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Thanks guys I'm going to get mine switched later tonight when I get home. Even if it is kind of a pain in the ass it should save me a bunch so it'll be worth whatever hassle I have to go through. I also read throught the extra fees and charges on a bunch of them and do see that some of them try to get you with crazy little charges!
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Originally posted by Nash B. -
This might be a long post, just a warning.....Originally posted by mardyn View Post
Just to clarify for those that don't do this shit every day, market rules are market rules. Every retailer must follow the same rules when it comes to switching providers. Here is a step-by-step:
First let me briefly explain how the Texas market is set up. There are several parties involved. First you have the Retail Energy Provider ("REP" or "Retailer"). This is the company from which you, as the consumer, buy your electricity. Examples are those you all know: Reliant, Direct Energy, StarTex, TXU, etc. This is also where deregulation comes into play. The retailer, or supplier, purchases electricity at wholesale prices, and re-sells it to you at retail prices. Retailers compete. This is where your "choice" resides.
Next, you have the Transmission and Distribution Service Providers (TDSPs). TDSPs are the people who deliver your electricity to your home. They own the power lines, poles, meters, transformers, etc. When there is a storm and outages, they are who fixes it. For most of us in the DFW area that is Oncor. In most cases the TDSP used to be the local electric company, prior to deregulation. Deregulation forced the incumbent utilities to break apart to create a retail company and the TDSP. Again, to give local examples, TXU and Oncor used to be the same company but deregulation forced them to separate. TDSP's are regulated and must follow very specific rules. Their charges have to be vetted and approved by the Public Utilities Commission of Texas (PUCT). All of us pay transmission and distribution charges in some way. Sometimes it's included in your contracted electricity price, sometimes it's passed through without markup from your Retailer.
Next, you have the Electricity Reliability Council of Texas (ERCOT). ERCOT is basically the middle-man in the market. I am over-simplifying but in the context of this discussion, that's who they are. Besides playing middle-man, they do other things like ensuring there is sufficient supply to meet demand. You may remember the blackouts last August? They are the people who monitor that, go to other markets, like Mexico, to procure additional supply, etc.
Finally, you have the power generation companies. They own and operate the power plants. For this discussion, they are virtually irrelevant.
You have provider X and want to switch to provider Y. You "enroll" with provider Y by entering into a contract or otherwise confirming with them that you want to switch. You tell provider Y when and how you want to enroll. There or really only 2 options in Texas. Provider Y either needs to issue a "Move In" order, or a "Switch" order. A "Move in" means you have just acquired the premise. In other words, you are a new tenant, or you just bought it. A "Move In" establishes you as the responsible party, and that information is communicated to the TDSP. A "switch" is used when you are already in the premise, and are just changing retail providers. If you already have electricity service at a premise and want to change providers, all you need to do is contact the new provider. Same thing if you are just moving in to the premise, you only need to contact company Y. If you are leaving a pemise, it is in your best interest to contact your current provider and advise them you are moving out. That is the only time you need to advise your current provider of the change. That is basically you saying: "I am no longer responsible for electricity at this location".
Regardless of whether a "move-in" or "switch" is needed, the provider you choose will initiate a transaction to the market. All that means is that they communicate, electronically, a series of information preceded by a code, to ERCOT. ERCOT takes that data, ensures it complies with market rules, then either rejects it, or forwards it along to the TDSP. The TDSP does the same basic validation, then communicates their acceptance, or rejection back to ERCOT. Assuming all is well, they accept and reply to ERCOT. ERCOT then communicates that acceptance back to the originating retailer. Next, ERCOT communicates the information to the Retailer currently serving the premise (the losing REP). That is called a "drop notification". The only information that ERCOT communicates to the losing REP is the date the change will occur. That drop notification may prompt the losing REP to take certain actions with their customer, but they cannot stop that change arbitrarily, without agreement with the new REP.
So, assuming the switch or move in meets all market requirements, on the requested date the TDSP will take a reading of the meter, officially ending service with the losing REP and / or customer, and beginning service with the gaining REP and / or customer.
Every retailer, TDSP, and customer that falls in the deregulated markets in Texas follows this process. As lengthy as my explanation is, it is barely scratching the surface of the intricacies and details involved. But as a consumer, setting up residential service, that is 95% of what you will ever need to know relating to the market.
Just to give a little additional info, here are some basic processes it would benefit all consumers to understand.
Enrolling with a new provider:
If you are currently responsible for a premise, and already have service established in your name, you will always enroll with a new provider via a "switch". Up until about 2 years ago there were 2 types of switches. 90% of them were considered "on cycle" switches. That means if you chose to change providers, that switch would typically occur on a normal meter read date. The less common option was referred to as an "off-cycle switch". That meant you did not want to wait for the regular meter read date, and would be switched sometime in between those normal reads. There was a fee associated with that, but for residential premises it was only a couple of dollars. The reason for the fee is that the TDSP would have to send someone out just to read your meter on that day.
Since the market rules changed, switching providers is now rarely determined by your normal read date. Instead, if you tell your new provider you want to switch as soon as possible, they will typically make the change within about 5 days.
When you are moving in to a new premise, you need a move in. There are 2 basic types of these transactions. First is a standard move in, which takes about 3-5 days. Or, if service is needed immediately, you can choose to request a priority move in. Depending on the time of day the TDSP receives the transaction, that will occur either by 5PM or 12PM (midnight).
Terminating Service:
As I mentioned before, if you are staying in the premise, and just switching providers, you do not need to take any action with your current provider. That does not mean your contract doesn't require some action, but I am just speaking about market processes.
If you are moving out of a location, and want to ensure you are no longer responsible for electricity usage, you must contact your current provider and request a Move Out. This takes 3-5 days but ensures you will no longer be responsible for usage. If nobody else initiates service prior to that date, services will be disconnected.
Switch Holds:
Earlier I mentioned that a current provider cannot stop a customer from switching to a new provider. While that is generally the case, there are 2 exceptions.
First, if you are foolish enough to try and cheat your electricity provider by tampering with your meter in order to 1. reduce the consumption recorded on your meter, or 2. self connect after you have been disconnected for non-pay you can be placed on switch hold. Basically that means that the TDSP has discovered your tampering. When this happens they will pull your meter, validate the tampering, and charge you for: damage to the meter, their time to repair or investigate, a penalty, etc. Once you have been deemed to have tampered you will automatically be placed on switch hold, meaning you cannot change providers. The TDSP will bill your retailer for those fees and penalties and for the consumption they estimate you stole. That hold will remain in place until you have paid all associated charges in full to your provider. If you do not pay, your provider will disconnect your service and you cannot have it reconnected until you do pay. In addition, tampering is a criminal offense and you can be prosecuted. In reality, prosecution rarely happens, but it can.
Second, lets say you are behind on your electric bill and are facing disconnection. You call your provider and enter in to a Deferred Payment Plan (DPP). Assuming your provider follows the market rules, they can place you on switch hold until you satisfy the conditions of that payment plan.
That is all for now, assuming you are still reading. If any of you have specific questions, feel free to ask. I know I am not the only one on here currently in the business, or used to be.Comment
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Thanks for that info Chili, I actually read all that, LOL
Holy wall of freaking text thoughOriginally posted by Nash B.Comment
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Don't worry, he talks that much in person, too.Originally posted by Wicked98Snake View Post
Token Split Tail
Originally posted by slow99Lmao...my favorite female poster strikes again.
Originally posted by Pokulski-BlatzComment
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So...thinking about signing up with startex today but I don't see the 7's you guys are talking about.
Anyone want a referral?Comment
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I went with Amigo and got 7.9 cents, but it was on a promotional deal... not sure
if it's still available but you might wanna' check it out...
Service with Amigo has been very good too.
mardynComment
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I am paying .058 at the house and .079 at the shop from Stream. They gave me a .079 at the shop for 3 years from the git go and at the house I started with a .082 for three month and then they offered me a .058 for three years and I could not turn that down. I have saved over 800 dollars from the house in 9 months and near 180 at the shop. TXU can stick it. Brandon is the one that talked me into switching and it was the best thing I ever did.Comment
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Startex has a "refer a friend code" line on their online application. IDK an existing Startex customer would get.Comment
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Both of those rates are excellent! I'm paying 8.7 cents with startex...Originally posted by musclestang89 View PostComment
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Can someone convert Chili's post into epub format for me? might make for a good read on an international flight one day.
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I switched to Cirro yesterday and got 7.6 for 9 monthsComment
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I'm not using Denton Municipal Electric at 5.6 cents per kWh in the Summer. In the winter the first 600kW cost 5.6 cents but then it drops to 3.6 cents.
My first electric bill in the new house was $240. Not to bad when you consider it is 600sq ft larger than my old 1800sq ft house. It was also keeping the water hot in our hot tub for that month. I have since gotten rid of the hot tub. I expect my next bill to be MUCH lower.Comment
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