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Retail Market Vets Launch "First Of Its Kind" No-Fee Concierge Shopping Service in Texas (Algorithms Automatically Switch Customers To Best Rate)

August 30, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Two retail electric market veterans have launched what is described as a first-of-its-kind electric shopping concierge service in Texas which, for no customer fee, automatically finds for customers the best rate plan based on their usage and other factors unique to the customer

ThePowerPlug.com, focused on residential customers, uses proprietary algorithms to find the best plan for members, with the service pitched as allowing customers to avoid being overwhelmed with the hundreds of offers in the market, and avoiding products with gimmicks.

Once customers sign up with ThePowerPlug.com, authorizing the company to act as the customer's agent, The Power Plug analyzes the customer's specific usage and circumstances against its roster of plans, and automatically enrolls customers with the optimal rate plan, and then continues to monitor whether the plan remains a good fit for the customer, automatically switching the customer when warranted for further savings, or at renewal

Such algorithm-based electricity buying services are an increasing segment of the market (see a Northeast competitor here).

Preston Ochsner, Chief Operating Officer and co-founder of ThePowerPlug.com, told EnergyChoiceMatters.com that ThePowerPlug.com is unique in Texas in that it does not charge customers a fee for the service.

Ochsner also said that similar rate optimization service providers may only present the customer with recommendations (versus automatically enrolling the customer with the optimal REP), and may not automatically handle renewal.

ThePowerPlug.com is targeted to millennials and other customers who just see electricity as a monthly expense, and don't want the hassle of shopping hundreds of different plans. Ochsner noted that with other online shopping channels, it may take up to 15 clicks to enroll with a plan.

On ThePowerPlug.com, customers only enter their personal information (including the amount and usage of their last bill), and the site selects for them the best plan based on their individualized circumstances. Customers are enrolled onto a new plan, if superior, within minutes.

Among other considerations, the site pulls historic usage data from SMT.

Retail providers whose plans are evaluated and offered by The Power Plug include Spark Energy, Crius Energy (including TriEagle Energy, Viridian, Comcast Energy Rewards, Public Power, Cincinnati Bell Energy, FairPoint Energy and Citra Solar), Frontier Utilities, Infinite Energy (and Veteran Energy), Circular Energy, Vista Energy, and Summer Energy.

Ochsner told EnergyChoiceMatters.com that The Power Plug is in talks with two other retail providers -- two of the largest in Texas -- to join the site, but that, beyond those potential additions, The Power Plug isn't seeking to offer service from a large number of additional REPs or all of the REPs in the market.

Stressing that the site screens out gimmicks which are found on other sites -- such as PowerToChoose -- Ochsner said that, while The Power Plug evaluates all offers, the site is very conservative when it comes to any products whose pricing is based on tight usage bands, particularly for products longer than three months where usage will vary more widely. The Power Plug also screens products to ensure the plans do not have any regulatory out clauses which would allow unexpected pass-throughs.

At launch, The Power Plug's focus has been offering the customer a simple and seamless experience for finding the best rate. As such, there is currently no ability for customers to express any preferences for a certain product -- such as renewable energy, or a bundled value-add service or product. The Power Plug will be adding such capability in the future.

Launched about two weeks ago in Texas, The Power Plug plans to expand to three other states within the next 12 months, and all deregulated electricity states within 24 months. The lack of an SMT-style portal is not a hindrance to expansion, Ochsner said, due to a wealth of other usage and profile data that can be used.

The Power Plug is also evaluating offering its concierge service for natural gas, though Ochsner said that the natural gas market is more challenging in finding a consistent value proposition of savings for residential customers.

Currently, The Power Plug only enrolls individual customers. However, it plans to apply for a Texas electric aggregator certificate so that it can enroll and move groups of residential customers.

The Power Plug was founded by retail market veterans, many of whom also serve in leadership of commercial energy advisory firm VoltStreet Inc.

Washington Ho founded The Power Plug and serves as CEO. Ho, who also founded VoltStreet, was previously Director of Business Development at Unified Energy Services, and a Senior Energy Consultant at Choice Energy Services

Preston Ochsner, COO and co-founder of The Power Plug, has held leadership positions at a number of retail electric providers, including Vice President of Sales at StarTex Power.

Barry Ochsner serves as Chief Technology Officer at The Power Plug. Barry, an expert in PPC, SEO and SEM, previously served as Director of Marketing, for ZEEP (Zero Emission Energy Plants) and held a similar role at South Louisiana Methanol

Jose J. Palmer serves as a Vice President of Business Development at The Power Plug. Palmer has held positions at Nalco Exxon and Encana Energy and more recently has worked at insurance brokerages in the structuring of insurance/risk management programs in energy and other sectors

Paige Butler serves as a Vice President of Business Development at The Power Plug. Butler is a Vice President at a private independent retail broker providing structured risk management solutions and insurance programs, and previously worked at Enron.

The Power Plug is a service of HOA Energy, Inc.

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