Posted on 02/12/2011 11:49:58 AM PST by dragnet2
DALLAS — Customers who are not locked into a contract with their retail electric provider could end up with much higher bills after rolling blackouts in many parts of the state on Wednesday.
"The people on variable rate plans are probably going to see the worst of it," said Tom Smith, state director of the watchdog group Public Citizen, Inc. "Their bills are going to go up to reflect the very high prices that were paid on Wednesday morning."
Electricity gets bought and sold daily.
Retail providers like TXU buy extra wholesale electricity from power plants scattered around Texas.
On most days, Smith said, providers pay about $45 per megawatt hour. The Electric Reliability Counci of Texas said a single megawatt can power 200 homes during extreme temperatures.
But during the rolling blackouts on Wednesday morning, the price of wholesale electricity skyrocketed. Power plants charged providers the maximum: $3,000 a megawatt hour.
That's 66 times higher than usual.
Customers without contracts are billed based on the fluctuating market prices. That means next month's bill could be big.
Does that mean $50 to $100 more? Smith said it's hard to tell.
"How much will depend on how cold the rest of February is."
It will also hinge on whether the state faces more rolling blackouts.
Customers who are locked into a contract will see a much smaller increase in their next contract, though it will likely be unidentifiable, experts said.
(Excerpt) Read more at wfaa.com ...
Good grief!
Thought you might be interested!
I avoid variable plans like the plague.
Who's in charge over there - Obama?
The Texas Utility Commission should have been fired the day after the black-outs for not doing their job. The power plants that froze up because of lax winterizing should have to pay for the outrageous rate hike. The customers should not have to pay for the negligence of these money grubbers when all the consumers did was try to keep their elderly and children warm.
Or those plans like in CA where you give them permission to control your thermostat during times of high usage for a few cents off...No way.....The AHs will turn around and charge more anyway...
Maybe Texans will wake up and stop electing open-border RINO scum like Kay Bailey, Cornyn and Rick Perry. They are all LBJ Republicans. Scum.
Good luck...Half the population in CA seems to be drooling in cups...The other half seem to work in government in one form or another and are on the government payroll...Of course this goes for about half the U.S. population now...
Amen. FIRE THEM ALL!
What we need is for Obama to shut down the coal industry and force us all to drive electric cars and that way, no house will have electricity. heh
It’s a scam whether you are locked into those contracts or not. I have been on them and every time I do my prices do not go lower as was told to me by the rep. They suddenly go higher with them giving excuses.
“If I’m elected, the price of energy will skyrocket.”
A campaign promise The One has kept.
Here in PA I kind of liked the way it was when the electric co generated their own electricity, it was consistent for an extended period, and they were a monopoly that had to prove they needed a rate increase. But then politicos got together with the lobbyists and helped us out with residential electric deregulation, which effectively became a license to raise rates at will. My rates are up almost 35-40% in the last year. Who is benefiting?
Here is one area that I think should be price controlled by one State agency. All electricity created should be considered a necessity for life. All power plants should be under control of the States for construction and type of energy to create this power. Everything should be taken out of control of the Federal Government.The sale of power should be allowed to cross State lines which could be subject to competition. This damn Federal control is destroying America.
Looks like I got it wrong. Sorry.
Maybe Texans will wake up and stop electing open-border RINO scum like Kay Bailey, Cornyn and Rick Perry. They are all LBJ Republicans. Scum.
Texas has the most deregulated, free market electric power grid in the nation.
That way they can *easily* restrict travel in the U.S....
It is allowed.
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