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RogerJ1 (Texas)
Posts: 550
Posted:
As residential customers can do, can HOAs choose power providers in Texas? If so, can you get corporate rates or would it be residential rates?

Looking at the details of a POA's financial statement I noticed it is using Reliant, which is one of the highest, possible the highest, power providers in the state.

Can anyone confirm that HOAs can choose in Texas? And if so, is it the same process as a residential customer - you would just find a provider and deal you wanted and then call that company to switch over? Also, if HOAs can get corporate rates, how does that process work?
WendyM5 (North Carolina)
Posts: 1,522
Posted:
Just call and ask the power co.
It would be commercial rate

vis ta vie
CathyA3 (Ohio)
Posts: 6,299
Posted:
I'm guessing here, but if customers had a choice of providers in your area, you'd already know about - you'd be getting flyers in the mail. But it's worth asking about.

Utilities in my area also have programs that allow them to conserve energy - for example, being able to cut power for short periods during times of high energy consumption, or buying excess energy from customers who have solar systems that are tied to the grid.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Texas is a bit tricky when it comes to power. They don't operate like many other states. I learned about it after the winter storms Texas had and how their power grids work. Very interesting from those whom states don't operate this way. It's kind of one of those "Blessing and a curse" situations.

My opinion is that it depends on who is paying the electric bill? If it is the HOA, then I would ask for a vote of the membership if they would like to make the change. If so, then follow the process of making that happen. Which should be in your documentation. I would make sure it isn't in there about what company to use etc...

Call the various options to see what they can offer. Take those offers back to the members to consider. There will always be positives and negatives. Be prepared for those negatives. It could cause you all to have a special assessment for things like installation fees or deposits etc..

I don't see why a HOA being a corporation can't shop like other corporations in the state if they do that. Your just dealing with a group of people who need to be involved with consent and paying for it.

Former HOA President
BillH10 (Texas)
Posts: 1,217
Posted:
Roger, yes, the HOA is a customer of the power providers, just like any other user.

I do not know if the power is provided at commercial or residential rates.

One of our Dallas located clients uses an alternative power provider whose Texas headquarters is located in Houston. The other clients do not use alternate providers simply because their power consumption is so low--a few LED lights on the buildings and the irrigation system controllers, that it is not worth the time and effort to research alternatives. We will look at the one association using an alternative provider over the winter as all exterior lighting systems have been replaced in the last 12 months. Using an alternative provider many not be the right choice now that the systems have been upgraded.

A word of warning: Texas has many co-ops which provide electricity, these were established in the 30s and 40s, probably under the REA, when this was a largely rural state (still is outside of the big cities) and the farmers and ranchers banded together to form a co-op so they could have electricity and not candlelight.

Some of those rural areas are rural no longer. Our home is located in Collin County, for several years one of the fastest growing counties in the country. Our power is provided by a co-op, where we live in McKinney was ranchland when we moved to Texas in 1997. Under their charters, the co-ops have an exclusive right to provide service in their franchise geographical areas which means they are not subject to the Texas deregulated electricity market--no "Power to Choose".

So, check that out first before you spend time researching alternatives.

Have fun and make certain you are on the correct state sponsored website. I understand there are pretenders out there who tweak the website name and URL to mislead consumers.
BillH10 (Texas)
Posts: 1,217
Posted:
I should clarify, some of my previous post refers to only the common area/element power billed to the Association. All our clients have separately billed meters for power to their homes and units.

The words about the co-ops cover all users in a geographical service area.
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By RogerJ1 on 10/01/2022 7:16 PM
As residential customers can do, can HOAs choose power providers in Texas?
After getting past my laughter at the oxymoron "power providers in Texas," the signs are that some-to-all customer in Texas can choose among "power providers".

Google on the following, and a few companies come up explaining why they are supposedly better.

{name of your current "power provider"} "alternatives" "texas"

Interchangeable terms in Texas:

Da
Grid.

ERCOT

Flashlight

Generator

Hotel

Massive debt from gouging during power outages in sub-freezing temperatures

BillH10 (Texas)
Posts: 1,217
Posted:
Augustin

"some-to-all customer in Texas can choose among "power providers".

More accurately, some power subscribers in Texas in specific geographic areas served by formerly regulated electric service providers such as TXU, may choose among providers who offer power in their service area--those served by a power co-op may not choose another provider unless the co-op has specifically changed the operating rules to allow doing so.

I know our co-op had that subject on the agenda for the Board over five years ago; the decision was not to allow competitive providers in the franchise area. I am not unhappy with that decision.

The provision of electricity in this state is complex. All power providers must follow the rules of the grid manager (ERCOT) but not all power providers obtain power from the 500 lb. wholesale power provider gorilla in the room, ONCOR.
AugustinD
Posts: 1,027
Posted:
Quote:
Posted By BillH10 on 10/02/2022 8:57 AM
The provision of electricity in this state is complex.
I would say that, in contrast with other states, the business of providing electricity in Texas is greed defined.
BillH10 (Texas)
Posts: 1,217
Posted:
Yes, in the deregulated areas, I tend to agree with you.

I have lived in both deregulated and co-op areas and spent my business career in a regulated utility environment. Since, by definition, those provided power in a co-op area are part owners of the company, and share in the profits (or not), the greed factor is theoretically non-existent.

What happened in 'snowmageddon' in February 2021 is reminiscent of the Enron mess: ERCOT (grid manager) attempted to discourage electricity use by allowing the spot market prices to soar (i.e., manipulating) and lost the bet--as did the Texas consumers.

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