Don't Fall For Prepaid Electricity Service To Avoid A Deposit

Many low income families need electric service turned on right away without having to pay a deposit. In many cases after renting an apartment there may not be enough money left to pay a deposit.

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Don't Fall For Prepaid Electricity Service To Avoid A Deposit

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FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 27, 2010 -- In Texas you have many electricity providers because the state was successfully deregulated back in 2002. The same was not the case for other states that attempted to deregulate their electricity markets. Take for instance, California and Pennsylvania. These two states deregulated and basically cancelled the whole project because of too much government regulation and sometimes mismanaged government regulation that had power rested in the wrong hands. Now that people have a choice in an electricity provider they now get hit with very large deposits to switch over to a cheaper energy company. The government has offered a solution in subsidizing the electricity price during hot summers and cold winters.



Most deregulated states will have a low-income assistance program usually handled by the Department of Health and Human Services. This is not always the case and so it is sometimes important to check with local city government offices for additional help. Among the assistance programs will usually be assistance in helping an energy customer pay their deposit amount. If an electric service customer in states like Texas, Connecticut, or Pennsylvania can't pay their deposit the government can help them pay for it. One of the requirements to be able to receive deposit help is to show proof that you are receiving some type of government assistance already. If you can prove this through Medicare, food stamps, WIC or some other means it should be easy to get that deposit paid off. You can receive help in signing up with a low cost provider in Texas, Pennsylvania, or Connecticut by calling an energy consulting company that specializes in this service by calling 1-800-971-4020. You may also visit their website at: http://www.electricitybid.com/no-deposit


Reliant Energy as everyone knows got in some trouble in the California deregulated electricity market. Enron Energy also got them into trouble in the CA wholesale energy market. The government slapped Enron and some Reliant employees with some bad behavior related to natural gas price manipulation and pursued them in court. OK it was more than a slap on the wrist. On August 15, 2005, Reliant announced that it had reached a $445 million settlement with the states of California, Oregon and Washington, resolving civil litigation claims against the company related to the sale of electricity in the California electricity crisis of 2000 and 2001. So although Enron was definitely found guilty and obliterated Reliant only allegedly committed wrong doing and settled in court. Did Reliant actually do something wrong? We may never know. At this point we can say from evidence of only a settlement and not a plea of guilty that Reliant did nothing wrong if we go strictly on the facts the courts have set out. So why are we talking about price manipulation. If California was still deregulated today you would find that the free capitalistic markets would have helped to lower electricity rates in the state. This in turn would have allowed electric companies to sell electric service low enough for many people to afford to pay their electric bills and avoid large deposit amounts.


Unfortunately some states get it wrong when deregulating their electricity markets but one state in particular got it right the first time. The state of Texas deregulated their electricity market and have seen energy prices go down because of it. Some argue this fact because back in 2002 prices went up right after the state deregulated. The reason prices went up had to do with natural gas prices going up which directly effects electric rates. This natural gas price spike is the same thing that happened in California and is what ultimately made CA reverse their decision to deregulate and closed the door on all of that. Texas energy suppliers were not manipulating their natural gas prices although some still argue this fact. There was a large demand for electricity and therefore natural gas was used in a large part to create this energy in steam driven power plants throughout the state. This demand for electricity in Texas caused prices to double in price within a short time frame. The price spike gave many people in the state a bad first impression of what good deregulation could do in Texas. Things are back to normal in Texas as prices are relatively low.


Pennsylvania just opened up PA Electricity Market their electricity market back up effectively by taking the price cap away from the monopoly providers. The monopoly electricity suppliers in PA had to raise their prices because they were losing money based on where fuel costs were at. This cap adjustment has now allowed competitive electricity to come into the state and sell electricity for cheaper than what the prior monopolies would charge. This competitive market really kicked off starting in January of 2010. Prepaid electricity companies in PA currently offer service for no deposit but their rates are double and sometimes triple what you can get with a traditional electricity company. There are however government assistance programs that will help a low income family pay off their deposit amount if they choose to go with a traditional electric company in PA rather than a pay as you supplier.

Deposits are still too high for many low-income families although not as bad as they have been. First Choice Power will be the first prepaid electricity company in Texas to use advanced meter technology to keep track of prepaid pay as you go electric service in real time. This smart meter technology will allow First Choice to charge low-income families for prepaid service for their actual usage. This will allow low-income families to avoid a deposit with their electric provider and pay a low cost electric rate. Right now most prepaid electricity companies charge double and triple the price of traditional electricity service. These pay as you go energy suppliers also charge these families based on estimated electric usage from the previous tenant that lived at their address. When a prepaid electricity company uses estimated usage it means that even if the new tenant conserves their energy one month it will not affect the price. This family conserving energy will still have to pay the dollar amount based on electric usage data from a year ago. As you can see what First Choice is doing in the prepaid market is revolutionizing the industry for low income families. Smart meters are not rolled out everywhere yet so it will still be awhile before people can take advantage of this new service.

More information can be found online at http://www.electricitybid.com/no-deposit

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