Sam Houston Electric Cooperative

Lately there has been talk about how much money consumers could save in the deregulated Greater Houston Area market if only they would just switch Retail Electric Providers.

While there are 23 offers on the market that are less than the marketplace's current price to beat, all of the prices are significantly higher than what 1,000 kWh were going for in January 2002, the start of deregulation. In fact, the cost of electricity has risen nearly 80 percent in Houston's deregulated electricity market as well as other deregulated areas of the state. Those increases have far outpaced the average annual rate of inflation in that time frame.

Last year, the price of all fuels - natural gas, oil, propane and coal - skyrocketed to new highs. Although natural gas had been on a steady uptrend prior to 2005, the busy Atlantic hurricane season damaged many of the domestic production facilities in the Gulf of Mexico, thus driving this commodity to a new historic high of $15.46, a 500 percent increase since 2001. With nearly 70 percent of generation facilities in the deregulated areas of Texas using natural gas as their only or main fuel source, it is easy to see why prices have risen so high, so fast. Take a look at these quick facts from Power to Choose and do some comparisons for yourself.

As you can see, the restructured retail electric market, once touted as a revolutionary way to save Texans money, has not produced the desired effects its authors envisioned. It is for this reason Sam Houston EC has chosen to take a "wait and see" approach. We believe if deregulation isn't working in working in the ERCOT region, then it isn't going to work in our service area either.

Although rising fuels costs have affected Sam Houston Electric as well, our mixture in fuel sources (60 percent coal, 35 percent natural gas and 5 percent hydroelectric) has allowed the Cooperative for the most part to minimize the huge price spikes consumers experienced in the deregulated areas of Texas.

Sam Houston Electric Cooperative is constantly seeking ways to manage and minimize costs. By taking advantage of the latest technology available and utilizing a higly skilled work force, Sam Houston EC is one of the most efficient electric utilities in the nation. Additionally, your board and management team are constantly looking toward the future as they work toward finding affordable electricity as far as 30 years in advance, ensuring your children and grandchildren will be able to afford the same high quality service you receive today.

You, too, can help by becoming more active in they way you use energy, at home, at the office and even on the road. Turning off a light everytime you leave the room or bumping up the thermostat a few degrees each day as you leave home may not seem like much, but over the span of a typical 30-day billing cycle, you'd be amazed how those cents add up to dollars in your pocket. So take the opportunity to talk to you friends and family about the importance of using energy wisely. And don't forget to get involved with your Co-op to learn even more energy efficiency and cost-saving conservation tips.

Together, we have the power to make a difference.