PEC's monopoly rates are the highest in Texas, perhaps the nation. Whereas, competitive rates in the deregulated market are much, much lower
Note: Mr. Klaus emailed his letter (below) Tuesday June 26 to State Sen. Troy Fraser (R-Horseshoe Bay), vice chair of the Senate Committee on Economic Development, and to a list of newspapers and reporters. So far as we know, PEC has not "opted in" to the competitive, deregulated power market since deregulation of investor owned utilities was rolled out in Texas beginning in 2002. The Texas Electric Choice Act of 1999 (implemented in 2002) gave power cooperatives such as PEC the option of participating in the deregulated market. But once in, a co-op cannot opt back out. So it's a dicey and complicated proposition, at best, that PEC member-customers would benefit from lower rates and better service if they had the choice. PEC could answer the points raised in Mr. Klaus's letter through a simple study comparing its rates and quality of service with power providers in the deregulated market. We understand the subject may be on the agenda at the (next) July 16 meeting of PEC's board of directors.
Smart meters: The Good, the Bad and the Ugly. Thanks to some interesting comments in the previous post (scroll down to 'PEC annual meeting'), we made some calls and did a little research on the subject. The article below the letter to the editor can get you started. PEC member-customers should get better informed on this one because of the potential for weird outcomes, depending on which side of the conspiracy theory divide you lean, or how much you can trust your power co-op to not turn off your lights or appliances by remote control when you least expect it. We have learned that the PEC is nearing completion of a Smart Meter pilot study with a hundred or so volunteer commercial and residential member-customers in the Plum Creek community of Kyle. We wonder, if the study is deemed "successful," will it lead to forced smart metering? Will we give up control of how and when we can use our electricity in order to lower energy costs across the system? Exactly what direction is PEC headed with this thing?
(Comments from PEC staff and director honchos are welcomed)
Send your comments and questions to roundup.editor@gmail.com, to Mr. Klaus at ranbec.55@gmail.com, to PEC board directors Cristi Clement, William Boggs, Kathyrn Scanlon, Chris Perry, Ross Fischer, Larry Landaker and Patrick Cox, to PEC CEO RB Sloan, or click on the "comments" at the bottom of the post
Letter to the Editor:
In 1999 the Legislature unknowingly created a set of second class Texans when it imposed Customer Choice (choose your own electric provider) on investor-owned electric utilities, but not electric cooperatives. The legislature may have assumed that members of a tax-exempt, non-profit electric cooperative would not benefit from Customer Choice since cooperatives are not for profit, have access to cheap capital and are member owned. It’s 2012 and nothing could be further from the truth.
For example, take a look at Perdernales Electric Cooperative, the nation’s and the state’s largest cooperative. Except for a couple of green-energy plays, PEC's monopoly rates are the highest in Texas, perhaps the nation. Whereas, competitive rates in the deregulated market are much, much lower.
Today, the average residential member pays PEC a whopping 12 cents per kWh. In the deregulated market, 6, 7, 8, 9 and 10 cent rates are commonplace.
Today, for a majority of a cooperative’s membership the only way they can lower their electric bill is to sell their home, farm, ranch or business and move out of the cooperative’s monopoly serving territory. That’s an extraordinary measure and most members cannot do it.
And guess what? Even though cooperatives can opt into Customer Choice at anytime under current law, only one has and it appears quite obvious that the others will not. The sole business purpose of an electric cooperative is to provide safe, reliable and low cost electricity, but it’s not happening. Customer Choice is the solution.
In 2013, the Texas Legislature will have an opportunity to fix the 1999 legislation and give the captive members of Texas’ electric cooperatives the same benefit that a majority of Texans already enjoy: lower electric rates brought through competition – Customer Choice.
Randy Klaus, CPA
PEC Member Since 1990
Austin, TX
ranbec.55@gmail.com
From rechargetexas.com
Read the complete article
If smart meters haven’t been installed in your neighborhood yet, chances are they will be soon. Problem is: some Texans don’t want them. It’s a growing dilemma for lawmakers and regulators. Complaints from a vocal group of Texans have begun piling up in legislative offices, the Texas Public Utility Commission and even with the press. Over 100 residents have signed a petition. A state representative also has weighed in.
Smart meters are those digital devices used by the state’s transmission and distribution utilities to measure electric consumption. Also known as advanced meters or digital meters, the smart meters are replacing old analog boxes attached to the outside of homes and businesses. Hundreds of thousands of the smart meters have been installed or will be installed in Dallas, Fort Worth, Houston and elsewhere.
The meter rollouts follow a decision by the Texas Legislature in 2005 that allows electric delivery firms to charge customers for the advanced systems. In theory, the meters should allow Texans to more easily monitor their electricity consumption, and allow electric utilities to operate a more efficient power grid. But lawmakers have begun getting an earful, with some Texans complaining the meters undermine health and personal liberty. “I am extremely upset by my obvious lack of choice,” one League City resident wrote in a letter to Public Utility Commission chairwoman Donna Nelson. Others complain the meters could be used for data mining.
The PUC and Chairwoman Nelson have begun to evaluate the concerns, saying they may create a system whereby Texans can opt-out from the meters. You can find documents relating to a PUC proceeding on the issue here. Chairwoman Nelson has said that while she believes the meters provide a number of important benefits, she nonetheless takes very seriously the public’s concerns.
Like to weigh in on the issue? You can write to the Public Utility Commission at PUC Central Records, P.O. Box 13326, Austin, TX, 78711-3326. Be sure to reference Project #40190 (“PUC Proceeding to Evaluate the Feasibility of Instituting a Smart Meter Opt-Out Program”).Links to more background:
http://www.texaselectricityratings.com/
http://www.samhouston.net/news/deregulation/tec.htm
http://www.smartchoicecoops.com/html/deregulation.htm
http://www.murphymessenger.com/forums/viewtopic.php?t=2782&sid=4acb218ad7007a750d1fc34460d1195f
3 comments:
Unless the choice is actually in the hands of the consumer, "customer choice" is an absolute illusion. What will happen with electricity as it already happens with trash, propane, water, internet service, etc. when your property is burdened by an involuntary membership corporation (e.g., HOA corp) is that the HOA will dictate who your service provider will be.
You can bet that the individuals controlling the HOA will have a kickback or other self-serving financial arrangement with the service provider. Ask homeowners held hostage to specific propane gas vendors in places like Belterra, Howard Ranch, La Ventana, and 70+ other subdivisions in the area.
Propane is economically unregulated (meaning the vendors can charge whatever price they want) - but the HOA is used to threaten the homeowner with fines, lawsuits, and foreclosure if the homeowner attempts to exercise their own choice.
This conduct threatens the market outside of these HOAs as well. Because the vendors handling the HOAs can compete unfairly outside of the HOAs (they can price cut outside the HOA knowing they have involuntary customers no matter what the price inside the HOA) it won't be long before people outside the HOA subdivisions suffer the same fate.
De-regulating PEC won't solve any problems unless the individual CUSTOMERS have the freedom to determine who their provider is. Thus any restrictive covenant that purports to allow the HOA board or developer to dictate who your electricity provider will be must be rendered unenforceable and void. Any other option will simply be worse for homeowners.
Well, I don't personally know much about the draconian ways of HOAs thank goodness but until I know what PEC's intentions are with the smart meter on my house, I choose not to participate in their "remote" manipulation of how I use my electricity. Lord knows enough of my personal liberties are already controlled and compromised by government everywhere!
Agree with Poster #1. Each homeowner should have the right to choose what utility, internet server, phone company, etc. that s/he wants to use -- if more than one provider is available.
In the case of water, same should be the case, but, realistically, probably a second water/wastewater provider would not have enough customers to make it financially feasible.
However, since the Texas Supreme Court tells us that we have a right to capture the water under our own land, I don't see how HOAs (such as Wimberley POA, Wimberley Springs, and others) get away with telling residents they MUST use Aqua Texas.
Hell, even citizens in the citizen of Austin are drilling wells for their homesites. No problem. Drillers say business is booming there. Folks see the writing on the wall for ole Lake Travis.
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