TXU starts prepaid electricity service!! Oh, what terrific news!

June 24, 2011 § 1 Comment

Pop art Portrait of Rick Perry

Image via Wikipedia

This must be the innovation and positive impact of competitive forces that Texans were promised in 2002 when Governor Perry and his very own PUCT (Public Utility Commission of Texas) deregulated IOU’s (investor owned utilities) in Texas and when the TPUC discarded the North Texas TXU franchise by allowing it to be sold to a private equity consortium (KKR, TPG, and Goldman Sachs).

Hey, good work Governor Perry, TPUC, Energy Future Holdings, and private equity smart guys.  It was so boring and old fashion with Dallas Power & Light.  They just sat there.  Now we have exciting REP’s (retail electric providers) that offer consumers choice (i.e., power to choose).

TXU, our once proud franchise utility, has joined the throngs of predatory REP’s in Texas.  It’s business in Texas.  What a great idea and income opportunity . . . let’s use electricity service to exploit low-income families, the elderly, and customers with poor credit.

Now, the least fortunate electricity consumers actually have no choice in Texas: they can prepay their electricity with a large deposit, or they can prepay their electricity with a large prepayment.  It’s power to choose in a perverse manner.

TXU argues that the plan gives TXU the ‘ability’ to serve customers that don’t qualify for standard service because of bad credit.  Really?  No ability without a predatory plan?

Also . . . ‘customers want this service because they can pay as much on their electricity bills, when they choose to do so.’  OK now I understand, you can pay your electricity bill (at a higher electricity rate) several times a week or month instead of a normal billing cycle . . . now that’s very convenient.

In addition, with ‘smart meters’ TXU can put their low profile customers in the dark at any time of day when their ‘prepayment’ is expended.  Awesome.

Maybe municipally owned Dallas Water Utilities is watching . . . they can do the same thing.  Prepay your water bill and sanitary sewer service – another convenience for low-income families!

TEXAS . . . honestly, have you had enough? 

Begin to separate yourself from our ‘power to choose’ retail electricity providers.  Install a PV solar system on your home or business.  Produce a portion of your own electricity.  Hedge your electricity bills, and distance yourself from the usual cast of inside players.

PV is available now, it’s affordable and economic, it’s scalable (any size system works fine), and your investment in PV increases the value of your home or business.  Learn more, and join the solar movement.

You will have no regrets.  It’s time to make a move.  Light from light . . . cool energy.

Chet Boortz, CEO


[The comments, positions, and opinions stated above are my own and may or may not represent those of SES21USA, LLC and its affiliate companies.]


Grid-tied Residential PV . . . it’s an Avoided Cost . . . think about it!

January 19, 2011 § 2 Comments

For a residential user, the installation of a PV grid-tied system has significant tax advantages that are rarely considered in determining the costs and benefits of a PV system.  

By installing a grid-tied PV system, the system owner generates electricity that is consumed on the load side of the electricity meter.  The result is a lower electricity bill.  This, of course, is the economic benefit of solar electricity.  The difference between the before PV and after PV electricity bill is an avoided cost. This is a cost you do not have to pay . . . a cost you have avoided!  The avoided cost has an ‘after tax’ benefit, because you do not pay income taxes on the avoided cost.  When you pay your electricity bill, you do so with ‘after tax’ dollars.  Your electricity bill is not deductible for tax purposes, so it takes after tax dollars to pay your bill.

So, here is the impact.  If your cost for electricity is 12.02ȼ kWh (EIA, the August 2010 U.S. residential average); and you use 1,000 kWh per month, your monthly electricity bill is $120.20.  If your marginal federal income tax rate is 25%, it takes $160.27 of before tax earnings to pay your electricity bill:

$160.27 (before tax) x 25% (tax rate) = $40.27 tax liability

$160.27 (before tax) – $40.27 (tax liability) = $120.27 electricity bill

The same calculation would apply to state and local income taxes if applicable! 

Why $0.1097 for a residential PV System? Click here…

The above analysis is not intended to be tax advice.  Your circumstance may vary, so always consult your tax advisor for specific tax matters.

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