Reliant: Another Bad Deal

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Well, once again, Reliant is up to its old tricks, offering a “great deal” that isn’t so great once you actually look past the hype. This time, it’s the electricity rates and their new “Secure Plan with Heat Protection.” And just like last time with the gas plan, a major part of the trick is getting the user to lock in a high fuel factor.

The plan, in case you haven’t looked too closely, is in two parts. First is to lock in the current fuel factor for 12 months, so that it doesn’t rise (or fall). Second is to offer a break on the electrical bill; any month for which the average temperature for the whole month is 2.0 degrees higher than the 10-year average, Reliant will take $50 off the bill. It sounds great, but in reality, there’s so many problems with it I’m not sure where to begin. So let’s start with the trick borrowed from their gas plan: locking the natural gas Fuel Factor.

The FF is a surcharge added onto the bill that allows Reliant to adjust its rates when fuel prices go up. We do generate a fair amount of electricity from natural gas in this area, but we also have the nuclear power power plant. Also, welcome to summer in North America. This is a time that prices for natural gas tend to decrease, not increase, because residential/commercial heating use accounts for a major part of the market. Peak demand, and therefore, peak prices, are in the winter. Anyone locking in the current fuel factor is likely doing themselves a disfavor; historically, prices are lower in the summer.

The second trick is that for the 10-year average to be exceeded by 2.0 degrees for 30 days takes a major, major heat wave that lasts for several weeks. The killer kind, like we had in 2001. Oh, conveniently for Reliant, that one counts against the average. Five of the eight hottest summers on record have been in the last decade, which sounds like a great selling point, but what it really means is that they count against the average, making it harder to qualify.

The third trick is that the rate scales are re-jiggered. While the fuel factor remains the same in either plan look at the rates being charged:

PTB SCWHP
$0.29441 $0.058823
$0.077171 $0.08567
$0.0489826 $0.06533

Note that every one of the rates is higher for the Secure Plan than for the standard Price to Beat plan! But to confuse you, they rejigger the rate brackets, making the first bracket twice as big as normal. It doesn’t do enough however. Below are the rates that would be charged based on various usages. Pull your own electrical bills out and compare.

Charges for the Price to Beat plan:

Price
to Beat

0-250
kWh

250-800
kWh

800+
kWh

Fuel
Factor

TOTAL

Rate:

0.029441

0.077171

0.048926

0.092718

250 kWh

$ 7.36

$ –

$ –

$ 23.18

$ 30.54

500

$ 7.36

$ 19.29

$ –

$ 46.36

$ 73.01

800

$ 7.36

$ 42.44

$ –

$ 74.17

$ 123.98

1000

$ 7.36

$ 57.88

$ 9.79

$ 92.72

$ 167.74

1100

$ 7.36

$ 65.60

$ 14.68

$ 101.99

$ 189.62

1200

$ 7.36

$ 73.31

$ 19.57

$ 111.26

$ 211.50

1300

$ 7.36

$ 81.03

$ 24.46

$ 120.53

$ 233.39

1400

$ 7.36

$ 88.75

$ 29.36

$ 129.81

$ 255.27

1500

$ 7.36

$ 96.46

$ 34.25

$ 139.08

$ 277.15

1600

$ 7.36

$ 104.18

$ 39.14

$ 148.35

$ 299.03

1700

$ 7.36

$ 111.90

$ 44.03

$ 157.62

$ 320.91

1800

$ 7.36

$ 119.62

$ 48.93

$ 166.89

$ 342.79

1900

$ 7.36

$ 127.33

$ 53.82

$ 176.16

$ 364.68

2000

$ 7.36

$ 135.05

$ 58.71

$ 185.44

$ 386.56

2100

$ 7.36

$ 142.77

$ 63.60

$ 194.71

$ 408.44

2200

$ 7.36

$ 150.48

$ 68.50

$ 203.98

$ 430.32

2300

$ 7.36

$ 158.20

$ 73.39

$ 213.25

$ 452.20

2400

$ 7.36

$ 165.92

$ 78.28

$ 222.52

$ 474.08


Charges for the Secure Plan, with Heat Protection:

Secure
Plan

0-500
kWh

500-1000
kWh

1000+
kWh

Fuel

Factor

Total

Rate:

0.058823

0.08567

0.06533

0.092718

250 kWh

$ 14.71

$ –

$ –

$ 23.18

$ 37.89

500

$ 29.41

$ –

$ –

$ 46.36

$ 75.77

800

$ 29.41

$ 25.70

$ –

$ 74.17

$ 129.29

1000

$ 29.41

$ 42.84

$ –

$ 92.72

$ 164.96

1100

$ 29.41

$ 51.40

$ 6.53

$ 101.99

$ 189.34

1200

$ 29.41

$ 59.97

$ 13.07

$ 111.26

$ 213.71

1300

$ 29.41

$ 68.54

$ 19.60

$ 120.53

$ 238.08

1400

$ 29.41

$ 77.10

$ 26.13

$ 129.81

$ 262.45

1500

$ 29.41

$ 85.67

$ 32.67

$ 139.08

$ 286.82

1600

$ 29.41

$ 94.24

$ 39.20

$ 148.35

$ 311.20

1700

$ 29.41

$ 102.80

$ 45.73

$ 157.62

$ 335.57

1800

$ 29.41

$ 111.37

$ 52.26

$ 166.89

$ 359.94

1900

$ 29.41

$ 119.94

$ 58.80

$ 176.16

$ 384.31

2000

$ 29.41

$ 128.51

$ 65.33

$ 185.44

$ 408.68

2100

$ 29.41

$ 137.07

$ 71.86

$ 194.71

$ 433.05

2200

$ 29.41

$ 145.64

$ 78.40

$ 203.98

$ 457.43

2300

$ 29.41

$ 154.21

$ 84.93

$ 213.25

$ 481.80

2400

$ 29.41

$ 162.77

$ 91.46

$ 222.52

$ 506.17


And finally, a head-to-head comparison of the two plans:
PTB

SP
w/HP

Higher

250 kWh

$ 30.54

$ 37.89

$ 7.35

500

$ 73.01

$ 75.77

$ 2.76

800

$ 123.98

$ 129.29

$ 5.31

1000

$ 167.74

$ 164.96

$ (2.78)

1100

$ 189.62

$ 189.34

$ (0.29)

1200

$ 211.50

$ 213.71

$ 2.20

1300

$ 233.39

$ 238.08

$ 4.69

1400

$ 255.27

$ 262.45

$ 7.18

1500

$ 277.15

$ 286.82

$ 9.67

1600

$ 299.03

$ 311.20

$ 12.16

1700

$ 320.91

$ 335.57

$ 14.65

1800

$ 342.79

$ 359.94

$ 17.15

1900

$ 364.68

$ 384.31

$ 19.64

2000

$ 386.56

$ 408.68

$ 22.13

2100

$ 408.44

$ 433.05

$ 24.62

2200

$ 430.32

$ 457.43

$ 27.11

2300

$ 452.20

$ 481.80

$ 29.60

2400

$ 474.08

$ 506.17

$ 32.09

Note that because of the way the rate breaks, there is exactly one stretch where you’re not paying more on the Secure Plan. And remember, the Heat Protection only applies to four months out of the year!

Truly, with Reliant, it is “buyer beware.”

One thought on “Reliant: Another Bad Deal”

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