Should I lock my power rate in?

targa911S · 02-15-2012, 12:43 PM

Ok I'm really stupid about this kind of stuff..so that said.
Right now I am getting my power from Penn power at a rate of $7.49 per KW hr.
I am not on a budget.
I got an offer from First Energy, a competing power company, to lock my rate in for the next 2 1/2 years at a rate of $6.99 per KW hr. Also not on a budget.

Now if in that time my original provider, Penn power, lowers their rate to below my lock of $6.99 PKWH with First Energy, it won't matter and I'm stuck with $6.99 for the rest of my term.

If for some reason First Energies rate goes below my lock, I can re-negotiate my rate with them, but I think that extends my term again for another 2 1/2 year deal.

Can anybody share any experiences with this kind of stuff? I did this with my gas company and got burned( no pun) pretty bad.

What say ye wise oracle?

HHI944 · 02-15-2012, 12:58 PM

You have a choice in power company?!?!? Sonofa ........

targa911S · 02-15-2012, 01:02 PM

I think First Energy is a "broker" really.

targa911S · 02-15-2012, 03:43 PM

nobody? really?

speedracing944 · speedracing944's Garage

Are you sure it is not $0.0699/KWH?

$6.99/KWH would be very very very excessive.

Speedy

Superman · 02-15-2012, 03:57 PM

I have some deep, deep concerns about the upcoming "deregulation" of electric power. How did the telecommunications "deregulation" work out for you guys? Cheaper phone bills and better service? Yeah, right.......

Next: Water supply "deregulation."

74-911 · 02-15-2012, 04:06 PM

Quote:

Originally Posted by Superman

I have some deep, deep concerns about the upcoming "deregulation" of electric power. How did the telecommunications "deregulation" work out for you guys? Cheaper phone bills and better service? Yeah, right.......

Next: Water supply "deregulation."

I would jump at .069 per KWH. You can't touch that in this area. My rate usually runs around .10 per KWH or more and that is through a member owned co-op.

TX "deregulated" electric power in 2002 and it's a frickin mess (IMHO anyway). You have wholesalers, retailers, fixed rates, variable rates and in this area alone I must have 100 different plans available and few are actually apples/apples comparisons and you better read the fine print very carefully. And by the way, our rates have gone nothing but up and service nothing but down. If you have billing issues you call your "retailer", if you have power issues you call your "wholesaler" and sometimes you just throw up....

targa911S · 02-15-2012, 04:18 PM

See now that's got me thinking too Jack. There is talk of shutting down two coal fired plants in Eastern Ohio. I'm in western PA. So I'm sure, as they all buy power from each other around here, that it will effect my price as well.

Neilk · 02-15-2012, 05:02 PM

Quote:

Originally Posted by 74-911

I would jump at .069 per KWH. You can't touch that in this area. My rate usually runs around .10 per KWH or more and that is through a member owned co-op.

TX "deregulated" electric power in 2002 and it's a frickin mess (IMHO anyway). You have wholesalers, retailers, fixed rates, variable rates and in this area alone I must have 100 different plans available and few are actually apples/apples comparisons and you better read the fine print very carefully. And by the way, our rates have gone nothing but up and service nothing but down. If you have billing issues you call your "retailer", if you have power issues you call your "wholesaler" and sometimes you just throw up....

+1

Now you have a single wholesaler selling power to the resellers who then sell it on to me. Since there is only one wholesaler, everyone has their own marked up rates. So all this "competition" is really artificial. Just a different company marking up the same product. Only people doing better are the resellers.

patssle · 02-15-2012, 05:27 PM

Ah yes, good ol' degregulation. It's been a real wonder for Texas! Not.

Predicted brown outs coming this summer. Oh boy.

targa911S · 02-15-2012, 05:34 PM

damn this is getting depressing.

Hugh R · 02-15-2012, 05:44 PM

Top tier in LA is $0.35/KWh

red-beard · red-beard's Garage

Quote:

Originally Posted by Superman

I have some deep, deep concerns about the upcoming "deregulation" of electric power. How did the telecommunications "deregulation" work out for you guys? Cheaper phone bills and better service? Yeah, right.......

Next: Water supply "deregulation."

Supe, you have totally forgetten what AT&T was like before the breakup.

Here is a clue, from Saturday Night Live

Superman · 02-15-2012, 06:06 PM

Yeah.....there was a brief power deregulation event in California a few years ago that didn't leave many happy campers.

For the most part, we (the people) built the transmission and distribution grids and nearly all the generation facilities (certainly all the dams), and now we want to have private companies using these systems (which we paid for) to sell us our electricity at a profit? I guess there's one born every minute.

And again, the really cool "deregulation" thing in out future is the water supply. "They" REALLY REALLY want to get their hands on that.

Superman · 02-15-2012, 06:08 PM

I remember SNL and I remember Ma Bell. One was a utility that built a communications infrastructure system, and the other was a parody/comedy. Now......I accept that in PARF there is little difference in these subtle distinctions but in the real world, the difference is actual.

red-beard · red-beard's Garage

Quote:

Originally Posted by targa911S

See now that's got me thinking too Jack. There is talk of shutting down two coal fired plants in Eastern Ohio. I'm in western PA. So I'm sure, as they all buy power from each other around here, that it will effect my price as well.

I'm paying $0.089/ kWh, which is very good for this part of Texas. $0.069 is a good rate. Locking it for a couple of years is pretty darn good. I do not expect that energy prices are going to be going down anytime soon. And yes, the EPA is pushing to shutdown many powerplants around the nation, without concern for if it will hurt grid stability.

patssle · 02-15-2012, 06:13 PM

Quote:

Originally Posted by Superman

Yeah.....there was a brief power deregulation event in California a few years ago that didn't leave many happy campers.

For the most part, we (the people) built the transmission and distribution grids and nearly all the generation facilities (certainly all the dams), and now we want to have private companies using these systems (which we paid for) to sell us our electricity at a profit? I guess there's one born every minute.

And again, the really cool "deregulation" thing in out future is the water supply. "They" REALLY REALLY want to get their hands on that.

You guys should let Enron run your power grid - they'll do a great job!

red-beard · red-beard's Garage

Quote:

Originally Posted by Superman

Yeah.....there was a brief power deregulation event in California a few years ago that didn't leave many happy campers.

For the most part, we (the people) built the transmission and distribution grids and nearly all the generation facilities (certainly all the dams), and now we want to have private companies using these systems (which we paid for) to sell us our electricity at a profit? I guess there's one born every minute.

And again, the really cool "deregulation" thing in out future is the water supply. "They" REALLY REALLY want to get their hands on that.

Supe, they didn't fully deregulate in California. I was involved in that business. They cut all long term contracts for the electric producers, then forced fixed regulated rates on the utilities for the people. It ended up just like gasoline when price controls were instituted by Carter.

red-beard · red-beard's Garage

Quote:

Originally Posted by Superman

Yeah.....there was a brief power deregulation event in California a few years ago that didn't leave many happy campers.

For the most part, we (the people) built the transmission and distribution grids and nearly all the generation facilities (certainly all the dams), and now we want to have private companies using these systems (which we paid for) to sell us our electricity at a profit? I guess there's one born every minute.

And again, the really cool "deregulation" thing in out future is the water supply. "They" REALLY REALLY want to get their hands on that.

You really don't know anything about the power gen business. Most of the transmission systems were privately built. Most power generation in this country has been privately owned but heavily regulated. That continues to this day. "The People" if you are meaning "The Government" did not build it. Yes, many dams in the late 1920's and 1930's were government built.

Superman · 02-15-2012, 06:27 PM

Quote:

Originally Posted by patssle

You guys should let Enron run your power grid - they'll do a great job!

LOL!

Dave, I am somewhat regretful for raising these issues in your thread and you'd be righteous to chastise me, but I couldn't help it. Electric power deregulation scares me a great deal.

I have been in the public works construction business for more than twenty years now, which includes substantial electric power infrastructure. I stood in the main powerhouse at Grand Coulee with SIX, count 'em....SIX 50-foot diameter generators, each one capable of powering a city like Seattle or Portland. Two would power Los Angeles.

Each time I have been in contact with people who understand this specific industry, I have asked a simple question. How will electric power deregulation benefit the residential consumer? Nobody........NOBODY has suggested to me a single benefit to the simple residential consumer. Electric power deregulation is about lowering costs for huge power-consuming facilities like aluminum rolling plants, while raising prices for small customers.

My advice......bend over......it might hurt less.