The grid failed so spectacularly for several reasons:

• Power infrastructure was not winterized
• The state was highly dependent on un-winterized natural gas power plants for electricity
• The Texas grid is isolated from other states
• Demand for electricity surged as millions of people tried to heat their homes
• Lack of preparedness by ERCOT
• Failures of communication and coordination between ERCOT, state officials, utility companies, gas suppliers, electricity providers, and power plants
• No lessons learned from previous winter storms of similar intensity

These issues fell upon each like dominos, leading to power outages for millions, the deaths of hundreds of Texans, and billions of dollars in damages. This catastrophe highlighted the need for swift and sweeping upgrades and protections against future extreme weather events.

Every year since 2021 when winter draws near, Texans wonder whether recent improvements to the grid were substantial enough to keep them safe in the face of another storm like Winter Uri.

In this article, we’ll dive into the specific legislation enacted by the Texas state government in response to the disaster and explore whether the relevant parties have done their part to winterize the Texas grid.

Texas state legislature’s response to 2021 Winter Storm Uri

In March 2021, just a few weeks into the aftermath of Winter Storm Uri, Texas lawmakers introduced and passed significant legislation aimed at upgrading the state’s power infrastructure and preventing repeated failures. The bill, Senate Bill 3 (SB3), included many measures such as:

• Requirements to weatherize gas supply chain and pipeline facilities that sell electric energy within ERCOT, and penalties up to $1 million for violation of these requirements
• Requirement for ERCOT to procure new power sources to ensure grid reliability during extreme heat and extreme cold
• Designation of specific natural gas facilities that are critical for power delivery during energy emergencies
• Development of an alert system that is to be activated when supply may not be able to meet demand
• Requirement for the PUCT to establish an emergency wholesale electricity pricing program

Weatherization measures implemented by Texas natural gas plants

In the Railroad Commission of Texas’ May 2024 document regarding guidance for weatherization practices for gas supply chain and pipeline facilities, they laid out a couple dozen solutions for preventing harm to the grid from severe winter weather.

These solutions include (but are not limited to) the following:

• Installation of insulation on critical components of a facility
• Construction of permanent or temporary windbreaks, housing, or barriers around critical equipment to reduce the impact of windchill
• Guidelines for the removal of ice and snow from critical equipment
• Instructions for the use of temporary heat systems on localized freezing problems like heating blankets, catalytic heaters, or fuel line heaters

The question still remains—have these updates been implemented? According to Daniel Cohan, professor of environmental engineering at Rice University, power plants across Texas have installed hundreds of millions of dollars worth of weatherization upgrades to their facilities.

In ERCOT’s January 2022 winterization report, they stated that 321 out of 324 electricity generation units and transmission facilities fully passed the new regulations.

Is the Texas grid prepared for another Winter Uri?

Utilities, power generators, ERCOT, and the PUCT have all made changes to their operations and facilities since 2021 to be better prepared for extreme winter weather. Are these changes enough? Has the Texas grid officially been winterized?

At this point, it’s not possible to say for certain. Since Winter Storm Uri in 2021, subsequent winter storms have paled in comparison. Temperatures have not reached the same lows, there has been less snow and ice, and instances of winter weather have not lasted for as many days.

If another winter weather storm arrives, blanketing nearly the entire state with several inches of ice, we are likely to at least experience many localized outages. When tree branches cannot support the weight of the ice, they can snap and knock out power lines to neighborhoods across the state. In the instance of a downed power line, we must rely on regional utilities to act quickly to restore power.

The only true way for Texans to know if the grid is ready for another storm is for Mother Nature to unleash another test. If the grid can better withstand, we’ll have our answer, and vice versa.

The post Has the Texas Grid Been Winterized? appeared first on BKV Energy.

What are bill credit plans?

These electricity plans give you a discount—only if your energy usage lands in a specific range.

But here’s the catch: their kWh rates are typically much higher than standard fixed-rate plans. That means if you use too much or too little energy, you’ll pay more than you should.

How to spot red flags in bill credit plans

Before you sign up for a plan with flashy “savings,” check the Electricity Facts Label (EFL). Look for:

• Bill credit triggers: What’s the usage range?
• Rates at 500, 1000, and 2000 kWh: Higher rates at low or high usage?
• Hidden fees or penalties: Are there costs buried in the fine print?

Bill credits are marketing tools, not savings opportunities

Bill credits are used as marketing tools by electricity providers to attract customers. If you use the right amount of energy, you get money back on your bill, but that does not mean you’ll end up spending less overall compared to another plan.

These plans are typically marketed as fixed-rate plans, ensuring that the rate you pay for electricity will remain constant, even with market fluctuations. However, the energy usage charge for a bill credit plan is comparatively higher than other plans.

This means that if your usage falls above or below the specified range of the bill credit plan, you will be subject to a higher rate for electricity than anticipated. To avoid this, it’s important to monitor your usage closely.

Identifying the optimal usage and staying within that range is key to maximizing the benefits of a bill credit plan. Should your usage fail to meet the standards set in the bill credit plan EFL, there will be no bill credit applied. Understanding your electricity usage before choosing a plan is vital, as going beyond the upper limits of the bill credit plan can lead to much, much higher bills.

Why simple fixed-rate plans make more sense

Fixed-rate plans offer steady pricing with no gimmicks. You pay the same rate for every kWh you use, no matter what. No overcomplicated tiers, no surprises—just straightforward savings. Enter your zip code to explore more affordable energy plans.

The post Secrets Electricity Providers Don’t Want You to Know About Bill Credits appeared first on BKV Energy.

If a switch hold has been applied to your account, you cannot switch providers until it has been removed.

There are two reasons a switch hold would be placed on a meter:

• The TDU (transmission and distribution utility) has determined that the meter has been tampered with or theft of electricity services has occurred at the property. Tampering with your regional TDU’s meter to attempt to receive unbilled electricity is illegal.
• If a customer has an unpaid balance or has entered a deferred payment plan with their electricity provider, a switch hold may be placed on the account. This prevents the customer from switching providers until the unpaid balance has been resolved.
• When someone moves into a new residence, they may encounter a switch hold if the previous occupant leaves an unpaid balance.

How to remove a switch hold

There are two ways to have a switch hold removed.

If you are the occupant with an unpaid balance on your account, you must pay off that balance to have the switch hold status revoked. Once the balance is paid, you can switch to a new provider and plan.

If you are the new occupant of a residence that has a switch hold status from the previous tenant, you can request a New Occupant Statement (NOS) form from the electricity provider. The NOS document allows you to prove that you are a new tenant who has nothing to do with the previous tenant’s switch hold. In addition to filling out this form, you may also be asked to provide:

• Copy of your signed and dated lease proving that you have just moved in
• Notarized statement from the landlord
• Electric bill in your name from within the last two months from your previous address

How to dispute a switch hold

If you believe a switch hold regarding meter tampering or electricity theft has been wrongly applied to your residence, you must contact your regional Transmission and Distribution Utility company (TDU).

• Oncor: 888-313-6862
• CenterPoint: 800-332-7143
• Texas-New Mexico Power: 888-866-7456
• AEP North: 877-373-4858
• AEP Central: 877-373-4858
• Lubbock Power & Light: 806-775-2509

If you wish to dispute a switch hold applied by your current or previous electricity provider related to an unpaid balance or deferred payment plan, contact that electricity provider.

What happens if you don’t pay off your balance?

If you fail to meet the obligations of your unpaid balance or deferred payment plan, your electricity provider may choose to disconnect your electricity services. According to the Public Utility Commission of Texas (PUCT), electricity providers are allowed to disconnect your service for any of the reasons below:

• You did not pay the bill by the disconnection date
• You did not meet the obligations of your deferred payment plan
• You did not pay the deposit

In the case of service disconnections, there are rules to protect consumers as well:

• Providers must offer a 10-day notice before disconnecting
• Providers must offer a deferred payment plan if you are unable to pay the full unpaid balance at once
• Providers must offer information regarding organizations that assist with bill payment
• Providers will not disconnect your services over the weekend

Can you switch providers if you have an outstanding balance?

Switch holds are not applied immediately once you have an unpaid balance with an electricity provider. If you’ve been in debt for 28 days or less, you may still switch providers and the unpaid balance will be applied to your final bill.

However, it is worth mentioning that when switching providers, you may need to pay a deposit to start services with the new company. This may only make it more difficult to pay off your electricity debt.

The post What is a Switch Hold? appeared first on BKV Energy.

CenterPoint Energy is an electric utility company and natural gas distributor operating in Texas, Louisiana, Arkansas, Oklahoma, Mississippi, Minnesota, and Indiana, offering essential services to residential and commercial customers. Services offered vary by location.

Natural gas distribution

CenterPoint Energy, unlike a natural gas production company, doesn’t drill or extract natural gas. Instead, it plays a critical role in natural gas service transmission and distribution. It maintains a vast network of pipelines to ensure the reliable delivery of gas to homes that use it for heating, cooking, and fueling appliances. 

What is CenterPoint Energy’s natural gas customer base? It serves around 4 million customers across Indiana, Minnesota, Mississippi, Louisiana, Ohio, and east Texas—predominantly in the greater Houston area.

Electricity distribution

Is CenterPoint Energy a gas or electric service provider? It’s both. Besides natural gas, CenterPoint in Houston and its surrounding service areas plays a critical role in retail electric distribution. The company is responsible for maintaining the electric infrastructure, ensuring reliable service even during peak demand times by managing poles, wires, and other infrastructure, and addressing downed power lines following power outages after storms. 

What is CenterPoint Energy’s electricity customer base? About 2.5 million customers, primarily in the Houston area, rely on CenterPoint for electricity distribution services.

Electricity production

While CenterPoint Energy primarily focuses on electricity delivery rather than production, it operates power plants in Indiana. Under Texas law, retail electric providers (REPs) cannot own power plants within the state. Therefore, although CenterPoint owns the lines that deliver power to many Texas residents, they operate purely as a Transmission and Distribution Utility (TDU).

Does CenterPoint generate electricity in Texas? 

No. As previously mentioned, CenterPoint Energy only delivers electricity in Texas, a function of the state’s deregulated energy market where electricity generation is separated from distribution. Along with CenterPoint, five other transmission and distribution companies operate in Texas:

• Oncor
• Texas-New Mexico Power
• American Electric Power (AEP) Texas Central
• AEP Texas North
• Lubbock Power & Light (LP&L)

How do I stop paying CenterPoint? 

The reality is you can’t completely eliminate the TDSP/TDU charges involved in supplying your home with utilities like gas and electricity. They will typically appear as an item on your monthly bill under any one of the following:

• TDU charges
• TDU delivery charges
• TDU pass-through charges

Lowering your electricity bill by reducing your transmission fees is also challenging because CenterPoint is allowed to recuperate for the full amount of its operating costs, including maintenance and repairs. So, customers can expect TDU charges to be higher during particularly harsh Texas winters when the weather is colder, wetter, or windier than usual.

The only way to avoid TDU fees altogether is to live off the grid—which, while appealing on some levels, isn’t particularly practical.

The history of CenterPoint

Now that we’ve established what CenterPoint Energy is and what it does, let’s take a more in-depth look into the company’s history and how it became such a significant player in the state’s TDU game. Here’s a quick timeline of its evolution:

• 1866: The Houston Gas Light Company was created. It used coal and gas to power streetlights surrounding Houston industries and homes.
• 1870: The Minneapolis Gas Light Company was formed in Minnesota and began providing gas utilities to businesses and homes.
• 1882: The Houston Electric Light and Power utility company utility started generating and selling power in the Houston area.
• 1990: The three companies merged under the name NorAm Energy Corp.
• 1999: NorAm Energy was renamed Reliant Energy. 
• 2002: Statewide deregulation and restructuring laws kicked in, with electricity rates overseen by the Electric Reliability Council of Texas (ERCOT). 
• 2002: The company rebranded its retail electric services as Reliant Resources. The remaining assets were rebranded as CenterPoint Energy. 
• 2013: CenterPoint teamed up with ArcLight Capital Partners LLC, a Boston-based energy investment firm. 
• 2018: ​CenterPoint and Vectren Corporation entered into a definitive merger agreement to form a delivery, infrastructure, and services company. ​​​​​​​​​​​​​​​

Today, CenterPoint Energy, headquartered in a CBD tower block in downtown Houston, employs nearly 9,000 people across its locations. This growth reflects the company’s strategic expansions and key role in shaping regional energy policies and infrastructure, directly impacting consumer experiences and economic development.

Save on electricity plans with BKVE

Understanding the roles and services of providers like CenterPoint Energy is crucial for homeowners navigating the utility market. While CenterPoint is a key player in distributing natural gas and electricity, remember you have options for your energy plans.

At BKVE, we offer a variety of energy-efficient electricity plans tailored to meet your specific needs and budget. Don’t let the complexities of the utility market leave you in the dark. Find your new plan today and take control of your energy costs!  

The post What is CenterPoint Energy? appeared first on BKV Energy.

Peak hours occur during the time of day when demand for electricity is the highest. Off-peak hours describe the rest of the time when businesses and residential customers use less electricity.

During peak hours, increased demand for energy drives the price of wholesale electricity higher. The opposite plays out during off-peak hours, meaning wholesale electricity prices fall along with decreasing demand.

When are peak hours for electricity in Texas?

According to the Energy Information Administration, peak hours, when electricity demand is highest, vary based on the time of day, day of the week, and the season.

Summer peak hours

In the summer, peak hours occur between 3:00PM-7:00PM. These are the hottest hours of the day when air conditioners work overtime to keep businesses and homes cool. Demand is exacerbated when people return home from work in the evening.

• Time: 3:00PM-7:00PM
• Months: June to September

Spring and fall peak hours

In the spring and fall, when weather is milder, peak hours there is a smaller peak in the morning between 6:00AM-9:00AM and a larger afternoon peak between 4:00PM-8:00PM. The morning peak occurs when everyone is waking to get ready for work or school. The afternoon peak occurs when folks return home form work, but is usually less intense than peak hours during the summer.

• Time: 6:00AM-9:00AM and 4:00PM-8:00PM
• Months: March to May, and October to November

Winter peak hours

In the winter, peak hours are no longer tied to the use of air conditioning, but the use of heating. There can be two peaks during the winter. Between 6:00AM-9:00AM when people wake up and turn the heat on because winter mornings are colder. Then, again in the evening from 5:00PM-9:00PM when people return from work. Winter evenings are dark and cold, so more people are turning up the heat and turning on more lights.

• Time: 6:00AM-9:00AM
• Months: December to February

Weekends vs weekdays

During the week, peak hours are often more pronounced because society follows a routine of waking up, going to work or school, and returning home in the afternoon or early evening. Over the weekend, usage may be lower or more spread out.

How peak hours impact your electricity bill

Peak hours can significantly impact your electricity bill, depending on the type of plan you’ve selected. Time-of-use and variable plans are subject to the most impact from peak hours, while fixed-rate plans feel the least influence.

Time-of-use plans

Time-of-use plans offer different electricity rates throughout the day, typically with higher prices per kWh during peak hours and vice versa. That means, the more electricity you use during peak hours, the higher your bill will be.

Variable plans

On a variable pricing plan, your electricity rate can change month-to-month. During the summer, when peaks are the highest, variable rates can become rather unaffordable.

Fixed-rate plans

On a fixed-rate plan, you are locked into the same rate for the duration of your contract, meaning your price per kWh does not change during peak hours. However, it’s still important to be wary of your electricity consumption, especially during peak hours in the summer. If you set your thermostat to a low temperature, then you can expect higher bills.

Avoid high electricity rates with Bluebonnet

If you’re interested in an electricity plan that skirts increased prices for energy, look no further than BKV Energy. Our Bluebonnet plan offers an affordable fixed rate at all times of the day, every day, for the duration of your contract. Additionally, this plan has no base charges, no usage fees, and comes with a 30-day risk-free trial. Finally, enjoy our robust loyalty and rewards program, just for signing up. Enter your zip code to explore rates in your area.

The post What Are Peak vs Off-Peak Hours for Electricity? appeared first on BKV Energy.

An electricity deposit is a sum of money that an electricity provider may require from a customer before starting service. This deposit serves as a security measure for the energy company, ensuring that they have some financial protection in case the customer fails to pay their electricity bills.

Why do you have to pay an electricity deposit?

Texas electricity companies may require you to pay a deposit before starting services as a way to protect themselves from potential financial risks. The deposit is a security measure against customers who do not pay their bills on time or at all.

When is an electricity deposit required?

Here are a few reasons why a deposit might be required to begin electricity services in Texas:

1. Credit Risk: If a customer has a low credit score or a history of late payments, the electricity company may require a deposit as a precaution against the possibility of non-payment.
2. New Customers: For customers who are new to the service area or have no established credit history with the utility, a deposit might be necessary because the company has no prior payment history to assess their risk.
3. Past Due Balances: If a customer has had service with the company before and left an unpaid balance, a deposit might be required to re-establish service.
4. High Usage: In some cases, if a customer is expected to have high electricity usage, a deposit might be requested to cover the potential for a higher bill.
5. Security: The deposit acts as a financial buffer for the utility company, allowing them to recover some of the costs if the customer fails to pay their bills or defaults on the account.

How much does an electricity deposit cost?

Electricity deposit costs vary by residential energy provider in Texas. According to the PUCT, the amount of the deposit may be up to 1/5th of the estimated annual billing or the sum of the estimated billings for the next two months.

For post-paid plans, electricity deposits may range between $50 and $500. The amount can vary based on factors such as the length of the plan and your credit history. If you select a pre-paid or no-deposit plan, you would expect to pay $0.

Do you have to pay a deposit?

You do not always have to pay a deposit to receive electricity. Here are a few ways to get around paying an electricity deposit in Texas:

Good credit

If you provide a social security number during the enrollment process, most electricity providers will run a credit check to determine the risk of providing electricity to your home. If you have a solid credit score, you will likely not need to pay a deposit.

No deposit electricity plans

There are some Texas REPs who do not charge a deposit for specific plans, such as a pre-paid plan. Pre-paid plans or other plans without deposit requirements are typically much more expensive. Providers hedge the risk of non-payment through a higher energy charge rather than through an upfront deposit.

Deposit waivers

Alternatively, you may qualify for a deposit waiver. The Public Utility Commission of Texas requires that REPs waive deposits for customers who can provide proof that they fit into three categories:

1. History of Good Standing: If you’ve had exemplary payment history on your electricity bills for the last 12 consecutive months, you are eligible to have your deposit fee waived. Contact your current electricity provider to provide a credit reference letter on your behalf confirming that you have not had a late bill payment more than once in the last 12 months.
2. Victim of Family Violence: If you are a victim of family violence, you are eligible to have your deposit waived. A signed certification letter from the Texas Council on Family Violence is required to claim this waiver.
3. Age 65 or Older: If you (or your spouse) are 65 years of age or older you are eligible to have your deposit waived. If you provide a valid form of identification (such as state issued driver’s license/ID or passport), you can claim this waiver. You must not have any overdue electricity payments to qualify.

Do you get the deposit back?

In Texas, the Public Utility Commission requires that the deposit is refunded after 12 months with interest, if the customer has a good payment history, or the deposit is applied to the final bill when service is terminated.

The post Why Do Texas Electricity Providers Require a Deposit? appeared first on BKV Energy.

Texas residential electricity rates are lowest in spring and fall months. That means you can secure a cheaper price between late February and early May, and mid-September to early December.

During these months, demand for power is lower and that translates to lower prices for Texas electricity shoppers.

Why are Texas electricity prices lower in spring and fall?

Electricity prices are lower in the spring and fall due to a combination of market factors, including:

• Wholesale market volatility
• Supply and demand
• Geographic location
• Fuel source
• Costs to operate a power plant
• Costs associated with managing transmission and distribution
• Statewide regulations

Wholesale market volatility

If electricity providers are buying energy for 12 months, why don’t the rates average out? That would certainly make market rates more stable throughout the year. Unfortunately, it’s not so simple. This is where wholesale market volatility comes into play.

Prices in peak seasons are incredibly volatile because the grid is more at risk of extreme weather events, such as heatwaves or winter freezes. When it comes to signing up for a new plan, the further in time you are from these risky months, the cheaper the rates. This is because it’s easier for electricity providers like BKV Energy to prepare for their customers’ electricity consumption during those extreme weather events.

To simplify this further, purchasing wholesale electricity on behalf of customers when weather is temperature is more efficient, more cost effective, and less risky. This leads to lower prices for customers.

How supply and demand impact Texas energy rates

To put it simply, energy prices decrease when demand decreases and energy prices increase when demand increases. Texans use less electricity during the spring and fall because the weather outside is milder.

Homeowners and renters rely less on air conditioning to stay cool in the spring and fall, so demand on the grid decreases. As a result, prices decrease.

During the summer, we crank up the AC and demand increases. This increased demand leads to higher prices across the Texas energy marketplace.

Supply and demand curves related to weather typically have the highest impact on the marketplace.

How location impacts your energy choice

Where you live within the state of Texas impacts your electricity price. Texas is divided into six utility regions: Oncor, CenterPoint, AEP North, AEP Central, Texas-New Mexico Power, and Lubbock Power & Light.

Each of these utility companies charge different rates (TDU Charges or TDU Pass Through Charges) based on their costs to manage the transmission and distribution infrastructure (such as the maintenance of power lines). Each of these utility companies add a per kWh charge and a flat monthly charge to your bill that impact your overall average price per kWh. With the except of Lubbock Power & Light, they only charge per kWh and there is no monthly flat fee.

Texas utility companies adjust their fees at least twice per year, on March 1 and September 1. Changes to rates must be approved by the Public Utility Commission of Texas. They can change rates at other points throughout the year, but only with the approval of the PUCT.

Check out the recent history of TDU charges in Texas.

How fuel source impacts electricity prices

As the Texas power grid fuel mix continues to evolve, so does its impact on wholesale electricity prices. As more solar and wind farms go live, these changes become even more prominent.

Wind and solar produce electricity relatively cheaply, but they are not always available. The sun isn’t always shining and the wind isn’t always blowing. When solar and wind go down, the grid must rely more on fossil fuel plants to meet demand. In the summer, when demand is especially high, this causes wholesale prices to skyrocket.

These high wholesale prices during the summer translate to high prices for Texans. Just another reason to sign up for a new power plan in the spring and fall!

The cost to generate power

For natural gas power plants especially, the cost to generate electricity can vary widely depending on the weather. When temperatures rise over the summer, natural gas power plants operate at a lower efficiency, which means the cost to produce power increases. This increase in operation costs leads to higher wholesale prices, which means higher prices for consumers.

Changes to transmission and distribution costs

We already spoke about how utility charges vary by where you live, but we also need to address why utility costs increase or decrease.

Let’s take CenterPoint for example. When Houston gets slammed by a hurricane and severe damage is inflicted upon the infrastructure that delivers powers to homes and businesses, it is very expensive to repair that damage.

If Houston finds itself in the path of several dangerous storms in a row, CenterPoint may increase utility pass through charges to help pay for the work needed to mend the grid.

Statewide regulation

There are two major organizations that have an impact on electricity prices in Texas: ERCOT and the PUCT. These groups (and others) impact retail electricity prices in several ways.

• Renewable energy portfolio standards, or how much energy must come from renewable sources
• Emissions standards and water usage regulations for power generators
• State and federal subsidies and incentives for renewable power
• Grid reliability management, or requirements for investment by utilities into new and updated infrastructure
• Consumer protection rules on retail pricing
• Energy bill payment assistance programs
• Weather emergency response programs

ERCOT and the PUCT are most likely to step in and influence the market during summer and winter because these are the times of year when the majority of grid-sensitive issues occur. In the summer, hot weather can lead to supply and demand issues. In the winter, freezes can shut down the grid entirely. Remember the winter storm of 2021?

In these extreme situations, state regulators jump into the ring and their actions can increase (and in some cases decrease) the cost of power for consumers.

When is the best time to switch providers or plans?

The best time to switch plans in Texas is generally towards the end of your current contract.

The PUCT requires electricity providers to allow customers to switch plans or providers in the last 14 days of their current contract without incurring an early termination fee.

If you decide to stick with your current provider, you can typically switch plans in the last 30 days of your current contract without incurring that early termination fee.

But what do you do if your contract ends in the summer or winter? How can you secure those affordable spring and fall prices?

How to manage contract length and cancellation fees

If your electricity plan renewal schedule lands you smack dab in the middle of the summer or winter, you may be wondering how you can secure a lower rate in the spring or fall. Luckily, you have a few options.

1. Choose a plan with a 3, 6 or 9-month term

Shift your renewal schedule by enrolling in a plan that ends in the spring or fall. From then on, only enroll in plans with 12, 24 or 36 month terms.

2. Pay the early cancellation fee and enjoy long term savings

If you don’t mind paying the early cancellation fee, you can switch whenever you want. The money saved by securing spring or fall rates will eventually eclipse what you spent to switch plans early.

3. Find a provider that covers your early cancellation fee when switching

If you don’t want to pay an early termination fee, some providers occasionally offer a deal where they will cover your early termination fee when you choose one of their plans.

Switch to BKV Energy’s Bluebonnet plan

At BKV Energy, our #1 goal is to help Texans save on energy. That’s why we created the Bluebonnet plan. With no base charges, no usage fees, and a simple fixed rate, you can easily save just by switching. Enter your zip code below to explore rates in your area.

The post When Is Electricity Cheapest in Texas? appeared first on BKV Energy.

The answer for 99% of Texans is a resounding “NO.”

These plans are designed to lure you in with the promise of “free” electricity. But the reality is much, much different.

Daylight robbery

There’s a dirty little secret that electricity providers offering free nights plans don’t want you to know—the energy charge (what you pay your provider per kWh) during the day is often twice the cost of a simple fixed rate plan. That’s right… twice the cost!

Energy companies know that you use around 70% of your monthly energy consumption during the day. So they hike the daytime rates to cover so-called “free” nights.

We did the math and it does NOT add up

Here’s a bill comparison of two real energy plans (pulled from pricing available in Oncor region on June 11, 2024). This comparison shows what you would expect to pay at 3 different kWh usage levels: 500, 1000, and 2000 kilowatt hours.

BKV Energy Bluebonnet 12 vs TXU Energy Free Nights & Solar Days 12

Bills calculated with the following formula: Bill = Usage x (Energy Charge + TDU Charge) + TDU Fee + Base Charge. Multiplied the TXU results by 70% to account for free electricity at night. Click these links to view the BKV Energy and TXU Energy Electricity Facts Labels used to calculate these bill estimates.

At all usage levels, you would pay significantly more for electricity on the free nights plan. Why? Because you use the most energy during the daytime and no amount of “freebies” can offset the inflated daytime rates of a free nights plan.

Marketing gimmicks

Don’t be fooled by these marketing ploys. Free nights create a false sense of savings while costing you more. This false economy benefits the provider while hurting you!

Simplicity is key

At BKV Energy, we believe simpler is better. That’s why our Bluebonnet plan offers a simple fixed rate with no base charges, no usage fees, and no confusing time-of-use terms. Plus, you get a 30-day risk-free trial and access to Premier+, our robust rewards program. Want to save money on electricity? Avoid free nights plans. Switch to BKV Energy.

The post Your “Free” Nights Plan Could Be Costing You Thousands appeared first on BKV Energy.

In this handy guide, we’ll explore the key differences between Energy Ogre and Power Wizard.

Understanding Energy Ogre

Energy Ogre is a concierge subscription service designed to help Texans simplify the task of finding the most cost-effective electricity rates.

As an independent private entity, Energy Ogre is not affiliated with any particular electricity company, guaranteeing impartial suggestions. Their monthly fee of $10 covers the legwork of exploring the plethora of Texas electricity plans on your behalf to ensure optimal savings.

How Energy Ogre works

Subscribers provide Energy Ogre access to past electricity bills so their software can analyze consumption patterns. From there, the Energy Ogre algorithm sifts through over 2000 individual energy plans from over a hundred retail electricity providers to assess maximum savings opportunities based on expected household usage. 

Is Energy Ogre worth the $10 monthly fee? It can be because aside from finding plan recommendations, the Energy Ogre team also deals directly with electricity companies to negotiate new contract terms, set up the account, and manage the transition from each subscriber’s current contract.

So, for busy professionals and families with hectic lifestyles, Energy Ogre offers a convenient and hassle-free way of securing a good deal on electricity.

What is Power Wizard?

Like Energy Ogre, Power Wizard services are subscription-based. However, unlike Energy Ogre, subscribers sometimes need to be more active in transitioning to their new electricity contract, depending on which membership level they subscribe to (more on that in the next section). 

It’s worth noting for transparency that while Power Wizard operates as a 100% unbiased intermediary between retail electric providers and consumers, the company is owned by NextEra Energy, which in turn owns two retail electric providers in Houston: Frontier Utilities and Gexa Energy. 

How does Power Wizard work?

Upon subscribing to Power Wizard, Texas residents are granted access to the company’s electricity plan interface.

There, they can search for plans and contracts that better meet their electricity needs based on current and historical usage. The period of access and what happens once a better contract with a new provider has been identified depends on the level of subscription:

• Base membership – The Silver DIY subscription grants 60-day software access for a one-time fee of $14.95. Once a more favorable electricity contract has been selected, the customer handles account setup and transition independently.
• Full membership –The Gold VIP plan is similar to Energy Ogre’s standard offering. For $110 per year, subscribers get access to the Power Wizard electricity plan interface, plus assistance with enrollment and current account transfer/cancellation.

Is Power Wizard worth it? It can be because either subscription model may result in favorable electricity costs with savings that surpass the $110 annual subscription cost or a one-time $14.95 fee. 

Power Wizard vs Energy Ogre

There are hundreds of ‘too-good-to-be-true’ power plans on the market that are not transparent about transmission and distribution charges, taxes, and additional costs like late payment and early termination fees. As more and more companies enter the retail electricity market, both Energy Ogre and Power Wizard offer increased protection for Texans. 

Wondering which is best? Let’s dive into a direct Power Wizard vs Energy Ogre comparison considering the essential factors of service model types, fees, and customer experience. 

Service model

Energy Ogre handles all of the admin and any customer service issues involved in switching accounts. Additionally, their service doesn’t stop once customers have found a new plan. A subscription includes continuous searches for better electricity service contracts, and monthly reports provide subscribers with estimated usage for the following cycle to help them plan and budget. 

Conversely, access to the Power Wizard electricity interface doesn’t provide account set setup and handling assistance unless consumers opt for the Gold VIP plan. Plus, a more involved approach is needed to research all the details and assess the various pricing structures. However, this service model may be preferable for consumers who are happy to do more admin legwork or are a little mistrustful of placing blanket trust in a third-party management company. 

Fees

Energy Ogre and the Power Wizard Gold VIP plan both cost a flat rate of $110- $120 per year. The average monthly electricity bill in Texas is $157.26, meaning subscription costs equate to roughly 75% of an additional monthly bill annually. For many households, particularly low-income households, that might make the one-off fee for a Power Wizard Silver plan preferable to achieve the best financial outcome.

Let’s calculate how the fees play into your overall electric bill.

• If you use 500 kWh per month, a $10 per month fee is the same as paying an additional 2 cents per kWh on top of your average price.
• If you use 1000 kWh per month, a $10 per month fee is the same as paying an additional 1 cent per kWh on top of your average price.
• If you use 2000 kWh per month, a $10 per month fee is the same as paying an additional 0.5 cents per kWh on top of your average price.

This means if you land a plan that with an average price of 13 cents per kWh (at 1000 kWh), your true average price would be 14 cents per kWh.

For some customers, this additional cost may be worth the concierge experience of someone else finding a plan on your behalf. Many customers would prefer to pay a lower bill.

Customer experience

For consumers placing trust in a third-party electricity advocate, top-notch customer service is paramount. So, it’s essential that potential customers check Energy Ogre and Power Wizard reviews thoroughly before making a decision. Current ratings on review sites are:

Energy Ogre – 2.3/5 on Yelp and 2.27/5 on Better Business Bureau

Power Wizard – 1.8/5 on Better Business Bureau and 4.4/5 on Trustpilot

However, online reviews can be conflicting and subject to bias. So, it’s always a good idea to reach out to friends, family, and colleagues to see if they know anyone using either service and get their impartial, first-hand feedback.

Affordable energy plans from BKVE

At BKV Energy, we specialize in delivering straightforward energy plans without vague terms or confusing jargon. The Bluebonnet plan comes with a no-strings-attached 30-day trial in which you can cancel at any time with no early termination fee.

BKVE’s Bluebonnet plan customers don’t need to worry about the complexities of Power Wizard vs Energy Ogre because our in-house tools through Premier+ do all the heavy lifting for you. For example, our Blend & Extend system constantly works to find cheaper rates to help you save even more and through our Contract Consultation service, we help you lock in the best possible rate when it is time to renew.

Check out our handy comparison tool today to see how much you could save.  

The post Power Wizard vs Energy Ogre: What’s the Difference? appeared first on BKV Energy.

The Public Utility Commission of Texas (PUCT) requires retail electricity providers to create an Electricity Facts Label (EFL) for every plan they offer in order to disclose the details of those plans to customers.

One of the requirements of the EFLs is to include the average price of electricity on that plan at three levels of energy consumption: 500, 1000, and 2000 kWh.

How to interpret the three electricity prices

As it turns out, these three prices do not refer to a unit price you may pay per kWh for electricity and they do not apply to ranges of energy consumption. Rather, they represent the average price per kWh you would pay if you happened to use exactly 500, 1000, or 2000 kWh during a billing period.

The average price at each of three usage levels is calculated by combining all of the aspects of a bill that may include:

• Energy charge: What you pay per kWh to your electricity provider
• Delivery rate: What you pay per kWh to your TDU/TDSP (your utility company)
• Delivery charge: Fixed charge paid per month to your TDU/TDSP
• Monthly base charge: Some Texas providers include a base charge on their plans regardless of how much energy you consume
• Usage fee: Some providers add a usage fee when you use “too much” or “too little” electricity during a billing period
• Bill credit: Some plans include a credit back on your bill when you use a specific amount of energy during a billing period

It would be very unlikely to use exactly 500, 1000, 2000 kWh in a month — in fact, the average monthly usage in Texas is actually 1094 kWh. While the three usage levels may be unrealistic, they can give you a good idea of what your average price may be in different size homes. For example, a small apartment may use about 500 kWh, a large apartment or small home may use around 1000 kWh, and a medium-to-large-sized home may use 2000 kWh or more.

Because the different charges on your bill are either fixed, per kWh, or applied based on overall usage, that changes the average price at the 500, 1000, and 2000 kWh on the table in the Electricity Facts Label. Here’s why:

Simple Fixed Rate Plans

With a simple fixed rate plan, your bill will consist mainly of three charges: energy charge, delivery rate, and delivery charge. Both the energy charge and delivery rate are per kWh costs, while the delivery charge is a fixed monthly cost.

That means the more electricity you use, the lower your average price because the fixed charge is “spread out” more across the per kWh charges.

This same logic applies to fixed rate plans that include base charges.

Usage Fee Plans

Similar to base charges, a usage fee will typically be a fixed amount, but it will only apply when you consume a specific amount of energy. This variability will widen the differences between the average prices at 500, 1000, and 2000 kWh.

Bill Credit Plans

Bill credit plans are generally the most confusing to evaluate and feature some of the widest variation in average price between the three usage levels.

When you use the right amount of electricity, a bill credit is applied. That brings down the average price for one of the three usage levels — most commonly at 1000 kWh.

This is where it gets tricky. Energy providers offering bill credit plans will advertise the low average price at 1000 kWh and hope that you do not open the Electricity Facts Label to discover how the higher than average energy charge leads to a very high average price at 500 and 2000 kWh.

Shop for electricity in Texas the smart way

At BKV Energy, our number one recommendation for electricity shopping is to always, always, always check the Electricity Facts Label before enrolling in a plan. There are many plans in the marketplace designed to trick you. Reading the fine print of an EFL and gaining a full understanding of all the charges that may or may not applied to a bill is key to securing savings on your monthly bills.

Shopping for electricity and want to see how much a plan may cost? Enter the details from an EFL and some of your past usage data into our electricity bill calculator. We’ll calculate your estimated bill for you.

Simple and affordable energy with BKVE

At BKV Energy, we’re proud to offer simple, transparent, and affordable electricity plans to Texans. Our plans do not include extra fees such as base charges or usage fees. Plus, with our 30-Day Power Pilot you can try us for 30 days without the worry of paying an early termination fee.

Enter your zip code below to get started.

The post Why Texas Has Three Electricity Prices appeared first on BKV Energy.