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Tag: Electricity

  • Power Wizard in The News

    This story came out back in 2019, but we’re still mistaken for “Power Wizard.” Wizard Energy is NOT Power Wizard. Nonetheless, we do work hard to help people save big money on their electric bills! We’ve been at this for nearly 20 years and are proud of the reputation we’ve developed. Our work is based on honesty, integrity, and impartiality in dealing with electricity companies to get our customers the lowest electric rate to lower your electricity bills.

    We’re an INDEPENDENT energy broker that forces large electricity companies to bid on YOUR BUSINESS in order to get you the BEST POSSIBLE ELECTRIC RATE no matter what!

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    Here is the article that was in the Houston Chronicle…

    Power Wizard, a new electricity shopping website in Houston, promotes itself as an independent voice on the side of consumers looking for low cost plans, providing unbiased advice to shoppers because Power Wizard has no ties with retail electric providers.

    Except it does.

    Power Wizard is owned by NextEra Energy, the nation’s biggest utility company, which also owns two retail electric providers in Houston, Frontier Utilities and Gexa Energy, according to registration records on file with the Texas Secretary of State and other public records. The chief executive officer of Power Wizard, Brian Landrum, is also president of Gexa, according to public records.

    “It doesn’t sound very unbiased to me,” said Fred Anders, founder of Texas Power Guide in Houston, a website that helps consumers find the cheapest power plans.

    Power Wizard, which was launched in February, is one of a growing number of concierge-like services in Texas that promise to find the best retail power deals for consumers. The growth in the industry reflects the confusion many Texas consumers face while shopping for power as they wade through gift card offers, free nights and weekend promotions, multi-tiered rates that change based on the number of kilowatt hours used and electricity brokers who promise they can find the best deals. Power Wizard also offers an on-going bill management service for $8 per month.

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    Power Wizard says on its website that it will navigate electricity buying for its customers as a “totally unbiased” partner. “We don’t have any alliances, relationships, or partnerships with any REPs,” referring to retail electric providers, according to Power Wizard.

    But the address Power Wizard uses with the Texas Secretary of State is the same address of Florida Power & Light, another electricity company owned by NextEra Energy, according to the registration statement Power Wizard filed in February with the Texas Secretary of State.

    All eight executives of Power Wizard work for NextEra, including five who list Florida Power & Light’s address in Juno Beach, Fla. as their business address, according to Power Wizard’s broker application to the Texas Public Utility Commission. Three of the executives, including Power Wizard’s CEO, chief financial offer and assistant vice president of regulatory affairs list NextEra or Gexa addresses in Houston on the registration form Power Wizard filed in August.

    Gexa spokeswoman Ashley DePaolo said that Power Wizard is an affiliate of NextEra, but operates independently of other NextEra business units, including the retail operations of Gexa and Frontier. Power Wizard is not influenced by any retail energy provider or energy broker, regardless of ownership, she said.

    But after being contacted by the Houston Chronicle, Power Wizard removed the claims from its website that it has no ties with retail electric providers.

    As to whether Power Wizard puts customers in Gexa or Frontier plans, DePaolo would not say. PowerWizard selects the best electricity plan on behalf of its members regardless of the retail energy provider, she said.

    Electricity brokers have largely escaped scrutiny in Texas, but a law enacted during the most recent legislative session requires brokers to register with the commission and comply with consumer protection rules and marketing guidelines. The registration deadline was Sept. 1 and about 1,000 brokers have signed up, according to commission records.

    The commission has proposed new regulations for brokers and asked for comments, which will be incorporated into a new rule that will oversee electricity brokers.

  • What’s Coming to Texas in 2022 Electricity Market

    The pandemic has been a major driver in fluctuations in the energy market this past year. So what can Texans expect in 2022?

    Matt Smith, lead oil analyst at Kpler, joined Texas Standard to talk about key developments, including with renewable energy, that could have big consequences for the Texas economy and the global energy market as a whole.

    Listen to the interview with Smith in the audio player above or read the transcript below to learn more about how oil is bouncing back as investments in renewable energy sources continue to grow.

    This interview has been edited lightly for clarity.

    Texas Standard: What do you see as the highlights and lowlights of 2021, and what are some of the factors we should be thinking of as we ponder 2022?

    Matt Smith: We’ve been seeing this demand recovery coming through, and that’s going to be a theme for for next year. But in terms of the immediate factors, you’ve got a really wild situation at the moment in terms of Europe and Asia where you’ve got a cold winter there. And that’s been wreaking absolute havoc on electricity prices there and is actually driving demand for U.S. LNG [liquefied natural gas] as well because they’re pulling that from the U.S. It’s at a record pace there.

    But what is interesting is that it’s even driving oil demand this winter in these regions because electricity prices are spiking so high that these utility companies are switching from burning coal and natural gas to fuel oil and gas oil and whatever they can get their hands on just to keep the lights on.

    But that’s all actually just juxtaposed with a warm start to winter here in the U.S. And so U.S. natural gas prices are easing lower, which is really important because natural gas prices are the key driver of electricity prices across the U.S. And so lower prices there is good for our utility bills.

    And just, finally, we are seeing gasoline prices edging lower here towards the end of the year, but we did actually just see them at the highest price for Christmas on record. So that just shows that they are putting it in context how elevated they are.

    What should we be fastening our seat belts for in 2022? Any time we talk about energy, I think a lot of people’s thoughts turn to renewables and whether any of the developments we’ve seen over the past several months might tilt us past that tipping point where the demand reaches that critical mass.

    There is definitely that momentum behind renewables at the moment, and we’re set to see them increase by 60% or something like that over the next decade, in terms of that capacity coming online. So that’s going to be a consistent theme through next year, especially with some iteration of the Build Back Better act being passed, which will really kind of propel the investment side of renewables in the U.S.

    But in terms of other energy sources and joining the dots back to Texas, you’re going to be seeing the oil market starting in 2022 in much better shape than it was last year – over $70 a barrel. We’re likely to see global demand growth continuing to rebound after the impact of the pandemic, while a big chunk of the supply-growth side of the picture is expected to come from the U.S. and the Permian [Basin] as well. So, higher oil prices is going to be ultimately supporting the Texan economy into next year.

    Would higher oil prices mitigate against investment in renewables?

    In Texas, you know, more than 20% of electricity generated comes from wind power. And actually, an amazing stat to me is still that if Texas were a country, it would be the world’s fifth largest wind-power producer, which is crazy. But going forward, investment and focus is actually pivoting towards solar power capacity instead. And so growth next year is set to double in terms of capacity to 20 gigawatts and then up to 31 gigawatts in 2023. So the future is is definitely looking bright for Texas solar going forward.

  • Why Gasoline, Heating Gas & Electricity Are Going Up

    The U.S. Consumer Price Index was up 7.5% in January… This is a 40-year record!

    You need look no further than the gas pump or your utility bill to witness a punishing run-up in energy prices.

    Motor fuel costs — mirroring a surge in oil prices — are at heights not seen since 2014. Heating bills are bloated. Electricity prices are rising.

    Energy prices always are inherently volatile. That’s why the federal government breaks them out — along with food prices — when tabulating “core inflation.” In January, year-over-year core inflation rose 6%, the biggest jump since 1982.

    Including energy and food, the U.S. Consumer Price Index in January increased 7.5% — also a 40-year record. Energy costs have been the biggest pocketbook villain, soaring 27% nationally and 30% in Minnesota in January over a year ago, CPI data shows.

    Q: How high are gasoline prices?

    A: The increase is high, but not quite historically high. On Friday, Minnesota gasoline prices on average were $3.44 per gallon, compared with $3.58 nationally, according to AAA. A year ago, Minnesota prices, which often track below the national average, were $2.62.

    Prices in Minnesota haven’t hit $3.50 per gallon since summer 2014, according to GasBuddy.com, a price tracker. The prices were even higher in 2012 and 2013, with Minnesota gasoline prices hovering between $3.45 and $3.75 for several months — briefly spiking to an all-time nominal high of about $4.25 in May 2013. Adjusted for inflation, notably ugly years for average U.S. gasoline prices, according to InflationData.com, were: 2008 ($3.86 per gallon); 1981 ($3.83); and 1938 and 1934 (both $3.66).

    Q: Why are prices climbing so much?

    A: Gasoline costs are driven mostly by oil prices — which are on fire. Oil cost around $60 a barrel a year ago, before rising steeply in 2021’s second half. West Texas Intermediate (WTI) — the benchmark U.S. crude — traded above $80 a barrel for most of October, before retreating some. But WTI began another ascent in late December; it was around $92 a barrel Friday.

    Oil’s latest surge is powered by the Russian move on Ukraine. War brings uncertainty to commodity markets. Plus, Russia is one of the world’s largest suppliers of oil and natural gas. As western sanctions pile up, “Russia could retaliate by using oil as a weapon,” said Patrick De Haan, GasBuddy.com’s head of petroleum analysis.

    Even before the Ukraine crisis, global oil demand had outstripped supply for months, buoyed by economic recovery from COVID-19. OPEC held the line on oil production. Even U.S. shale oil producers — known for burning up profits by chasing new wells when prices rise — have become disciplined. “They have learned their lesson,” De Haan said.

    Q: How high could gas prices go?

    A: “This isn’t going to get a whole lot better, and it will probably get worse,” De Haan said. “It’s not impossible to hit $4 a gallon in the Twin Cities. It really depends on how bad the Russian situation gets.”

    Q: Why is my heating bill so hefty this winter?

    A: The largest part of your winter bill is the commodity cost of natural gas, which your utility passes down to you with no mark-up. (It’s a state rule.) Natural gas prices have also risen over the past six months as demand has outstripped supply. Plus, record U.S. exports of liquid natural gas have put pressure on domestic supply.

    In January, residential customers of CenterPoint — Minnesota’s largest natural gas supplier — were paying 27% more per therm of gas than a year ago, according to data provided by the company. And commodity gas prices in January had actually fallen from December and November.

    Q: What is the natural gas price outlook?

    A: It’s likely that the Henry Hub price — the benchmark U.S. gas price — will stay above $4 MMBtu for the next few months, said Emily McClain, vice president of North American gas markets for consultancy Rystad Energy. That price has been below $4 for most of the past six years. “But we do see a light at the end of the tunnel,” she said. Supply is ramping up: U.S. gas production — unlike oil output — surpassed its pre-pandemic high late last year. And unlike oil, U.S. natural gas prices are not as influenced by global markets.

    Q: How has the weather affected my gas bill this winter?

    A: It has made matters worse: January and February temperatures in Minnesota have been uncomfortably below normal. Last month, the average CenterPoint customer used 18% more gas than a year earlier.

    Q: Are other charges higher on my gas bill higher this winter?

    A: Yes, but the financial pain here is less than from higher commodity gas costs. The Minnesota Public Utilities Commission (PUC) approved interim rate increases for CenterPoint and Xcel Energy, the state’s second-largest gas supplier, which went into effect Jan. 1. CenterPoint and Xcel’s residential gas rates each rose 3.9%.

    Also, customers of CenterPoint, Xcel and two other investor-owned gas utilities are paying a special “February 2021 weather event” charge (a separate line item on your bill). The charge stems from the “extraordinary” – as the PUC deemed them — $660 million in costs racked up by the utilities during a brutal storm in the southern U.S. last winter.

    Gas fields in Texas and elsewhere — which weren’t weatherized for cold — froze up, sending Midwestern gas prices rocketing over 4,500% at one point. The PUC allowed utilities to begin passing on the extra costs last fall over a roughly two-year period, though it later extended that time to 63 months for all CenterPoint customers and Xcel’s residential customers. The PUC hasn’t decided whether the utilities will be able to recover the entire $660 million.

    Q: What about propane?

    A: Just under 10% of Minnesotans use propane for heat. Propane is derived from gas and oil, so its price also has soared nationally. Residential propane prices in Minnesota last month were up 23% over a year ago, data from the Minnesota Department of Commerce show. Propane users often fill their tanks well before winter. But Minnesota prices have been consistently above $2 per gallon for four months — the only time that’s occurred in the past five years.

    Q: Are electricity costs rising too?

    A: For January, the U.S. Consumer Price Index showed a year-over-year spike in electricity prices of 10.7% — the largest such increase in at least a decade. In Minnesota, the year-over-year January jump in electricity prices was the highest since late 2020. This January’s bill for the average Xcel customer was 7% higher than a year earlier, data provided by the company show. The majority of that stemmed from a 6.4% interim rate hike granted by the PUC to Xcel — by far the state’s largest electricity provider — that went into effect Jan. 1. The addition of a fleet of new wind farms in 2021 also boosted Xcel bills over a year ago, as did higher prices for natural gas — a key fuel for electricity generation.