Save with a Texas Electricity Broker

Save Money By Using an Electricity Broker in Texas : 

Save Money By Using an Electricity Broker in Texas By: Adam Bulyar CEO PowerServ Energy Advisors, Inc.

What is an Electricity Broker? : 

An electricity broker is a company or individual that facilitates the sale of power to customers, but does not sell for one electricity company. They shop terms and rates from multiple electricity providers at wholesale prices. (They do not supply any of the power sold.) What is an Electricity Broker?

What is Texas Energy Deregulation? : 

What is Texas Energy Deregulation?

Power to Choose : 

The deregulation of the electricity industry in Texas became effective on January 1, 2002, and gave customers the opportunity to select the supplier/REP of his/her choice. The PUCT (Public Utilities Commission) refers to this as the “Power to Choose” Power to Choose

Price to Beat : 

Customers who remain with the incumbent provider (called the Affiliated Retail Energy Provider (A-REP), will pay the rates set forth by the PUCT. These rates are known as “The Price to Beat”. This rate will vary from market to market and may fluctuate. The A-REP must file for a rate increase with the PUCT. These requests may occur twice per year. Price to Beat

Customers have Choice : 

Before deregulation, the local utility supplied electricity and delivered it to homes and businesses through their poles & wires. After deregulation, the local utility still delivers electricity, but customers can choose who supplies it. Consumers are no longer supplied electricity by the local utility. The local utility will continue to deliver the electricity to all customers and will also provide emergency services, meter reading, etc. Customers have Choice

Billing : 

Billing may be one of two ways: The first scenario is that you will receive two separate bills – one from your distribution company (the local utility) and another from your new power provider.  The second scenario would be a detailed single bill that includes both combining the distribution company’s charges and your new provider’s charges. This will depend on the provider that you choose and their particular arrangement with the distribution company (local utility). Billing

Similarities to Telecom : 

A similar analogy is the deregulation of the Telecom industry. The phone company (local utility) still maintains the poles & wires. Consumers, however, can choose who provides their local and long distance calling. Similarities to Telecom

Deregulation Overview : 

BEFORE DEREGULATION: Deregulation Overview Local Utility (TDSP) Maintains poles & wires Reads meter Supplies electricity Each customer chooses who to buy electricity from Customers can switch providers Bills customer AFTER DEREGULATION: Retail Electric Providers (REPs) rates for electricity vary and they compete for customers. Consumer

Deregulation at Work : 

Since 2002, approximately 85% of commercial and industrial customers in Texas had switched power providers at least once. Approximately 40% of residential customers in deregulated areas of the state have switched from the former incumbent provider to a competitive Retail Energy Provider. Deregulation at Work

What factors are important when choosing a Retail Energy Provider? : 

What factors are important when choosing a Retail Energy Provider?

Registered or Approved : 

The provider should be Registered or Approved by the state public utility commission in each area or jurisdiction. To maintain Uniform Business Practices, each state utility commission must approve only valid and credit-worthy providers. Each provider must prove it meets a standard of particular credit, billing systems, and minimum legal requirements. Registered or Approved

Innovative and Simple Products. : 

The provider should offer Innovative and Simple Products. At a minimum, the provider should offer Fixed and Indexed products. A fixed (locked-in price) contract may be better for those who prefer a conservative approach. Conversely, a monthly indexed product has pricing that can be attractive, but can rise and fall with market changes. Therefore, should be carefully considered because of potentially large fluctuations in billing. In comparison, you might think of it like a fixed versus an adjustable rate mortgage. Additionally, you may want providers offering other products such as green alternative energy solutions. Innovative and Simple Products.

Fair and Balanced Contract : 

The provider has a Fair and Balanced Contract. The contract is the provider’s method of outlining its terms and conditions or transaction details. A contract should follow a standard legal format. Customers should request a simple explanation of terms and conditions (a one-page summary is convenient). Customization of a contract can be important as well. Meaning, there are sometimes options within the contract needing serious consideration. Fair and Balanced Contract

Competitive Price : 

The provider ought to offer a Competitive Price. You should get multiple bids. Evaluate each bid for product specifics and risk factors (i.e. fixed vs. variable, 12 or 36 month terms). The lowest bidder may not always be best. Abnormally low bids can suggest the potential of hidden costs, added risk, or price volatility. Hidden costs can be items such as meter fees or early termination fees. Long-term customer retention is not generated by signing the next contract alone. Instead, it comes from servicing the customer efficiently and with integrity. Competitive Price

Reliable, Timely, and Accurate billing : 

The provider presents Reliable, Timely, and Accurate billing. The bill should appear clear and concise. Ask to see a sample bill to better understand how charges may appear each billing cycle. Take note of any penalties for late payments. Additionally, it is helpful to review how the provider resolves billing disputes. If a discrepancy occurs, it’s best to pay the undisputed amount of the bill first and then settle the disputed amount within ten business days. Lastly, customers should get their bill at the same time monthly. Reliable, Timely, and Accurate billing

Financially Stable : 

The provider needs to be Financially Stable. Providers perform a credit check on its customers, so consumers should do the same of prospective providers. A provider should have a good Better Business Bureau rating. You can also check out a company’s Moody’s or Dunn & Bradstreet rating. Don’t be afraid to ask for a copy of your prospective provider’s yearly financials. Financially Stable

Industry Experience : 

The provider should have considerable Industry Experience. Longevity is a vital factor when choosing a strong provider. A reputable company includes an experienced management team. Customers should look for a company with a sustained history of performance in retail electricity. A company’s willingness to embrace technology can be a considerable indicator of future performance, including whether they will keep up with changing industry trends. Industry Experience

Professional and Effective Customer Service : 

Provider’s service should be based on a solid commitment of Professional and Effective Customer Service. Customer service really begins once the contract has been executed. First, a seamless transition from one provider to the next often spotlights the operational capability of a provider. The best providers can deliver a simple enrollment plan, describe its complaint resolution plan, present accurate contact information, and measure its customer satisfaction. In fact, some states publish helpful consumer complaint records that list monthly rankings of customer service. When there is a strong commitment of excellence starting at the top in an organization, it becomes evident in the way a client is treated. Professional and Effective Customer Service

Electricity Brokers do the research for you. : 

Many business owners find there are too many demands on their time that interfere with their top priority: Running their business. We will help you by taking a time intensive project off your plate and providing you with a turnkey solution. A electricity broker uses their industry resources, experience, and technology to view and analyze your company's usage. Then, they will shop multiple electricity providers, and provide a comprehensive quote for you, usually within 24 hours. They'll find cost savings on your electricity, leaving you free to work on your core business objectives. It's that simple. Electricity Brokers do the research for you.

Does it Cost More to Use an Electricity Broker? : 

We have no affiliation to one particular company, so you will receive unbiased advice on the best options available. As all electricity brokers are paid by the electricity provider and not you, we can shop the top electricity suppliers and provide custom quotes at no cost or obligation to your business. Why are we a better option than going directly to a retail provider? It’s because we have the advantage of receiving wholesale rates and we can keep our overhead costs to a minimum. We pass along the discount price breaks that translate into the much lower electric bills. In the past, customers would have to contact many different retail providers, and then compile comparable data to make a decision. Does it Cost More to Use an Electricity Broker?

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Save Money By Using an Electricity Broker in Texas Brought to you by: PowerServ Energy Advisors, Inc. Adam Bulyar CEO adam@powerservenergy.com www.PowerServEnergy.com Copyright © www.powerservenergy.com