Bounce Energy’s Smart Saver Versus Reliant Energy’s Cap And Save Electricity Plans
Which One is the Real Way to Save?
Since its launch this past summer, Reliant Energy has been filling the media with its Cap and Save energy plan. Reliant says it’s a plan with the security of a term plan and lower rates if energy prices fall. While it seems like a good idea, on closer examination, Reliant’s Cap and Save Plan is cashing in on consumer caution rather than giving consumers the tools and information they can use to save on their energy bills.
The Plan:
Reliant’s Cap and Save Plan is an indexed energy plan with a 12 month contract term. That means instead of the price being set at a fixed rate for twelve months, the price is indexed to the commodity price of natural gas on the New York Mercantile Exchange (NYMEX). As anyone knows, natural gas is a volatile commodity and its price varies from hour to hour depending on a variety of market forces and world events such as trouble in the Persian Gulf, oil spills in the Gulf of Mexico, and the amount of natural gas in storage in Texas. Theoretically, a consumer could lose their shirt if natural gas prices spiked like they did in 2008. However, Reliant has included a cap on their plan. If the price of natural gas increases to about $4.50 per MMBtu (one million British Thermal Units), consumers will not pay more than the indexed energy charge of 8.9
