Note: The following is a guest post by my friend Dan Wallach
Last year, I switched from a variable rate to a fixed rate electrical plan, to avoid the occasional shocking price hikes that came with variable plans. This year, with my one-year lock-in ending, I decided it was time to look again, so once again, it was back to PowerToChoose.com. To help you sort through the offers, it helps to understand how much electricity you use every month. For those of you with a smart meter on the side of your house, you can get yourself an account at SmartMeterTexas.com. You type in some stuff from your power bill and you’re good to go. Here’s what it said for my monthly power usage over the past year:
What you see shouldn’t be too surprising: when it’s hot in the summer, our electric bills go way up to run the A/C. In the rest of the year, we’re using less. (You’ll see the July 2012 bar got cut into two half-bars. This is probably a side effect of when I switched my electrical service from one company to another last year.)
You’ll notice that, for most of the year, we’re running comfortably under 1000 kWh/month. Well, most of the electricity plans available to us have a $10/month surcharge if you go below 1000 kWh. (You have to read those electric fact labels carefully.) What’s the right way to go shopping then? Turns out, there’s a link at PowerToChoose that will let you download all the terms of every electric plan in one giant CSV file that you can load into Excel. I took that data, stripped out everything except the plans offered in Houston through CenterPoint Energy, and then sorted by the 500 kWh/month predicted cost. Estimated prices range from $48/month to $89.70/month.
Cutting to the chase, who’s got the best deal? If you want a fixed rate 12 month term, the winner turns out to be TXU’s “Energy Saver’s Edge 12”. Summer Energy is slightly cheaper with a 6 month term, but then you have to do it all again in 6 month. If you want a “100% green” power source, the winner is TriEagle Energy’s “Green Eagle 12”. At least, that’s who would have the best deal for me, given my electric usage. Just for fun, here’s a frequency distribution chart of these prices, focused on what you’d pay for 500 kWh/month, which is the more relevant number for me.
The y-axis tells you how many plans would cost you each given price (within a bucket size of $1.50). I’ve plotted frequency charts for only the fixed-price plans, and I’ve separated out the renewable ones (typically “100% renewable”) from the others. I’m not entirely sure what to make of this except to say that there are a whole lot of uncompetitively priced plans out there, and the gap between “100% renewable” and other plans has largely disappeared from the market, unless you’re looking for strictly the lowest priced plans out there.
At least in my case, the TXU cheapo plan looks like the way to go. Even then, if you read their fine print, I’d get assessed a fee if I ever went below 500 kWh/month, but since that hasn’t happened at all in the past year, I’m not going to worry about. I always find it perverse when I have a disincentive to make my house more power efficient. Say I replaced a bunch of our power-hungry halogen bulbs with LED bulbs. I might drop below 500 kWh/month in the winter and end up spending more money. That’s fantastic.
But wait! I downloaded all of this data on May 30 and that’s when I told TXU to switch me. Somehow, their computer switched me from the “TXU Energy Saver’s Edge 12” plan to the “TXU Energy e-Saver 12”. Sounds similar, right? In fact, the 500 kWh/month estimated cost for the new plan is $74/month versus the $54/month that I was expecting. Talk about bait and switch! My guess is that TXU rolled out new plans on June 1 and silently moved me from the original, competitively priced plan to the new, embarrassingly uncompetitive plan. It’s a good thing I had all the original data saved when I called, and then had to talk to a supervisor, and so forth. After 41 minutes of “we’re terribly sorry for the inconvenience” and peppy hold music, all I know is that they’re “investigating” and will get back to me in a few days.
Incidentally, Summer Energy, my current electrical provider, is June 3rd’s winner, with an estimated $50/month for 500 kWh/month of usage with a one year lock-in, so long as you use the proper promo code. TriEagle’s “Green Eagle 12” continues to be the cheapest “100% renewable” plan at $56/month. Part of me wants to just dump TXU ($54/month, if everything goes my way) and instead go with one of these others. The other part of me is just curious to see what TXU will do next. Behold the power of electricity deregulation!
(Note to readers: I’ll post an update here in a comment when I finally resolve this mess.)