Coppell To Participate In Texas Power Switch Program

From City of Coppell:

When it comes to household expenses, every dollar counts. Since the late 1990s, many Texans have been able to shop around for the best electricity rate in a deregulated market. However, with the amount of research required and number of providers out there, the task can be overwhelming, causing many customers to stay with their current and likely overpriced provider.

Coppell City Council recently approved an agreement with iChoosr, a company that does the electricity provider shopping for residents through its Texas Power Switch program, potentially saving them hundreds of dollars annually.

"The Texas Power Switch program is something cities in our area have been using to reduce residents' electricity rates and save them money on utility bills," Charles Ellis, City of Coppell Chief Procurement Officer said. "It's especially helpful for those residents who may be overpaying because they've stuck with their current provider rather than going through the hassle of switching every few years."

Based out of Austin, iChoosr harnesses the power of group energy switching to entice electricity providers to offer lower prices in order to gain a large number of customers. Residents sign up to participate online under their city, then iChoosr hosts an auction three times a year for providers to bid on the group. The lowest bid wins and participating residents can then choose to make the switch to the new provider. If they decide to switch, iChoosr helps them by providing contact information to the winning provider. There is no cost or obligation for the City of Coppell or individual residents to sign up or switch.

Currently there are 15 cities in Texas participating in the Texas Power Switch program, including Farmers Branch and Lake Dallas. Based on iChoosr's research, the participation rate in each city is under 10 percent and participating residents are saving an average of 20 percent — and sometimes up to 50 percent — on their electricity bills by switching. Ellis said there are about 12,000 households in Coppell, and a 20 percent rate reduction per household would equal $41 in savings per month, or $496 annually. If there was a 10 percent participation rate, or 1,200 households, that translates to $595,200 in potential savings annually.

"There's the potential for savings," Ellis said. "After talking to Farmers Branch, those numbers match up for them. They've been in the program about three years with around a five percent participation rate and they're reporting about a 20 percent rate reduction per participating household."

Residents can sign up on texaspowerswitch.com and choose Coppell for their city designation. The next auction is on September 15 and offers to switch to the winning provider will go out to participating households on October 2. Residents have until October 21 to decide whether they will switch or decline, then they will have until February 2021 to make the switch. Residents that are in the Coppell Greens subdivision are part of a co-op and are not eligible to participate in the program.

Visit texaspowerswitch.com to register before September 15.

This press release was produced by City of Coppell. The views expressed here are the author’s own.