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Posts Tagged ‘Market Caps’

From time to time, information comes to light that’s very important to all our Servant Partners and friends.

Below is a link that explains what the Texas Public Utility Commission just voted on, that takes effect 8-1-12.

Frankly, many don’t and most don’t seem to care, as we’re all busy. But this will 100% have effect on anyone paying an electric bill, from now on.

http://www.mysanantonio.com/business/article/Texas-PUC-votes-to-raise-cap-50-3671505.php

If the link doesn’t work, just use your browses and enter in “Texas PUC raises rate cap to $4500” and it will pop up.

In simple terms, the wholesale rate during peak times, typically 7-25 to 8-28 each summer, the PUC will allow wholesale suppliers to charge $4500 per megawatt hour, for those hours. For those of us who like “cents” better, that’s 45 CENTS per kilowatt hour.

This is being done to help save the power grid, increase reserves, encourage curtailment of usage during high demand periods, attract investors to build new plants, etc.

We have already heard from the REPs (Retail Electric Providers) that they ARE building this into their future pricing models after 8-1-12. That’s 3.5 weeks from today.

They are telling us “You will spend hundreds if not thousands MORE on the same electricity in 3.5 weeks unless you do something about it” They have warned us. As consultants, we’re bound to share this information with all those we know. It’s been in the news as well. Again, most missed it or don’t really understand it.

Bottom line, all rates of “today” say a nickel, will soon be a “nickel PLUS”. That can be 6, 5.5 or 7. Who knows? It will vary by locale, size, provider, product and term.

So, when we turn on that light switch, just a day after 8-1-12, will all see a difference on the next round of pricing, so we might as well minimize it before then and avoid it for as long as we can.

So, if you have a contract that expires in 2012 OR 2013, it’s not too late to get a price for “next time” and lock it down.
This is the only way to lock rates and avoid this increase for up to 2-3-4 years, as long as you want to avoid it.

With 1300 people to notify, it would take me 26 days at 50 dials per day to get this message out, hence the email.

If you have any questions or comments or want a price or to talk about it, now would be a good time to do so.

For those of you, who have done this either with us or someone else, please know that the right thing was done and this message is only intended for those who have not yet acted.

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