Archive for September, 2011

Did any of you open your July and August energy bill to discover some pretty high charges, shock, and then an anger that set the tone on how your bill shot up. Guess what you are not alone. The main thing to make sure of whether you are a business or home owner is that you understand what plan you are in and you are aware of the risks involved. Whether you are in a fixed, index, heat index, blend, or some other type of plan, know what contract you are in. The heat wave has made things ugly for pretty much everyone in Texas, not just the people suffering from the heat or their high electricity bills. It’s also been hell on the Texas Electricity Grid and the individual Retail Electricity Providers. Recently Indexed Plans have been thrust into the limelight, and not for good reasons. Recently, ABC News ran a story about a Champion Energy customer who opened his bill to a shock. Champion Energy deals almost exclusively in Fixed Rate electricity plans and when customers fail to renew their contracts at the end of term but fail to cancel service, they are rolled over onto an Indexed Plan, which is tied to the rates of the natural gas market. Which is all well and good, except that due to this heat wave and the struggles of the electricity grid to meet the needs of Texans, the cost of natural gas has shot to SIXTY TIMES the normal price. It’s not price gouging, it’s not profiteering, it’s just an unfortunate fact that the cost of natural gas has risen exponentially during this heat wave when the grid faces shutdown. And for customers with Indexed Plans, where the costs are automatically tied into the natural gas market through simple math, the fact of the matter is that those colossal cost increases are passed on directly to the customer. Which is why Robin Jansen was shocked to find an electricity bill covering 4 days of service that was almost as much as their entire last month’s bill. Which is a perfect illustration of one of the rarely discussed dangers of an Indexed Plan. Don’t let the REP dictate your contract and your bill. You can take ownership of this by knowing your plan your on and making sure you are locked into a contract. I will help you if you need someone to talk to that understands the market and can advise you. Don’t get caught with the high bill that might drive you to drinking. There is help and lessons to be learned that can help you plan on your energy for the future

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