Why is it so Hard to Find a Good Texas Electric Rate?

Last year I was searching for electric providers in Texas because my energy contract came up for renewal and I needed to find a new competitive provider. The year before I wasn't very interested in shopping for an electric rate but just needed to get my electricity turned on so I could open my new business. Since then I have become a little disatisfied with the quality of service, the accuracy of the billing, and the rate I locked in at. If you are a Texas commercial business and need to find a quality Texas electric company you may be able to benefit from my research. I was able to narrow down how to find a commercial electric company at a competitive electric price and would like to pass this information on to the Texas public.

One common mistake a Texas business makes is by falling for a sales pitch delivered by an electric company. Many electric companies have gimmicks, and hidden fees in their rate that they shift to other line items to make their prices look more competitive. Many times an electric provider will never mention certain information regarding the energy rate they quote you because they know you will never ask. It is important to be knowledgable when entering into negotiating an electric rate with a Texas provider. For instance, some energy providers will quote you a better fixed electric rate then all the other providers but will stipulate that they have the option to extend this rate out an additional 6 months if they choose. They are basically protecting themselves in case rates go down but you are obligated to continue on that same rate even though prices may have come down. They are playing the commodities market against you in a complex energy trading rate model that you would have no way of figuring out. In easy to understand terms they win if the market goes up or down while you are left in a losing proposition.

Sometimes a commercial business will try calling a Texas energy broker and see if they can help in shopping electric rates for them. This can sometimes work for a businesses advantage especially if you don't have time calling all 30 - 40 different Texas electric companies trying to find the best rate, terms and conditions, and quality of service. One common problem with working with an energy broker is getting stuck with a broker that works with only a few different providers and sometimes only one provider. This type of energy broker in Texas is really nothing more then a shell company working on behalf of an energy provider rather then considering your best interests. This type of Texas energy consulting company or broker is not working for cheaper rate results but is trying to bring their customers to one or two providers while representing themselves as an unbiased non-agency affiliated broker. I used a Texas energy consultant but would recommend when searching for an energy consultant you make sure they work with multiple competitive electric providers and that they have a non-agency relationship with these providers. Another point to question with an energy broker or consultant is if the fee they are paid by the Texas provider is the same regardless of the provider who wins the electric account. If the fee is different from one provider to the next they may have more incentive to sell you one providers rate over another at an inflated rate while withholding more affordable energy rates. If you need to speak with a qualified Texas energy consultant I would recommend going with a company by the name of Electric Bid.

Taking into consideration the Texas energy markets recent historically high electric rates I need to address some other options besides just the standard fixed electric rate being offered by commercial electric companies. There is a variable electric rate product many Texas electric market participants are allowed to sell. The variable electric rate is managed by the ERCOT Texas government agency known as the Electric Reliability Council of Texas. This variable electric rate is called the Market Clearing Price for Energy rate and is like the S and P 500 but for Texas electricity. This Texas MCPE index price changes 96 intervals a day every 15 minutes and is a little scary when considering if it is worth floating on a variable electric rate that could do just about anything. Since the Texas energy market is at all time highs it would seem disastrous to get on a variable electric rate at first but when checking into the average MCPE price over the last 6 years and what it has done this year during historically high fixed electric rates it is worth considering. The MCPE rate still averages around 7.7 cents a kilowatt hour over the last 12 months which is a few cents cheaper then the next best 12 month fixed electric rate. When choosing an MCPE electric rate you have to have the retail adder negotiated by dealing with the electric provider directly or having a Texas energy conultant negotiate it for you. The MCPE adder is the negotiable component of the MCPE rate and is the part of the rate the retail electric providers make their money from. I would recommend having a Texas energy broker or consultant work out negotiating the MCPE adder rate for you and put together a proposal showing what the different prices look like side by side. Some businesses who are high volume users of energy can blend a fixed rate and MCPE rate together. This is a safe hedge against a possible MCPE price spike. A 50/50 fixed MCPE blend energy rate is normally only offered to Texas businesses using 1,000,000 kwh a year or over. Again I would recommend MCPE as a good alternative option to a fixed electric because of the great track record this rate has had in the Texas market. Getting on MCPE 100% is a good way to save additional money on your commercial energy bill and a way to have the flexibility to convert to a fixed rate when prices drop.

This should help a Texas commercial business get started in their shopping experience for a quality, low cost electric provider without getting burned in the process. If you feel like you have been taken advantage of by a Texas electric company you can call or email a formal complaint with the Public Utility Commission of Texas and they will actively investigate the allegations. You can call the PUCT at 888-782-8477 or you can file a complaint at this complaint website. You will first want to contact the provider and try your best to resolve the issue. If you have tried everything you can to fix the issue with the energy company and still want to file a complaint then the PUCT is ready to help you. The more eveidence and information you have to give the PUCT the better. Keep in mind that with any lawsuit or allegation filed with the PUCT you will eventually be requested to possibly come make your case in person in court to pursue a final remedy.