January is the time to switch electricity companies!

[johncoby2]

If you are locked into a relatively high rate for your electricity, you should consider switching this month and paying your termination fee if you have one. Historically, January is the month of the lowest rates and consumers should take advantage of this by locking in a 12 month rate for a couple of reasons.

1. Obviously the rates are low, although still 50% higher than pre-deregulation rates.
2. When your 12 month contract expires, you will be able to lock into another 12 month rate in the month of January therefore keeping your rates relatively low again.

Last years rates
Last year at this time, rates dipped for a 12 month plan to 11.4 by Cirro Energy with Reliant Energy at 13.8 and TXU at 13.9. You can expect something near 11 cents per kWh towards the middle of the month. Currently StarTex is at 12.6 for a 12 month plan and 13.7 for a 24 month plan. Reliant has returned with a 12 month plan at a bloated rate of 15.6 and TXU is higher at 15.9 for 24 months.

Pitfalls of switching
Unfortunately because of deregulation there are a number of pitfalls of switching. Including:

1. If your new provider goes out of business you will be stuck with a very high rate from your "provider of last resort" and may be locked into a new plan during the months of high rates. You can thank your elected officials for this and there is really nothing you can do about it.
2. You will have to pay a termination fee. You will have to do some math to see when you will recoup your fee from locking into a lower rate. (In my case it would take a warm month of May to recoup my termination fee of $69) Remember that switching in January is a long term switch to lock in your rates into a month of lower rates.
3. Some of the lowest rates are provided by companies with the highest complaint records. Amigo is second to last with the Public Utility Commission and has an unsatisfactory rating with the BBB. Gexa is ranked better but also has an unsatisfactory rating with the BBB. Both of these companies offer relatively low rates.
4. Some companies have restrictions. Some require an automatic withdrawal from your checking account. Some require a deposit, although this is rare. And most have a termination fee of $150 - $300, but this shouldnt be a concern since you will lock into a 12 month plan in January.

Recommendation:
In the coming weeks I will be posting a couple of recommendations with prices, restrictions, ratings, etc. Before deregulation Houston Lighting and Power was providing electricity service at 8 cents per kWh year round. It was easy to sign up and you rarely, if ever, needed to call their customer support line. With deregulation, that has all changed.

[tbyg52]

1. Thank you!

I've been meaning to switch, and appreciate the nudge, the info about January rates, and the help deciding. Termination fee will not apply in my case, as I've been going along on month-to-month with Reliant - hard to break old habits.

[johncoby2]

2. Amigo and Gexa suck

But they have low rates. StarTex seems to be the one to go with. I am even considering their 2 year plan.

Kinetic Energy might be another to look at.

It is all too damn complicated. I can see where most will just forget about it and pay outrageous rates.

[tbyg52]

3. It's that bit about what happens if your provider goes under that I hate the most. nt

[johncoby2]

4. And there is nothing you can do about it.

Thank your elected officials for this incredible screw up.

[johncoby2]

5. And oh by the way....dont count on Reliant being around

They may be selling off their residential service. Wonder what would happen to their customers? Reliant isnt exactly competitive. Their rates are relatively high throughout the year, although people stick with them because they are dependable.

Look for them to sell off in 2009.

[tbyg52]

6. Yeah, another reason for me to get off my rear.

I don't notice the prices a whole lot because we have a relatively small house that's fairly well insulated, but money's money.

[Horse with no Name]

7. I changed electric companies last year

I was getting SCREWED by TXU. I changed to Reliant--bills were higher. Gexa bills were about the same.
I then went to Direct Energy and I have been wonderfully pleased.
MY electric bills that were running close to $800 a month at the high end and averaged about $700 with the previous three companies have dropped to an average bill of $350 and my highest being $550.
This is even with an added person in the house.
I've been very pleased.

[BlueCollar]

8. I just fired TXU

and switched to Reliant. If they piss me off, I'll pay the penalty and switch again...

[tbyg52]

9. Oh argh, tried to do a little research.

You can't trust anyone. Complaints and horror stories abound.

I'm thinking about just staying with Reliant (they have treated us very well except for the cost - for example, a bill got lost somehow one month, and they waived the late fee and removed the late payment from our records without giving any problem at all) and getting a 12-month plan to save a *little* money, but even that scares me. What is the nature of their financial problems, do you know? Are they in danger of going out of business? - edited to say: Oh, you already answered that. One would hope, in a rational world, that if they sold off their residential business their existing contracts would have to be honored. Oh, wait, silly me.....

StarTex looks the best of the rest of them - do you happen to know anything about their customer service, history of any gotchas, financial status, etc.?

Deregulation has no place in gas and electricity. We have been so screwn.

Edited for inevitable stupid typo.

[tbyg52]

12. I'll say this for StarTex -

I sent them an email of inquiry and received a reply almost immediately. They don't seem to have had any more complaints than anyone else. I'm still nervous about switching, though.

I'm even nervous about going to a 12-month contract with Reliant. Anybody know the contractual ramifications if they're sold? Would they have to honor existing contracts?

[crispini]

10. Don't forget about Green Mountain, folks!

It's a little bit more, but it's guilt-free windpowered!

[tbyg52]

11. I'd sure consider that, but how's their customer service?

I've heard in the past about problems with billing, etc.

[texastoast]

13. Not much anymore

I've been with them since dereg and wouldn't change, although I hear that Reliant is selling 100% wind now. I had only a couple of problems early on.

[Maestro]

15. I've been with them for well over a year now

and I have had zilch problems! And really, it is not that more expensive. I had Reliant previously and I have not noticed any sticker shock. It is all still expensive, but I like knowing that what I suck in electricity is replaced in the grid with solar or wind produced energy.

[crispini]

18. Had them for a couple of years

and never had a problem with them.

[MajorChode]

14. Dynowatt and Amigo have 100% renewable 12mo for 12.7 cents

The cheapest for 12mo looks like Kinetic at 12.0 cents right now.

I don't know anything about any of those 3 companies.

[tbyg52]

16. That's my problem - I don't know anything about any of them

and can't find any information I trust. I want regulated municipal utilities. You know, the way it *used* to be.....

I've heard you can't really trust that companies that say they provide green power really are doing so. No backup, just heard it around.

Any further feedback/advice here appreciated!

[MajorChode]

17. The parent company of Dynowatt received an A from BBB

Most of the complaints I am seeing are from people who had variable rates and then got pissed because the company jacked their rate. I don't really see much recourse in those instances.

At least if the company is listed on BBB and you have a billing problem, you have another avenue of complaint if the company is unresponsive to customer service inquiries.

[johncoby2]

19. Amigo and Gexa suck

For customer service. Search "the google".

[MajorChode]

20. I'm beginning to think they all suck

It's just a matter of how deeply.

[johncoby2]

21. true. true.

[MajorChode]

22. Dynowatt just went from 11.6 to 11.7 for my area

I assume this may mean prices have bottomed out and are on their way back up, but it also may be that this is just a typical day to day variance. I'm not sure.

At any rate I locked in at 11.6 cents. This is less than I paid last year so I don't feel too bad.

[johncoby2]

23. there seems to be no reason

They rise and fall daily. Some rise, some fall. it is a damn scam!

[MajorChode]

24. Yep, they are down to 11.3 cents today

So this must be the case. Still I don't expect them to go much lower.