I was shocked to receive a $645.51 June electric energy bill from Texas Power. The shock quickly changed to anger when I noticed the rate charge of 21.6 cents/kwh. When we enrolled with Texas Power December the rate was 11.9. Surely there was a mistake. Hoping for a believable explanation, I sent them the following email:
We signed on with Texas Power several months ago because we were tired of paying a higher rate than our friends who were using other providers. After researching and comparing all available providers for our area, we selected Texas Power for several reasons:
lower rate
stable rate history
management team and structure
residential plan provisions
etc
We were shocked when we received our June invoice to see a power rate of 0.216 $/kwh. Two months ago the rate was 0.139 and last month it was 0.149. Almost 0.07 in one month and 0.08 in two. When we enrolled it was approx. 0.12. I researched the available providers in our area on the web last night and now Texas Power's rate is among the highest.
We are incensed and obviously disappointed. Looks like we made a poor decision several months ago. One that we will be correcting soon.
Texas Power replied with:
First of all, we would like to thank you for being a Texas Power customer.
We at Texas Power are fellow Texans, feeling the brunt of this energy crisis along with you and all of our customers in Texas.in terms of competition among other Retail Electric Providers, Texas Power will always stay competitive with the other REP's in Texas by providing the best and most realistic rate available amidst the economic peril that the United States is experiencing as a country.
Our current rate is the average among month-to-month, variable rate plans. Many companies are hiding this fact behind "teaser rates" in order to bait consumers to switch from other companies. Texas Power is providing the best price available among the current economic crisis that has come about through the cost of oil doubling since last year, which does affect the electricity market, as most electricity in the state of Texas is dependent on the cost and production of natural gas.in order to better understand the current state of the market, please refer to the following link, which will direct you to a letter written to our customers by the Founder and COO of Texas Power, Larry Kelly.
Http://www.texaspoweronline.com/learn/info/
That being said, if you look into the terms of these variable rate plans, you may find that the rate being advertised at. 16 per kWh and lower are likely introductory rates that are designed to bait consumers to switch from other companies. These introductory rates, or "teaser rates" generally only last 30-60 days before the rates on these variable rate plans increase to what the current market price is.
Texas Power provides one rate. No gimmicks, no baiting, no teaser rates.
If you need further assistance, please feel free to contact our Customer Care Department at 866-744-6366 so a representative may assist you.
Have a good day!
I was not pleased with this justification email to appease me so I responded with:
If what you say is true about "baiting" new customers with a low introductory rate, then why are some of your competitors offering a two year fixed rate plan with no hidden costs at 0.16 - 0.17 $/kwh?
Texas Power responded with:
The same thing happened in 2005 when Hurricane Katrina hit the coast. The electricity market started seeing a lot of trouble due to supply and demand issues, and there were high prices on energy along the coast. Variable rates were high, so providers started advertising lower rates on 2 year contracts at around. 15 -. 16 per kilowatt hour. The market recovered 6 months later, and variable rate plans were going at. 12 -. 13 per kilowatt hour. Those who signed contracts at. 15 -. 16 were stuck paying the once low rates for the duration of their contract, while those who held out for variable plans once again enjoyed lower bills once the electricity market recovered.
As with anything in economics, the electricity market goes through rough times and eventually recovers. Eventually, the market will recover.
I don't buy the company line sales pitch, and I doubt you do either. Be careful when selecting an electrical energy provider not to mistake a wolf in a sheep's skin.
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