Texans Pay More for Electricity Now Than Other Major Markets. A Wholesale Price Record Is to Blame

Did you hear that the wholesale cost of electricity in Texas this month spiked to around $9,000 a megawatt hour? At one point, wholesale prices were said to have surged 36,000%.Those aren't typos. Bloomberg News reported, "It's a record that has turned the Lone Star State into the most expensive place to buy power in all of America's major markets."One Plano customer sent me his bill showing he paid almost 25 cents per kWh. His bill for only the first two weeks of August is a whopping $641.Most electricity customers are locked into fixed-price contracts. They don't feel that kind of pain. These contracts are supposed to protect them from sticker shock.But there's one group of customers that was hit especially hard. This group had little protection. These are customers of Griddy, which says it offers customers wholesale prices "by connecting them directly to the grid" without middleman markups.Think of that. No middleman taking a cut, which is the opposite of how deregulated electricity shopping works. When our state leaders deregulated electricity 20 years ago, the portal for middlemen spread wide open.In contrast, Griddy sounded so good. In a listing I made last year of companies that help you shop for electricity, Griddy sounded like one of the best consumer deals because in addition to offering the wholesale rate, it only charges a $10 monthly service fee.As I reported, "Griddy says its average kWh rate is about two cents lower than the state average. The company says its mission is to show Texans they can eliminate higher retail prices."Until recently, I had never received a complaint about Griddy. To the contrary, I received fan mail from readers recommending it. In winter, fall and spring, customers were saving money, they said."I am pleased," one person wrote me."My rate is between 3 and 4 cents a kWh," another said.Wow. Three cents.I'm unable to personally test these companies because I'm forced into a non-competitive electricity co-op serving my neighborhood. So I rely on reports from readers, citizens of my Watchdog Nation.In news releases, Griddy promised to launch a revolution in the Texas electricity marketplace that would change the balance of power in favor of consumers.Somebody needs to, since state regulators and lawmakers refuse to make any effort to revamp a scheming electricity marketplace that strives to confuse consumers. They don't care.'Stressing like crazy'Griddy executives say they are going through their biggest crisis.  Continue reading...