HOUSTON, July 14, 2009 – StarTex Power, a leading provider of retail electricity in Texas, announced today that it will offer green electricity to each home in Morton Ranch-Section 3, a revolutionary new home development in Katy, Texas. The newest addition to the Morton Ranch communities offers a series of newly constructed homes that offer custom features, increased energy efficiency and enhanced equity, allowing residents to enjoy all the perks of modern living while reducing their impact on the environment.

We’re pleased to connect the new U-Build-It residents of Morton Ranch-Section 3 and customers throughout Houston with a green energy alternative that can help reduce their impact on our environment and natural resources,” said Preston Ochsner, vice president of sales, StarTex Power. “Our work with various builders, developers and other environmentally-conscious suppliers in the Morton Ranch community will result in high quality, energy efficient homes in one of Houston’s most rapidly-growing areas.

In addition to a green energy alternative, StarTex provides its customers with the “Power to Connect” to the customer service and competitive rates they’d expect from Houston’s fastest growing woman-owned business. Serving over 100,000 customers, StarTex Power is one of Houston’s leading retail electricity providers with a reputation for quality, service and proven success.

StarTex Power was chosen by Houston-based Choice Energy Services, an over-the-counter energy broker, to power the Morton Ranch-Section 3 development. The company was selected from an elite group of retail electricity providers for its ability to provide competitively-priced green power during development and upon completion of construction, as well as for its unique ability to meet customer service needs with precision, speed and expertise.

At Choice Energy Services, we only do business with the top-tier retail electricity companies in the state, and StarTex Power is one of those companies,” said John Elias, energy broker/consultant, Choice Energy Services. “Both Choice Energy Services and StarTex Power have an unwavering commitment to customer service and industry excellence, making this a natural partnership for both companies.

Morton Ranch construction will be overseen by a partnership between U-Build-It and Wallace-Bajjali Development Partners, a Houston-based real estate development corporation. The result of this partnership and their work with companies like StarTex Power is an attractive, energy efficient option for today’s homebuyers interested in building energy efficient, cost-saving homes.

To connect with StarTex Power and learn about fixed-rate plans, green energy alternatives and much more, visit www.StarTexPower.com.

About StarTex Power

StarTex Power is a Texas-based and Texas-owned Retail Electric Provider. Our management team has over 60 years of experience in the deregulated utility industry. At StarTex Power we are committed to establishing the highest standards in the industry with competitive prices, easy to understand billing, as well as superior customer service. To find out more information on StarTex Power visit their web site at www.StarTexPower.com.

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Today the energy markets came down again following a down day on Thursday and Friday. Commercial Texas electricity prices are at a good price range for those who have been holding out for just the right time to lock in their electric rates. By locking into an electricity price you are doing what many consider to be the safe way to procure energy. Texas electricity companies will buy natural gas futures in order to keep the electricity they sell you locked in at a specified price for 1, 2, or 3 years. So if you signed up at 1 year you will pay the same electricity price for that entire year. The other popular option would be to sign up on a MCPE electricity price. MCPE is a variable price that is managed by the Electric Reliability Council of Texas. The price changes every 15 minutes, 96 intervals a day and is not for the risk averse. For most Texas businesses looking to procure their electricity we recommend locking in on a fixed electricity rate. If electric rates were higher we might recommend doing a 50/50 blend where you have half on a fixed rate and half on MCPE. With some of the cheapest commercial electricity rates we have seen in a long time you might as well lock in rather then get on a variable electricity price.

Our Proposal Gives You a Clear Snapshot of What Electricity Prices and Terms are Available

We have a commercial electric price chart we update every so often that shows a snapshot of what electricity rates have been doing. You can click on the link above to see the chart to give you a ballpark on what you can expect when locking into a fixed Texas electricity rate. You can achieve a much cheaper electric rate than the daily rates seen on our chart. Daily electricity prices are generic prices with a larger retail margin built in because the exact usage and demand is not known for the commercial business. Our company can procure a cheaper electricity price for your Texas business by putting your historical or estimated electricity usage through a reverse auction. By letting the energy consultant have your exact usage and giving them a couple days to make a tailor made electric rate and proposal for your business you can knock off a half a penny to a penny off of your per kWh rate. The usage goes through a reverse auction process where up to 15 different electricity companies bid on your account. Not all providers bid on small usage just as not all providers bid on large electricity usage. Depending on the size and type of your Texas business will determine how many providers choose to bid on your account. We promise that we can achieve a cheaper Texas electricity price for your commercial business by putting your electricity usage through a reverse auction. If you were to go to the same provider to attempt to achieve the price we achieve for you it will not be as cheap of a rate.

Not a Shell Company for a Provider But a Full Service Energy Consulting Company

When using Electricity Bid to procure your electricity price you will be using a company that acts as an energy consultant on your companies behalf. We do not represent a particular electric company and our fee is paid by the provider and is the same regardless of the provider that wins the bid. There are some energy Texas consulting companies/brokers out there that represent one or two companies. These electricity consultants are nothing more than a shell company for a provider. These so called brokers are not representing your companies interest but are trying to make the one brand they sell sound as good as possible even though there may be several other electricity companies out there with cheaper electricity rates.

Bid Down Your Electricity Price and Save on Energy

We have helped hundreds of Texas businesses bid down their electricity price among the Texas energy providers by our reverse auction process. We have helped businesses that use tens of millions of kilowatt hours a year to those only using 30,000 kWh a year. No matter the size of your Texas business we can consult you on your current electricity provider, show you an apples to apples comparison of what you are paying now to what you could be paying and help educate you on the entire reverse auction process. Our strategy is to be as open, transparent, and educational as possible so you know exactly what you are choosing and why. If you were confused about your electricity bill and what sales people at some of the energy companies were telling you before you will have a complete understanding of what to know going forward after speaking to our energy consultant.

Begin Your No Obligation Electricity Bid Reverse Auction

If you would like to begin the no obligation reverse auction process for your Texas commercial energy than please give us a call. We can be reached at 1-800-971-4020

Some of the Texas Cities We Serve

We serve all the deregulated cities of Texas including Houston, Dallas, Fort Worth, Alpine, Laredo, Austin, Round Rock, Killeen, Tyler, Plano, and many others.

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In most areas of Palestine Texas you have a choice when picking an electricity provider. The state of Texas is deregulated and because of this deregulation of the electricity utility market you no longer have to go with the old monopoly company TU Electric. The retail electric provider that most people in Palestine are familiar with is TXU Energy which prior to deregulation was known as TU Electric. Many in Palestine still refer to TXU as TU Electric although that old entity is gone. TXU was bought out about a year ago by a few private equity companies. In news headlines that were blasted out across most Texas news networks the headline read like this,

Dallas, TX, Feb. 26, 2007 — TXU Corp., a Dallas-based energy company, together with Kohlberg Kravis Roberts & Co. (KKR) and Texas Pacific Group (TPG), two private equity firms, and Goldman Sachs & Co., the investment bank, announced the execution of a definitive merger agreement under which an investor group led by KKR and TPG will acquire TXU in a transaction valued at $45 billion.

So is TXU Energy still a good electricity company to choose in Palestine Texas? TXU still offers the same electricity service they have always offered before even though they have been bought by a different company. As of July 2009 TXU Energy has many other competitors offering cheaper fixed electricity rates. Before choosing TXU Energy as your commercial or residential electricity provider we recommend comparing TXU Energy rates with other Texas electricity companies. Find out which electric provider in Texas offers the cheapest electric rate with no hidden fees or strings attached. We have provided an easy to understand residential electricity comparison chart above to compare several reputable Palestine electricity companies against TXU prices.

The top 2 have electricity prices in the Palestine area that are several cents cheaper than TXU as of July 2009. We encourage you to sign up with confidence with any of the electric providers in the chart . We have gone through their electricity agreements, pricing, and terms of service to make sure there are no additional hidden fees and charges. You may have found a “too good to be true” offer out there with an electricity provider we do not have in the comparison chart. Because some people may find cheaper electricity prices with disreputable electric companies in Texas we would like to point out some problems to watch out for in the bullet list below. This list may help a Palestine Texas commercial or residential energy consumer avoid choosing an electricity price that does not disclose all fees and charges.

• Some providers offer a fixed electric rate but have a fuel surcharge in the contract that allows the rate to go up if fuel prices increase. Fuel prices always go up eventually.
• Some providers make their electricity facts label in such a way that the TDSP charges are not bundled in to the total electricity price.
• Disreputable electric companies will attempt to sell you a variable electric rate but make you think it is a fixed electricity price that will not change. Make sure if you believe you are signing a fixed rate that it really is fixed and will not change.

By comparing electricity prices in Palestine Texas you can get on a rate with a reputable electric company that isn’t using “brand name” to sell you electricity service. You can pick the cheapest electric rate while avoiding those energy companies that hide hidden fees and charges in their fine details of the energy contract.

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Luminate which is a subsidiary company of Energy Future Holdings and is the power generation side of their business was fined by the PUCT for approximately 15 Million around December of 2008 for what the PUCT called “market power abuse”. Energy Future Holdings bought TXU Corp which included Luminate, Oncor, and TXU Energy and is now a new company although still uses the same brand names. After looking into the issue further it appears PUCT Commissioner Barry Smitherman has some valid points that the $15 million penalty that was pushed by the staff at the PUCT may have been the wrong decision against TXU which now goes by Energy Future Holdings and whose power generation side is actually known as Luminate. After reviewing the commissioners detailed notes about what caused the MCPE balancing energy markets prices to spike in the summer of 2005 it looks like Luminate’s dominant position in the wholesale energy market in Texas created a bias against TXU simply because Luminant happened to be one of the biggest participants in the wholesale energy market. By having what the PUCT commissioner and others refer to as a “shame cap” it likely hindered other wholesale generation companies from bidding into this market which would have kept prices down. You can read what an uneducated consumer believes to be the truth and then we recommend you read the facts for yourself below which has more to do with unnecessary government regulation over the Texas energy market.

Sent: Friday, December 19 2008 8:41 AM

To: Smitherman, Barry

Subject: TXU fine

As expected! As I look at your picture I could not see the ring around your head from you having your head stuck up Perry’s or Craddick’s @ss. You came in after your predecessor oked the fine two hundred million for stealing from us usurers. We payed double for our electricity and now you let TXU off the hook for stealing from us. Go big business! When you were appointed by the governor I wrote you at the time and called you out on this exact chess move. I consider as big a thief as the other two above mentioned crooks. I plan to run a full page ad in the paper reminding everyone of the Governor’s big business protective practices. He is going down! I can only hope so are you @ss sniffer.

Julio Bejarano

juliobejarano@sbcglobal.net

972-735-0444

PUCT Commisioner Barry Smitherman Explains The Problems With This Penalty Against Luminate

You can read in more detail about this case against TXU on the PUCT website when searching for control number: 34061

Meeting Date: Dec 18, 2008

Date Delivered: Dec 18, 2008

Agenda Item No.: 18

Caption: Docket No. 34061 – Notices of Violation by TXU Corporation, et al., of PURA 39.157 (a) and P.U.C. Subst. R. 25.503(g)(7).

In this docket, the Commission is asked to approve a $15 million dollar settlement between the Commission and Luminant regarding the accusation that Luminant engaged in “market power abuse” as that term is defined in PURA and our substantive rules. I will vote to approve this settlement, the largest in the history of the PUCT, but would like to take this opportunity to explain why I think such a settlement is appropriate.

By way of review, the Notice of Violation (NOV) initially arose out of the “ERCOT 2005 State of the Market Report,” prepared by Potomac Economics (Potomac), which at that time was serving as “advisor” to the Wholesale Market Oversight group within the PUCT. This report was published in July 2006. In Chapter V, “Analysis of Competitive Performance,” Potomac avaluated whether any electric power suppliers had engaged in either “physical withholding” or “economic withholding.” According to Potomac, physical withholding occurs when a particpant makes resources unavailble for dispatch that are otherwise physically capable of providing energy and that are economic at prevailing market prices. Potential economic withholding is evaluated by calculating an “output gap”. The output gap is defined as the quantity of energy that is not being produced by in-service capacity even though the in-service capacity is economic by a substantial margin, given the balancing energy price. A participant can economically withhold resources, as measured by the output gap, by raising the balancing energy offers so as to be dispatched or by not offering unscheduled energy in the balancing energy market.

Potomac concluded, wth regard to physical withholding, that they did not find evidence of physical withholding and that there were positive indicators that the largest suppliers did not engage in physical withholding, but “that firm conclusions would require a more detailed examination.” With regard to economic withholding, Potomac was concerned that Company C (TXU) began offering energy in the last week of June (2005) at prices far in excess of generic costs–that being more than $50 per MWh above generic short run marginal costs. This activity therefore led to an additional investigation by Potomac. Subsequently, Potomac, now in their new role as ERCOT Independent Market Monitor, conducted an “Investigation of the Wholesale Market Activities of TXU from June 1 to September 30, 2005.” That report was filed in March 2007.

In assessing the report of March 2007, it is important to note a couple of things. First, during the period analyzed by Potomac, there was no definition of “market power.” PURA section 39.157 (a) defines “market power abuse” as “practices by persons possessing market power that are unreasonably discriminatory or tend to unreasonably restrict, impair, or reduce the level of competition, including practices that tie unregulated products or services to regulated products or services or unreasonably discriminate in the provision of regulated services. For purposes of this section, market power abuses include predatory pricing, withholding of production, precluding entry, and collusion.” However, PURA does not define “market power”. In PUC substantive rule 25.504, which became effective on September 13, 2006, the Commission defined “market power” to be “The ability to control prices or exclude competition.” Because there was no definition of market power during the June 1 to September 30, 2005 time period, Potomac created its own definition of market power as “the ability for a market participant to profitably raise prices above competitive levels.”

Second, in its analysis, Potomac excluded un-offered capacity from online units. In other words, there were other suppliers of power that could have provided power but shose not to offer energy into the balancing energy market (BES). (To some degree, I believe this was caused by $300 “shame” cap which the Commission has subsequently done away with.) Had those other suppliers offered energy into the BES market, then TXU would have been the pivotal supplier less of the time.

Third, TXU’s offers during the study period were designed to cover the “full costs of owning, operating, and maintaining units expected to be needed to satisfy the forecasted load. This amount includes the initial investment costs and other fixed costs such as leasing arrangements for gas turbines.” Potomac rejected this approach claiming that in a competitive market, there is no basis for an entity to take into account sunk costs [when designing a bidding strategy]. According to Potomac, TXU’s strategy should be the same “regardless of whether TXU won the units in a lottery or TXU paid a large sum to buy the units.” In other words, according to Potomac, TXU should have been bid its generation units either at or near its short run marginal costs.

I have been and continue to be skeptical of all three of Potomac’s above enumerated positions. The Commission’s definition of market power is different and I believe better that the one used by Potomac. In any competitive market, one or more participants may have the ability to raise prices above “competitive levels” for a limited period of time. However, in a market, the response to high prices from one producer is that other competitors, both existing and new, will eventually begin to offer prices below your prices and soon take away your market share and your profits. I don’t know why other generators didn’t offer power into the BES market during the study period (perhaps it was the fear of the $300 shame cap), but we know that had they done so, TXU would have been pivotal less of the time and therefore TXU’s offers would have set the price less frequently. Therefore, it is unclear to me why TXU should be punished for the inactions of others.

In a previous memo by me, filed on May 11, 2005, in Project No. 30513, which was a “staff investigation into the Wholesale Market Activities of TXU” during the fall of 2004 (and which resulted in a determination that TXU did not engage in market power abuse during that time frame), I took exception to Potomac’s previous analysis. In that memo (a copy of which is attached), I said, “It seems perfectly rational to me that a generator would attempt to recover a return on and of capital investment through its BES offers. I think it a bit theoretical to assert that generators in ERCOT are acting rationally only when they offer at short-run marginal cost. If generators are unable to recover long-run marginal costs, then I fear we run the risk of discouraging additional generation at a time when it appears that we are really beginning to need it.” I still believe this to be the case. As a report on Capacity, Demand and Reserves (CDR) recently released by ERCOT demonstrates (page attached), ERCOT’s reserve margins have dramatically improved since May of 2007 when they were projected to be below 12.5% as early as 2009. I am unconvinced that the ERCOT region would have experienced such a robust new generation build were we to limit generators to recovering only their short run marginal costs.

In Order No. 26, issued in this docket on July 21, 2008, ALJs Harvel and Walston opined on the issue of the maximum penalty that could be assessed against TXU if the alleged violation(s) of market power abuse was found to be true. Staff argued for $171 million, Luminant argued for $610,000 or $7.930 million, in the alternative. According to the judges, there is no way to justify staff’s proposed penalty of $171 million. Using the most generous calculation available-3,085 alleged seperate bid curves times the maximum penalty of $5,000 per violation (which was the previous maximum dollar amount but has subsequently been raised to $25,000), the total maximum penalty would be $15.525 million. The ALJs said, “In this case, Staff’s proposed trebling of Luminant’s alleged damage to the market would result in an adminstrative penalty that would greatly exceed the penalty cap contained in section 15.023 (of PURA). Staff has not provided any legal authority to authorize such a penalty.”

Because I believe it would be very difficult to prove in a court of law that Luminant’s bidding behavior in the BES market during the study period was an abuse of market power, and because the proposed settlement is at the high end of the highest probably recovery if Luminant were actually found guilty, I propose that we accept the settlement.

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After Asking Them Directly They Told Me TDSP Charges Were Not Included

YEP told me that the TDSP charges were not included in the electric rate on the facts label. I asked, “are you sure that the TDSP charges are not in the rate listed in the top average?” She explained, “no”. There are about 3 – 4 cents per kWh that will needed to be added on top of the electric rate that YEP had in their electricity facts label. This would make their low rate much higher than several competitive electric companies that do not have hidden fees or left out TDSP charges from their residential electricity price.

Other Names This Licensed Retail Electric Provider Uses

YEP also goes by Southwest Electric Company, Southwest Power and Light, and Texpo Energy. YEP stands for “Your Energy Company” and if you have signed up with any of these electric providers we would like to know if you received the electricity price you were promised on the phone or on the internet. You may fill in your information in the below form. A few YEP customers have already taken the liberty of informing what the rate they were told was and the rate they actually ended up paying.

Not Required By Law To Disclose Upfront That TDSP Charges Are Not Included

Because YEP is not required by law to disclose that additional TDSP charges will be added on to the rate in their front page literature and sales calls they simply don’t choose to do it. Most Texas electric companies will quote you the entire bundled rate that includes the TDSP charges. Since YEP leaves these charges absent from their sales speech and non contract advertisements it has misled many Texas energy consumers that thought they were signing up for a much cheaper electric rate only to be fooled later once they received their electric bill. When you get your YEP electric bill we encourage you to find the total average rate on the bill and compare that with what YEP Electric Company may have quoted you on the phone.

We Desire That YEP Starts Being Clearer as It Will Help Out The Entire Industry

Have you ever heard the phrase, “A few rotten eggs spoils the whole bunch?” We hope YEP changes their practice of not notifying customers other then in the fine details of their electricity contract that they are not advertising a bundled electric rate. Until then all you can do as a customer is complain to other energy consumers that are considering using YEP by leaving the details of your experience with this electric company. You can also notify the PUCT of Texas and the Attorney General of Texas of your experience with YEP and any relevant details that will help them research any type of consumer fraud that may have occurred against you. We hope that what YEP Electric Company has done does not hurt your opinion of all Texas electricity providers. There are several reputable providers like in the chart below that disclose all fees and charges upfront. Feel free to browse and find the rate, company, and plan that fits your situation best.

Reporting Deceptive Trade Practices

If you would like to report this provider to the PUCT please go to this link http://www.puc.state.tx.us/ocp/complaints/complain.cfm and submit your complaint for a full investigation. You can also fax a detailed complaint in writing along with all evidence in the form of bills and advertisements to the PUCT fax number: 1-512-936-7003. You may call the PUCT complaint line at: 1-888-782-8477

To report YEP to the Attorney General of Texas you may go to this site to leave a complaint: http://www.oag.state.tx.us/consumer/complain.shtml

What was your YEP Electric Rate You Were Advertised?

Is YEP Your Energy Provider? Did you know they also operate under the name Southwest Electric Company as well as Southwest Power and Light? Please leave any details of your experience with YEP Electricity to help other Texas energy consumers pick a provider that discloses all fees and charges in their electricity rate. The Texas PUCT has know information of YEP Energy registering with them under the name Southwest Power and Light although they are using the same REP license number. Their name is oddly familiar to SWEPCO’s name and I assume the PUCT would squash that name request if they attempted to register it with the Public Utility Commission of Texas.

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Click here to report your rate to warn other unsuspecting customers

From time to time we see Texas electric providers that take things one step too far when advertising an electric rate. Some of these providers will show an advertisement that has an electric rate that says one thing for their potential customers but additional fees and charges will be located in the facts label or terms of service in the contract. The issue with this is that not all fees and charges are disclosed upfront to the customer clearly so that the customer knows what they are getting into. A majority of the customers will be frustrated or angry that they had thought they agreed to one rate while their first months electric bill shows something completely different.

We reviewed Southwest Power and Light Electric Company’s residential electricity agreement and found that their electric rate they advertise to the public says one thing but the TDSP charges or Ancillary Charges/Congestion charges are not included in this electricity price. When leaving these additional fees off of the rate you would end up with a value much higher than what they are showing on their Electricity Facts Label as an estimate.

Southwest Power’s Electricity Facts Label

We have included Southwest Power’s electricity facts label with the additional fees bolded in the quote below. The “Delivery Charges” are the concerning point to us and what do you think? The “Delivery Charges” seem to be thrown in at the end and then only described and defined near the bottom of the document. Most consumers would have no idea that the rate they were quoted will have these additional fees and charges added in. When this type of strategy is used to sell electricity service and the customer calls to complain the Texas electric provider usually tells the customer to refer to the “terms of service” where it “clearly” states that “Delivery Charges” will be passed through “with no markup”.

The price you will be charged for your electric service will be equal to the “Fixed Base Energy Price” referenced in the body of your EFL (or, if you signed up via written enrollment, your energy price will be the “Fixed Base Energy Supply Price” set forth in the pricing table of your RSA), plus a $7.95 monthly customer-service-meter-fee (Southwest will not charge the monthly customer-service-meter-fee for each billing cycle in which you use at least 1,000 kWhs), Delivery Charges, Taxes and any other charges permitted hereunder including, without limitation, late fees. Delivery Charges and Taxes are defined below and will be passed through to you with no mark-up. Your monthly bill will itemize the following charges for your convenience: energy charge, Delivery Charges, any monthly customer-service meter-fee if applicable, all applicable taxes, and any additional permitted charges. The pricing shown in your EFL includes a $0.005/kWh discount for electing to authorize monthly payments of your invoices via automatic recurring (i) withdrawals from your checking or savings accounts, or (ii) charges to your credit card. If you do not elect to give such authorization, your price will be $0.005/kWh higher. Pursuant to Southwest’s Lone Star Price Guaranty, 2 regardless of how many kWhs you consume throughout the duration of this plan’s term, Southwest guaranties that your total price per kWh you will pay to Southwest under Southwest’s Spirit of Texas Fixed Rate E-Plan with Guaranteed Savings (including the base energy price plus all Taxes, Delivery Charges, and any other charges on a kWh basis) will be between 5% and 15% lower than the total price to be paid per kWh (including the base energy price plus all Taxes, Delivery Charges, and any other charges on a kWh basis) under any residential fixed price plan with the same fixed term (i.e., the same number of months) that is presently offered to the general public by Reliant Energy in the CenterPoint service area, TXU Energy in the Oncor Service area, CPL Energy in the AEP Texas North service area, WTU Retail Energy in the AEP Texas Central service area, and First Choice Power in the Texas New Mexico Power (“TNMP”) service area, or, if you chose Southwest’s Renewable Healthy Heart of Texas Fixed Rate E-Plan, under any residential fixed price green plan with the same fixed term, that is presently offered to the general public by Reliant Energy in the CenterPoint service area, TXU Energy in the Oncor Service area, CPL Energy in the AEP Texas North service area, WTU Retail Energy in the AEP Texas Central service area, and First Choice Power in the TNMP service area. To qualify as “presently offered”, the fixed price offered by Reliant Energy, TXU Energy, CPL Energy, WTU Retail Energy, and First Choice Power (collectively, the “AREPs”) needs to have been offered within two weeks of the date on which you submitted your application for enrollment to Southwest. For purposes of the “Lone Star Price Guaranty”, the applicable prices charged by the AREPs are their prices per kWh for solely residential electric service within Texas in the particular service areas as specified above under any fixed price residential retail plan (or fixed price residential retail green plan, as applicable) with the same fixed term that is publicly offered to the general public by the AREPs in such service areas. For example, if you live in the Oncor service area and sign up for Southwest’s Spirit of Texas Fixed Rate E-Plan with Guaranteed Savings for 12 months, you would compare your price to that of TXU Energy’s twelve month residential fixed price plan, or if you live in the CenterPoint service area and sign up for Southwest’s Renewable Healthy Heart of Texas Fixed Rate E-Plan with a 12-month term, you would compare your price to that of Reliant Energy’s 12-month residential fixed price green plan, and so forth. To qualify as “green” as used in this paragraph, the plan of the AREP needs to qualify as a “green” plan within the meaning of the PUC’s Rules. The Lone Star Price Guaranty also assumes you will adhere to the terms of your contract and pay your invoices in a timely manner, and thus all late, collection and termination fees, penalties and interest shall be excluded from the prices of Southwest and the AREP for purposes of comparing Southwest’s price to the prices of the AREP in your service area. The Lone Star Price Guaranty also assumes you will choose to enjoy the $0.005/kWh discount for electing to authorize monthly payments of your invoices via automatic recurring withdrawals from your checking or savings accounts, or charges to your credit card. The “Fixed Base Energy Price” referenced in the body of your EFL (or if you enrolled via written enrollment the “Fixed Base Energy Supply Price” set forth in the pricing table of your RSA), does not include Delivery Charges or applicable Taxes, which Delivery Charges and Taxes will be passed through to you with no mark-up. A one time service charge of $3.50 will be charged for additional copies of your bill, duplicate bills, credit reference letters, and disconnect notices (which charges shall not be included as part of Southwest’s price for purposes of the Lone Star Price Guaranty). Please note that as Delivery Charges fluctuate and vary, your total price charged will vary from the examples of your total price per kWh shown in the table within your Facts Label. “Delivery Charges” include the charges, costs, surcharges and fees charged or levied on Southwest by the Utilities and the applicable independent system operator (“ISO”) of the electricity grid in your region or State (your ISO is the NYISO if in New York, the CAISO if in California, and ERCOT if in Texas). “Utility” means the transmission and distribution service provider (“TDSP”) owning and/or controlling and maintaining the system used for delivery of electricity to your meters/accounts.

Complaints About Higher Electricity Rate Than Advertised

Basically electric providers like this are telling the customer, “Hey dude we aren’t responsible for these “Delivery Charges” we just pass them through from the TDSP, get off my case man!” The problem isn’t a confusion issue about who the TDSP company is although the customer usually isn’t aware of the separation it instead is that the provider knows ahead of time that this is the general source of customer confusion. Instead of the Texas electric provider averaging the TDSP Charges or Delivery Charges into the advertised rate in some type of estimate they leave those charges off and let the customer figure it out when they call back and the provider refers them to the finer details of the contract. Is it just me or does this just seem wrong? If you are a customer of Southwest Power and Light and have been dealt this way you can leave a complaint warning potential customers that the electric rate advertised does not include “Delivery Charges” which should have been made clear anyway. You can click here to fill in a form that will be added to a list of Texas electric companies customers have complained that do this. Click here to add your complaint.

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This is called bait and switch in the deceptive trade practices law and so you may have more success pursuing a Texas electric company legally by complaining to the Texas Attorney General who investigates these types of crimes. If you have been scammed please fill out the form below so we can allow Texas energy consumers to be warned of potential traps a few electric providers have set for unsuspecting customers. If you are one of the Texas electric companies in the list below and have reason to believe that the customer filing the complaint is mistaken please feel free to comment below and clarify why the customer may be mistaken. We would be happy to retract any FALSE information.

Electric Companies That Do Not Participate in Bait and Switch Tactics

Below is a comparison chart that compares electric rates from multiple reputable electric companies in Texas each offering several different electric rates and terms. Some providers offer the cheapest long term fixed rates while another provider may have a very good short term rate. Some providers specialize in variable month to month rates that have no long term commitment. You can compare and pick the electricity company and rate below. When you ready to sign up just click on “continue” next to the provider you want and you will be taken to the sign up page. You will first be able to confirm the rate once more befire deciding to commit. The default area in the chart is Houston. If you live somewhere outside the Houston area then you will just need to choose your area in the “Select Area” box. Next choose your plan in the “Select Plan” box and finally click on “Get Rates” to see the rates based on the criteria you have chosen.

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This article is written for the unlucky electric service customer that gets hit with an inaccurate electric bill because the electricity meter was malfunctioning and the meter reader had to estimate electric usage based on historical averages from the previous year. Sometimes an electric meter could be malfunctioning and show lower usage amounts than what the electric service customer is actually using. Months could go by before the meter reader realizes that the electric meter was showing a smaller amount of usage than what the consumer was using. When this happens the electric company can true up these charges and bill the customer based on a previous years usage amount. This means that you could have been charged $30 a month for several months but then the electric company sees the mistake and sends you a bill for $1000 to recover lost income from the meter malfunction. The dollar amount would be based on what you used historically the previous year and not actual usage. This historical usage estimate rule means that even if you were not staying at the home or business during the time your meter was malfunctioning you will still be charged based on last years historical usage averages.

You would be surprised but many people in this situation claim they were not in the house at the time in order to attempt to not have to pay a higher price when the utility figures out their mistake. I would not be shocked to get some comments below from people claiming this has happened to them and they were not present at the home and therefore should not have to pay based on last year’s usage. The utility will usually work out some type of payment plan so you can pay out the difference over time but you are unlikely to win the argument that you were visiting your sick grandmother during the time your usage was low when it was verified to be a meter malfunction.

Who is Responsible for Meter Malfunctions and Charges?

Ultimately the company responsible for the electric meter malfunctioning is the Electric Utility company also known as the TDSP company or the pole and wires company. In the Houston area the electric utility is Centerpoint Energy. In the Dallas area the pole and wires utility is Oncor Electric Delivery. These companies handle fixing the poles and wires, meters, and they own all the electric infrastructure that delivers the electricity to your home or business. Before you get all out of shape and frustrated with your retail electric provider like, Reliant Energy, TXU, Stream, Ambit, YEP, Liberty, Spark, Champion, or any of the 30 retail electric companies servicing Texas you should get your facts straight. The retail electric provider only has a few responsibilities. They buy commodities, hedge energy, and sell you that electric service. Another job the retail electric provider does is to bill you based on usage data they receive from utilities like Oncor or Centerpoint Energy. You see the retail electric provider is not in control of reading the usage data or that the usage is accurate. The utility is the responsible party that all complaints and issues regarding accurate meter reading and usage data should go to.

If your TDSP meter reading company has misread your meter data or the meter has malfunctioned and you feel that something should be done about it we recommend you contact that TDSP company and express your complaint and issue. These companies will send someone on site to investigate the matter. Someone will also follow up to explain how you will be billed or compensated for the inaccurate billing.

To contact Oncor: Oncor Electric Delivery
To contact Centerpoint: Centerpoint Energy

In Some Cases the Retail Electric Provider May Have Advertised a Rate Without the TDSP Charges Included

Sometimes the meter data is being read correctly but you still notice additional charges averaging 3 – 4 cents per kWh on top of the initial advertised retail electric rate you were quoted by a Texas electricity company. When this happens you are probably dealing with only a handful of electric companies that practice this form of electric rate advertising. Most Texas electricity companies will bundle the TDSP charges into the residential electric rate so you have a total all-in bundled rate to look at. This bundled rate allows the Texas consumer to be completely informed of what the total rate will look like with all charges included. This total bundled rate will usually be in the electricity facts label.

Some Texas electric companies we know who advertise residential electric rates without including the TDSP charges in the bundled rate are listed below:

YEP Energy
Liberty Power

These companies have received several consumer complaints from their customers on our site claiming that they thought they had signed up on a bundled rate but found additional charges they were not aware of when receiving their first months bill. Since most Texas electric providers include all charges in a bundled format in their advertised rate on their site or other advertisement it has confused many consumers who than sign up with companies like YEP or Liberty Power who do not include the pole and wires charges in their advertised energy price.

Comparing Electric Rates With All TDSP Charges Bundled into Rate

If you would like to compare Texas electricity rates for residential homes and apartments that have all TDSP charges bundled into the rate then we recommend using the chart below. The comparison chart has several reputable electric companies in Texas without a history of hiding certain fees and charges from their customers. You can compare electricity prices with confidence when picking a provider from the chart below.

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Click Here to See the Highest Priced Texas Electric Providers

If you need to see the cheapest residential electric companies you can use the chart below.

These are Some of the Cheapest Dallas and North Texas Area Residential Electric Providers

All fees and charges are included in the below chart and all the electric companies in the chart are reputable stable residential energy companies in Texas. There are no hidden fees or fuel surcharges in these electric rates.

Electric Rates in all deregulated cities in Texas have come down quite a bit since last summer. Last summer a typical low cost electric rate at this time was around 16 cents a kWh for residential home owners and apartments. Now electric rates in the North Texas and East Texas area are priced at 10 – 11 cents per kWh for a 1 year fixed rate term. This is a very low price cosidering when last summer a residential electric rate in Dallas or Houston would cost anywhere from 16 – 31 cents per kWh. First Choice Power had a rate of 31 cents per kWh with some customers. We saw only a few months ago where Nueces Electric Coop was charging one of their customers 34 cents per kWh. We want to encourage residential Texas electric customers to not fall for a too good to be true rate offer but also to sign up for an exbortantly inflated electricity rate. Right now the name brand electric companies most Texas energy consumers are familiar with like TXU or Reliant are charging some of the highest prices in Texas. First Choice Power has come down from their high at 31 cents per kWh but they are still charging a lot when comparing their electric rate with several reputable discount electric companies.

A Quick Warning About Unbundled Too Good to be True Electric Rate Offers

Something to pay close attention to when deciding on a Texas electric rate is if the provider is hiding additional charges they do not make you aware of when quoting you a rate. For instance, Liberty Power advertises on the internet a residential Texas electricity rate that does not have the TDSP charges included in the energy price. We called Liberty Power to confirm what their energy price was on the phone and they did not disclose to us that there would be an additional 4 cents per kWh that would be added to the rate in the form of TDSP charges. We had to specifically ask them after the sales call if there would be an additional TDSP charges tagged on to the rate. Liberty Power also did not make us aware of a monthly service fee when quoting their residential electric rate to us. Their rate at the time that they were quoting was in the 7 cents per kWh range. Imagine thinking you were locking in at 7 cents per kWh to than get your first months bill that also contained 4 cents on top of that rate making the rate 11 cents per kWh and then add the monthly fee of $8.99 to that you have a rate in the 11.5 cents per kWh range.

It would be better for Liberty Power to just disclose to people what their rate is as well as what the customer can expect to pay in TDSP charges since most residential electric customers will pay about the same TDSP charge. Most residential electric companies in Texas will fix the TDSP charges and bundle them into their advertised electric rate. This means that most residential electric providers in Texas make their customers aware of all charges in an “all-in” quoted rate instead of just quoting the “energy only” portion of the rate. We hope this explanation can help you avoid signing up with an electric company that does not disclose all charges in their advertised price.

Your Energy Company Residential Electricity Facts Label

We visited Liberty Power’s site and they had no hard evidence of what their advertised residential electric rate is although you can sometimes find it on a Google or Yahoo ad that is just the “energy only” price. They had a quote form to fill out but no prices displayed anywhere on their site. We are very curious why they do not provide this pricing evidence on their website? A quick glance on another too good to be true offers shows that “YEP Energy” is advertising a “fixed rate” at 7.5 cents per kWh with a $4.95 monthly service fee in their facts label and displays what appears to be a total bundled rate at 10.1 cents per kWh for the Oncor Utility area which is Dallas, Fort Worth, North Texas, and parts of East Texas. When reading their facts label which most customers pass on reading we find that their total bundled rate is really not the 10.1 cents per kWh that it shows. I called YEP Energy and asked them what their rate was including TDSP charges and they said that the Oncor area rate is 10.1 cents per kWh but does not include the TDSP charges. She also went on to say she has “no idea what those charges are”. The issue is that providers know aproximately what those TDSP charges are for residential energy consumers and can easily give a close aproximate by saying 3 – 4 cents per kWh. Based on this conversation with this YEP Energy sales lady the rate would be 10.1 + 4 cents in TDSP charges = 14.1 cents per kWh. It doesn’t matter that these additional charges are coming from the TDSP company. The issue is full price disclosure on the main advertised splash page for the residential electric price. The customer should have a clear front page example of the total “bundled rate” that includes all fees and charges including the TDSP charges.

Take a look at a YEP facts label as of June 8 2009. You will see that they have a charge showing 7.5 cents per kWh for the Oncor Electric Utility area but then at the top for Oncor they show 10.1 cents per kWh. Now you would assume that the total bundled electric rate is 10.1 since you have a low fee of 7.5 cents per kWh in the document at the bottom but a few cents higher at the top where it says 10.1 cents per kWh. This would be a great all in bundled residential electric rate right now. Now we call YEP Energy and ask them if the 10.1 cent per kWh rate includes all charges. The lady on the phone says that the rate will be 10.1 cents per kWh but does not include the TDSP charges. She goes on to say that she has no idea what the TDSP charges will be? Even though it is an easy average to tell the customer she claims to not know. If you are a YEP Energy customer let me finish the sales call correctly. Customer: “So what is the total bundled rate including TDSP Charges?” Sales Agent: “The total charges if when adding an aproximate TDSP charge of 4 cents per kWh will be 14.1 cents per kWh.” Customer: “Why is it that almost all Texas electric providers that sell residential electric service offer a total bundled residential rate in their advertisement that includes TDSP charges but your company does not?” Sales Agent: “Well we know our bosses know what the average cost of these TDSP charges will be but we have been told to state that we have no idea what these charges are.” Customer: “Doesn’t this allow the customer to assume that the rate will be somewhere in the neighborhood of 10 – 11 cents per kWh when in reality it will raise the electric rate several cents higher?” Sales agent: “No comment!”

Highest Priced Texas Electric Companies

These are the highest priced residential electric providers in the Dallas, Fort Worth, North Texas and parts of East Texas area. This comparison will also serve for showing who is pricing the highest in the Houston area as well although prices will typically be a little higher in Houston than in the Dallas Fort Worth area. The electric companies in the below list are reputable stable energy companies but happen to be offering electric rates at much higher prices than several other residential electric companies. There are also some electric providers in Texas that are advertising much lower rates than these providers but have hidden fees and charges they do not readily disclose on their websites or over the phone. We need to hear from consumers who have been tricked into what appeared to be a low rate but is really much higher.

Click here to see the Cheapest Available Residential Texas Electric Rates

Have You Been Surprised By Undisclosed Fees and Charges on Your Electric Bill?

If you have signed up at a higher electric rate than you were advertised by a Texas electric company than please fill out this form and let us know. There have been several complaints by Liberty Power and YEP Energy customers that they were locked into an electric service rate much higher than what they were initially told. You may have been misled into an electric rate by one of these electric companies or possibly a different one we do not know about. Please feel free to let us know by filling out this quick form with your information.

Last Summer (2008) Some People Signed up at 15 Cents per kWh

Last summer a company by the name of Just Energy which also goes by the name of US Energy Savings Corp signed up many electric service customers to 5 year fixed residential electricity agreements. The reason so many Texas electricity customers signed up with Just Energy at 15 cents per kWh was because this was the cheapest rate when comparing 1, 2, and 3, and 5 year fixed electric rates.

Many did not realize that the summer of 2008 were some of the highest electricity prices in the Texas electric service markets history. By signing up for 5 years many Just Energy customers had locked themselves in at the highest time in the Texas energy market. Just Energy was not to blame for offering a 5 year fixed electricity agreement but consumers who decided to sign up for this long were strongly recommended by Electricity Bid to sign up for 6 months to 1 year even though the rate would be higher because it was our companies opinion that electricity rates would be coming back down. The summer of 2009 Texas saw some of the cheapest electricity rates we have seen but as of June it looks like the markets are heading back up again. We recommend 1, 2 and 3 year fixed rates at this time while prices are still low.

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Comparing Texas Electricity Rates in a Clear Apples to Apples Comparison Chart

Read the article below about deceptive trade practices regarding advertising a low Texas residential electric rate that does not include all charges such as TDSP charges, pole charges, and pass through charges. After your done reading come back here to this residential electric rate comparison chart that shows all charges in a total bundled rate in a clear apples to apples comparison. You can be confident that the rate you sign up on will be a total bundled electric rate with no surprise charges.

What is at The Root of the Confusion Involving Unbundled Residential Electric Rates?

In Texas you have commercial electricity rates and you have residential electricity rates. These electric rates and charges are all together different animals. Don’t be confused by assuming one is the other and don’t let a retail electric provider convince you that your wrong about a confusion involving TDSP charges added onto your electric bill. Texas commercial electric rates are usually quoted to a energy consumer as an “unbundled rate”. This means that the quoted commercial electric rate does not have the TDSP charges (pole charges) added into the rate. The reason the charges are not quoted initially when receiving a commercial rate quote is because the electric company does not know what they are for that specific business. TDSP charges are figured based on actual or historical usage and differ from one company to the next.

TDSP charges for commercial businesses are not a fixed charge because they are based on the amount of electricity you use on any given month. The charges are past through by the monopoly utility that owns the poles and wires and so the provider isn’t even in control of what these charges will be but only passes them through on their electric bill to the consumer. A  fitness studio gym might spend on average about 7 cents per kWh for TDSP charges on top of their “energy only” rate. A large chemical or manufacturing plant might spend 1 – 2 cents per kWh on average for TDSP charges. Generally the larger the commercial or industrial business the smaller on average per kWh the TDSP charges will be.

How TDSP Charges Work for Residential Energy Prices

Now lets consider residential electric rates and TDSP charges. Most Texas electric providers will quote you an all in electric rate that includes the TDSP charges in the rate. You may wonder how a residential electric provider can quote the TDSP charges as a part of the electric rate if they vary from one customer to the next? The answer to this question is that most Texas electric companies will bundle the two charges together before ever knowing what the residential energy consumer uses because they know on average what the historical average is for most residential customers. Since most home owners average about 1,300 kWh a month a Texas electric company can fix the TDSP charges and go ahead and bundle those charges in their advertised residential electric rate. Now even though we say that most residential electric companies in Texas bundle these pole and wires charges in their advertised rate does not mean that all do. The fact that not all residential electric companies include the TDSP charges in their rate is the issue many Texas energy consumers are facing and it has defrauded them out of hundreds of dollars.

Why do Residential Electric Service Customers Sign up for Unbundled Energy Service Products?

By signing up for an unbundled electric rate you are kind of flying blind with no real knowledge of what the final rate will be. You are not to blame as you probably had no idea that there would be additional pole and wires charges added on to the rate. The confusion comes in when a Texas residential energy consumer compares electric rates from several electric companies and finds a rate that is much much cheaper than all the other companies they have looked at. The rate says that it is a fixed electric rate and the company seems to be a large company in several states so the customer feels reassured that they are signing up on a legit rate. So lets say that the customer finds a 1 year fixed electric rate at 7 cents a kWh. This sounds amazing right now and is several cents cheaper than all the other electric companies. They wait and get their first months Texas electric bill only to find that the actual rate they are paying is 13 cents a kWh. Somewhere along the way they must have missed something when signing up with the electric company so they call to find out what the problem is. The customer calls and the sales agent tells the customer that their rate is 7 cents a kWh but the “pass through charges” also known as TDSP or pole and wires charges are an additional 3 – 6 cents per kWh on top of the “energy only” rate you agreed to. The funny thing is you were never notified about these additional charges and so you argue towards that direction only to hear the provider say, “We are not the TDSP company and only pass through those charges from the pole and wires company that owns the wires. Our charges are the “energy only” charges which is the rate you agreed to.” So all of the sudden the blame goes to the pole and wires company which is Centerpoint Energy in the Houston area and Oncor Electric Delivery in the Dallas Area. The electric provider even encourages you to call the pole and wire company if you want to complain about the charges.

The Pizza Guy on the Phone Gets You Into a Never Ending Circular Argument

Do you see what the electric provider has done? They have shifted the blame over to the pole and wires company for their misleading advertised electric rate. So even though you were under the impression that your total bundled rate was 7 cents per kWh the electric company is blaming you for not understanding that there was an additional pole and wires charge. If you complain to Johnny Pizza Guy that you were not notified about the charge the Texas energy provider may even shift the blame over to the pole and wires company so they get you off the phone and continue signing up more suckers for their misleading electric rate. Do you really think Johnny who gets paid $9 an hour really cares about your plight over your higher electric rate? He probably doesn’t and needs to keep his calls under 15 minutes so that he keeps his job and the energy provider meets their call center metrics.

You Take the Bait and Call the TDSP Company Which Gets You No Where

So you call the pole and wires company and they are no help at all as they don’t even deal with the retail side of the market. They handle disconnects, turn on’s, move in’s, new construction and such. These TDSP companies do not sell electricity and so when you call complaining that you were charged a very high TDSP charge they direct you back to the retail electric company that did not properly notify you of the charge. So you call the retail electric provider that sold you the misleading residential electric rate and the argument starts all over again. You complain that you were told the rate would be 7 cents per kWh but the bill states the rate is 13 cents per kWh. They explain that “their rate” is 7 cents per kWh but the “TDSP Charges” are 6 cents per kWh and come from a different company. You explain that you just called the TDSP company and they told you to call back your retail electric provider to complain. The electric provider blames the pole and wires company for requesting you call them back and explains again that they only pass through the TDSP charges but have no control over what those charges will be.

Only a Handful of Electric Companies in Texas Advertise an Unbundled Residential Electric Rate

So what is really going on here? There are only a handful of Texas electric companies that do this practice of misleading the customer into an electricity rate that seems several cents cheaper than it really is. If we were to name some of these energy companies in this article we could potentially get into some legal trouble as we have made some rather troubling statements that may not be within the necessary realm of legal accuracy. For the time we will refrain from naming names of exactly which electic companies in Texas participate in offering a rate that only appears low but is really much higher. Instead we encourage any customer that has been defrauded to post a comment with your exact experience in order to warn other consumers to stay away from the electricity providers who practice this slimeball advertising tactic.

Challenge the Electric Company With a Sound Argument About Pole and Wires Charges

If you engage in an argument with a Texas electricity provider that operates in this manner you will go round and round in a circular argument about how their rate is accurate and is the “energy only” rate and that the TDSP charge is something they are not responsible for. You might want to ask this provider, “why do most Texas electric companies go ahead and bundle the TDSP charge into their advertised fixed residential electric rate so that Texas energy consumers know exactly what they will be charged?” Who knows what the pizza guy will tell you on the other side of the phone from here but you get my point. They really won’t have a good answer for you. If you want to compare residential electricity rates that have all fees and charges, TDSP, and pole and wires charges disclosed without the hidden fees and unquoted pass through charges then please use the comparison chart at the top of this page. We have all fees and charges included in the electric rates in the chart and the companies in the comparison chart are reputable quality energy companies to do business with. By comparing Texas electric rates in an apples to apples comparison with multiple other energy providers you can make a clear informed decision and truly go with the cheapest electric provider in Texas. Again we promise you will not experience the surprises that you may have had with a disreputable electric company that did not disclose your TDSP charges in their advertised energy price.

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Liberty Power

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