's energy related utility bills are over $2,000 per year, but, in the year 2008 alone, Americans saved an incredible 19 billion dollars on their home utilities with the help of ENERGY STAR products and other electricity savings methods. This equals a savings of approximately one-third of the total cost of a year's utilities, or about $700 minus the $2,000 total. The previous year in 2007, Americans avoided releasing a whopping forty million metric tons of greenhouse gas emissions into the air we breathe by using products that received the ENERGY STAR rating.

Now, new homes are being built to meet the strict guidelines required to be an ENERGY STAR certified home and must be at least fifteen percent more energy efficient than those built just a few years ago that met the 2004 IRC (International Residential Code). These new "smart" homes, also called green homes or green buildings, have a number of energy-saving features that have the potential to be up to 30 times more efficient than the average home.

ENERGY STAR Products for Every Room of the Home - Currently there are products carrying the ENERGY STAR label in more than 60 different categories, all of which use less energy, save more money, and have less of an impact on the world around us. Thanks to many major technological advances in our modern world, you'll now find the ENERGY STAR logo on far more than just refrigerators or television sets.

All throughout the house, using qualified light bulbs will save two-thirds energy than the ordinary, incandescent bulb most of us still have. And, down in the basement or up in the attic, ENERGY STAR furnaces with a rating of 90% AFUE (Annual Fuel Utilization Efficiency) or more, which is already 15% more efficient than the minimum federal standards, can save a considerable amount of money, especially if you live in a colder climate.

ENERGY STAR TVs will use half the amount of watts (three compared to six) when not turned on, and qualified VCRs will use 30% less Texas energy than their non-compliant counterparts. Even cordless telephones have built-in modes that save energy along with digital-to-analog converter boxes (DTAs), DVD players, computer and office equipment, and of course, appliances for the kitchen and laundry room.

Do remember that just because a product or service is advertised as being "energy efficient" that doesn't necessarily mean it will perform as well or meet the same stringent energy guidelines as outlined by the U.S. Department of Energy and the EPA for the ENERGY STAR program. By using Energy Star rated appliances and lowering your Texas electric rate from ChooseEnergy.com - you will be on your way to much lower Texas electricity bills.

Sunday, June 28, 2009

How to Beat the Summer Heat in Texas

Temperatures soar in the Texas summer, and many of us run our air conditioners full blast, but that means high cooling bills. Can you beat the heat without breaking the bank? If you just change a few things about your behavior and your home, the answer is yes.

Let's take a look at how to do it. Conserving energy and using less Texas electricity has long been a focus for people who want to save the environment, and it's definitely good for the world around us, but it's also good for our wallets. After all, the less power you use, the less you have to pay for. In the summer time, bills can soar due to air conditioning use, but a few simple things can help you reduce the cost of staying cool.

Try keeping shades and blinds closed during the hot part of the day, and leave most lights off, using only the ones you need at the moment. The sun and electric lighting can both add pretty significant amounts of heat to a room. Keep in mind that heat rises. That means that if you're up really early in the morning you can open upstairs and downstairs windows to let the cool air rush in and the hot air rush out. Close them just as soon as it starts to warm up, however, and just leave the upper windows open. That way, upstairs rooms don't turn into a muggy sauna.

Laundry can have a big effect, too. Instead of running the washer and dryer during the day, run the washer in the early morning and hang your clothes on the line (when rain is not expected) or just run them at night. A clothes dryer creates and puts out a lot of heat, and running hot water in a washer does the same. Plus, in some areas, you'll be charged less for using major appliances at night, saving you money.

Cool as little space as you can. Air circulation is a good thing, but in a house that's not designed for it, you can't get a breeze going through the house. In this case, shut the doors and spend most of your time in one room, running a fan or air conditioner only there. There's less space to cool, and less Texas energy expended in doing it. Don't mess with the AC, either. Leave it at the same setting consistently, and don't turn it on and off. That'll cool things the most efficiently. Even if you have an air conditioner running, use your ceiling or floor fans, too. They use a remarkably small amount of energy, and are a big help in keeping things cool.

Don't do too much inside. Workout outdoors or head elsewhere to get things done. The air outside may be hot, but it also is more likely to keep moving. This will vary by day and location, of course. You can also take cool showers, stick to eating mostly meals that don't need cooking, and drink a lot of water. When you are outside, stick to shady areas so you don't overheat - you’ll be less likely to want to crank the AC up when you get indoors.

Use these helpful tips and lower your Texas electric rate by going to ChooseEnergy.com. Choosing a lower cost per kWh - will help lower your electricity bills substantially.

Saturday, June 27, 2009

Texas Electricity Demand Nears Record

The demand for Texas electricity neared a record many days this week. Despite the year high temperatures on Friday, Texas electricity was 41 megawatts short of the record set back in August 0f 2006. With demand topping 62,000 megawatts many times this week - Texas electricity usages was up because of extreme high temps across the state this week.

The Electricity Reliability Council of Texas (ERCOT) has requested that consumers and businesses try and conserve their electricity demands between the hours of 3p.m. and 7p.m. to try reduce the demand and usage on our Texas electricity system.

With this increased demand - consumers on month-to-month contracts can expect to see a slight increase in their Texas electricity costs in the coming weeks. Increased demand will certainly increase price - this is why ChooseEnergy.com has recommended consumers and business owners shop for a lock-in Texas electricity rate before month-to-month prices increase.

Friday, June 26, 2009

Should You Get a Texas Energy Audit?

Whether you are concerned about your Texas energy usage or you are in a place where you would like to make your entire home more conservative in terms of resources used, you will discover that an energy audit is something that you need to take a look at. Not only can an energy audit help you identify places where energy and thus money are being wasted, you will find that having done an energy audit recently can actually make your home attractive to potential buyers. Take some time to consider what an energy audit is, what it does, and why you need one as soon as possible!

First, many experts consider an energy audit to be the first step in making your home more efficient. With the HOT summer here and the amount of Texas electricity many of us consume - this is certainly a good thing. Some people will find a checklist that they can go through online, while many others decide that they would rather leave something this important in the hands of professionals. Essentially, your home is examined in a step-by-step process that takes into account all the ways that you use energy and how you are going to be able to prevent the wasting of energy. In any household, there are going to be places where energy seeps away unnoticed, and the goal of an energy audit is to stop this from happening.

One important reason why you might want to have a professional energy audit done is that it will give you a quantitative and qualitative measure of the energy that is entering and leaving your house. You will not only know what areas are not secure, but you will also have an idea of how much energy is being leaked through those areas. More importantly, it will tell you where to focus your efforts when you are looking to make sure that your energy is being preserved.

There is a lot of great information out there that can help you stop energy leakage, but to make use of them, you are going to need to know when the leaks are occurring and to what extent you need to be worried about them.

Also remember that when you preserve the Texas energy of your home, it is going to make a huge difference to your energy bill. Especially if you live in an older house and have not made the improvements that you need to make yet, you'll discover that an energy audit can save you hundreds of dollars from your Texas energy bill, particularly if you are facing a long winter where heating is going to be important. Similarly, if your home uses air conditioning, you'll discover that you are going to need to think about how you can avoid air conditioning the entire neighborhood.

Take some time and really consider how an energy audit can help your household. This is something that can make a huge difference to the way that you pay your bills and even your general comfort. There are so many different ways to lose energy through that you need to notice them now and fix it.

Thursday, June 25, 2009

Texas Business Electricity: Getting the Most Bang for Your Buck

When it comes to paying for electricity to run a business, it's easy to get burned by overpriced utilities. In fact, the cost of Texas electricity has been cited as among the top problems for small business owners as revealed in a recent survey conducted by the National Federation of Independent Businesses. This is why it's important to know what to look for when you are shopping for a Texas electricity provider for your Texas business.

Here are some things to consider when deciding where to purchase Texas business electricity:

- Fixed vs. Variable Rates. A fixed rate, as the name suggests, means that the per-unit cost of electricity will not change for the duration of the contract term. There are a few exceptions to this rule, but for the most part a fixed rate will keep your energy costs consistent, provided your business doesn't vary much in its energy usage. With a variable rate, the price per unit of electricity fluctuates based on market conditions. A variable rate will at times yield lower prices, and at times will be priced higher than a fixed rate.

So, how can you decide whether a fixed or variable electricity rate is right for you? Generally, a fixed rate is the best option if your business will be entering a long term contract. This is because over time, energy prices will rise according to the cost of inflation, cost of oil, or natural gas among other things. However, your per unit electricity cost will not increase for the life of the contract. In practical terms, this means that you will be paying less than market rate for your electricity as the contract progresses. On the other hand, if market rates drop, you may be locked into a long term contract and unable to renegotiate at a lower fixed rate. If you are considering a shorter term contract, a variable rate may be the way to go. While pricing can be somewhat unsteady, you are likely to get lower prices in the short term than you would with a fixed rate electricity contract. Plus, this allows you the flexibility to enter into a long term contract in the event that electric prices take a drop that warrants locking in a fixed rate.

Contract Terms. Many providers of Texas business electricity offer month-to-month plans, mid-term contract terms of up to three years, and in some cases, even longer term contracts of three years or more. It's important to choose the plan that best meets your needs, and to carefully review all facets of any written agreement. In particular, you should be aware that you may have to pay a cancellation fee if for any reason you terminate a contract before the full term is completed.

Environmental Responsibility. Lastly, many Texas businesses choose to purchase Texas energy created from renewable resources like solar energy, wind energy, geothermal energy, and others. If you are concerned about whether the electricity you purchase is "green" energy, ask your Texas electric provider or review the provider's Electricity Facts Label. By taking each of these factors into account, you'll be in a better position to decide what type of Texas business electricity suits your needs. This will help you save money, understand the terms of your contract, and use resources responsibly.

Wednesday, June 24, 2009

Smart Meters - Will They Really Help?

You may have heard about the recent call for installing smart meters in our homes. These meters are advanced electrical meters that identify power consumption in greater detail than ordinary meters, and send that information back to the utility for billing and monitoring. But will they really help reduce power consumption and help us lower our Texas electric bills?

Let's take a look at what smart meters can and can't do for us. Traditional power meters regulate only the energy consumed, and not when it was used, meaning that it's hard to match consumption with production. Smart meters are one of the more economical methods of measuring not only consumption, but times other information. This allows power companies to set different prices according to when the power is used. This will allow customers to save money by using power at nonpeak hours and avoiding paying too much for energy. It's hoped that this will keep Texas electricity prices down.

Italy's dominant utility is currently serving over twenty-seven million customers with fully electronic smart meters capable of measuring and managing power, and which have a software controlled disconnect switch. They're solid state, and communicate via low voltage power lines. These systems offer more features to utilities, allowing remote changing of billing plans, the ability to detect outages and unauthorized use, and the ability to turn power on and off remotely. Smart meters have also been implemented in Turkey, Canada, New Zealand, the Netherlands, Scandinavia and Australia. In the United states, a number of jurisdictions are actively pursuing smart meter technology, such as Northen California and Texas. Implementation is imminent in the UK and in Ireland.

Energy experts have noted that it's important for meters to allow homeowners to make choices such as buying their power when it's cheapest and selling wind turbine and solar panel electricity to utilities when they choose to.The biggest problem with smart meter technologies is generally communication, since each meter must be able to securely and reliably communicate the information to a central point. This can be tricky, given the range of locations and environments in which these meters are located. Some solutions that have been proposed include cellular networks, radio, and power line communications.

Recently, US President Obama has called for the installation of forty million smart meters, as well as three thousand miles of transmission lines. This would be the first real update to the electrical grid in about forty years. Some feel that this will create what is being called a "smart grid" and will be as big an influence on our society as the Internet, the Interstate, the telephone and the railroad. The ability of this grid to pull energy from clean power projects is one of the reasons it's being supported, as well as its ability to forstall the need for building new power production centers.

Smart meters can cost anywhere from a hundred to three hundred dollars to install - each. The amount depends on the quality of the smart meter in question, but it will be a significant investment. However, venture capitalists have been investing in this technology recently, so it may be possible. Soon, you could be choosing when you use power based on the price, and possibly saving money and energy.

Friday, June 05, 2009

Texas Electric Summer Saving Tips

Summer is right around the corner, which means trips to the beach, time off from school and of course, outrageous electric bills. Don’t spend a fortune this summer on your energy costs, follow these Summer saving tips to save money all around your home get lower Texas electric bills.

As much as 50% of your home's energy costs come from heating and cooling. In the summertime that of course stems from cooling using your air conditioner. You can lower these costs by doing small things like keeping your windows and doors closed while you are using your AC and insulating them to prevent air leakage. You can also save money by changing your air filter, insulating the air ducts and keeping the AC unit in top working condition. Another money saving tip is to install an automatic thermostat, which you can program to turn off in the middle of the night and during the day when nobody needs it running.

The amount of appliances we have in our homes can be mind boggling sometimes. They are in every room of our house, and they come in all sizes and types. From major appliances such as your refrigerator, your washer and your dryer to smaller ones like your toaster, coffee maker and blender, you can save costs by purchasing energy saving units. They might cost a bit more upfront, but the savings will pile up from month to month with lower energy costs.

Water heating accounts for a large percentage of every home's energy bill. But you don't have to start instituting a 5 minute shower rule to see savings in this area. You can buy an energy efficient water heater which will get the job done while eating up less resources.

Most people joke about the costs of leaving your lights on, but it does actually add up. It can be a quarter of your electric bill every month. Besides turning off the lights when you leave a room, what else can you do? One of the best energy saving tips across any category is to switch all of your old light bulbs to compact fluorescent light bulbs. If you don't know what they are, they are the spiral designed bulbs in stores. They last 10 times longer than standard light bulbs while using up to 75% less energy. That's amazing efficiency and it will result in a huge savings.

Household electronics eat up a lot of energy, from televisions to computers, clocks and many more items. Even when off if they display the time or any power lights, they are still using energy. Look for efficient models that turn completely off, or start to unplug all electronics when they are not in use.

If you have a lot of office equipment in your home, you can be adding lots of money to your electric bill. Think about it, you have computers, printers, faxes, shredders, scanners and other pieces of energy craving equipment. Buy energy efficient models and turn everything off when it isn't in use.

Shop for a lower electric rate and lock it in during those spiking summer months. Simply go to ChooseEnergy.com to shop and compare rates in your area. You can sign up online in just a few simple steps and you'll see the savings pay off in the form of lower Texas electric bills.

You don't have to be a genius to lower your monthly Texas electric bills, just follow these easy and straightforward tips and you'll start seeing the savings.

Thursday, June 04, 2009

Summer Savings on Texas Electricity

In summer many people make use of their air-conditioners and this results in increased Texas electricity use. Because of this most of us are suddenly confronted with a much higher Texas electric bill that we received in the winter months. That is why, when Spring and Summer arrive, it makes good sense to begin to prepare for your energy consumption during the hot Texas summer. The whole point is to keep your Texas energy bill the same or only minimally higher once you are using the air-conditioner more regularly.

By examining your Texas electricity usage you will be able to determine all those areas of your home or business where your usage is particularly high. You need to decide which areas you can work on to reduce your energy need. This will lower your bill at the end of the month and keep you in good shape for when the weather gets hotter and the air-conditioner is switched on. By cutting back on your energy usage you will be preparing for the cost of running the air-conditioner.

The great news for consumers is that Texas has made it possible for different energy companies to exist. This means that these companies are all competing for our business and the best way to attract customers is to not only offer them great service, but also great prices. Before the summer heat has even arrived you should take a closer look at which company will supply your energy requirements at the best price for you. This is another way to keep your bill down in preparation for the hot Texas summer months.

Another effective way of reducing your monthly Texas electric bill is to take a look around your home and make note of all the appliances that you tend to leave plugged in even when you are not using them. Perhaps, like millions of people who own a mobile phone, you leave the charger plugged in all the time. Also, if you own your own computer, remember that it still uses up energy when it is in sleep mode. So consider switching it off when it is not in use. You might be pleasantly surprised just how much this one precaution can positively impact your energy bill.
As you can see, taking note of which electrical items in your home or business can be switched off when not being used, can add up to a nice saving on you monthly energy bill. Coupled with the other practical steps we have already seen, you will be amazed at how much of a reduction you will see in your energy usage and this will mean that your increased use of the air-conditioner in the summer months will not cause your bill to rise by much.

By doing a little bit of research and by making a little effort, you can enjoy the warmer months in your air-conditioned home or office with peace of mind. Find out other ways that you can reduce your energy consumption by taking a look at some energy saving tips. You should be able to find quite a few helpful hints and tips that will help you to manage your Texas electricity bill and also enjoy the savings you will incur. So put in a bit of time and effort and then reap the rewards.

Texas Electric Price Update

It's time to lock in your Texas electric rate today. If you live in Texas and have been thinking about what to do with your electricity rate - please lock in now. Prices are extremely favorable for those that can lock into a Texas electric plan today you should strongly consider it. If you are on a month-to-month rate - you should certainly switch to a locked in rate today. Summer heat and high summer bills are coming - that will also bring higher month-to-month rates. Since it usually takes about 45 days to switch, but only one billing cycle for your provider to increase your month-to-month rate - don't wait and get caught in the middle. They will be raising that month-to-month rate soon. Supply and demand...

The price of your Texas electricity is going to vary not just according to your use, but according to where you live, how the power was generated, and how it was delivered. We live in Texas and much of our power is from natural gas. Right now - natural gas is LOW and that means low Texas electric rates. These power plants are going to need MORE natural gas soon because of the increased demand for electricity - thus nigher natural gas costs. That's right - a higher electric rate as well. The utility will spread its costs out among its customers, and if its costs go up, so do your rates. Supply and demand and season can also have an effect on electricity and related items, with gas and oil prices often rising in the summer months, due to more demand from cars, businesses, power plants, homes, etc..

So, how can you reduce the amount you’re paying? Change the rate per kilowatt hour you are paying and cut down on your usage. After all, about nine percent each of the average bill is paying for heating water and lighting. Ten percent is space heating and sixteen percent is air conditioning. Computers, electronics, freezers, dryers and other devices make up the remaining forty percent.

All of the experts agree - lock in now - even the Chairman of the Public Utility Commission recently told people that now is the time to lock in your rate by shopping for the lowest Texas electric rate.