Htown Harry
Thinks s/he gets paid by the post
- Joined
- May 13, 2007
- Messages
- 1,525
Fair warning - this is a long post that describes a uniquely Texas problem, except perhaps as a lesson on how one's budget needs to have a buffer for the unexpected.
A thread [-]ranting about[/-] describing Texas property appraisals included some side discussion on the joys of electric power deregulation:
Well, I'm about to become a casualty of one of the nastier side effects of the deregulation - my "Retail Electric Provider" filed Chapter 11 last week. http://www.star-telegram.com/804/story/685786.html
My adventure started in March, when I selected Riverway Power as my new retail company, at 2.5 cents per KwH cheaper than my old one. (I was at 14.5 before, I am now at 12 cents fixed for 12 months.) My switchover date was in early May.
For the uninitiated, the Texas system splits power generation, power delivery and retailing into three distinct universes. The power delivery companies - remnants of the old regional "power & light" companies - own the distribution wires and meters and remain tightly regulated. The generating companies and the retailers are deregulated on price and can charge what they want. Lots of retailers (maybe 20) sell power in my regional service area.
My small retail power company, Riverway, apparently didn't hedge properly in recent weeks and had to buy some of its power at a very high spot market price. When the Public Utility Commission came around to check their capitalization ratios, Riverway's bleeding was apparent and the PUC demanded more capital. Unlike three other companies is a similar bind who just closed up shop, my company ran to the courthouse and is asking a bankruptcy judge to solve their problem...by voiding fixed rate customer contracts like mine. The PUC, probably not expecting this, has thus far held off on transferring all of Riverway's customers to a "Provider of Last Resort" as they did with the other three.
Best I can tell, these are my options:
I use at least a couple of thousand Kwh during a summer month, so all of these possibilities represent swings of $50 - $150 per month in my bill.
DW is for jumping ship to a 16 cent provider immediately, but I'm not so sure. Seems to me the bankruptcy judge will be hesitant to make a quick decision in a messy case like this, so waiting might be better.
Shoot, who knows?
So here's my question...should I pay off my mortgage early?
A thread [-]ranting about[/-] describing Texas property appraisals included some side discussion on the joys of electric power deregulation:
Let's not forget to thank the previous governor for pushing through "deregulation" that took Texas from lower-than-average rates to higher-than-average rates, and let's not forget to thank the current governor for insisting that it's all going very well, thank you.
(Oh, did we forget to mention that the price decreases would go to a few very large industrial consumers, while the 50-100% price increases would be reserved for residential consumers?)
[FYI - I put "deregulation" in quotes because it really was not deregulation; it was a badly mismanaged "restructuring" and partial reduction of regulation.]
A longtime Louisiana & Texas utility company employee recently told me, "In Louisiana, we would never shove so much of the industrial customers' costs onto residential customers like Texas does. Louisiana wouldn't let us, but Texas demands it."
Well, I'm about to become a casualty of one of the nastier side effects of the deregulation - my "Retail Electric Provider" filed Chapter 11 last week. http://www.star-telegram.com/804/story/685786.html
My adventure started in March, when I selected Riverway Power as my new retail company, at 2.5 cents per KwH cheaper than my old one. (I was at 14.5 before, I am now at 12 cents fixed for 12 months.) My switchover date was in early May.
For the uninitiated, the Texas system splits power generation, power delivery and retailing into three distinct universes. The power delivery companies - remnants of the old regional "power & light" companies - own the distribution wires and meters and remain tightly regulated. The generating companies and the retailers are deregulated on price and can charge what they want. Lots of retailers (maybe 20) sell power in my regional service area.
My small retail power company, Riverway, apparently didn't hedge properly in recent weeks and had to buy some of its power at a very high spot market price. When the Public Utility Commission came around to check their capitalization ratios, Riverway's bleeding was apparent and the PUC demanded more capital. Unlike three other companies is a similar bind who just closed up shop, my company ran to the courthouse and is asking a bankruptcy judge to solve their problem...by voiding fixed rate customer contracts like mine. The PUC, probably not expecting this, has thus far held off on transferring all of Riverway's customers to a "Provider of Last Resort" as they did with the other three.
Best I can tell, these are my options:
- Dump Riverway, go back to the market and sign up with another company at the now-current 16 cent market rate. Riverway's customer service agent in Mumbai tells me that Riverway has generously waived their transfer fees. (He also says my first bill, which I will receive next week, will be at 12 cents.)
- Sit tight and get the benefit of the cheap 12 cent rate while the court case moves along, but with the risk of either ending up with a) an unknown higher rate set by the judge or b) Riverway deciding to close their doors anyway, putting me with the POLR at a rate that news reports put at "above" 20 cents.
I use at least a couple of thousand Kwh during a summer month, so all of these possibilities represent swings of $50 - $150 per month in my bill.
DW is for jumping ship to a 16 cent provider immediately, but I'm not so sure. Seems to me the bankruptcy judge will be hesitant to make a quick decision in a messy case like this, so waiting might be better.
Shoot, who knows?
So here's my question...should I pay off my mortgage early?
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