TXU Launches New "AutoSaver" Plan In Texas

June 29, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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TXU Energy announced the launch of a new Texas residential electricity plan: TXU Energy AutoSaver

TXU said, "The company's newest plan provides customers with a low electricity rate based on monthly NYMEX natural gas prices -- which drive energy rates in Texas -- while shielding them from the risk when gas prices rise. Here's how it works: When gas prices fall, customers will see automatic savings on their bill; when gas prices go up, their energy rate never goes above the disclosed price-protected cap."

In the Oncor service area, the electricity facts label for the TXU Energy AutoSaver 12 plan, a 12-month indexed plan, lists three all-in average prices at 1,000 kWh usage, each at a different natural gas price level. The EFL lists the all-in average rate, for 1,000 kWh usage, as 14.6¢ per kWh at a Natural Gas Price of $1.72/MMBtu (June 2020 price); 16.3¢ per kWh at a Natural Gas Price of $3.00/MMBtu; and 18.3¢ per kWh at a Natural Gas Price Cap of $4.50/MMBtu

In the Oncor service area, the electricity facts label for the TXU Energy AutoSaver 12 plan has a guaranteed price cap for the Energy Charge, with the Energy Charge capped at 13.3850¢ per kWh. The Energy Charge will not exceed this Cap during the length of the term, and will be lower than the Cap when natural gas closes below $4.500/MMBtu

The prices per kWh shown above are samples based on the current month natural gas price, a $3.000 per MMBtu natural gas price, and the Guaranteed Price Cap. The current month’s NYMEX natural gas price is the last settled price of the NYMEX Natural Gas Futures Contract at contract expiration as established by NYMEX in the final week of each month preceding the billing month (the calendar month a customer’s meter is read by the Transmission and Distribution Utility (TDU)). Average Prices above include applicable TDU charges.

Rate components in the customer's billed rate include a Base Charge of $9.95 per month; a Base Rate of 7.40¢ per kWh; a Natural Gas Factor of 0.01330; and a pass-through of TDU charges (which reflect per month and per kWh charges from the TDU)

The customer's Energy Charge per kWh = ((Natural Gas Factor) (value of the Monthly NYMEX Natural Gas Price)) + Base Rate

The Price per kWh = Energy Charge per kWh + TDU Delivery Charge per kWh + (Base Charge + TDU Delivery Charge per month)/monthly billed kWh Usage

The plan has an early termination fee of $150

"AutoSaver is ideal for the discerning electricity customer who understands that natural gas prices largely set the price of power and wants to participate in the fluctuating energy market for potential savings, with the added assurance of a price-protected cap. The plan's unique billing statements include information about each month's price of natural gas and how the customer benefits from it," TXU said

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