Unlike the majority of cities in the United States, Houston residences have the luxury of living in an electric choice market. The PUCT oversees the competitive energy market in Texas. The benefits of having multiple energy companies offering you service boils down to better customer service, green energy options, multiple rate products and terms, and above all cheaper electricity prices.
When shopping for the cheapest electricity rates in Houston it is important to look at the whole offer which includes the rate and monthly charge. Many electricity comparison sites list rate offers that are merely estimates if you use a certain amount of electricity per month. If you use less than this amount then you end up paying a higher rate than what was advertised.
Houston electricity customers should also be careful of variable rate options that advertise a low introductory rate. These month to month floating prices are almost sure to increase substantially after the first month. Look below for an easy comparison of some of the cheapest electricity prices in Houston. Prices are updated daily.
New energy choice markets in the northeast (Pennsylvania, New Jersey, Maryland, Connecticut) as well as existing deregulated areas such as Texas and Illnois are making some business electricity companies household names as the battle for market share has heated up.
Electricity companies who offer electric service to commercial and industrial clients buy power commitments in advance for the businesses and then sell it back to them in the form of a monthly electric bill. Essentially these business electricity companies act as banks for large energy users. As retail electric suppliers, they buy blocks of power on the wholesale market and then sell it to the customer with a retail markup. This is why electricity companies require businesses to sign electricity contracts that locks them into service with the supplier for the term of the contract.
However, some of these business electricity contracts can be confusing and misleading to executives who are looking at purchasing energy for the first time. Some of the misleading practices include “passing through” part of the charge to other sections of the bill, thus making the rate appear lower than it really is. Also, electricity companies can add unnecessary meter charges that can add up for businesses that have multiple meters.
It is important for businesses to do their due diligence or work with a energy consulting company who has a clear expertise in the field of deregulated electricity. Electricity brokering companies can compare electricity contracts, rates, and suppliers.
Businesses should be weary of electricity companies offering variable rates that are contract free. Usually the offer will not guarantee any type of rate allowing the electricity supplier to charge whatever they want in any given month.
Electric choice options are heating up in some markets as we begin to enter the high energy summer season. Customers who use websites to perform electric price comparisons will give themselves access to the most options and highest electric rate savings.
In Philadelphia, electricity customers of PECO energy are experiencing electric choice for the first time and a surprising number of residential and business customers are power shopping for lower energy rates. PECO energy default rates are going to rise in the summer which has prompted people to explore electric rate options quicker than some had expected. Because PECO default rates change on a quarterly basis initial savings have not been huge, but people are starting to see that locking in a low electric rate can be beneficial as it protects you from future increases. The other side of that argument is that default rates can go down causing you to be stuck paying a higher electric rate with another electric supplier. While this a possibility, historic energy prices have shown that rates tend to go up in the summer. Unfortunately, it will probably take a large energy spike for some people to start looking into their electricity choice options
In Texas, which has enjoyed a competitive electricity market since 2002, thousands of customers who had not previously power shopped saw their electric rates triple in the summer of 2008 due to rising natural gas prices. Electric customers who had previously locked in low rates were not effected by the increases. Today the majority of Texas electricity customers are in some type of electric supply contract.
New Jersey electricity customers are also getting low electric rate offers that can protect them from summer rate increases. Performing an energy comparison of all the offers will allow electricity customers to get the lowest offers with the best promotional offers. Promotional offers as high as a $75 gift card are available in New Jersey.
PECO energy announced earlier this month that residential electric rates for their customers will increase on April 1, 2011 to 10.16 cents per KWh. Customers in PECO energy territory recently experience rate hikes to 9.92 cents on January 1 when capped electric rates were lifted and the area became a fully competitive electric market.
With capped rates now lifted, PECO energy will adjust their electric rates for their residential customers every three months. The rates will be based on the market prices. It is important for people living in Pennsylvania to understand just how quick electric prices can increase. There are roughly 1.4 million electricity customers in the PECO area who are now facing electric choice for the first time.
Customers should consider locking in rates so that they do not face the surprise of their electric bill doubling or even tripling in the summer months. That is precisely what happened to many Texas electricity customers in July and August of 2008 when electricity prices tripled in just a few months, right in time for the summer peak electricity demand season.
There are over a dozen electric rate options for PECO customers looking to compare electric offers. It is recommended that customers choose a fixed rate to protect themselves from potential increases.
