Mon Jun 4, 2012, 03:15 PM

Dereg and Rates to triple, Break contract

The solution? Allow prices to rise. And that’s why, despite a decade low in natural gas prices, which account for most of the state’s generation, and falling coal prices, electricity rates are going up across most of the state this summer. The prices increases won’t bring new generation online fast enough to prevent possible shortages this summer, but hey, you have to start somewhere.

So 10 years into the deregulation fiasco, we’re looking at a summer in which consumers, having endured years of high prices, can expect them to only go higher; retailers may not be able to afford to honor their customer contracts and generators may not be able to afford to keep the lights on.

This is “moving in the right direction”?
http://fuelfix.com/blog/2012/06/01/steffy-electricity-prices-could-be-a-rising-target-for-texans/

http://fuelfix.com/blog/2012/06/01/steffy-electricity-prices-could-be-a-rising-target-for-texans/

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5 replies	Author	Time	Post
Dereg and Rates to triple, Break contract (Original post)	white cloud	Jun 2012	OP
Companies asking to change fixed-rate contracts	white cloud	Jun 2012	#1
Yes, considering the current $3000 contract is triple what FERC allows in the rest of the country.	mbperrin	Jun 2012	#2
"deregulation fiasco"	sonias	Jun 2012	#4
If a contract is legally binding, I think the reasons for breaking it must be valid.	pennylane100	Jun 2012	#3
Compare our Texas price for electricity	DhhD	Jun 2012	#5

Response to white cloud (Original post)

Mon Jun 4, 2012, 03:16 PM

white cloud (2,118 posts)

1. Companies asking to change fixed-rate contracts

Last edited Mon Jun 4, 2012, 03:17 PM USA/ET - Edit history (1)

“The negative impacts, if any, on longer term, fixed price contracts are avoidable in a market where hedging all or a portion of sales is essential to prudent risk-taking and practice,” the company wrote.

So what will that mean for consumers?

If the PUC allows companies to break fixed-rate contract, you might keep a close eye on that electric bill.

http://fuelfix.com/blog/2012/06/01/companies-asking-to-change-fixed-rate-contracts/

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Response to white cloud (Reply #1)

Mon Jun 4, 2012, 03:30 PM

mbperrin (6,792 posts)

2. Yes, considering the current $3000 contract is triple what FERC allows in the rest of the country.

Triple THAT seems excessive, especially when the reason these fossil fuel generators are not practical is because wind power is so cheap, and produces more than the state grid can handle.

We need more transmission lines, and if another fossil fuel or nuke plant is never built in Texas, good.

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Response to mbperrin (Reply #2)

Mon Jun 4, 2012, 06:04 PM

sonias (18,002 posts)

4. "deregulation fiasco"

Pretty much says it all. SNAFU in the electric industry where they have been allowed to run free market crazy. No surprise ERCOT would recommend tripling the price. After all ERCOT works for the industry, not the consumers.

In addition to transmission lines for more wind power, I would also like to see solar increase its share of the market. He have plenty of hot air and hot sun in Texas.

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Response to white cloud (Reply #1)

Mon Jun 4, 2012, 03:38 PM

pennylane100 (2,324 posts)

3. If a contract is legally binding, I think the reasons for breaking it must be valid.

I believe that some contracts have escape clauses, but if the company could have avoided this need by using sound business practices, I think that a court may be able to have the final say in this.

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Response to white cloud (Original post)

Thu Jun 7, 2012, 04:43 PM

DhhD (731 posts)

5. Compare our Texas price for electricity

with the prices of surrounding states. Deregulation in Texas allows consumers to be abused. When and by whom did deregulation get started? Apparently it is ok with the voting majority of Texas to elect lying and cheating legislators/politicians. (It has happened recently with Weapons of Mass Destruction, destroying labor unions instead of just getting the campaigned concessions, voter suppression, defunding and privatizing public education, and on and on).

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