PowerPartners US
Your Partner in Energy

Home Your Rights Customers FAQ Deregulated States

 

DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU               DEREGULATION & WHAT IT MEANS TO YOU                DEREGULATION & WHAT IT MEANS TO YOU

WHAT HAPPENS IF YOU CHOSE ANOTHER PROVIDER

After you chose a new electric provider, your electricity will continue to be delivered 
to you from the same power plant, over the same poles and wires and through the 
same electric meter as it is now.

The only thing that will change, is you will receive a bill from new electric provider.  
You will save money because you will be paying less per kWh than what you are 
currently.  You will have the peace of mind knowing that your electric service will not 
increase in price during the entire term of your service agreement.  You will be in 
control rather than being at the mercy of your incumbent whenever 
hey decide they want to raise prices.

Deregulation divided the local incumbent 
electric company into two separate divisions

To protect the consumer after deregulation, the state legislator divided the local 
incumbent power companies into two distinct divisions.  One is the Sales, Billing and 
customer service, and the second one is called the Poles and Wires Division.

The job of the Poles and Wires Division which is also called the local wires company, 
is to maintain the lines and read the meters.  It is also this division of the company that 
restores power to the consumer after a power outage.

This division does not have a product to sell, so the legislators approved a charge to 
appear on the monthly bill of each consumer.  That money goes to pay the salaries and 
overhead of the local wires company.  That means the local wires company works for 
every electric customer regardless of who they have as their billing company.

During a power outage, the local wires company treats each electric customer 
the same.  They restore power to each customer without discrimination.  The local wires company does not know nor do they care who 
each customer has as their electric provider.  That is the reason, no customer needs to worry that if they switch providers, their power 
may be restored after the local power companies customers power is restored.     

ALL RETAIL ELECTRIC Providers (rEPS) 
must be approved by the state

Not just any company can begin to sell electricity to local commercial or residential customers.  
They must  submit an application to the state.  The state does a very thorough investigation to 
make sure they are financially sound.  Only power companies with good backgrounds and  
solid financial standings receive an approved to do business in the state. 

The consumer does not have to be concerned whether they power company they choose is a 
solid company.  The state has already determined that before they were approved.

If a company should go out of business, the consumer is still protected.  Electric service is 
maintained by what is called the Grid.  The managers of the Grid will merely switch all of the 
customers of an electric company that goes out of business back to the last provider on record 
of each customer.  

No customer will be without power should that happen.  The lights will not even flicker of any business who is transferred back to their previous provider.   this will give each customer the opportunity to find a new provider or stay with their old provider.  Most consumers however will want to find a provider who is willing to sell them power cheaper than the the local incumbent is willing to sell it to them.

Deregulation gave the consumer options

Before deregulation everyone had to buy their power from the local incumbent electric 
company.  Your local electric company set the price based upon the maximum the state 
Public Utility Commission (PUC) allowed.

Now the consumer is finding out they do not have to pay those high prices.  The consumer 
has learned they can reduce their electric cost by a substantial amount.  Larger businesses 
can easily use $5,000 to $75,000 or more in electricity monthly.  Larger users in some cases 
have reduced their cost of electricity by tens of thousands of dollars annually.  Many business 
customers have been able to reduce the cost of their electricity by several thousand dollars 
annually.  Over the term of a contract that is a substantial savings since a contract is usually 
from 12 to 36 months.

Many businesses have been having a hard time financially.  The cost of electricity is one of their 
major expenses.  Some have not been able to survive because of the rising costs of doing business.  
In many cases, the amount we have been able to help a business reduce their electricity expenses 
has made a big difference in whether the business was profitable or not. 

Power brokers can legally charge their clients a fee.

PowerPartners is a power broker.  Unlike many power brokers who legally charge their clients a fee, PowerPartners  never charges our customers a fee because each provider we work with pays us a fee when we give them a new customer.

Every electric provider pays all brokers a fee for securing new customers for them.   Brokers are 
allowed to charge their clients a fee however
PowerPartners has elected to limit our 
overhead so we never have to charge an additional fee to our customers.  We made a decision 
to do business by mail, fax and telephone rather than paying salaries and expenses for outside 
sales personnel.

We have included copies of a few of the electric providers we do business with, in our web site.  
That gives potential customers the opportunity to look over the contracts from the various power 
companies before they decide to switch to new provider.

The state regulates each providers contract and its contents.  A provider must submit any changes 
to the state once a contract is approved before the provider can innate any changes to a contract. 
Even though the contracts may all look different, the contents are all the same.  About the only thing 
that really changes between each contract is the amount of penalty each provider will charge a customer 
who terminates his agreement before the expiration date.
  

Each provider is required to make a commitment for the amount of electricity each customer is expected to use over the term of their agreement.  For that reason, an early termination fee is allowed by the PUC.  Customers should carefully evaluate the cost of terminating a contract early to see if a lower kWh rate is really worth paying a penalty.

PowerPartners groups businesses 
together to obtain a lower quote

PowerPartners has found, by grouping several businesses together and presenting them as a 
package to the various electric companies, our customers get a lower quote.   Over the past three
years this has proven very successful.  We have been able to reduce many of our clients electric cost 
as much as 40%.  

In some cases larger clients, can save as much as tens of thousands of dollars annually.  Even a small 
business can usually count on saving several thousand dollars each year. 
PowerPartners does 
not believe any business should pay more for electricity than is absolutely necessary.  Deregulation
gave the consumer the leverage and opportunity to take charge of their electric overhead.  This is 
something we did not have the ability to do in the past.   

The average commercial electric bill in Texas is around $2,500.00 per month.  A 25% savings would 
save the business around $625.00 per month lowering their monthly bill to around $1,875.00.  Over a 36 
month contract the business would save $22,500.  The monthly savings to business customers using more 
electricity would be even more.

The average residential electric bill in Texas is around $300.00 per month.  A 10% savings would save the customer around $30.00 per month lowering their monthly cost to around $270.00.  Over a 12 month contract the household would save around $360.00.  Residential customers whose monthly electricity cost is higher would save even more money.

 

Property of PowerPartners US        2006        All Rights Reserved