Energy Renewals

The Public Utility Commission of Texas has taken great strides over the last several years to curb the amount of consumer fraud occurring in the Texas electricity market. To say that there is fraud going on in the retail electricity market is really saying too much as the Texas deregulated energy markets have been working better than in any other deregulated state.

For instance, in Pennsylvania they had to halt the whole deregulation process due to too much government oversite. What Texas learned was when allowing the free market system to run the state actually became more efficient as more adept electric providers began selling electric service and billing customers efficiently.

Some energy suppliers were out to commit fraud but this made up about 2% of the total providers selling electricity service in the state of Texas. As soon as the PUCT finds an electric provider making false claims or adjusting their fixed prices without warning they get a huge fine and are sometimes shutdown permanently. The state of Texas is serious about one thing and that is making sure they don’t screw up a good thing.

The state of Pennsylvania will be lifting a cap that had frozen the price of PA electricity for several years on the monopoly electric utilities. Even though PA was deregulated many of the competing electricity providers that came into the state to sell electricity service had to leave. The reason had to do with electric rates going through the roof.

The monopoly companies had their prices frozen and so their rates could not raise regardless. The government subsidized the monopoly energy supplier profits while new competition had to leave the state just as quickly as they had come in. In Texas the deregulated energy market was setup differently. Texas made it so that the Texas monopoly energy providers had an artificially high rate that could be beat by competing electric companies. In fact when Texas deregulated a commercial business could save 15% or more by switching electric companies. Residential homes and commercial businesses now have a similar choice in Pennsylvania.

When shopping for electricity in a deregulated state it immediately becomes confusing. Everyone thinks that there is only one utility based on area and in a way that is true. The difference is in the retail aspect of the business. Multiple electric suppliers can buy and sell electricity by hedging natural gas and other fuel commodities. These transactions become the paper side of the electric business. A retail electric provider works with the state power commission and power generation facilities that back them to sell you electricity.

The transmission company is the monopoly utility in your area that used to sell you electricity and probably still does and also delivers the power over the poles and wires that come to your home. The transmission company is also known as the pole and wires company. Instead of using the poles and wires company for purchasing your electricity you can immediately start saving about 10% on the cost of your PA electricity service January 1st 2010 by choosing an alternate energy supplier.

How do you find a cheap energy company in Pennsylvania? What I recommend is getting on the internet and start comparing electricity prices. Some energy suppliers in PA will be much higher than others. Almost all of the electric companies will be cheaper than the monopoly companies because they will have to raise their prices starting January 1st 2010 creating an artificial price everyone can beat. Check with the PA energy commission by visiting their website to learn about electric suppliers in your deregulated city.

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