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Utility De-Regulation
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Average: 8.3 (3 votes)

In various parts of the country many utilities are becoming de-regulated.  For most parts of the country, this first occurred with phone service - specifically "long-distance services".  Later, data services became deregulated and for some basic phone services.

Now your could buy the same phone and data services from different vendors at different rates with different levels of service.  All running on the same wire.

In Texas, a couple of years back, electricity was deregulated.  TXU became a billing company - seperated from the actual provider.   Reliant Energy sprang up almost immediately offering lower rates.  Soon after other companies sprang to life offering various packages at various rates depending on factors such as sliding cales based on usage or preferential sourcing - "Green Energy" from companies like Green Mountain Energy or Hudson Engery Services.

Last year, TXU sent representatives out door to door.  The represetative I spoke with, while still a customer with TXU, indicated that it was TXU's intention to double the price per kilowatt hour for those not in a structured plan.  Electricty at the tiem was around 13.8 cents per KWH.  We sign a contract for 3yrs for 11.5 based on our usage - which is high for most families - almost the size of a business account.  We are still a customer because of the contract.

Recently I found that the MLM industry has also taken a dive into the energy market place.   In Texas, Stream Energy is offering rates as low as 11.4 cents per KWH and introductory rates as low as 10.5 cents per KWH for some promotions.  In addition to the low rate, people can choose to be representatives to the comany and in getting their friends, neighbors and relatives to switch to Stream, they actually make money. 

So far a win-win. People get lower rates, people make money, the company makes money, and the customer base for the company grows. 

Personally, I am involved with several MLM.  I don't push them or their products (My upline hates me for that).  I like the products, I use the products, When other ask about the products or have a problem the products may help with, I recommend specific products, and if they are interested in regularly using the products, I recommend becoming a distributor to reduce their cost and who knows, they might make a little money too. 

My MLM's (in case your interested):

As more states deregulate, it has been reported that Ignite: Stream Energy is or will be seeking licensing in those states as well.  So for representatives in Texas, that puts them on the ground floor of a sales operation that could potentially go national. Cha-ching!  Georga has de-regulated both gas and electric!

Information on Ignite's Stream Energy offerings in Texas and opportunities can be found here: <click here>

So what changes if we switch?  Well for most, with existing service, it is free, for new service a small deposit may be required.  The electricity continues to come in on the same lines withthe same people maintaining them.  Owned by a company that is not TXU - since TXU is only another billing comany now.

So what do you do?  Go for the best deal you can get for the longest time.  If your not planning on stayin gin a location for very ong, you may want a month-to-month plan with may have the lowest rates initially, if you are not planning on moving in the near future, then a longer term more stabil plan may be a better choice.

One thing we know for sure, rates are changing, costs are up.  To ensure a stabil budget for the future requires a decisive plan of action in utilities, vehicles, mortgages, rents, insurance, food, and more.  Only one plan that we reviewed gave the incentive of being a source of income.  Although other plans may have some lower initial rates, they do not provide any affiliate program for promoting.  Adding a source of income, when weighed against the utility bill itself may be a huge motivating factor in for change. 

Many of these copaies only service Texas, some are getting licensing in other states that have deregulated.  Please check with the companies you are interested in working with to verify whether they operate in your state or region.

Attached is an Excel document from 03/17/08 with current rates and offerings from several licensed billing comapnies in Texas taken from:  http://www.powertochoose.org

Quote of the Day

"Life is sometimes hard. But pride, distraction, doubt, and guilt lead us ever further from the goal, which is an opening of the mind to the Infinite. Yet overcoming these obstacles can be our greatest opportunity to practice the four qualities of consciousness. Kavvanah (intent), ratzon (will), msirah (surrender), and devekut (rapturous union), leavened with a liberal dose of humor and patience, are the foundation of spiritual practice."

— Avram Davis

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