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Reliant Agrees to Cancel Some High-Cost ContractsReliant Energy will allow customers paying some of the highest electric rates on fixed-rate contracts to switch to a much lower cost plan without penalty, after I took up the cause of a senior citizen trapped in a long-term high-rate contract. For February, this customer was charged more than $350 for electricity for a small apartment in a senior citizen building. There's no way someone on a small fixed income can pay those kinds of charges. Reliant estimates that some 6,000 customers are on 24-month fixed-rate contracts that were started during and shortly after the peak in natural gas prices in 2008. These customers are typically paying more than 20 cents/kwh for electricity. Reliant will allow the customers to switch to a one-year fixed-price contract at around 12 1/2 cents. The contract includes 20% green energy. Other plans are also available to customers who are within the last 30-60 days of their contracts. Customers still on those contracts will receive notices on their next electric bill telling them that they may switch to a much less expensive plan without the usual penalties for canceling a contract. But customers don't have to wait for their next bill. If you are a Reliant customer paying 18 cents/kwh or more on a contract, you should call Reliant customer service today and get it changed. If you're near the end of your contract, you should shop for the best price available before you renew with Reliant or any provider. Buying electricity shouldn't be a high-risk transaction. I'm glad Reliant is letting these customers change their contracts. But as a state we need to make sure that you don't need to be an expert in energy markets to make reasonable decisions about your electricity provider. As always, let me know if you have questions about this issue or any other state government matter.
Scott Hochberg Your contribution to the Scott Hochberg Campaign will help keep Scott working for us in the Texas House. You can contribute any amount using your credit card or Paypal account via our secure electronic payment system. Sorry, no contributions are allowed from corporations. While we must report your contribution under Texas ethics laws, your email address will remain private. We must have your full name and address on all contributions. Contributions identified only by an email address cannot be accepted. State law also requires us to use best efforts to collect and report the principal occupation (or job title) and full name of employer of individuals whose contributions equal or exceed $500 in a reporting period. If you are contributing $500 or more during any six-month period, please include your occupation and employer in the space provided on the contribution screen.
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