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Empowering the elderly to save on electric billsJul 12, 2009 (Fort Worth Star-Telegram - McClatchy-Tribune Information Services via COMTEX) -- After reading recent Star-Telegram articles on declining electric rates, Muriel Brewster of Arlington concluded she was probably paying considerably more than necessary. As a 92-year-old widow subsisting primarily on a monthly Social Security check, she lives modestly and takes measures to minimize her electric bill -- keeping the thermostat at 75-80 degrees, running four ceiling fans and turning out the lights when she leaves a room. Her average monthly rate this year under a TXU Energy plan has been about 17 cents per kilowatt-hour, a hefty price compared with dozens of variable- and fixed-rate plans charging 9 to 11 cents. The monthly electric bill for Brewster's 1,800-square-foot home could exceed $150 during the hot weather. While her participation in two low-income assistance programs helps, she must foot the bulk of the bill herself. Retail electric providers in Texas' deregulated market have lowered rates substantially in the wake of plunging prices for natural gas, the fuel burned to generate much of the state's electric power. But elderly consumers such as Brewster -- whose husband of 63 years, W.R. Brewster, died in 2005 -- have often stayed with their longtime electric provider out of loyalty and because they have no idea how to shop for lower rates in an era when computer-savvy consumers typically rely on the Internet to help find the best plan for them. "I don't know any of that," Brewster said in an interview at her home in the tree-lined neighborhood where she has lived more than a half-century. "I don't have a computer." Many consumers begin their search for more attractive electric-rate plans by going to www.powertochoose.org, a site overseen by the Texas Public Utility Commission. The site provides information about rate plans and links to Web sites of retail electric providers offering them. Customers without Internet skills or access can call the toll-free Texas Electric Choice hot line, at 866-797-4839. But the Web site generally is considered more helpful than the toll-free number. "The quality of information you get on that [toll-free] line isn't nearly as good as what you get on a computer," said Tim Morstad, associate state director for AARP Texas. Technological gap "The technology divide is most obvious for the older population," said state Rep. Lon Burnam, D-Fort Worth, whose central-city district includes many low- and moderate-income elderly and minority residents with limited computer skills and understanding of how to navigate the deregulated electricity market. "It's a huge concern, particularly in a district like mine," Burnam said. Retail electric providers are most heavily marketing to "the college-educated and the elite," he said. "State government or municipal government could be more proactive" in helping educate consumers, he said. "Unfortunately, neither of them are. ... Economic development 101 is helping citizens learn to stretch their dollars." Richard Bennett, a retired Bell Helicopter employee who lives in a 2,700-square-foot home in Fort Worth, is an example of a sophisticated electricity consumer. As someone who did "heavy-duty mathematics" in a research group at Bell, he is comfortable with numbers. He analyzed his past electricity consumption and did a detailed spreadsheet analysis to determine whether it would be worth switching electric plans even though he would have to pay a $295 early cancellation fee to Reliant Energy. He calculated that, even with the fee, he would save $850 a year by switching from the Reliant plan costing 15.1 cents per kwh to a one-year, fixed-rate contract at 9.6 cents with Champion Energy. He made the switch about six weeks ago. Bennett said he would encourage those who aren't technologically adept to "find someone who's good on a computer" and capable of analyzing whether a switch to a different rate plan is worth it. People often solicit help from a relative, neighbor or friend. JACK Z. SMITH, 817-390-7724 To see more of the Fort Worth Star-Telegram, or to subscribe to the newspaper, go to http://www.dfw.com. Copyright (c) 2009, Fort Worth Star-Telegram, Texas Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. |