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ElectricityTX.com 2009
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Rights Reserved Note:
ElectricityTX is not a commercial energy provider. We
are agents that represent Texas electric companies that sell
commercial energy, helping you to
get cheaper electricity rates for your home or business. ElectricityTX
does not maintain the electricity generation
into your home or business, please contact your
wires company/ TDSP (Transmission
Distribution Service Provider) located on your electric bill to
report problems with your electricity service or to report an
outage. You have the power to choose your Texas electric
company. Texas energy providers will compete for
your business - so exercise your power to choose
and select your electric service from a
competitive Texas electric company. ElectricityTX
- Giving Texans a Powerful Choice. You can order
commercial energy and Texas electric service online from the following
energy providers that we represent: Dynowatt, Cirro Energy, Champion Energy Services, Green
Mountain Energy, First Choice Power, StarTex Power, MXEnergy,
Gateway Power Services, Bounce Energy and more.
Texas Commercial Energy: Getting
the Most Bang for Your Buck - Article by
ElectricityTx.com
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 commercial
energy 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 provider of energy power
for your Texas business.
Here are some things to consider when deciding
where to purchase Texas commercial energy:
Fixed vs. Variable Rates
A fixed rate, as the name suggests, means that
the per-unit cost of commercial energy 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. 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 commercial energy 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 commercial energy 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 company's 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. Be certain you read the fine
print of your current commercial energy
agreement before signing another commercial
energy agreement.
Environmental Responsibility
Lastly, many Texas businesses choose to purchase
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 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. You are now on track to lower
your commercial energy costs.
Texas lawmakers knew they were
taking a big step when they deregulated the
state's retail electricity industry back in
2002. Although other states deregulated their
energy at roughly the same time, some of those
states are now considering adding regulations
back into the way their power industry operates.
Texas, however, has never regretted its
deregulation. While electricity transmission
wires and poles in this state are still
regulated, there is no doubt that retail and
wholesale electricity will stay competitive in
Texas. In truth, the end of the monopolies held
by the electricity utilities has resulted in
many benefits for both consumers and businesses.
Texas lawmakers feel that the step they took by
deregulating the industry has made the state
stronger as a whole.
Many also estimate that energy deregulation by
Texas added more than 11,000 jobs to the market
at a time when the need for additional jobs was
severe. With the expectation that the need for
new jobs would grow, and due to the added
discretionary income resulting from the new
jobs, the figures showed that the people of
Texas had an extra 2 billion dollars to put into
the state's economy. Similarly, productivity
would improve through lower electricity costs,
and some impressive benefits would continue to
appear as a result. These kinds of numbers are
providing companies with several new options to
explore. Before deregulation, businesses were
unable to do this because their energy expenses
would never allow it.
It is interesting to see where the switches are
occurring. While private residents are not so
interested in switching to retail electricity
providers who have only offered them a
marginally competitive price, the bigger
businesses are definitely taking note. Think
about the fact that there are businesses where
between five to ten percent of their
expenditures lie with electricity and power;
this significant sum could definitely take some
shaving and with the companies saving money on
their heretofore untouchable power bills, the
possibilities for new operations, more workers
and more expansion is impressive.
While there is still a need to address the
wholesale power market, it is definite that the
deregulation of electricity is something that
has benefited Texas as a state. If you are in a
place where you can see how you are going to be
able to benefit from the deregulation of energy
in Texas, there are a number of different places
where you can invest that have never been open
to you before!
The deregulated market for Texas
commercial energy has really been the blueprint
other states are using for commercial energy
deregulation.
It's a known fact that when
electric companies (or any company, for that
matter) get the chance to establish a monopoly
such that consumers have no competition to
choose from, the companies themselves hold all
the cards and the unfortunate consumers are left
to take what they can get, at whatever price the
company deems necessary for profit.
That's not true in Texas for the most part,
though. Deregulation laws have been put in place
as of 2002, effectively reining in electric
companies and breaking up monopolies. Now, most
citizens who reside in Texas can choose their
own electric providers. With greater
competition, customers are once again in the
driver's seat when it comes to their electric
choices. Deregulation also means that they get
better customer service, and that they can have
the choice of using renewable energy instead of
nonrenewable but "entrenched" energy sources
that are bad for the environment. And finally,
they also get better pricing.
That wasn't always the case. Before deregulation
was part of the landscape, a single utility
provided service to an area and performed all
duties, such as transmission, distribution, and
sales. Consumers were left "holding the bag,"
and had to put up with what they got, whether it
was truly good value or not. However,
deregulation has now changed this, so that one
company handles distribution and transmission,
but other companies handle billing and sales.
Customers now have choice, so that they can
choose the providers they want to provide
service to them. The Public Utility Commission
provides oversight for the entire process, so
that pending problems are addressed immediately
before they become overwhelming.
Today, about 75% of the citizens in Texas have
the ability to choose the power companies they
want, and thus to control at least to some
extent how much they pay, where they get their
power from, and the level of service they
receive. This benefits businesses as well as
private consumers, and when businesses benefit,
that business's customers benefit, too.
That's because when businesses get the ability
to choose who provides their electric service,
this means lower utility costs and better
service for them -- and that means lower costs
for them, too. That means those businesses can
pass their cost savings onto their customers.
At present, some 25% of Texas' electric
consumers still do not have the ability to
receive the benefits of competition. That
includes those in large cities like Austin and
San Antonio, and those that use electric
cooperatives.
Even so, electric utility providers are still
performing positive changes. Renewable energy
sources continue to be experimented with,
implemented where possible, and continually
developed. For example, wind farms are springing
up statewide and are one way of providing
completely renewable and clean energy that can
be converted for electrical needs.
If you are a citizen of Texas and you live
somewhere where deregulation is enforced, make
sure you use it and utilize its benefits. Choose
your provider by shopping around for the company
that's best going to suit you and your family's
needs. Many websites, like
ChooseEnergy.com, also provide tools whereby
you can choose a company by comparing between
companies with real-time pricing data. This
allows you to shop around just by going online
and comparing different companies with ease.
Once you've done your homework and have chosen
the company you want to provide your electric
service, you simply place your order with that
company, and they'll send you information on
your rights as a customer. Your new provider
will also send you a terms of service agreement,
and you won't have to contact your old provider,
either. You're new provider will simply handle
the change of service and you'll get a notice
about the change of service in your mail. Your
service will actually change at your next meter
reading.
It should be noted that your new company will
not be assuming responsibility for sending you
your final bills from the old company, so make
sure you address those and get them taken care
of. Other than that, though, the change is
completely seamless and automatic. You simply
choose your new provider, and the wheels are set
in motion so that you can enjoy the benefits of
going with an electric provider you've chosen.
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