Bounce Energy’s Smart Saver versus Reliant’s Cap and Save

Which One is the Real Way to Save?
Since its launch this past summer, Reliant Energy has been filling the media with its Cap and Save energy plan. Reliant says it’s a plan with the security of a term plan and lower rates if energy prices fall. While it seems like a good idea, on closer examination, Reliant’s Cap and Save Plan is cashing in on consumer caution rather than giving consumers the tools and information they can use to save on their energy bills.
The Plan:
Reliant’s Cap and Save Plan is an indexed energy plan with a 12 month contract term. That means instead of the price being set at a fixed rate for twelve months, the price is indexed to the commodity price of natural gas on the New York Mercantile Exchange (NYMEX). As anyone knows, natural gas is a volatile commodity and its price varies from hour to hour depending on a variety of market forces and world events such as trouble in the Persian Gulf, oil spills in the Gulf of Mexico, and the amount of natural gas in storage in Texas. Theoretically, a consumer could lose their shirt if natural gas prices spiked like they did in 2008. However, Reliant has included a cap on their plan. If the price of natural gas increases to about $4.50 per MMBtu (one million British Thermal Units), consumers will not pay more than the indexed energy charge of 8.9¢/kWh (9.0¢ on the 100% wind plan).
How does indexing work? Reliant’s indexing plan is set up to provide consumers with a percentage discount. Reliant determines the discount by taking the settled price of natural gas at NYMEX (Henry Hub) every 15th day of the month, subtracting that from their initial natural gas price when the plan was offered (currently set at $4.50) and then multiplying the result by .003 MMBTU/kWh (million BTUs per kilowatt hours). The result of this is the natural gas Discount Factor (NGDF). For example, on November 5, the NYMEX price was $3.93. The NGDF was .00171. This number was subtracted from the Indexed Energy Price and resulted in a discount price of $.08729/kWh. If your bill was for 1,000 kWh, your electric bill would be $89.00 excluding the NGDF. When you figure in the NGDF, the discounted bill is $87.29 or a savings of $1.71. Ok, that’s really, really modest at best but it’s still a discount. Right?
What Reliant has only lately been making clear to its Cap and Save Customers is that the 8.9¢/kWh price is actually the base price and that is the only price used to calculate the NGDF. The TDU charges, which everyone pays for every energy plan in Texas, can amount to nearly 30% of a bill. So while you are paying $89.00 as your base price, there’s another 4¢/kWh that you must add onto your rate. So, if your rate was 8.729¢ (which includes the NGDF) per kWh, the TDU charges will increase your rate to around 12.729¢ — which is nosing near 13¢/kWh.
This begs the obvious question: why are people willing to pay more than 12¢/kWh for a 12 month indexed plan when there are so many other plans, both fixed and variable, that are at a significantly lower rate and include the TDUcharges in their rate? As of November 10, there were 70 other Ǭ month fixed plans (including other plans offered by Reliant) listed on powertochoose.org priced less than 12¢/kWh.
According to recent comments exchanged at the Texas Electricity Ratings Blog, Stephen Morisseau with Reliant Energy stated “Customers told us they want the security of a rate that will not go up, and the benefit of lower rates if prices fall.” In spite of repeated questioning, Morisseau would not address the fact that Reliant’s NGDF was incapable of cranking out the discounts its consumers signed up for. In fact, even if natural gas sold only for 1¢/MMBTU, Reliant’s NGDF would only return a discount of 1.347¢ from the base 8.9¢ price. Add in the TDU charges and customers would still pay around 11.5¢/kWh.
What are Reliant’s Cap and Save customers thinking? The key is in what Morisseau said: security. Reliant’s pitch to consumers is that their rate will be securely capped against a rise in the commodity price of natural gas. It sounds good, but this approach creates a perception that consumers should be afraid that natural gas prices are on the rise.
However, if you look at the NGDF, it’s pretty obvious that as long as natural gas prices stay low, Reliant will make a lot of money off the Cap and Save plan. If the actual natural gas price ever goes over $4.50 (Reliant’s Initial Natural Gas Price), Reliant will lose money. So, Reliant is betting an awful lot of money that natural gas prices will not rise through 2011.

Once you read this eye-opening story, you will completely understand HOW this one, life-changing, money-saving invention could have been kept from you for all these years.

The man behind the invention was Nikola Tesla. He was a genius who worked alongside of some of the greatest inventors in American history like Thomas Edison and George Westinghouse.

Over his lifetime Tesla was awarded 11 different patents and worked with technology from electricity to x-rays.

How?

Well, in 1901 several venture capitalists (including J.P. Morgan) began funding a project by Tesla to provide a new method of electricity for resort community in Colorado.

And these investors were right.

But once J.P. Morgan realized that this new invention to generate electricity could not be metered (which meant they could never change the public for it and never receive any profits)… he pulled his funding and had the project labeled as a “million dollar folly”.

After Tesla died, the government came in and confiscated all his files. They deemed Tesla an enemy of the US because of his Austrian heritage (even though he became a US citizen in 1891). And the invention was buried.

For over 90 years this ground-breaking invention was labeled a failure and sat collecting dust in the government’s possession.

And now a new group of scientists have discovered Tesla’s life-changing invention.

They have taken his idea and created a simple, step-by-step guide that will allow ANYONE, ANYWHERE to begin producing their own, natural, clean, FREE electricity.

Lately we constantly hear about the new, “green” energy.

We hear about people trying to “get off the grid” by using solar panels, wind power or turbines.

These are all great ideas that can help you reduce your dependency on the utility companies, but they all have major draw-backs…

They are incredibly expensive!   
If you have ever priced solar panels or wind power, then you know you are easily looking at a $10,000 investment just to get started.

They are a constant headache!
Between keeping your solar panels constantly clean to worrying about the constant maintenance, it can be a much bigger job than you ever imagined!

They only work when the weather is just right!
When the sun goes down, when the sky is cloudy or when there is no wind… you aren’t generating any power and you have to depend on large, costly batteries to save and distribute power to you throughout the entire day.

There is a way to generate natural, clean energy that was discovered by Nikola Tesla at the turn of the century… and it is still just as impressive today as it was back then.

Tesla discovered that you could actually use the sun’s energy to produce electricity… instead of using the sun’s rays (as you do with solar panels).

The sun is constantly radiating energy – even when your skies are dark, the sun is still shining onto earth somewhere… and it is constantly radiating this energy onto earth.

And Earth just constantly absorbs this energy… the problem is that most of the energy gets rebounded back into space. 

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4. Important! How this site works

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  Industry News

  
  The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the Energy Saving Trust.

  Scottish households offered free energy saving products

  11 November 2010
  Households in Scotland are being offered free energy saving products as part of a new campaign by the Scottish government.
  Consumers can claim up to £50 worth of energy efficient products, which will help them reduce their fuel bills by around £47 a year.
  People wanting to save energy in their home will be provided with a digital electricity monitor and a stand-by plug as part of Home Energy Scotland.
  Housing and communities minister Alex Neil commented: "These free energy saving devices and the wide range of other help on offer will help households keep the heat in and keep more money in their pockets.
  "If we have a winter like last winter this help will be more important than ever."
  In addition, by calling the Home Energy Hotline, consumers can find about getting free or discounted insulation, central heating and how to switch to cheaper tariffs.
  Douglas Sinclair, chair of Consumer Focus Scotland, added that a home energy check can also help consumers find where they need to make energy improvements.
  Posted by Mark Stephens
  Sign up for regular email updates to help you save money and energy
  For more information please see: Home Energy Scotland
  What are the Benefits of Magniwork?
  By constructing the magniwork power generator, you will be able to generate completely free electric energy, meaning , create energy without needing any source of renewable or non-renewable energy. The generator powers itself and creates energy by itself, without requiring solar energy, heat, water, coal or any kind of resource. This generator powers itself and works indefinitely, without stopping, creating a large amount of energy.
  are some of the benefits that Magniwork has:
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  * Contains a bonus chapter about the backgrounds and history of Magniwork
  What are the Benefits of Magniwork?
  By constructing the magniwork power generator, you will be able to generate completely free electric energy, meaning , create energy without needing any source of renewable or non-renewable energy. The generator powers itself and creates energy by itself, without requiring solar energy, heat, water, coal or any kind of resource. This generator powers itself and works indefinitely, without stopping, creating a large amount of energy.
  are some of the benefits that Magniwork has:
  * Works in every home, it requires only a small amount of space
  * You can eliminate your power bill by 50% or even completely, depending on how you implement the magniwork generator
  * Works in all condition, can work in extreme hot or cold without any problem
  * The Material needed to build the magniwork generator is cheap and easily accessible anywhere in the world
  * We have simplified the process, The steps are easy to follow, even a complete novice would be able to follow them
  * Contains a bonus chapter about the backgrounds and history of Magniwork
  
  Our easy-to-follow guide will show you how to construct the Magniwork free energy generator, which will run infinitely and create free electric energy. This method has been thoroughly researched, and is currently considered as a possible mean of completely solving the energy crisis. A Magnetic Perpetual Motion Device much like Magniwork refers to a device that works perpetually i.e. indefinitely, and produces more energy than it consumes, which ultimately results in a surplus of electrical energy which can be used to power your home.

• Green Free Energy Products

  

  Review#1: Earth4Energy

   

  With energy bills increasing, many homeowners are installing Residential Wind Turbine & Solar Panels. These are green, renewable energy source.

  
  How Does Residential Wind System Work?
  A wind turbine, which is installed on top of a tall tower, collects kinetic energy from the wind and converts it to electricity that is compatible with a home's electrical system.
  
  In a normal residential application, a home is served simultaneously by the wind turbine and a local utility. If the wind speeds are below cut-in speed (7-10 mph) there will be no output from the turbine and all of the needed power is purchased from the utility. As wind speeds increase, turbine output increases and the amount of power purchased from the utility is proportionately decreased. When the turbine produces more power than the house needs, the extra electricity is sold to the utility.

  
  How Does Residential Solar Electricity Systems Work.
  
  Using solar for all or part of your home's electrical needs makes sense. Your residential solar system will produce reliable, clean power to reduce the burning of fossil fuels and contribute to a healthier environment. Solar electric systems are quiet, operate automatically, require very little maintenance and need no fuel except sunshine!

  
  

  Why then are we not extensively using these Ideal Energy Sources?

  
  

  A Wind Turbine System & Solar Panels System providing enough energy to power an average sized home can run anywhere from $6,000 to over $20,000.
  
  Luckily, during the last few months there are some instructional manuals available that allow you to build your own residential power and reduce the cost to less than $200, using low cost materials and with little or no technical knowledge required.

  
  

  Earth4Energy maual includes a 73 Pages e-Book with 15 chapters covering Two Major Natural Power Sources: Wind and Solar. The guide is simple and easy to understand. Plenty of illustrations make the learning process quite easy even for novices.
  The Earth4Energy manual claims it can help you save up to 80% on your electricity bill, and perhaps even eliminate it completely. So does it live up our expectations? There are pros and cons, as always it is the case:
   
        Need to scale up to achieve desired resultsThis actually applies to all the known energy guides featured on our site. Although it is very possible to get completely off the grid with these plans - ie. generate enough electricity to power every part of your property - you need to scale up. So, depending on your household's average energy consumption, and average hours of sunlight and wind speed, you will most probably have to make more than one solar/wind power system to get the desired results.
  “How Much Money Are You Giving Away To Power Your Home?”
  
  
  Now, think about this... If there are free electricity options for your home, then why are you forking out up to $6,000 per year to power your home?
  
  I’ll tell you why. Because the Government and your Local Power Company are in business together to rob you of your hard-earned cash and use your money for their personal benefit.
  
  Innocent people, like you, are slowly being forced into debt with high-priced energy bills. These thieves are the reason people are paying for electricity. These robbers are taking away from the planet. These selfish pigs are trying to keep you away from this information that you deserve to know!
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  To be sure my guide can easily be followed by absolutely ANYONE, I watched as a small group of 50 people read my guide and while they successfully ran electricity through their swhole house. You’ll be happy to know, every last one of them turned magnetic currents into energy, in as little as a few hours and without skipping a beat.
  
  Just look at what these Magnets 4 Energy™ users who have saved tons of money on their energy each day by making their own free energy. 
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