jm1fd Posted March 7, 2007 Share Posted March 7, 2007 So...I'm thinking about switching away from Gexa because they're currently at 14 cents/kWh and other providers are down around 11 cents/kWh. However...I'm leery of switching to any of those guys because the plans are totally variable from month to month, and I'm worried that prices may end up at 20 cents/kWh this summer. Does anybody know how much rates on those types of plans will typically fluctuate? A penny or two up or down I'm fine with...but if there's a seasonal pattern where rates always go up 4-5 cents during the summertime months, then I'll just stick with Gexa. Yeah...I know I can alwyas switch back to somebody else if rates get too high, but that's a pain in the butt.Does anybody have a strategy for buying 'lectricity in our deregulated market? I once read an article about buying natural gas in deregulated markets...in the case of the article, you locked rates in for a period of a year, and it was always best to lock rates right around this time of year, because that's when spot prices for NG were lowest. I don't know if the same applies to 'lectricity or not. Link to comment Share on other sites More sharing options...
Subdude Posted March 7, 2007 Share Posted March 7, 2007 Spot prices may be lowest now, but the service is priced based on the forward curve over the next year. If the market expects prices to go up over the next year that will be factored into the price you pay. Link to comment Share on other sites More sharing options...
jm1fd Posted March 7, 2007 Author Share Posted March 7, 2007 Spot prices may be lowest now, but the service is priced based on the forward curve over the next year. If the market expects prices to go up over the next year that will be factored into the price you pay.Basing figures on market expectations for the 1 year or more rate lock in plans makes perfect sense. But what about the plans that change rates monthly? I would think those are less insulated from varying market conditions if at all. No? Link to comment Share on other sites More sharing options...
Subdude Posted March 8, 2007 Share Posted March 8, 2007 Correct. There you are just betting on the market. Link to comment Share on other sites More sharing options...
Quinlan Posted March 16, 2007 Share Posted March 16, 2007 Rates do not vary based on the time of year or any other cyclical pattern. The same goes for gasoline. If that were the case, it would be a guaranteed way to make millions and millions of dollars with very little risk. Rather, rates change because of underlying structural changes in the market that are not expected.....hotter/cooler than expected summer, colder/warmer than expected winter, unexpected decreases/increases in production and supply, etc..... Link to comment Share on other sites More sharing options...
dbigtex56 Posted March 16, 2007 Share Posted March 16, 2007 Rates do not vary based on the time of year or any other cyclical pattern.Some do. It depends on which plan you choose. For example, here's the TXU Energy Freedom Plan:Your bill will be calculated using the price information listed below for each covered premise.Monthly Customer Charge:$5.31Monthly Base Consumption Charge:All Months: First 250 kWh 2.726 All Months: Next 550 kWh 7.213May-Oct All Additional 7.213Nov-Apr All Additional 4.557Fuel Factor All Months 8.715As you can see, lower rates are factored in for usage >800 kwh/month Nov - Apr. This plan would probably be of greater benefit to customers with with all-electric homes.(Above excerpt from Texas Electric Choice website.) Link to comment Share on other sites More sharing options...
mrfootball Posted March 20, 2007 Share Posted March 20, 2007 We are all getting royally screwed by this Deregulation scheme. I cannot believe we're still using it.Look at what other states are paying for their electricty:7 cents in Oklahoma, Kansas, Missouri6.5 cents in Virginia...etc.We're paying up to 16.5 cents...with the current 'lowest' teaser rate at around 12 cents. The great Texas ripoff.Contact your congressman to voice your displeasure and get these crooks hands off our wallets. Link to comment Share on other sites More sharing options...
mumbles Posted March 21, 2007 Share Posted March 21, 2007 That's cause everything is bigger in Texas.State by state rate comparison Link to comment Share on other sites More sharing options...
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