Electrical rates, Smartmeters

At a recent City Council meeting, I heard from a resident who was paying $0.13 per kilowatt-hour. If you are paying anything over $0.10 per KWH, I recommend that you go to the powertochoose website and review what electrical plans are available (just enter your zip code). You usually do not have to change electrical providers to switch plans and get a new rate. I would recommend you look for a natural gas-based plan that your current provider probably offers, as they tend to be cheaper than other options.

About 18 months ago I found myself with a $550 power bill. I hadn't paid attention to the rates I was being offered and had signed up for some promotion Reliant was doing. But when the big bill came, I noticed I was paying $0.18 per KWH! Looking around the Reliant website, I saw a natural gas-based plan called Powertracker, with a rate at that time of $0.063 per KWH. There were no fees or traps involved, and my power bill immediately dropped drastically. Since then, the rate has crept up to $0.10 per KWH, but that is still better than most plans can provide.

The strange thing is that nothing in the world changes except your electrical bill. I don't think the power companies feed in more natural gas and less coal when you click the boxes on the website. It's almost like a video game...

Note added 7/25: In checking my plan I noticed that it had crept up to $0.115 per KWH, so I switched to another Reliant plan at a rate of $0.101. You do need to pay attention to whether the rate is variable or fixed, what the duration of your commitment is, what fee may be imposed for changing plans before the commitment period has expired, and whether e-billing (direct withdrawal from your account) is required. When changing providers, it is possible the new provider may ask for a deposit, possibly substantial.

On a related subject, a Smartmeter was installed at my house yesterday. At least one neighbor received one too, so I think its now Woodway's turn to get these. There was a notice on my doorknob instructing me to contact my provider for details. So I called Reliant, but they didn't seem to recognize the display on my meter and were not at all helpful. But it allows the electric provider to read your meter continually. One thing this means (thanks to Councilman Don Baker for pointing this out) is that the provider can (and I'm sure will) charge more for electricity at peak times (basically when most people are getting ready for work or getting home). In theory, it also allows you to minimize your usage by letting you see in real time what your home's demands are. We'll see how that works out. There is a $2.21 per month charge for the next 11 years ($292 total) for the Smartmeter that will be on your bill. You can find out more about the general idea here or visit the Oncor site here.