Houston Based Startex Power has received the Better Business Bureaus Pinnacle Award for 2010. This award reflects “extraordinary commitment to ethical practices and caring customer service.” The Pinnacle Award is given only to one business in an industry per calendar year.

The award honors companies that demonstrate exceptional customer care, management, and product quality while exemplifying trust and honor with customers and other corporations.

“We are extremely honored to receive an award of this stature from the Better Business Bureau,” said Bob Zlotnik, CEO of Startex Power.  “Our philosophy is simple, we treat customers like family, and we always look for ways to improve service for them. This award is validation that we are fulfilling that promise,” Zlotnik said.

Startex Power is an electric power company serving the Houston, Dallas Fort Worth areas, as well as the rest of the deregulated areas of Texas.

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The first way you can save on electricity rates is to look

The first and most important thing to do as a Texas residential electricity user or even as a commercial business is to look for lower rates in this de-regulated environment. There are many people that have yet to seek new electric rates.  If you never look for a lower rate, there is little way to find one. Many people seem to assume there is one basic rate for electricity, so why bother looking?

This is not true, electricity rates cover a wide range of prices. In addition, there are other factors affecting price, including the fact that there are multi-year rate plans. You pay a premium to level off your electricity costs for a period of time. The longer the time frame, the more “premium” you pay. Adding various levels of Green Energy can also raise the cost as well. But regardless of the category of electricity you are looking for, there are many companies to choose from, and one might be right for you.

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Make sure your rates reflect the correct residential or commercial type account

Whether you are looking for a month to month electric rate plan, or 1 to several years, one thing is certain. To get the best rates, you must do some shopping, or have someone do it for you like an Energy Broker, or Energy Consultant. These are professionals that will analyze your needs and help you find a good solution. I have seen two businesses literally side by side in Odessa Texas and both of them paying very different rates. One was paying 13.5 cents per kWh, and the other was paying 8.5 cents per kWh. It turned out they both had the same electric company!

As it turned out the one that used the least electricity paid the highest bill. So after much frustration, and even asking the electric company to check the meters, and the readings, they finally called me. I was told that the big electric company had no answer for the discrepancy in the two bills. Well, it became clear and obvious to me once I turned the 2 bills over and saw the cost per kWh. Needless to say, the customer paying 13.5 cents per kWh as a commercial concern, could not wait to change companies.

13.5 cents per kWh is a price that I normally expect to see on a residential bill, not a commercial bill. And, yes the customer in question had good credit, so that was not an issue. But, I have seen this sort of price for a commercial business before. So, making sure you are getting a good price for the category you are in is essential.

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Make sure your rates are average to below average by comparison

Lastly, after you decide to look for better rates, then make sure you are paying prices that reflect residential or commercial type of account. Once you have done this, then it is time to look for prices that reflect the type of account you have. Suppose that is residential, then list the companies, plans and pricing. Maybe something stands out, like at the 1 year rate, it seems to dip lower and may be worth taking a second look. Once you think you have chosen a good candidate, it might not hurt to check with the BBB (Better Business Bureau) to see if they have lots of complaints. Maybe you want to look up their website and read about them.

Whatever you do regarding electricity rates, it will pay you to look for rates, make sure your rates are within reason, and if you want, find a company that may offer lower rates.

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Smart Meters as a Collections Weapon

There are complaints flowing in California this week regarding the use of Smart Meters, and a huge increase of customers having their power shut off. Pacific Gas and Electric is at the center of this controversy. It seems that there was a recent government filing where PG& E predicted more customers who fall behind on their bill will have their power shut off once the company installs installs the Smart Meters throughout the territory.

Mark Toney, the executive director with The Utility Reform Network said that customers should have the right to refuse the Smart Meter installation in their homes. Customers have complained that their electric bills have soared since they were installed.

“Really, it’s our worst fears being realized, that PG& E sees these Smart Meters as a collections weapon to put pressure on people by being able to shut them off so easily,” said Toney.

Statewide 818,042 Californians were cut off from September 2008 to August 2009, an 8% increase. At the same time, PG& E customers were cut off at a rate of 40% to 298,020.

Public outcry over this has caused some change in procedures. PG& E customers now get two phone calls before a disconnect. In addition, if a customer misses a promise to pay date, he will get a second chance to make good.

This story appeared in the San Francisco Chronicle, 1/26/2010 on page D-1

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This is a concern for Texas and New York

So what can we learn from this story? One thing that comes to mind is someone needs to start checking these Smart Meters for accuracy. I have seen many stories of folks complaining that their new meters are costing more to them each month on their bills that previous bills. After all, most of these Smart Meters are manufactured out of the United States, and we have seen recently that not all countries have as strict policies regarding quality and safety.

In manufacturing, especially in electronic devices you can have a very narrow tolerance for error, or a very wide one. We are at a time when companies are buying millions of units in many states. I am sure the manufacturers are doing everything they can to get as many units out to the buyers as possible. But who does care about the consumer? Anyone?

We need to have these devices tested. Maybe the Public Utility Commission of each state should take up this task. Or maybe the companies can see real value in setting the customers mind at ease on the reliability issue. Maybe before the utility company takes your old meter off, it should test it, to see if it was running on the low side of metering all this time, and the new meter is just accurate. that could explain what is happening.

Maybe these new meters should be randomly tested by disinterested third parties in other states as for efficiency and reliability? I think it will become painfully clear that there should be some oversight to installing millions of untested meters, on a population that is growing more and more leery of  them by the day. If they are flawed, just think of the problem of testing them, and installing new ones?

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What affects the cost of electricity?

The final electricity price that an electric company charges is a result of many different factors. These factors are different for each company, that is why you might see different companies with differing price structures.

Key Factors in electricity price are:

Location: This dictates what power sources are available. Water driven hydro-power generated electricity tends to be the cheapest and natural gas generated electricity tends to be the most expensive.

Weather: In areas where hydro-electric power is the main source of electricity, rain storms can provide for added electric generation at lower cost. Wind storms can provide energy for Wind generated electricity. High summer temperatures in the summer can cause an increase in the demand for electricity, and cause short term energy cost spikes in a given area as demand nears capacity.

Transmission and distribution lines: The electric wires that carry electricity to your home or business must be maintained. This would include materials and labor costs. Inflation of prices can play a role here.

Power plants: The cost to construct, finance and maintain power plants is an important consideration to the overall cost of electricity for a state or region.

Regulation: Some states are fully regulated in their pricing by the Public Service (Utilities) Commissions. In others it is a mix of regulated pricing (generation) with unregulated pricing for power transmission and distribution.

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The average prices can vary by location: Average price for electricity in 2007

Highest electricity prices in 2007:

Hawaii: (21.29 cents per kWh)

Connecticut: (16.45 cents per kWh)

New York (15.22 cents per kWh)

Lowest electricity prices in 2007

Idaho (5.07 cents per kWh)

Wyoming (5.29 cents per kWh)

West Virginia (5.34 cents per kWh)

The Hawaiian costs for electricity are highest because nearly all electricity was created by fuel oil. Idaho showed the lowest costs to produce electricity because of hydro-electric dams.

Electricity is also different for the types of users. 2007 electric prices by user was:

Residential electricity is usually the highest: 10.65 cents per kWh

Commercial electricity: 9.65 cents per kWh

Industrial electricity: 6.39 cents per kWh

Commercial electricity is lower than residential electricity usually because it buys more per month, thereby getting a small discount because of the larger purchase.

Industrial use gets the lowest prices of all because they usually consume more energy, and can use it in higher amounts. Therefore there is no extra cost in lowering the electricity voltages for them.

Smart Meters

The introduction of smart meters for residential and businesses have the promise of lowering electricty costs for business and consumers because it gives them the opportunity to purchase more electricity at lower cost during off-peak times, and less during peak times. Houston Texas is currently installing 2 million smart meters for residential customers.

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Are you ready for electric smart meters?

They are on the way for Texas residents. They will soon be on the way for residents of New York State residents. Your TDSP company (poles and wires) will install them. In Houston Texas that will be Center Point Energy. In fact Center Point Energy is in the midst of installing 2 million smart meters in Houston right now. That will cover just under half the city.

What smart meters do

A smart meter communicates. It communicates to the home office how much energy it is serving, and to what kind of equipment. It also monitors the usage of electricity as to when it is used and how much. Smart meters can allow an energy company to charge more for peak usage and less for off peak usage. This could save customers money.

In addition, smart meters can be set to turn off heavy equipment use of electricity during peak usage times. The energy to the household or business would still be available, but the electricity could be strategically cut to air conditioners, or other large energy users for a short time. This would not be mandatory at all, just an option a homeowner or business could have.

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Contact your TDSP (Transmission Distribution Service Provider) about when your smart meter will be on the way.

Contact numbers for TDSP companies

Houston Zone: contact Center Point Energy   888-313-4747

North Texas Zone: contact OnCor     800-332-7143

South Texas Zone: contact AEP Central   866-223-8508

West Texas Zone: contact AEP North    866-223-8508

Texas New Mexico Power TNMP      888-866-7456

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Let Electric Companies Bid for your Texas Commercial Business Service

In these tough economic times today, business must maximize value where it can. Unfortunately saving money on the electricity bill isn’t usually on the radar. Electricity is thought  of as a necessity and a given. Most people are glad they are finished with the sign-up process, with deposits and contracts and are happy to just forget about electricity after that.

But, there is much to be gained by thinking occasionally about your electric provider and your energy use levels. This is true for both small and large companies. As an energy consultant I have seen a small car lot paying residential rates for it’s electricity usage. The owner was paying about 100% too much every month!

In addition, many businesses don’t know that if they use over a certain amount of electricity each month, which could be as low as 20k kWh per month that they could be due a lower rate. Well, a lot of times a business doesn’t know the right questions to ask, nor what to look for in buying electricity, so they lose out on many opportunities.

Did you know that if you have many business locations across Texas that we may be able to aggregate them together and get you and your company a lower rate? So instead of each location maybe qualifying for a small discount due to usage, they could all receive a larger discount.

If your usage is 500k kWh or more per year we can get the energy companies to bid on your contract. We will do the work, you decide. Is that fair enough?

If you have interest in lowering your energy costs as a business, county or municipality please contact:

Don at consultant(@)cheaptexaselectricrates.com

Include your contact info, type of business and yearly energy usage (if known). We will contact you within

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Texas and New York are you ready for smart technology in the form of Smart Meters?

Right now most electric meters in Texas are “dumb meters”. They are outdated analog meters that can only measure the amount of electricity provided to a user.  Some have the capability of knowing when the “Peak Usage” is. Now why would peak usage be important to an electric company?

The answer is simple. We do not use electric energy the same throughout the day. That is true of residential and commercial customers as well. People are generally on an 8-5 type work day. That means at 5 PM everyday there is an energy peak when people get home and start turning electrical devices on.

At the say time, the day itself has peaks and valleys depending on what time of year it is. In the summer the sun heats the land all day long and peak temperatures, especially in the south rise constantly until about 5 or 6 pm in the evening. This also coincides with when people get off of work. So there is a double reason for peak usage.

In addition, the afternoon time in general is when the air conditioners are blasting away in homes and businesses. But as the heat gets hotter, the air conditioners are staying on longer and working harder. They are using more and more energy.

So taken together, energy use is spiking. We can’t do much about the sun, it will be there. But as you can imagine as in this case the energy usage near peak times could create a problem for the energy company. They need more energy at these times, and it is at the time that other energy companies also need it. So the cost of energy at these peak times is higher, than any other time. A smart meter can charge you more for electricity usage at these times, and less at other times. This causes a lowering effect at peak times for those who don’t really need the energy then. This is a good thing.

So, for customers, both for commercial and residential electric customers who can shift their energy needs, they can save money. That’s because they can choose to manufacture at nite (or other off peak times) when peak usage is at a minimum, and reap the rewards of cheap electricity.

• So a smart meter can charge different rates due to when the electricity is use

There are a few other things that make a smart meter a great deal for consumers. You don’t need to have a meter reader come to your house. That means when meter readers are scarce, you won’t get your meter read every other month, with a guesstimation for your usage and bill for the in between month. You will be able to look at the meter and know how much you owe, and how much electricity you are using.

• Your meter is accurately read every month, and you will know your bill amount before you get a bill in the mail.

You won’t have to pay a deposit, or go through a credit check. That’s because you will have an account and prepay for your services. this is a big deal for a large portion of the population.

• No Credit Check because of pre-pay
• No waiting for your bill because you already know the bill

Another very important feature is there is very little wait time to turn your electric services on or off. That is because it is done remotely. So no need for the big service trucks on the road. This saves the utility company money which could be passed on to the customer. So this can save a 3 day wait. This saves time money and frustration.

• Service is turned on and off  remotely, for many people this would be a huge convenience

Smart meters are now able to notify the retail electric provider (REP) of an outage. So now there will be no long calls  in the middle of the nite explaining just where an electric outage has occurred.

• Remote notification of electrical outages

It seems pretty clear there are lots of advantages to smart meters. They seem to ease the burdens on both the consumer of electricity and the provider. That is a win win situation in my book.

Centerpoint Energy in November 2009 stated that they would be installing about 2 million smart meters in Houston Texas. That will take care of just under half the population. This is good news.

Note to Commercial Electricity users: If you represent a city, county, large manufacturer, or large business, including one with a presence in many Texas Cities, and would like an electricity auction with the major suppliers send us a note. Let us know who you are, and an estimate of the amount of electricity you use per year and a contact person. We will get back to you with the details as to how to auction off your energy needs to the lowest bidder.

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