Energy Future Holdings' retail electricity company, TXU Energy, announced on Monday deep cuts to several residential electricity pricing plans, which still remain more expensive than many comparable plans in Texas.
TXU cut prices by around 10 percent on three pricing plans offered in North Texas, as well as plans offered elsewhere, just as the Texas Legislature convenes. Electricity experts say the Legislature could take up electricity deregulation, an issue that's become unpopular among many consumers but is staunchly supported by most electricity companies.
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TXU spokeswoman Sophia Stoller said the company cut the price of its SureValue plan, which has a fixed rate for 24 months, to 15.1 cents per kilowatt our from 16.5 cents for customers who use 1,000 kilowatt hours a month. Texas Choice 24, another fixed-rate plan, went to 14.3 cents from 15.5. According to www.powertochoose.org, the Public Utility Commission's rate comparison web site, fixed rate plans currently cost 10.2 cents to 16.9 cents per kilowatt hour in North Texas.
Stoller said TXU cut prices for a month-to-month plan as well. PowerStart costs 16.3 cents per kilowatt hour, down from 16.8 cents, for 1,000 kilowatt hours per month. According to Power to Choose, month-to-month plans, with rates that vary each month, currently cost between 10.1 cents and 17.9 cents per kilowatt hour in North Texas.
TXU did not reduce prices for the bulk of its North Texas customers, who haven't changed their pricing plan since the electricity industry deregulated. That old, regulated rate, called the Price to Beat, remains at 12.7 cents per kilowatt hour for 1,000 kilowatt hours a month. TXU cut the Price to Beat during the last Legislative session, as some lawmakers considered bills designed to force rates lower.
Electricity industry officials say prices in Texas tend to be relatively high because nearly half of our electricity comes from natural gas-fired plants. Natural gas has been expensive the past couple of years until the recent decline. On Monday, natural gas futures prices were trading at $4.55 per million British thermal units. One year ago, the price was $8.10 per million Btu.
