Rolling Blackouts in Texas Offer Lessons for Energy Providers
Nation’s leading independent energy provider advises careful research before choosing a utility supplier
Stamford, CT – February 3, 2011 – Frozen pipes at two coal-fired electricity plants triggered a crisis in Texas yesterday resulting in rolling blackouts across the state and causing electricity prices to skyrocket 800% from $330.64 to $3000 per megawatt in Houston. The aftermath of the pipe burst left residents in temporary darkness and some smaller energy companies pondering financial ruin.
Many small energy providers do not have enough supply on hand to meet their customer’s demands nor the financial resources to cope with the dramatic escalation of prices, forcing some to turn to other companies to provide for their customers.
Whether you live in Texas or not the situation there illustrates the importance of carefully researching an energy company before choosing a provider for customers in deregulated states, according to Jeffrey Mayer, President and CEO of MXenergy, one of the nation’s leading independent energy providers.
“First, we want to assure our customers that MXenergy is in an excellent position to weather this storm,” says Mayer. “We purchased enough electricity at the start of the season to meet demand for our customers. This is exactly why we work with meteorologists to anticipate supply and demand and to ensure we are never caught short.”
For the small energy companies who can not meet supply, a crisis of this nature can be a death knell as they simply do not have the financial reserves available. Mayer advises all customers to take into account a company’s history and lifespan before choosing a provider.
“MXenergy is a stable, highly successful energy company with a twelve-year-history. We not only have the experience and expertise to properly estimate demand but are also in an excellent financial position to allow us to deal successfully with the unexpected. Regardless of whether a customer chooses MXenergy or not, I do believe it is critical to choose an established energy provider with a strong financial position, as the situation in Texas clearly illustrates.”
The Electric Reliability Council of Texas (ERCOT) which overseers power supplies in Texas, has asked electrical companies to institute "rotating outages" to compensate for increased demands for electricity during the wintry cold snap gripping the state. Hospitals and other critical services such as nursing homes are not affected by the plan, according to ERCOT. The effort is designed to prevent generators from becoming over loaded, which may led to a regional blackout.
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About MXenergy
<a href="http://www.gaskey.com">MXenergy </a> is one of the fastest growing retail natural gas and electricity suppliers in North America, serving approximately 500,000 customers in 41 utility territories in the United States and Canada. For over 11 years, the company has provided millions of customers with a choice in how they purchase energy to run their homes and businesses. Founded in 1999 to provide natural gas and electricity to consumers in deregulated energy markets, <a href="http://www.mxenergy.com/electricity-rates-offers.html>MXenergy </a> helps residential customers and small business owners control their energy bills by providing both fixed and variable rate plans. <a href="http://www.mxenergy.com/promotions.html">MXenergy </a> is committed to best practices in environmental conservation, supporting local communities through various outreach programs and is a member of the Chicago Climate Exchange. For more information about <a href="http://www.mxholdings.com">MXenerg</a>y please visit www.mxenergy.com.
CONTACTS:
Marjorie Kass (203) 356-1318 ext. 7801
Managing Director
mkass@mxenergy.com
Laurel O'Connor (209) 782-7212
NorthStar Media Management LLC
laurel@northstarmediamanagement.com
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