The Price of Power, Here we Go Again!

It amazes me that even after dozens of stories about the often excessive “Price of Power,” electricity stories still generate dozens of emails to the NBC5 in box.

The latest target of angry electricity buyers, Cirro Energy.  I did a story on a man who’s contract expired and Cirro raised his rate from .10 per KWH to .23 per KWH.  That more then doubled his monthly bill.

Cirro insists it warned the customer that his contract was about to expire but acknowledged it never told him his rate could more then double.  The customer then asked to negotiate a lower payment for the bill, he said Cirro would only negotiate if he resigned a new contract, he didn’t.  The customer used the word, “Strong arm.”

When chatting with an Executive Vice President of Cirro, he kept saying once off the contract customers are at the mercy of the spot market.  When asked if 100 percent rate hike is excessive? He replied, not if the market calls for it.

There didn’t seem to be any comprehension on either of our parts.  I didn’t really see his point and he didn’t see mine.  I often find myself breaking complex issues down to the simplest denominator.  In this case, a 100 percent rate hike, with no warning, (except your contract is about to expire and your rate could go up) is extreme and could be argued that it’s just plain wrong.

Big Bad TXU Can Also Be Warm and Fuzzy

No one likes the electric company.  The fact is, providing electric service is a thankless job.  When the lights come on, no one notices, when they don’t, entire neighborhoods grab their pitch forks and go on a hunt for TXU executives.

The price of electricity is always way to high, now more then ever.  And even TXU acknowledges there are problems with customer service.  But for the first time in a long time, I got to do a story today that proves TXU can do the right thing..  TXU has an “Energy Aid” Program where people in need can call TXU and get financial bill payment assistance.

Today I met a 53 year old man who had a stroke and came within days of having his electricity turned off.  He called TXU, a few hours later, some of the bill was paid by the fund, and the rest was put on a payment plan.  Michael Ray never had an interruption in power.

It is a great example of a big company taking responsibility for the community it serves.  Though I don’t think it is TXU’s responsibility to come up with a program like this, the fact that it did speaks volumes.  After all TXU may be privately held, but it still serves the public.

Nice job TXU, but I still got my eye on you!

NBC5i.com Story

Electric Companies Do it Again….

The nations energy crisis is not just affecting our pocket books but apparently the rising cost of electricity is putting some small electric providers out of business.  Four companies just up and left the Texas market leaving 36-thousand customers high and dry.

The state is switching those customers but many were not told of the change and the new plan is in some cases 40% higher then their old one.

Many of the customers even had a contract with their provider.  If the customer broke the contract they would have been forced to pay $200.  One viewer raised a valid point, insisting the electric companies should be forced to live up to the same standard… If the company breaks the contract it should pay the customer $200.  What’s fair is fair!

The companies leaving Texas are:

1. National Power
2. Pre-Buy Electric
3. E-Tricity
4. Riverway Electric