Posts Tagged Texas Energy

Light Companies in Texas

Wednesday, March 2nd, 2011 | Permalink

Energy consumers can choose light companies in Texas from various competing electricity suppliers.

The benefit of states offering electric choice is the ability to pick from various electricity rate plans to find the one that fits your situation.

For some the hassle of coming up with the money to pay an electricity deposit is too much to deal with especially when you have to stand in line with the Department of Health and Human Services to get the state to assist you.

There is a program called Lite-Up Texas that can help you with lowering the price of your electric service but no deposit choices are handled by the Department of Health and Human Services.

If you want to avoid working with the state government you may also look at our no deposit electric choice options in Texas by using the compare chart at the top right. Enter your zip code to begin and click on “Compare”

When speaking with light companies in Texas about the Lite-Up Texas program they usually have limited information to share about the program.

The Lite-Up Texas program comes and goes based on seasonality and usually starts up during the summer.

The program is mainly for reducing the cost of your electric rate with whichever TX electric company you choose.

You will be able to get better information by calling Lite Up Texas directly rather than trying to garner this information from the electricity company.

Texas light companies have a hard time dealing with reconciling what their customers pay with government assistance programs and for many providers it is simply a hassle they would rather not deal with.

Unfortunately the Light Up Texas program does not support paying your deposit although The Department of Health and Human Services can assist greatly.

The problem is that the government of Texas is not the easiest thing to deal with either and so when trying to lower the price you pay your electric company and getting the deposit waived you may have to spend an entire day getting this all done.

An alternate idea to not have to pay a Texas electricity deposit is to choose a prepaid electricity company. Prepaid Texas electric suppliers offer a service that uses the new electric smart meters.

The customer simply inserts a charged debit card specifically designed for a prepaid device installed on your meter.

You buy these cards with money already on them in a similar way you would buy a Walmart gift card.

The money is deducted as you use your electricity and so there is no need to have your electricity usage estimated.

Prior to these prepaid devices being used prepaid electric light companies would estimate your electric usage and charge you based on what the previous tenant used.

Many of these prepaid electric companies in Texas went out of business and so any refunds you had coming to you were simply kept by the executives of these no deposit electric providers.

With new smart meter electricity prepaid technology there is no longer a risk associated with losing money sent to your prepaid electric company because you pay for the exact usage and nothing more.

To sign up with a no deposit prepaid electricity supplier in Texas start by using the electricity comparison chart at the top right. Once you have entered your zip code and clicked on “Compare” you will need to go to the “no-deposit” tab.

Credit risk and why electricity suppliers want a large deposit

Thursday, January 13th, 2011 | Permalink

When an electricity company asks you for a large deposit it can seem unfair especially considering many people have just finished up paying a large deposit for their home or apartment lease.

Most traditional electricity companies sell you electric service without demanding a large upfront payment. If your credit is bad these electric companies will ask you for a deposit but they still will wait to charge you for your electricity consumption after 30 days of you using their electric service.

If you think about it you actually may have 30 – 45 days to pay your electric bill during some billing cycles and what products can you buy that allow you that many days to pay for something you have already used?

Even still, although you get to wait 30 days to pay your electric bill the large electricity deposits are out of many peoples budgets. These deposit amounts can range between $200 – $500 for residential customers and can be several thousand dollars for commercial and industrial businesses.

Often times you will not see that deposit money back for a good 6 months to 1 year or until your credit score drastically improves.

In the same way you must contend with credit issues and deposit amounts many of the electricity companies that sell you electric service have to deal with the same thing.

When a power generator sells power to a local electricity company in your area, it will deliver the electricity power to the utility and wait for payment which may be 30 days later.

During this 30 day period the power generator assumes the risk that the local electric utility may not pay their bill for the power they sent out to your home or business.

The power generator is exposed to even more risk considering in states like Texas energy prices are extremely volatile. During that 30 days there could be a drastic shift in the cost to generate that power at a steam driven natural gas power plant.

Because electricity markets are regulated some of the power generation facilities may not be able to pass on an energy commodity price increase on to their customers.

If the local electric utility company does not pay their bill after that 30 day wait period it can have a cascading effect causing a series of defaults throughout the energy cycle.

Because of the series of business events that take place to make sure people receive electric power to their homes and businesses everyone has to pay their bill on time.

The risk is spread out in regards to credit by having thousands of electric service customers who don’t meet a credit score requirement post a large deposit.

There is over a 50% default rate among those in a certain credit score range and you would be surprised to know that score number isn’t even all that bad.

Because of the likely hood of customers defaulting on their electric bills thousands of us post deposit amounts to our electricity company.

These deposits limit the amount of risk to the electric company and not only allow them to continue to make a profit but to simply keep their doors open.

Due to thin profit margins associated with the sell of retail electricity service deposits are a necessary evil as much as we all hate them.

Please sign up at the top right to have an energy consultant send you a proposal for commercial or residential electric rates from multiple providers in your area.

Electricity Suppliers