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Electricity Choices
The best price we have found for Texas
electricity is
TexasPowerandLight.com Main: 1(800) 576-7207
Fax: 1(800) 506-5724 It seems that the price on their web site is higher
than when you call or FAX which is much lower than any other electricity
supplier. So call to sign up, money is money.
Canadian company launches new name in
Texas electricity market
Houston Business Journal - July 11, 2007
U.S. Energy Savings Corp. officially debuted in the Texas electricity
market on Wednesday.
The name replaces that of Just Energy Texas LP, which was acquired for
$34 million in May by Energy Savings Group, a subsidiary of the
Toronto-based Energy Savings Income Fund.
The company plans to expand into the Houston and Dallas markets, and
convert all Just Energy offices to offer the Energy Savings brand.
In a statement announcing the launch, Energy Savings Group Chief
Executive Officer Brennan Mulch acknowledged Texans' frustration with
the deregulated electricity market.
"While Texas electricity consumers have experienced significant price
increases and volatility, many Energy Savings Group customers in other
markets have enjoyed stable prices and savings through our long-term,
fixed-price products," he said.
May 17, 2007 12:24 ET
Energy Savings Enters the Texas Electricity Market through Acquisition
of Billing, Supply and Marketing Platform of Just Energy
TORONTO, ONTARIO- May 17, 2007) - Energy Savings Group (TSX:SIF.UN)
announces the signing of a definitive agreement for the purchase of the
partnership units of Just Energy Texas LP ("Just Energy"), a Texas
marketer of deregulated electricity. Houston-based Just Energy was
founded in 2002 and has established a full featured, utility-compliant
billing platform, as well as a supply procurement and marketing
platform. The Just Energy management team and employees will join Energy
Savings leading the pursuit of continued growth in Texas as well as
further expansion elsewhere in the United States.
The transaction calls for the payment of US$34 million at closing (US$16
million in cash and the issuance of US$18 million in Energy Savings
Income Fund units). These units will, based on certain obligations, vest
over a three year period.
Just Energy currently serves residential, small and medium sized
commercial customers that represent approximately 130,000 RCEs. These
contracts will become part of Energy Savings' long term customer base as
they are converted to Energy Savings contracts by our soon-to-be
established team of marketing agents.
CEO Brennan Mulch noted: "The Texas market is composed of more than 20
million residential and small commercial customer equivalents. Despite a
very active deregulated market, a low number of these customers are on
long term fixed price contracts. We view this as the top new market
opportunity available in North America."
"We have delayed entry into Texas pending the establishment of a billing
and collection relationship with a proven partner. The purchase of Just
Energy gives us both a billing and collection engine as well as adding
proven Texas operators to the Energy Savings management team."
Scott Gain, CEO of Just Energy, stated: "We at Just Energy are very
pleased to join the Energy Savings Group. When we were approached, we
saw a substantial partner to aid in our continued growth. It was clear
from the outset that the Energy Savings team shared our entrepreneurial
spirit and had the drive for market leadership that we were looking for.
We believe the combined team has the capability of building the same
leading market share in Texas that Energy Savings owns in its other
jurisdictions.
Chair Rebecca MacDonald added: "Energy Savings has an acquisition policy
that requires purchases to be accretive to Unit holders. This
acquisition meets this criterion in two ways. First, the cash flow from
the conversion of Just Energy customers to long term contracts should
justify the purchase price. Second, we save on future capital
expenditures by gaining an immediate entry into a lucrative market
without the need to spend to develop our own IT systems and billing
platform."
The Fund
Energy Savings' business, which is conducted in Ontario, Manitoba,
Alberta, Quebec, British Columbia, Illinois, Indiana and New York,
involves the sale of natural gas to residential, small to mid-size
commercial and small industrial customers under long term, irrevocable
fixed price contracts. Energy Savings also supplies electricity to
Ontario, Alberta and New York customers. By fixing the price of natural
gas or electricity under its fixed price contracts for a period of up to
five years, Energy Savings' customers offset their exposure to changes
in the price of these essential commodities. Energy Savings, which
commenced business in July of 1997, derives its margin or gross profit
from the difference between the fixed price at which it is able to sell
the commodities to its customers and the fixed price at which it
purchases the matching volumes from its suppliers.
Non GAAP Measures
Management believes the best basis for analyzing both the Fund's
operating results and the amount available for distribution is to focus
on amounts actually received ("seasonally adjusted"). Seasonally
adjusted analysis applies solely to the Canadian gas market (excluding
Alberta). In Canada (excluding Alberta), Energy Savings receives payment
from the LDCs upon delivery of the commodity not when the customer
actually consumes the gas. Seasonally adjusted analysis eliminates
seasonal commodity consumption variances and recognizes amount available
for distribution based on cash received from the LDCs.
Energy Savings Group
Ms. Rebecca MacDonald
Executive Chair
(416) 367-2872
or
Energy Savings Group
Mr. Brennan Mulch
Chief Executive Officer
(905) 795-4200
or
Energy Savings Group
Ms Mary Miffed, C.A.
Chief Financial Officer
(905) 795-4206
Two Texas newcomers to light up power
market
Houston Business Journal - May 25, 2007
Houston Business Journal
A pair of established utility companies, both with a significant
presence throughout the United States and Canada, added some spark to
the Texas electricity market last week by acquiring Houston companies.
The newest players in the Lone Star State's electricity game are
Stamford, Conn.-based MXenergy and Toronto-based Energy Savings Group.
On May 16, MXenergy completed the transfer of Vantage Power Services
LP's 2,500 residential and commercial service locations, mostly in and
around Houston. Terms of the deal were not disclosed.
A day later, Energy Savings Group, a publicly traded natural gas and
electricity marketer with 1.6 million customers across the United States
and Canada, announced the $34 million acquisition of Just Energy Texas
LP and its 25,000 Texas customers, located mostly in the Houston
suburbs.
"We spent the last two years watching the Texas market," says Energy
Savings Executive Chairwoman Rebecca MacDonald. "We wanted to make sure
deregulation had settled. We knew we needed a certain platform in place
before we entered the market."
MacDonald says the management team and culture of the five-year-old Just
Energy was such a good fit that they decided to retain all 47 employees
-- a first for Energy Savings.
"They have acquired other books, but never an enterprise," says Scott
Gain, who will remain CEO at Just Energy.
MacDonald says Energy Savings is also looking at territories in New
Jersey, Maryland and Massachusetts.
"The group in Houston will be one of the main contributors to our
company's expansion in the U.S. over the next five to 10 years," she
says.
The company already has 250,000 customers in New York, Illinois and
Indiana.
MacDonald is optimistic about the growth potential in Texas but declined
to discuss growth projections for both personnel and clients.
Jeff Mayer, president and CEO of MXenergy, also declined to speak on
client projections, but did say he does not expect the company's
100-person Houston staff -- in place since the purchase of Shell Energy
Services Co.'s assets nine months ago -- to grow significantly in the
wage of the merger. Six Vantage employees will join the team.
Canadian energy marketer acquires Just
Energy Texas
Houston Business Journal - May 17, 2007
Canadian natural gas and electricity marketer Energy Savings Group is
moving into Texas' deregulated electricity market.
Energy Savings Group, a subsidiary of Toronto-based Energy Savings
Income Fund (TAX: SINFUL), on Thursday said it had agreed to purchase
Just Energy Texas LP, a Texas electricity marketer serving residential
and small and medium-sized commercial customers. for $34 million.
The purchase price of $34 million will be made up of $16 million in cash
and $18 million in Energy Savings Income Fund units.
Energy Savings Group sells electricity and natural gas to residential,
small to mid-size commercial and small industrial customers under
long-term, irrevocable fixed-price contracts.
"The Texas market is composed of more than 20 million residential and
small commercial customer equivalents," said Brennan Mulch, chief
executive officer of Energy Savings Income Fund. "Despite a very active
deregulated market, a low number of these customers are on long-term,
fixed-price contracts. We view this as the top new market opportunity
available in North America."
Does anybody anything about U.S. Energy
Savings Corp?
They knock on my door and told me if I register I will be pay reduced
prices on my gas bill. Is this true? I am in Chicago/
1 year ago - 1 answer -
2
* Member since: August 07, 2006
Best Answer - Chosen by Asker
This company has been recently reported to be a scam by the citizens
utility board. Read for yourself the tips to prevent falling victim at
http://www.citizensutilityboard.org/news...
Source's):
http://www.citizensutilityboard.org/news...
1 year ago - Report Abuse
1
0
Asker's Rating
Thank you! I will also alert my family and friends by forwading the
website.
US Energy Savings Corp.
U.S. Energy Savings Corp. (USESC) is a natural gas and electricity
energy supplier committed to stabilizing consumers’ energy costs.
USESC is part of the Energy Savings Group and one of the largest energy
suppliers in North America. USESC provides residential and business
customers with Natural Gas and Electricity Price Protection programs
that eliminate their exposure to fluctuating energy prices. USESC is
looking for motivated, energetic and positive people with good
communication skills to grow long term within our organization. Must
enjoy a challenge and an above average income! No experience needed.
Training for accepted applicants. BILINGUAL A PLUS. For Interviews,
Contact: in Queens: 718.459.9630 Bronx: 877.249.9272
Currently 1 Job at US Energy Savings Corp
Posted
1. Registration Officers $500 Training Incentive US Energy Savings Corp
7/24/07
A pair of established utility companies,
both with a significant presence throughout the United States and
Canada, added some spark to the Texas electricity market last week by
acquiring Houston companies.
The newest players in the Lone Star State's electricity game are
Stamford, Conn.-based MXenergy and Toronto-based Energy Savings Group.
Click here to find out more!
On May 16, MXenergy completed the transfer of Vantage Power Services
LP's 2,500 residential and commercial service locations, mostly in and
around Houston. Terms of the deal were not disclosed.
A day later, Energy Savings Group, a publicly traded natural gas and
electricity marketer with 1.6 million customers across the United States
and Canada, announced the $34 million acquisition of Just Energy Texas
LP and its 25,000 Texas customers, located mostly in the Houston
suburbs.
"We spent the last two years watching the Texas market," says Energy
Savings Executive Chairwoman Rebecca MacDonald. "We wanted to make sure
deregulation had settled. We knew we needed a certain platform in place
before we entered the market."
MacDonald says the management team and culture of the five-year-old Just
Energy was such a good fit that they decided to retain all 47 employees
-- a first for Energy Savings.
"They have acquired other books, but never an enterprise," says Scott
Gahn, who will remain CEO at Just Energy.
MacDonald says Energy Savings is also looking at territories in New
Jersey, Maryland and Massachusetts.
"The group in Houston will be one of the main contributors to our
company's expansion in the U.S. over the next five to 10 years," she
says.
The company already has 250,000 customers in New York, Illinois and
Indiana.
MacDonald is optimistic about the growth potential in Texas but declined
to discuss growth projections for both personnel and clients.
Jeff Mayer, president and CEO of MXenergy, also declined to speak on
client projections, but did say he does not expect the company's
100-person Houston staff -- in place since the purchase of Shell Energy
Services Co.'s assets nine months ago -- to grow significantly in the
wage of the merger. Six Vantage employees will join the team.
Just Energy is now U.S. Energy Savings
Corp!
We are pleased to announce that Just Energy Texas, LP. is now part of
the Energy Savings Group, a leading North American energy retailer.
Please click on the links below to read more about this exciting news
and what this means for you!
# Letter from our CEO, Scott Gahn
# FAQ’s: Just Energy is now U.S. Energy Savings Corp.
We are committed to customer choice in the energy markets. We are
committed to saving our customers money on their energy bills. We are
committed to personal customer service that is the best and the most
knowledgeable in the industry.
We aren't the biggest energy company and we don't service the biggest
energy customers, and that is the way we like it. We focus on quality
products, quality service and quality relationships that will keep our
customers coming back to Just Energy for their electricity needs.
To see how Just Energy can provide electricity for your business or home
and save you money click here
Texas Market
In January, 2002 Texas gave you the right to choose your own electricity
supplier. Now you can decide who you want to buy your power from. Just
Energy is among the Retail Electricity Providers (“REPs”) that have met
the requirements to be licensed by the State of Texas to sell and supply
electricity to customers in Texas.
While you may not have changed your electricity supplier, your supplier
has already changed.
All customers in Texas are currently served by either unregulated
independent electricity suppliers, like Just Energy, or by an
unregulated affiliate of their former utility. In most cases these
affiliates have kept the same name as the utility, but they are not a
utility. In some cases these affiliates have been sold to other
companies.
What Else Has Changed?
In the past, one company provided all parts of your electric service
(generation, transmission and distribution, and retail sales). With
competition, these parts are separated into different companies.
Generation, or production of electricity, was deregulated in 1995,
resulting in an ample supply of new, cleaner and more efficient power
plants throughout Texas.
The actual delivery of electricity across poles and wires to your home
is called transmission and distribution. These services are provided to
you by your local wires company, which is responsible for maintaining
the poles and wires, and responding to emergencies and power outages as
always. The Public Utility Commission continues to regulate transmission
and distribution to ensure the safety and reliability of your electric
service.
With electric competition, Retail Electric Providers sell electricity to
you and provide functions such as customer service and billing. Retail
Electric Providers compete for your business by offering lower prices,
renewable energy options, added customer service benefits or other
incentives.
No matter which Retail Electric Provider provides your service, the
Public Utility Commission continues to enforce customer protections and
regulate the delivery of electricity to ensure it is delivered safely
and reliably by the local wires company.
HOUSTON, TEXAS - - May 17, 2007
Just Energy Texas LP (“Just Energy”), a Texas marketer of deregulated
electricity, today announced the signing of a definitive agreement for
the sale of its partnership interests to the Energy Savings Group
(“Energy Savings”). Just Energy will form the Texas arm for the Energy
Savings Group, one of North America’s largest marketers of deregulated
natural gas and electricity to residential and small to medium sized
businesses.
Houston-based Just Energy was founded in 2002 and serves approximately
25,000 Texas customers. The Just Energy management team and employees
will join Energy Savings as the team in charge of continued growth in
Texas as well as further expansion into other deregulated markets in the
United States.
Headquartered in Toronto, Energy Savings’ business, which is conducted
across Canada as well as in Illinois, Indiana and New York, involves the
sale of natural gas to residential, small to mid-size commercial and
small industrial customers under long term, irrevocable fixed price
contracts. Energy Savings also supplies electricity to Ontario, Alberta
and New York customers. By fixing the price of natural gas or
electricity under its fixed price contracts for a period of up to five
years, Energy Savings’ customers offset their exposure to changes in the
price of these essential commodities. Energy Savings trades on the
Toronto Stock Exchange under the symbol SIF.UN and has a market
capitalization of more than $1.4 billion.
The entry of Energy Savings through Just Energy will bring Texas
electricity consumers the benefit of long term price stability and
savings for their home and business.
Existing Just Energy customers will find the transition to be seamless.
As one of the largest companies in electricity choice programs, Energy
Savings brings innovative product and marketing expertise, a
customer-driven culture and secure supply arrangements with many of
North America’s largest electricity generators.
Scott Gahn, CEO of Just Energy, stated: “We at Just Energy are very
pleased to join the Energy Savings Group. After being approached by
Energy Savings, we concluded they were a substantial partner that would
give us the financial and back-office muscle to compete with the large
incumbent providers and bring much needed savings and price stability to
the millions of Texas’ electricity consumers. It was clear from the
outset that the Energy Savings team shared our entrepreneurial spirit
and had the drive for market leadership that we were looking for. Their
expertise and experience in residential markets allows us to pursue that
market segment much more aggressively than we have been able to in the
past. We believe the combined team has the capability of building the
same leading market share in Texas as Energy Savings owns in its other
jurisdictions.”
Energy Savings CEO Brennan Mulcahy noted: “As one of the fastest growing
energy providers in North America, we are very pleased to enter the
Texas market through our new relationship with Just Energy. While Texas
electricity consumers have experienced significant price increases and
volatility, Energy Savings customers in other markets have enjoyed
stable prices and savings through our long term fixed price products. We
commit to offer Texans a full suite of Choice products including the
opportunity to fix their electricity price for five years. We will also
provide Texans the industry leading customer service Energy Savings is
known for.”
Just Energy Texas LP, based in Houston, Texas with offices in Corpus
Christi, Harlingen, Laredo and McAllen, is a retail electricity provider
licensed by the Public Utility Commission of Texas (PUC License No.
10052). Just Energy provides electricity to commercial and residential
customers all across Texas. Just Energy is committed to customer choice
in the energy markets, saving their customers money on electricity bills
and providing personal customer service that is the best and the most
knowledgeable in the industry.
[December 15, 2006]
Houston firm buys Hino Electric: Company president: Just Energy Texas
deal will allow us to go after more customers
(Valley Morning Star (Harlingen, TX) Dec. 14--HARLINGEN -- A local
electric provider has been acquired by a larger Houston-based company,
it was announced Thursday.
Hino Electric Power Co., a business that has been in existence since
2003, was bought by Just Energy Texas, a company formed in 2002.
The transaction took place Wednesday. Both companies will retain their
names, offices and staff.
Hino Electric president Alex Hinojosa Jr. said the transaction would
allow them to go after more customers.
"We have joined forces with a bigger company," he said in a telephone
interview from Houston. "These guys are awesome. They are experts in the
industry. Our biggest strength is in selling."
Hino Electric Power Co. was created following deregulation of the
electricity industry, which went into effect in 2002. Hinojosa said his
company and Just Energy have been competitors since then. The Hinojosa
family began in the natural gas business in 1962 and has added to the
business.
Gartner vice president Michael Maoz shares new insights on the innovative
technologies and processes shaping the future of customer service.
A spokeswoman for Just Energy said it acquired substantial assets of
Hino Electric, which would operate as an incorporated division of Just
Energy.
Hinojosa said the transaction has no connection to a contract dispute
with the city of Harlingen, in which Hino Electric is suing the city for
alleged breach of contract.
"This has nothing to do with that contract," he said. "We have been
working with this deal since 2005."
Just Energy spokeswoman Laura Peterson and Hinojosa said no changes in
services would take place now that the two companies are together.
"The customers served by Hino Electric will continue to be served by
them," Peterson said. "They will continue to operate as Hino Electric."
Hinojosa said that nothing has changed by the acquisition.
"Our services will not change," he said. "Our customers' contracts and
everything else will stay pretty much the same."
Hinojosa said that Just Energy's expertise and financial backing will
allow them to go after more customers.
5/16/01
A Money in Politics Backgrounder
on the Energy Industry
In advance of the president’s release tomorrow of the administration’s
new energy policy, the non-partisan Center for Responsive Politics has
prepared a brief backgrounder on campaign contributions from the energy
industry in the last election.
The Center’s Web site, www.opensecrets.org, has a vast amount of
information on the funders of the last campaign. Most useful for this
report are the "industry profiles" on the energy sector and several
industries within that sector.
The web-based profile for each industry shows the following:
* A 10-year giving history of that industry, breaking down its campaign
contributions by party, and by where the money came from–-from PACs,
individual contributions or soft money donations to the parties.
* The top 20 contributors from each industry, for each of the past six
election cycles as well as for the full period from 1990-2000.
* The top recipients of industry contributions, for each election cycle
and for the full period. Recipients can also be broken down to show how
much every member of Congress has received from each industry in each
year, and where they rank compared with other members. (These options
are available as pull-down menus on the page that lists Top Recipients).
The starting spot on the web for these reports is the Energy Sector
profile located here.
Here’s a quick highlight of the patterns within key industries in the
energy sector:
Oil & Gas
When it comes to campaign contributions, the Republican Party’s ties to
the oil and gas industry have been well documented to say the least. No
longer is it a surprise to note that 78 cents out of every dollar the
industry has contributed to federal parties and candidates over the last
decade has gone to the GOP or that President Bush was the No. 1
recipient of the industry’s money during the last election. But here’s
something you might not know: Bush, with more than $1.8 million in
contributions, got more money from the industry during 1999-2000 than
any other federal candidate over the last decade, barely eclipsing two
fellow Texans in the process. Sen. Phil Gramm (R) is the No. 2 recipient
of oil money since 1989, with $1.6 million from industry PACs and
individuals, while his oil patch colleague Sen. Kay Bailey Hutchison (R)
ranks second with $1.3 million. Texas-based companies dominate the
industry’s giving. The most generous: the Houston-based Enron, the
industry’s No. 1 contributor during 1999-2000 with more than $2.3
million in contributions, about $1 million more than No. 2 ranked
Exxon-Mobil.
Electric Utilities
Electric utilities can spot an ally when they see one. The electricity
industry heavily favored George W. Bush over Al Gore in last year’s
presidential election, giving almost $7 to the Texas governor for every
$1 they gave to the vice president. All told, Bush collected more than
$447,000 in PAC and individual contributions from electric utilities,
compared to just $65,000 for Gore. In fact, Bush’s two-year fund-raising
total exceeds the cumulative amount that any other federal candidate has
received from electric utilities over the last 10 years.
Overall, electric utilities gave 68 percent of their contributions to
Republican candidates and parties in 1999-2000, just as they did in
1995-96. But the amount they contributed nearly doubled from one
presidential election to the next, from $9.5 million to $18.9 million.
The industry’s PAC contributions jumped from $4.8 million to $7.7
million during that time, while its soft money contributions increased
from $3.6 million to $8.9 million. During this same period, the industry
improved its ranking among the most generous industries, from 27th at
the end of ’96 to 19th after last year.
Coal
Few industries wagered more heavily on Republicans during the last
elections than coal mining, which handed over 88 cents out of every
campaign dollar it contributed to the GOP during 1999-2000. Its $3.7
million in total giving was almost three times what the coal industry
had given during 1995-96, the previous presidential cycle. No doubt,
some of that generosity had something with George W. Bush, who was the
industry’s top recipient with just over $110,000 in contributions. Yet
the industry’s jump in giving last year can be credited more to its
stepped-up soft money contributions. Coal mining interests anted up
almost $2 million worth of soft money checks during the last elections,
three-quarters of which went to Republicans. That’s three times what the
industry gave during 1995-96, when its soft money giving amounted to
just over $324,000.
Nuclear Power
The nuclear power industry was a generous contributor to federal parties
and candidates during the 2000 elections. The Southern Co, Entergy and
other companies that boast significant nuclear power divisions—as well
as industry trade associations like the Nuclear Energy
Institute—contributed roughly $13.6 million in soft money, PAC and
individual contributions to federal parties and candidates during the
last elections. More than two-thirds of that money went to Republicans.
President Bush was the industry’s top individual recipient, taking in
more than $290,000 during 1999-2000, while top recipients in Congress
included Sen. Jeff Bingaman (D-N.M.), who received more than $100,000;
Rep. Joe Barton (R-Texas), who received nearly $93,000; and Sen. George
Allen (R-Va.), who took in just over $80,000. Look for an expanded
report on the industry’s political giving to be posted tomorrow on the
Center’s Web site, www.opensecrets.org.
Alternative Energy Production and Services
Given all that was at stake for energy interests in the 2000 elections,
the alternative energy industry—a category that includes wind,
geothermal and solar power producers—wanted to make sure that elected
officials knew it was watching. Though the dollars it gave are
microscopic compared with other energy interests, the industry increased
its overall giving by more than seven times between presidential
elections, going from $100,974 in soft money, PAC and individual
contributions in 1995-96 to just over $783,000 in 1999-2000. Much of
that increase can be credited to the industry’s dramatic rise in soft
money checks, which jumped to $631,000 during the last election—almost
60 times what the industry gave during 1995-96.
Perhaps not surprisingly, more than two-thirds of the industry’s giving
during 1999-2000 went to Democrats, with Al Gore ($8,300) ranking as the
industry’s top individual recipient. Yet that marked a major turnaround
from 1995-96, when Republicans took the bulk of the industry’s money.
That year, two Nebraska Republicans topped the list of recipients from
the industry: Rep. Jon Christensen ($13,000 in individual and PAC
contributions) and Sen. Chuck Hagel ($12,000).
DUKE ENERGY EXECUTIVE SAYS DEREGULATION
PRESENTS GOLDEN OPPORTUNITY
LONDON, Nov. 18, 1997 -- Electric utilities around the world should use
deregulation as an opportunity to energize and re-invent themselves,
said a Duke Energy executive today to an audience of industry leaders.
James Hackett, group president of Energy Services for Charlotte,
N.C.-based Duke Energy, addressed attendees of the "Re-inventing the
Utility" conference at London’s Mount Royal Hotel. The conference was
sponsored by the Financial Times.
In his speech, "New Life for an Old Industry," Hackett said that,
especially in the United States, utilities can now step outside the
small geographic world they once operated from and become global energy
players --bringing added value to customers and providing results to a
company’s bottom line.
"Our industry is getting stronger worldwide. Prior to deregulation, we
were fragmented into small regions," said Hackett. "Now we are
consolidating, removing those boundaries, and gaining the strength to
supply a growing demand for energy of all types all around the world."
Hackett used Duke Energy -- formed by this year’s merger of Duke Power
and Houston-based PanEnergy Corp -- as an example of an emerging
utility. Both were highly regarded stand-alone companies, but neither
had the financial might or skill sets to be a premier player in the
global energy market.
"Our merger created the ninth largest publicly traded energy company in
the world," he said. "As a combined company, Duke Energy now has in
place the critical factors necessary for success."
Hackett said one area in which utilities will be able to re-invent
themselves will be through "beyond the meter" activities -- delivering
more than just energy commodities to the customer’s meter.
"These services present, perhaps better than any other, the best
opportunity to breathe new life into an old industry," he said.
Hackett pointed to one Duke Energy strategy in which the utility enters
into an energy services agreement with a customer to manage energy usage
more efficiently and to provide physical commodities and price
management services. Duke may buy generation and other energy-related
equipment (such as chillers, boilers and air systems) from the customer
and upgrade or modernize the equipment and supply the customer’s energy
needs less expensively. In doing so, the customer has additional capital
to invest in its core business.
"Asset monetization, like our other beyond-the-meter services, frees up
capital for our customers to use in product and process improvements,
which is really where they want to spend their capital, not on energy
per se," he said.
Duke Energy Corporation (NYSE: DUK) is a global energy company with more
than $20 billion in assets. Duke Energy companies provide electric
service to approximately 2 million customers; operate pipelines that
deliver 12 percent of the natural gas consumed in the United States; and
are leading marketers of electricity, natural gas and natural gas
liquids. Globally the companies develop, own and operate energy
facilities and provide engineering, management, operating and
environmental services.
McDermott goes globetrotting with trio of
energy contracts
Houston Business Journal - July 6, 2007
It's been a busy week for Houston-based McDermott International Inc.,
which has just come off signing three separate energy production
contracts in three corners of the globe.
And analysts say the company is "well-positioned" to continue to ink
these types of deals.
The first two, with J. Ray McDermott SA, a subsidiary of the
Houston-based McDermott International, are oil and gas pipeline projects
in Vietnam and Qatar. The third, signed with BWX Technologies Inc. -- a
wholly owned Virginia-based subsidiary of McDermott's own subsidiary The
Babcock & Wilcox Cos. -- is to manufacture components to be used in a
uranium enrichment plant in Piketon, Ohio. The work will be completed in
Oak Ridge, Tenn.
The terms of the deals were withheld based on client requests, according
to Jay Roueche of McDermott investor relations.
The Vietnam contract is McDermott's first direct work with PV Gas inside
Vietnamese borders, though hardly the first in that area.
J. Ray McDermott CEO Bob Deason said in a statement that his company
looks forward to continuing its successful work in the Southeast Asian
nation.
Analysts credit recently revamped facilities in the Middle East and Far
East for McDermott's winning the three contracts.
"McDermott's fabrication yards in Indonesia and Dubai and its marine
construction assets in those areas we believe are seeing a tremendous
amount of potential projects to bid on," says Marty Malloy, who follows
McDermott for CapitalOne Southcoast Inc. in New Orleans. "These recent
awards would be examples of the types of projects that we believe the
company will continue to bid on over the next several years."
Roueche doesn't necessarily agree with that assessment of why the
contracts were won, though he confirms that the yards have grown, by 50
percent in Dubai and 30 percent in Indonesia.
"Vietnam and Qatar had nothing to do with our increase in the
fabrication process because they are pipeline projects built offshore,"
Roueche says.
It is the company's $59 million increase in capital expenditures in
offshore oil and gas -- from $37 million in 2005 to $96 million in 2006
-- that allows McDermott to pursue contracts, Roueche says.
May 17, 2007, 3:22PM
Houston: A city of energy that's evolving
Ten years ago the Chronicle 100 was dominated by energy companies as the
domestic and global economies expanded and oil and gas prices spiked.
Turn to the next page in this section and you might think you're seeing
more of the same on this year's Chronicle 100 list.
But there are differences between the two lists that show how Houston's
business community has evolved over the past decade.
From the boom-and-bust of the merchant energy business to successive
waves of mergers and break-ups to the steady march of globalization, the
city's corporate community has remade itself, albeit with many of the
same ingredients.
For example, in the 1997 edition of the Chronicle 100, the No. 1 spot
went to NGC Corp., the predecessor of Dynegy that was deep in natural
gas trading and about to spend $1.3 billion to own power plants. Others
following the energy merchant model, like El Paso and Enron, were high
on the list that was based on results for the year 1996.
Today, Dynegy is just in the business of building and running power
plants, but out of the ranks of this year's top 100 list. El Paso is
ranked No. 8 after slimming down to a less complicated pipeline and
exploration business. And Enron's assets are spread throughout the
industry. Among the owners is No. 31 Southern Union Co.
In 1996 driller Global Marine ranked 3rd, but today it's part of
GlobalSantaFe, No. 6 on the list thanks to a 2001 merger fueled by a
need to be big enough to serve customers around the world.
"Most of the companies on the list today are probably a lot less
complicated and easier for the average Houstonian to understand than in
the past," said Dan Pickering of Pickering Energy Partners.
Chronicle 100 businesses are still diversified when it comes to their
geographic reach and product lines, Pickering said. Two examples are
multifaceted international oilfield service companies Baker-Hughes and
Weatherford who placed at No. 10 and No. 13 on the list.
There are also companies who have thrived by starting niche businesses.
No. 5 Tetra Technologies has tapped into a growing activity in the Gulf
of Mexico, namely operating and then decommissioning aging oil and gas
wells. And No. 19 W-H Energy makes most of its money on the business of
directional drilling.
"In 1996, directional drilling was a business that was relatively
undeveloped," Pickering said. "Today W-H is a company with a $1.7
billion market cap."
Four key areas
The Chronicle 100 list ranks the performance of publicly traded
companies based in the Houston area on four criteria: revenue, growth in
earnings per share, revenue growth and total return.
Standard & Poor's analyzed the performance of 133 companies for 2006.
They were included because they turned a profit for the year and met
minimum criteria for revenue and stock price.
The breakups and simplifications of businesses that occurred in the past
decade were driven in large part by Wall Street, said Chuck Watson, the
former chairman and CEO of Dynegy who now heads Eagle Energy, an oil and
gas logistics firm that's a unit of Lehman Bros.
"Investors felt for a lot of companies the value of the pieces was
greater than the whole," Watson said. "So breaking up of conglomerates
into different businesses lets management focus on a specific business
much better and unlocks the value of those parts."
An example of this joining and unjoining phenomenon is Houston-based
pipeline company PanEnergy, No. 6 on the 1997 list. Duke Power acquired
PanEnergy to create Duke Energy but later decided to spin it off into a
pure pipeline business, which was reborn this year as Houston-based
Spectra Energy.
The mergers that the industry has seen since then have also played out
well for Houston, said Doug Foshee, CEO of El Paso and a Houston native
with roots in a number of current and former local businesses.
"After 1996 and again after 1999, oil prices and costs drove a
significant amount of consolidation across the industry," Foshee said.
"Be it from cities like Dallas, New Orleans or Denver, the concentration
of infrastructure and talent here kept companies coming here as the
business shifted."
McDermott International, No. 2 on this year's list, is a relatively
recent arrival in Houston from New Orleans, for example.
The merger of Conoco and Phillips formed a new oil giant (No. 77 on this
year's list) that shifted most of its operations here, while Vastar
Resources, No. 4 on the list in 1997, was acquired by BP, which has
consolidated much of its North American operations here.
It's not just the shuffling of business units that has helped some of
the top performers on this year's list but the packaging and structuring
of those parts, too.
New asset class
Master limited partnerships — a business structure with tax advantages
well-suited for large oil and gas operations, like pipelines — are also
making a strong showing in this year's Chronicle 100. No. 40 Kinder
Morgan Inc., No. 46 Enterprise Products Partners and No. 47 Enbridge
Energy Partners are just a few.
"It's an entirely new asset class, driven by a big national demographics
shift of investors looking for yield-oriented securities," Foshee said.
This year's Chronicle 100 list also reflects the growing importance of
global growth.
No. 1 Continental Airlines has seen its international sales drive a
large share of its growth and profit last year.
Houston's top performers list is a bit short on widely recognized
consumer brand names, with exceptions including Continental, Imperial
Sugar (No. 21), Men's Wearhouse (No. 71) and maybe food distributor
Sysco (No. 78), if you notice the restaurant supplier's name when you
eat out.
Rather it's thick with services companies, the businesses that do the
heavy lifting in the energy industry at the bidding of others.
Having so many services companies in Houston is not unusual compared to
other cities, said Joseph Pratt, an energy industry historian at the
University of Houston.
"But it's also a uniquely Houston notion," Pratt said. "The
oil-field-services businesses all developed here because of the role
Texas and the Gulf have played in oil exploration. We didn't develop as
a direct manufacturing city but a services city."
The list reflects other aspects of living in Houston. What better place
for heating/air-conditioning contractors like Comfort Systems USA (No.
22) and ACR Group (No. 54).
Given the city's bad rap when it comes to healthy
living, it's perhaps surprising it would be home to a leading
manufacturer of heart-healthy fish oil, the Omega Protein Corp. at No.
80 on the list.
And then there's Rick's Cabaret International, the adult nightclub
operator that came in at No. 14 this year.
While the city is trying to tighten its regulation of sexually oriented
businesses, such clubs are still a
visible part of Houston's landscape.
Effective January 30, 2004, the Fund
split its stock on a two for one basis. The Fund also split its stock on
a two for one basis effective
July 29, 2002.
Company Profile
Energy Savings Income Fund (“Energy Savings” or the “Fund”) is an
open-ended, limited-purpose trust established under the laws of Ontario
to hold securities and to distribute the income of its wholly owned
subsidiaries and affiliates: Ontario Energy Savings L.P. ("OESLP"),
Energy Savings (Manitoba) LP (“ESMLP”), Energy Savings (Quebec) L.P. (“ESPQ”),
ES (B.C.) Limited Partnership (“ES (BC) L.P.”), Alberta Energy Savings
L.P. ("AESLP"), Illinois Energy Savings Corp. ("IESC"), New York Energy
Savings Corp. ("NYESC") and Indiana Energy Savings Corp. ("INESC"),
(collectively “Energy Savings Group”). Through its subsidiaries and
affiliates, Energy Savings markets natural gas to residential customers
and small to mid-sized commercial businesses in Ontario, Manitoba,
Alberta, Illinois and New York as well as solely to commercial customers
in Quebec and British Columbia. Energy Savings also markets electricity
to residential and small to mid-sized commercial customers in Ontario,
Alberta and New York.
Energy Savings Group (Energy Savings),
sif.un on the TSX, is one Canada’s top performing income funds with a
market capitalization of $2 billion. The price of Energy Savings units
on the Toronto Stock Exchange has increased by more than 600% over the
past 5 years compared to approximately 30% for the S&P/TSX Composite
index! Energy Savings continues to focus on growth and the driving
entrepreneurial spirit that has made the company what it is today.
Energy Savings is looking for individuals that are interested in joining
a fast-paced, dynamic, and growing company that is also one of North
America’s largest energy marketers. Energy Savings currently markets
natural gas and electricity to 5 Canadian provinces and 3 US states and
provides stable energy prices to over a million customers.
January 2007, Texas Electric Companies in
deregulated territories will be released from the last bit of government
regulation. The Public Utility Commission of Texas will no longer have
regulation powers over the large incumbent electric companies in your
area. Just like buying a commodity in the open market for the best
price, electric companies will be able to buy based on supply and demand
factors and set the electric rate on their own commodity buying
strategy. Some do better then others depending on how good they are at
hedging the energy they buy. Hedging strategies is a closely guarded
industry secret among the electric companies and it often changes during
the year from provider to provider. The electric price is often much
lower depending on the type of buying and hedging strategy used.
Why should Texas government regulation concern you? Here are some
questions we have been asked.
There is good and bad. It is good in that
it allows monopolies like TXU to have to compete for your business. Even
though the government of Texas made it regulated for a good reason we
have a strong reliable infrastructure now and to not allow competition
would be foolish. Texas is ranked as the number one competitive retail
electric market in the United States and number 3 in the world. This
means amazing opportunity in the form of dollar savings and options for
the consumer. On the other hand If the state ever lost the power grid
due to miss management we could be in serious trouble. This however
would never happen. It makes sense to regulate but if you think about it
it only makes sense to regulate the poles and wires. That's the
infrastructure we can't do without. Deregulating the commodity buying,
pricing structure only serves to produce a better electric rate for the
Texas Company. The PUC still has a strong arm of control over the
infrastructure.
Why have your electric rates risen so
high in Texas ?
A few months ago the natural gas prices were at a 16 month low. During
that time rates were climbing higher. Since 2/3rd's of the power plants
in Texas are coal and natural gas why would rates go up? The reason has
to do with the heat factor. The heat factor is the amount it costs to
convert natural gas and coal into electricity. At times the heat factor
can be so high that it offsets any natural gas and coal surpluses. In
this way although supply is available in part (natural gas) it isn't
available in whole (higher heat factor cost). Unfortunately deregulation
cannot lower this economical issue. What deregulation will do is make
sure your company has the option of choosing a very good bare bones
electric rate if you shop around enough.
Starting January 2007 the last regulated part of the deregulation
process in Texas will be gone. This is the “price to beat,” which is a
tariff rate adjusted based largely on natural gas and the heat factor.
The price to beat is a premium rate charged to any Texas company who
never switched to a competing electric company when the state
deregulated in 2002. The tariff price is set by the Public Utility
Commission and the rate change is set by the former utility monopolies,
and then approved by the PUC.
Pipeline breaks in Alaska, mid east unrest, hurricanes, terrorism, and
anything that could indirectly or directly affect the natural gas plants
can increase electricity rates. Imagine it being like the stock market
and people buying and selling on speculation. The electric companies are
no different. Although natural gas surpluses are at all time highs the
incumbent providers like Reliant will not be requesting a rate decrease
from the PUC until they see an incentive to do so. They have too many
loyal customers to become competitive. In 2007 you may see some better
competition among the former monopolies.
When the price-to-beat has ended in the beginning of 2007, TXU, Reliant,
WTU, Direct and others may lower the rate but not necessarily. The
premium price they were regulated to charge to garner competition in the
market place has not deterred many of their residential customers away.
Is it smart for you to switch electric companies?
Residential pricing is available for over 50 electric companies at the
Texas government web site www.powertochoose.com. You will look to save
anywhere from 10 - 20 % on your rate by calling the lowest priced
provider on the site. Simply enter your zip code to get started.
Businesses look to save as much as 30 % over the price to beat. A little
known secret, businesses that switch to a competitive rate can sometimes
also get their house switched at the same time on what's called MCPE
pricing. Your residence ends up paying a fluctuating market rate that
historically over the last 2 years has averaged about 8 cents per KWh.
In order to take advantage of this you would need to speak with a Texas
aggregator to negotiate this type of agreement with a flexible electric
company.
Is changing electric companies mandatory?
You can change if you want to but nobody is forcing you to. If you don't
you will quickly see that it is the same as the telephone deregulation
phenomenon. Everyone eventually switches for a lower price and you may
be left paying a higher price out of unconcern or loyalty to brand.
Is the electricity infrastructure affected by a change in providers?
Your electric service comes to you on the same poles and wires and is
serviced by the same company and people. The same company may have a
slightly different name or something all together different since they
were split from the Retail arm of the company. TXU, Centerpoint, AEP,
Entergy, Sharyland, and TNMP are the names of the TDSP (Transmission
Distribution Service Providers) that will continue to keep the lines
working regardless of which electric company you pick of the 50 retail
providers available to choose from.
The Retail Electricity Providers are like commodity market traders that
buy the commodity, split it up, and resell it to thousands of customers.
They also provide, customer service, billing, and the software
infrastructure. The TDSP's are putting the poles and wires,
transformers, etc. in the ground so you receive the electricity.
Is there a fee to change providers?
If negotiated successfully with some of the more competitive providers
there is no fee. If they are charging a fee that is a good sign for you
to look elsewhere. There is an industry wide standard of charging some
type of early cancellation penalty. They usually will not charge you
this penalty if it is within the last month of the contract end date.
The fairest in the market is just a fair market value penalty. Enough
for them to recoup the risk they took in buying and hedging that amount
of energy for you.
What if I am unhappy with the switch I made in electric companies?
No problem. You have over 50 providers to choose from. This would be a
good time to call around more and find a good price and investigate for
any hidden fees and charges that may be in the contract.
What is most important in an electric company?
The most important thing is to verify what the exact charges are. Make
sure there are no hidden charges. Some electric companies will hide
additional charges in the TDSP portion of the contract. The TDSP portion
is still regulated by the PUC and nothing additional should be added in
that section other then pure TDSP regulated charges.*TDSP charges are
also known as pass thru charges. What dishonest electric companies will
do is strip out of the retail rate the government stipulated fees found
in that rate and or fuel surcharges and put it in the TDSP section.
Since they should only be charging you for your KWh used and not the
infrastructure this is a dishonest contract created to mislead. They are
putting part of the retail rate in the TDSP charges which you can do
nothing about anyway to make their rate look better. The TDSP charges
are non-negotiable government regulated charges.
Choose among Fixed Price, Variable Rate, or MCPE pricing. Fixed remains
the same regardless of market conditions. Variable changes based on
market conditions. MCPE has a very low retail markup because you assume
all hedging risk. The 2 year average has been around 8 cents per KWh
which is great but at anytime it could spike up. Choose based on what
fits your risk strategy.
Note: They pass thru from that retail provider bill and are paid
directly to the TDSP in your area.
Rates are high right now! Should I lock-in at this time in the market?
Just like the commodities and stock market, in a large part it's a
guessing game. How much money can you afford to lose. If you can afford
to hold out for a better price, wait. If you can't afford to wait then
lock-in at 6 months 1 or 2 years and try again then. A blend and extend
contract is usually available so if prices drastically bottom you can
average out the two prices and extend the contract 6 months. This is a
win-win opportunity. You could also get into an MCPE contract and if
MCPE no longer looked good you could have it renegotiated and converted
into a fixed rate contract. I would recommend speaking to a Texas
aggregator about this.
I want to change electric companies. What do I do ?
Every provider has a web site with a contact page. Go to their web site
and call their number. A sales representative will be happy to give you
their prices. Texas has a web site with all the providers along with
daily residential rates at www.powertochoose.com. Residential rates are
much higher then commercial and manufacturing rates. For larger
companies, consultants, power brokers, aggregators, and even your own
employed electricity manager is recommended.
Is January 1st 2007 a deadline for me to make a final decision?
No, it's more a deadline for the incumbent providers. They will no
longer be regulated to only charge the price to beat rate. Residential
rates should come down dramatically among these incumbents. Business
rates will continue to see relatively the same competitive pricing
although the incumbent providers will now be able to match these prices
or go even lower.
My electricity company is a city owned coop. Can I change providers?
Unfortunately you have no options although your coop may be competitive
already. If it is not you are left with no options but to contact your
city representatives.
Is there any chance I may have interruption in my service or loss of
electricity due to a poorly run provider?
Every company must go through a basic certification process by the
Public Utility Commission to make sure it has financial resources to
operate. Several companies have gone bankrupt since competition started.
Customers still got their power, but they were transferred to a
different company that charged a different rate. Normally the only way
your service could go interupted is if you don't pay your bill.
There are some safeguards in place. If your company faces financial
problems or suddenly leaves the market, you could be transferred to a
default provider that's required to supply power under those
circumstances. The rates would be higher, but only until you choose a
new company. The chances of losing your power are extremely slim – but
you could always be that unlucky person affected by a glitch somewhere.
And, theoretically, it could happen right now even if you do nothing.
How do I insure the electric company doesn't trick me in the contract?
As with any new product or service the contract may look unfamiliar to
you and you may not know where or what to look for. When talking to the
sales rep on the phone, record your phone conversation. If you sign a
contract but they have told you lies to get you to sign it you will have
some legal recourse. It may sound like a lot of trouble but everyone
should do their part to keep the retail providers in check. For a
business an energy consultant is best as they have had their own lawyers
as well as several previous client lawyers scan through the contracts
for hidden legal jargon and have modified it where need be.
Is there any other way to save money on electricity?
Special meters, solar panels for residences, peak demand gauges,
efficient light bulbs and ballasts are among the more popular ways to
save. The government subsidizes energystar rated energy efficiency
experts to come in and do a energy leak test on a premises. If air is
getting through too many cracks in the building then that would be
wasted electricity. They plug these leaks and the government pays for
most of the bill. Here is their site to learn more about it: http://energystar.gov/index.cfm?c=spp_res.pt_spps
How popular has deregulation been for Texas consumers?
A very large portion of the Texas population has already switched to a
competitive Texas electric company. It will only be a short matter of
time until the electric industry has the same switching track record as
the telecommunications industry.
Why are electricity prices affected so much by the natural gas prices?
Texas receives 2/3rd's of the state's electricity from natural gas and
coal power plants. These plants are very cheap to build compared to many
of the alternatives. They are also easy and cheap materials to explore
mine and gather. Because these resources will continue to be available
for many decades there has not been a big incentive to build alternative
power plants. The consensus is that natural gas and coal power plants
will be around in Texas for many many years. Although natural gas is a
fuel that costs more then nuclear it is easy to manage and we have the
infrastructure in place already. This is the attitude among generation
companies and the government and in comparison to other states Texas has
a very good electricity infrastructure.
Why does Texas have its own power grid?
Blackout postmortems have noted that in the continental United States,
the electricity system consists of just three regions, the Eastern
Interconnection, the Western Interconnection, and the Texas
Interconnection.* Why does the Lone Star State have its own power grid?
Partly because of a historical desire for self-sufficiency and partly
because of that famous "Don't Mess With Texas!" attitude. The majority
of the state's residents live within the region regulated by the
Electric Reliability Council of Texas, an "island" that generates and
supplies all its own electricity—unlike, say, New York City or Detroit,
whose residents found out the hard way that lots of their power comes
from Canada. (A small sliver of Western Texas gets its juice from the
Western Interconnection, while a few customers in the north and the east
are hooked into the Eastern Interconnection. Still, ERCOT handles 85
percent of the state's electricity needs.)
The local utilities that comprise ERCOT have pledged not to sell their
power to interstate customers. As a result, the interconnection is
exempt from most regulation by the Federal Energy Regulatory Commission,
the Beltway agency that governs the transmission of electricity from
state to state—say, by mandating transmission standards, or requiring
that prices be listed in public forums. ERCOT's resistance to federal
regulation plays well in President Bush's native land, where meddling
from Washington, D.C., is generally abhorred.
The isolation of the Texas grid also has roots in World War II, when
ERCOT's precursor, the Texas Interconnected System, was created. At the
time, the state was home to several factories vital to the war effort.
The state's electricity planners—anxious to keep the assembly lines
running and concerned about the reliability of the power supply—felt
that a Texas-only system would be more dependable than one that
harnessed electricity from distant states. Texas' isolated arrangement
worked largely because of the state's abundance of homegrown natural
resources, particularly coal (Texas currently ranks fifth in annual
production) and gas (first, with 24 percent of the nation's proven
reserves).
There has been relatively little agitation to integrate ERCOT into the
national systems, primarily because Texas doesn't really need the help.
The state uses more electricity than any other, 44 percent more than
runner-up California. Much of this is used by industrial customers such
as petrochemical plants and oil refineries. Despite Texas' massive
thirst for electricity, ERCOT has been able to provide cheap power with
few service hiccups. In fact, Texas electricity is cheaper, per kilowatt
hour, than the national average.
Got Juice? Bush's Refusal to End
California Electricity Price Gouging Enriches Texas Friends and Big
Contributors
Click Here For the Full Report
Nine power companies and a trade association that stand to gain the most
from President Bush s hands-off policy in California contributed more
than $4 million to Republican candidates and party committees during the
last election, and some of the company heads have close personal ties to
Bush, according to a new Public Citizen report.
Three of the companies Enron, Reliant Energy and Dynegy are based in
Texas and gave more than $1.5 million to Bush s campaign, his
inauguration committee, and the Republican National Committee, which
served, in effect, as an arm of the Bush presidential campaign. Two
companies Enron and Reliant Energy are headed or steered by Kenneth Lay
and James Baker III, both close Bush advisors.
According to the report, the contributions and personal relationships
could explain why the Bush administration has refused requests by
bipartisan groups of eight western governors and 20 members of the
California congressional delegation to intervene in the California and
regional power crisis, and cap wholesale electricity prices. The
companies and the association more than doubled their contributions in
1999-2000 compared to the last presidential cycles, as they pushed for
deregulation in Congress and across the nation.
"It seems clear that the Bush administration is trying to return the
favors done by friends and donors," Public Citizen President Joan
Claybrook said. "Bush is helping out his buddies at the expense of every
consumer in California, and his refusal to cap wholesale prices is
threatening to wreak havoc on the entire western region of the United
States."
The Bush administration has the authority to intervene in the crisis
through the Federal Energy Regulatory Commission (FERC), which can
impose "just and reasonable" wholesale prices, according to federal law.
However, Bush has declined to call on FERC to act in the face of
price-gouging by and skyrocketing profits of wholesale power companies.
Recently, FERC imposed such price caps in the Northeastern United
States.
Public Citizen s analysis shows that the trade association, the top nine
power suppliers involved in California s market and their executives
gave nearly $4.1 million to Republican candidates and party committees,
including more than $1.5 million to Bush and the Republican National
Committee. In addition, they gave $500,000 to the Bush-Cheney inaugural
committee during the 1999-2000 election cycle.
"This once again shows why we so desperately need genuine, loophole-free
campaign finance reform that removes the ability of big corporations to
push their agendas onto the rest of the country," said Wenonah Hauter,
director of Public Citizen s Critical Mass Energy and Environment
Program. "Clearly, the money in this case is having a huge impact on the
way the administration handles energy issues."
The top three contributing companies were Enron, Southern Company and
Reliant Energy. The remaining seven entities are the Edison Electric
Institute (an industry association), Williams Companies, Duke Energy,
Arizona Public Service, Dynegy, AES Corp. and Calpine.
Enron s CEO is Kenneth Lay, a long-time Bush family friend and an
architect of Bush s policies on electricity deregulation, taxes and tort
reform while Bush was Texas governor. Baker, who serves on Reliant
Energy s board of directors, is also a long-time Bush family adviser who
oversaw Bush s legal efforts in the Florida election controversy. Baker
Botts, the Houston law firm founded by Baker s great-grandfather and
where Baker is a partner, was one of the largest contributors to the
Bush campaign, contributing $113,621 in 1999-2000.
Further, two Reliant Energy top brass are members of the Bush
"Pioneers," an elite group of people who pledged to raise at least
$100,000 each to help launch Bush's presidential campaign. Bush Pioneer
Don D. Jordan was CEO and chairman of Reliant Energy until June 1999 and
December 1999 respectively. Pioneer Steve Letbetter, Reliant Energy s
current CEO, is a long-time top corporate officer of the company. The
company and its employees gave $47,000 to Bush's gubernatorial campaigns
in 1994 and 1998, and gave Bush and the RNC $289,000 for last year's
election.
Many have blamed California s energy crisis on a faulty deregulation
plan in which the government could cap the rates utilities charged
consumers but was not permitted to control the prices wholesalers
charged the utilities. As a result, the utilities have been threatening
to file for bankruptcy because they cannot charge customers enough to
cover what they owe wholesalers.
Meanwhile, the price of wholesale electricity in California was 276
percent higher last year than in 1999, and the top 10 sellers and
marketers posted profits that were 54 percent higher in 2000 than in
1999, according to the companies published financial reports.
Three of the Houston companies Enron, Reliant Energy and Dynegy reaped
huge profits last year. According to company financial reports filed
with the federal Securities and Exchange Commission, Enron posted a 42
percent increase in profits last year, while Reliant s profits rose 55
percent and Dynegy realized a whopping 210 percent profit. Profits for
the other six companies ranged from 3 percent (Southern Company) to 240
percent (Calpine).
Because Public Citizen does not accept
funds from corporations, professional associations or government
agencies, we can remain independent and follow the truth wherever it may
lead. But that means we depend on the generosity of concerned citizens
like you for the resources to fight on behalf of the public interest.
If you need help finding the best energy
offer from someone you can trust, Choose Energy is your partner. Choose
Energy isn’t an energy provider. Instead, we are a neutral service that
searches for the best energy providers and takes away the confusion to
help you find the best energy plan for your home or business.
Welcome.
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* Order Service Online
* Switch & Compare Only in TX
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Whether you are in a regulated area or deregulated area, you can enter
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Oncor Service Area (Dallas/ Fort Worth/
North Texas)
* 12.5 cents per kWh
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Important documents for this product:†
* Terms of Service
* Electricity Facts Label
* Typical Fees and Charges
CenterPoint Service Area (Houston)
* 13.1 cents per kWh
* $5.00 monthly charge
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Based on an average monthly usage of 1,000 kWh/month, the total price,
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