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EPCOR Electricity Rates 40% higher than Park Power

· · Leave a Comment Consumer Info, Electricity, Interesting, Uncategorized

EPCOR electricity rates have been 40% higher than Park Power’s and many consumers are losing out on savings that a deregulated utilities market has provided.

Over the last couple of years and particular over the last 6 months, wholesale electricity prices have fallen dramatically.  Currently prices are at a 15 year low and as we enter 2015 the trend continues, today, the average Alberta Power Pool price is running at $32 per MW which equates to just over 4 ¢/kWh retail price.

Pool Prices-1

60% of Alberta electricity consumers are not taking advantage of the benefit of the deregulated market as they remain on the government regulated Default Rate.

Even though some consumers paid as low as 3.7 cents per kWh last year, many of their next door neighbors, stuck on the government regulated Default Rate from EPCOR, paid more than 50% more for electricity.

If a consumer wants to cut save money on their monthly expenses, they should consider moving away from EPCOR, ENMAX, and Direct Energy and switching retailers to Park Power.

Over the last six months, consumers that moved away from the Regulated Default Rate and onto Park Power’s Floating Rate, have saved 40% on the cost of energy they consumed.  The consumers who like stability in their costs chose long term guaranteed fixed rates, which are still lower than the historical EPCOR Default average.

 

Month Alberta PowerPrices Average RRO/Default Rate Floating Rate Saving Money
($ / MW) (Cents / kWh) (Cents / kWh) (% Savings)
August 2014 $45 8.3 6.2 25%
September 2014 $24 8.4 3.7 56%
October 2014 $27 8.6 4.0 53%
November 2014 $38 6.7 5.3 21%
December 2014 $27 7.3 4.0 45%
January 2014 $35 7.3 4.9 33%
6 Month Avg. $32 7.8 4.7 40%

Consider the following: between August and October of 2014, the cost of energy declined (from $45 per MW to below $30) which is a 33% drop in cost of energy.  Note that EPCOR’s Default Rate price did not decrease. During the same period, the Floating Rate retail prices dropped from 6.2 cents to under 4 cents per kWh.

The same problem and trend repeated itself a couple of months later. Between November and December, the wholesale cost of energy dropped by 28% but the Government Regulated Default Rate went up.

Learn More about the advantages of getting off of the goverment regulated Default Rate or RRO from this interview on Alberta Prime Time

AB PriMe tiMe

While consumers who chose an independent retailer like Park Power are saving money, many are paying more for electricity than necessary to the large corporate utilities who are in turn outsourcing work and facing legal action.  ENMAX is in court fighting a $375 million dispute; Direct Energy shipped customer care and billing jobs to India; ENMAX moved dozens of IT jobs to India; Atco sold its IT division to a firm in India; TransAlta is in court facing electricity market manipulation.

In the news:

  • ENMAX appealed assessments totalling $375 Million. The issue is now in the courts. – More
  • Direct Energy outsources residential customer care and from Alberta to India. –  More
  • ENMAX is outsourcing dozens of jobs related to its billing and customer care operations to India – More
  • ATCO’s I-Tek IT services division sold to for $195 million and outsourced  IT services offshore – More
  • TransAlta faces hearing on electricity market manipulation – More

 

If you are still on the Utility Regulated Default Rate; ask yourself: why continue to pay more for your electricity to companies that have exported customer care, billing and IT services off-shore.  Choose #LocalPower with Park Power and take advantage of lower rates, simple billing and payment, and friendlier Alberta based customer service.

Shop Local and Save Money with Park Power

Floating Electricity Rates in Alberta Can Be Attractive

· · Leave a Comment Consumer Info, Electricity, Uncategorized

When it comes to choosing the rate to pay for your electricity in Alberta these days floating rates can be attractive.  They can be really attractive if you are a customer on the RRO (Regulated Rate Option) with EPCOR.

For October usage EPCOR customers living in the city Edmonton were paying 8.737 cents/kWh for their power.   FortisAlberta customers in the Edmonton Region were paying 8.493 cents/kWh for their power.  Park Power customers paying the Floating Rate will pay close to half that for their October usage.  Depending on when their meter gets read most customers on the Floating Rate will pay between 3 and 4 cents/kWh for their electricity usage.

Here is an example of the savings that could have been had for an average residential user of 1000 kWh/month.  For demonstration purposes let’s average out the floating rate at 4.0 cents/kWh.

RRO usage charges – 1000 kWh x $0.08493 =$84.93

Park Power charges – 1000 kWh x $0.040 = $40.00

That is a savings of close to $50 if the customer had chosen Park Power’s Floating Rate over EPCOR’s RRO rate.

So, floating rates for your power can be very attractive because the savings can be very pronounced for some months.  Although the electricity market is volatile and large price spikes have occurred in the past.  If you are willing to handle the ups and downs on your power bill you can certainly beat the RRO average price and maybe even the Fixed Rates.  The choice is up to you.

Shop Local Save Money

 

Gilmore Park Pathway Party

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Join Park Power owner Kris Kasawski, Sun Aug 31, 2014 at the Gilmore Park Pathway Party. This will be a great community event celebrating the completion of Phase 2 in the redevelopment of Gilmore Park. Park Power supports this Community Initiative of the Gilmore Park Community League, a group of awesome dedicated residents doing great community building work. Fearlessly led by Park Power customer Tammy Greidanus.

Bring your bikes and celebrate with Strathcona County Mayor Roxanne Carr by joining in the parade on the new pathway connecting the park from Gilmore Avenue and Graham Road.

Come see the Park Power Community Event Team in the games area having fun with our Pathway Party Frisbees.

You will also be able to join Bobs and Lolo for two great family musical performances.

 

Get all the event details below

Pathway Party – Sunday, August 31
Noon-1:30pm – Bike Decorating & Park Activities
1:30-2:00pm – Performance by Bobs & Lolo 
2:00-3:00pm – Bike Parade
3:00-3:30pm – Performance by Bobs & Lolo
3:30-4:00pm – Meet & Greet with Bobs & Lolo
4:00-5:00pm – Park Activities
*Please bring chairs or blankets, bikes for decorating, food concession by Rotary Heartland, event will take place rain or shine!

NOTE: Gilmore Avenue, Grant Avenue, and a portion of Graham Road will be closed off from approximately 1:45-3:15pm for the bike parade.  If possible we ask all residents in the neighbourhood to park off the street as we are expecting a large crowd.  We hope you are able to join the celebration!!

VOLUNTEERS ARE NEEDED:
We are seeking assistance with set-up, take-down, traffic monitoring, and bike decorating.  Follow this link to signup, short shifts available – THANK YOU!
https://www.volunteersignup.org/FDCYC

Boys & Girls Club of Strathcona County Profile

· · Leave a Comment Community Building, Consumer Info, Uncategorized

Here is Park Power’s first Community Partner Profile showcasing how we “Power Our Community” through our support of the Boys & Girls of Strathcona County 

Through our Community Partner Program, Park Power has committed to sharing its revenues with local charitable non-profit organizations. Our billing system is set up so that when a consumer signs up with Park Power they get to choose which local charity Park Power shares its profits with. Also, if one of the organizations speaks to a customer’s charitable goals they can choose make a monthly donation that is taken off of their power bill every month.

The Boys & Girls of Strathcona County were the first organization to believe in Park Power and to see the potential of this source of funding.  We are happy to support the work they do in providing enriching experiences for youth in Strathcona County.

Park Power aims to make positive contributions to the communities that we serve through our Community Partner Program and by supporting other community building initiatives, like the Gilmore Park Pathway Party. We believe in the power of our local community and that vibrant, open, friendly, creative communities can enrich our lives.

Enjoy!

 

 

 

 

 

 

 

 

 

Albertans Warned of Power Price Spike Article – A Response

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 Albertans warned of power ‘price spike’

By Darcy Henton, Calgary Herald April 18, 2014 6:37 AM

Below is a response from a colleague of Park Power, Nick Clark of Utility Network and Partners Inc.

Dear Minister,

The numbers are clear: Some consumers are going to be hit with a massive price increase in May.  But not all.

Maybe now is the best time to promote the benefit of “Fixed Priced Contracts” verses the “RRO”.  In May RRO prices will go from approximately 7 cents into the range of 10 to 11 cents per kWh. This is a +50% increase in the cost of electricity which will impact 70% of residential consumers in Alberta.

But when the RRO is officially published for May, the actual RRO might be slightly higher than the Consumer Advocate’s estimate of a 30 to 40% increase, as referenced in the above article.   The NGX Electricity Index reported an increase of +60% re the Alberta Flat RRO Price Index and an +80% increase in the NGX Alberta Extended Peak Index (comparing April hedges to May’s numbers).

No matter which number you use: the bottom line is simple … the RRO published by ENMAX, EPCOR and DIRECT is expected to up substantially on May 1.

 

Good News:

 

Wholesale prices are expected to drop in June.  The forward market is already softening based on AESO’s re-statement and projected increase in generation supply during June.

 

More Good News:

30% of consumers in the province have discovered that there is no sense staying on the government’s RRO plan (and having to deal with the volatility or price spikes).  There are dozens of lower prices available to consumers in Alberta.   The average RRO over the last 18 months was approximately 8.5 cents.  But, compared to guaranteed priced contacts available, consumers can buy electricity for as low as 6.9 cents per kWh today (guaranteed as a fixed price until the end of 2016 & no exit fees).  This is more than 20% below the historical RRO prices.   Ask yourself – why pay more?  An electron is an electron regardless who you buy it from.  And, the current wires company that delivers electricity to the consumers home will not change.  The process of switching off of the RRO is seamless.

During April, the wholesale market in Alberta this month is exceptionally low.  Residential consumers on the “Flow-Through” rate are profiting handsomely, (Flow-Through prices are directly linked to the actual prices posted by AESO and paid to the generators). The 30 day moving average retail rate (as of April 18th), offered by independent retailers, is currently only 4 cents per kWh.  Amazing prices!   If generation supply during the balance of April remains relatively stable, then prices paid by customers on the Flow-Through rate will be well below the April RRO.  Ask yourself, when was the last time you paid only 4 cents per kWh?

 

Deregulation Simplified:

The retail market in Alberta is dynamic.  It is hoped that as Minister of Energy you will support a communications program to help consumers find the best rate that fits their needs.  This was one of the key recommendations in the Retail Market Review Committee report.  Consumers can be protected if they are given good information upon which to make informed decisions.

The government set up a process and encouraged new retailers to enter the market, focused on giving consumers a variety of rate plans.  This has proven to be successful.  This month, consumers are paying as low as 4 cents per kWh on the floating market rate plan and others are locked in for the long term ranging from 6.9 to 7.9 cents per kWh.  The Big Utilities Retailers are offering fixed rates in the mid 8 cent to 8.9 cent range.  Compare these prices to the double digit prices consumers still on the RRO will pay in May.  Possibly, the RRO should be phased out and our government should actively promote the private sector option.

www.ElectricityShop.ca is an informational web site with all the information consumers need: Just one click to find the rates of all retailers in Alberta. There is no reason to get stuck with paying 10 or 11 cents per kWh in May when prices from competitive retailers in Alberta are available at substantially lower prices.  One Click to find a comparative chart of all retailers prices in Alberta.

Alberta’s retail electricity market gives consumers a choice of service providers. A list of retailers and a price summary is available with the Utilities Consumer Advocate.

We hope that you find the above information of value.  Most importantly, it is hoped that all our MLAs will tell their constituents: ‘rather than complaining about the RRO, simply open your minds, put your hand on your wallet, stop paying the higher rates to the old utilities and consider signing up on a fixed term contract.

Deregulation is working and consumers have the opportunity to save some money and stabilize their monthly electricity bill.  It is called Consumer Choice!  Consumers can elect to continue to pay more and stay on the RRO as provided by the old utilities or switch.   But, it is time for our politicians to simply stop trying to pander to the market for votes.  The market is working – let it work.

The government commissioned a market review report (RMRC) undertaken by Mr McDonald and his team of MLAs and Kathryn Wood.  Please publish the findings and consider implement the recommendations. This will be a positive step in the right direction.

 

Regards, Nick

 

Nick Clark, Managing Partner

Utility Network & Partners Inc.

1316 9th Ave SE Calgary AB, T2G 0T3

www.UTILITYnet.net