GreenChoice by Austin Energy may not be the best solution for your energy needs after all. This is clear since the energy rates in Texas have been going down and GreenChoice, which offers energy from renewable means of Sun and Wind, proves to just be more expensive. GreenChoice helps customers decide whether a lock in electricity contract period of 5 yrs would be more suitable or would a 10 yr contract do more good. As it turns out, in its most recent offering of renewable energy units, about 99 percent of the allotment has gone unsold.
Consider this - a 5-year subscription to GreenChoice costs 8.0 cents per kWh, while a 10-year subscription comes with a charge of 9.5 cents per kWh.
Now, the regular residential rate for conventional electricity is 3.75 cents per kWh for the first 500 kWh, and 6.02 or 7.82 cents thereafter, for winter and summer months respectively.
It is lesser for large commercial users - about 1.5 cents per kWh.
GreenChoice is the arm of Austin Energy for renewable energy resource. The basic problem is that while Austin Energy’s main business is selling power from coal and gas plants that they own, GreenChoice competes with that only.
Friday, August 7, 2009
Wednesday, July 29, 2009
Falling Energy Rates in Texas
Natural gas rates are falling continuously in Texas. And many investors and financial consultants would believe that this is just the right time to start buying and investing in the area. Natural gas is continuing its bearish march because of several reasons collectively contributing to its price fall.
The Gasoline prices have fallen to almost 20 cents over the past month in Texas. The statewide average cost has come down to $2.31 a gallon from $2.34 just within a week. Houston, Fort Worth and Amarillo have the most inexpensive gas @ $2.28. Even the highest rates (in El Paso) are at $2.45. Austin is midway at $2.34 a gallon which is still below 3 cents from last week. Compare these rates with those during 2008 - $3.94 a gallon and you will realize the dip yourself.
The low demand is keeping the gasoline and heating oil at their highest levels in 24 years. This low demand again is a resultant of few important reasons. Consumption has cut down by 36% from January to April. The temperature this summer has been moderate so demand for natural gas was obvious to go down. As a result, the stockpiles have been growing. Additionally some new fields are doing fairly well in production terms, thus, only adding to the stocks. So simple economics say that while demand has slowed down and production is on a high. Naturally, prices have to go down.
The Gasoline prices have fallen to almost 20 cents over the past month in Texas. The statewide average cost has come down to $2.31 a gallon from $2.34 just within a week. Houston, Fort Worth and Amarillo have the most inexpensive gas @ $2.28. Even the highest rates (in El Paso) are at $2.45. Austin is midway at $2.34 a gallon which is still below 3 cents from last week. Compare these rates with those during 2008 - $3.94 a gallon and you will realize the dip yourself.
The low demand is keeping the gasoline and heating oil at their highest levels in 24 years. This low demand again is a resultant of few important reasons. Consumption has cut down by 36% from January to April. The temperature this summer has been moderate so demand for natural gas was obvious to go down. As a result, the stockpiles have been growing. Additionally some new fields are doing fairly well in production terms, thus, only adding to the stocks. So simple economics say that while demand has slowed down and production is on a high. Naturally, prices have to go down.
Monday, July 27, 2009
Energy Rates and Energy Costs
The energy department reveals the average US home spending on electricity / energy to be about $2000 per year. The break up of this cost could well be analyzed by the following:
Heating & Cooling: 50%
Water Heating: 25%
Appliances and Home electronics: 20%
Lighting: 15%
Since the energy costs are on a rise and the dynamics attached to this market is not in control of a common home, the best one can do is to cut down energy costs by taking a bit more precautionary approach towards the use of the energy utilizing items. One of the best ways to do that is to switch to energy saving appliances and get rid of the old technology which are not as energy efficient as the new ones. Look out for energy star-labeled models. Also, switching off the appliances, lights, computers, TV and other gadgets, when not in use is a great idea to restrict your energy bills.
Though the government makes every effort on a large scale to provide efficient energy, it ultimately comes down to consumers who need to pay the bill for what they use. The energy costs for your home can only cut down if YOU want them to. When you use energy it passes a load to the electricity Grid which the authorities have to maintain as per the consumers demand in order to offer non-stop electricity and to better manage the grid from falling off. For this maintenance, the energy department needs new technology always which comes at a cost. This cost is ultimately passed over to the consumers. So when you are wasting energy or using it excessively, you are not only increasing your energy bills but are also contributing towards higher energy rates. So, during the next wave, the rates will go high which in turn would increase your overall bills even further.
As in my previous post, the trees help you cutting down the energy costs too. Try doing it this year.
Heating & Cooling: 50%
Water Heating: 25%
Appliances and Home electronics: 20%
Lighting: 15%
Since the energy costs are on a rise and the dynamics attached to this market is not in control of a common home, the best one can do is to cut down energy costs by taking a bit more precautionary approach towards the use of the energy utilizing items. One of the best ways to do that is to switch to energy saving appliances and get rid of the old technology which are not as energy efficient as the new ones. Look out for energy star-labeled models. Also, switching off the appliances, lights, computers, TV and other gadgets, when not in use is a great idea to restrict your energy bills.
Though the government makes every effort on a large scale to provide efficient energy, it ultimately comes down to consumers who need to pay the bill for what they use. The energy costs for your home can only cut down if YOU want them to. When you use energy it passes a load to the electricity Grid which the authorities have to maintain as per the consumers demand in order to offer non-stop electricity and to better manage the grid from falling off. For this maintenance, the energy department needs new technology always which comes at a cost. This cost is ultimately passed over to the consumers. So when you are wasting energy or using it excessively, you are not only increasing your energy bills but are also contributing towards higher energy rates. So, during the next wave, the rates will go high which in turn would increase your overall bills even further.
As in my previous post, the trees help you cutting down the energy costs too. Try doing it this year.
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