Texas Electricity Shopping Website Guaranteeing 25% In Savings

The electricity shopping website electricitycalculator.com, which currently offers residential service in Texas, is guaranteeing customers, "at least 25% savings your first year, or your money back."

ElectricityCalculator.com's concierge service, under which an algorithm evaluates some 200 rate plans, has an annual fee of $59.95

"We will search every electricity plan available to you, and provide you with an estimate detailing the top plans in your area based on the usage you provide, and highlight your savings. You select the plan that works for you, and sign up directly with the REP, maintaining control over your account at all times," ElectricityCalculator.com states in an answer to an FAQ [emphasis added]

"We guarantee to save you at least 25% off your electric bill in your first year of membership, or it's FREE," ElectricityCalculator.com states

In an answer to an FAQ, ElectricityCalculator.com states, "Before you switch plans, we will calculate your approximate savings, based on the past usage you submit, your zip code, and current REP rates in your area. If you do not save at least 30% of the amount we predicted in your year-over-year comparison. [sic] Contact our Customer Service department for a Claim Application. You may be required to submit your smart meter usage data to process your claim. After verifying your claim, we will provide you a full refund of your membership fee. This guarantee only applies to your first year with ElectricityCalculator.com."

ElectricityCalculator.com states, "We do not receive payment, kickbacks, commissions or referral fees from electricity providers."

"We're saving Texans an average of 50 percent on their electric bill," ElectricityCalculator.com states

"ElectricityCalculator.com only displays data for fixed rate plans. We do not calculate for variable rate plans because their rates only last one month, after which you are automatically moved into a high-rate variable plan," the company states in an FAQ

The FAQ answer continues, "The indexed plans also change based on the cost of natural gas, which fluctuates on a monthly basis. This prevents us from estimating yearly costs. The time of use plans have higher rates during high usage periods of each day. We do not have enough data to estimate these plans’ costs."

Another ElectricityCalculator.com FAQ answer concerning contract expiration states, "This is where many people lose big money. If you don’t choose a new plan at the correct time, you will pay higher rates. If you don’t do anything at the end of your contract, your REP will enroll you in a high rate variable rate plan that will fluctuate with market rates. The rate will change on a monthly basis and it will be very high. About a month before the end of your contract, your REP will mail you an 'end of contract' notice. The REP will try to get you to renew your contract with one of their plans. Use ElectricityCalculator.com to analyze the current set of plans. REPs make money by offering new plans at a low rate, hoping that customers never look at the price again and get shifted automatically to high rates when the term is up."

Leadership of ElectricityCalculator.com includes Ron Wall, President, Julian Broaddus, Director Of Development, and John Spellman, Head Engineer

ElectricityCalculator.com stated an intent to expand to 16 other deregulated states.