TXU Hits Duncanville ISD With $1.2 Million Electric Bill

By Eric Nicholson Thu., Nov. 20 2014 at 6:41 AM

Duncanville ISD thought it was getting a great deal when, one year ago this month, it switched electric providers and signed on with the State Power Program through the state's General Land Office. Just like that, Duncanville ISD's price-per-kilowatt hour dropped almost 20 percent, from 7.3 cents to a maximum of 6 cents.

But Duncanville school officials overlooked one important maxim when it comes to selecting an electric provider: You don't fuck with TXU.

Duncanville ISD had been contracting with the electric utility since 2009. The deal, thanks to an extension signed in 2012, was locked in through 2016. Now that the deal's been broken, TXU says in a lawsuit filed on Tuesday that the district owes $1.2 million.

Materials from the November 2013 school board meeting don't mention it, but Duncanville ISD was apparently chafing at being charged a fee for using too little electricity. Under the terms of its contract, it was supposed to pay TXU if it deviated from historic usage patterns by more than 15 percent. In May 2012, Duncanville ISD stopped paying for its unused electricity.

Those unpaid under-usage charges don't come close to $1.2 million, so where does that figure come from? The bulk, TXU claims, is damages it sustained when Duncanville ISD pulled out of their contract two years early. TXU says it had to pre-buy wholesale electricity to satisfy Duncanville ISD's future power needs at a fixed price, just as it does for other large institutional consumers. (This is also how it justifies charging the "under usage fees.") When Duncanville ISD went with the state, TXU had to sell off two years' of pre-purchased electricity at a loss.

~~District spokeswoman Lari Barger says she will provide a statement for the district later today~~. UPDATE, 12:57 p.m.: She did, and here it is:

Duncanville ISD has an award-winning record for sound fiscal management. We have worked hard to conserve energy and to be good stewards of the resources with which our taxpayers have entrusted us. It is unfortunate that TXU has decided to use their vast resources to sue a public school district. The district has not been formally served; regardless, we deny the allegations as presented in the complaint and the manner in which TXU has characterized our relationship. Duncanville ISD is reviewing the allegations with our legal counsel, and we will respond to the allegations formally in court.

Send your story tips to the author, Eric Nicholson.

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WhoisJohnGalt

A contract's a contract. Has nothing to do with whether you like a deregulated electricity market (PS: I personally love it - I just shopped for a new plan last night and thoroughly enjoyed the process far more than just moving to town and finding out you're stuck with an overpriced government-run electric company)

paulpsycho78

I remember when the texas gop sold us a magic bag of beans called deregulation. Competition will drive prices down they said. Fucking liars

Montemalone topcommenter

Isn't deregulated electricity great?

Of course, someone at D(unc)ISD signed those contracts and had the responsibility to know about terms and fees. Is that person still employed? How much are they paid?

wilme2

That is why you never, ever, sign take-or-pay agreements. Or 4 year contract extensions... Bad vendor management by Duncanville ISD.

OxbowIncident

It sounds like the business equivalent of a psycho ex-girlfriend.

primi_timpano

Welcome to mark to market.

TheRuddSki topcommenter

I used to freelance for TXU, producing the crap included with your bill.

When I read that TXU had gotten a 10% rate hike approved. I notified them that, due to cost increases, my fees would would be increased approx 10%, and they promptly terminated our business relationship.

Don't fuck with TXU!

dingo

@paulpsycho78

They didn't lie to me. I had to spend 30 minutes comparison shopping to get there but I am locked in at a low rate.

ColonelAngus

@TheRuddSki Also, don't work in the printing business!

ScottsMerkin topcommenter

@TheRuddSki TXU is cray cray. My contract is up, they tried to renew me online by giving me the best plan available....so they said. So I click on the plan and it .03 per kwh higher than I am now and a 2 year plan no less. So I search their website and find 4 plans that are way better and shorter term, hell the month to month plan was cheaper...but Im shopping around now. Powertochoose.org is an awesome site

TheRuddSki topcommenter

@ScottsMerkin

I used that site too, but at the time TXU was the better deal. This was several years ago, tho.

ScottsMerkin topcommenter

@TheRuddSki And now Ive spent 90 minutes of my day on just 2 EFLs and there are hundreds, 214 to be exact, for the criteria I put in the search function

ScottsMerkin topcommenter

@TheRuddSki I dont even undertand the EFLs, each company uses such a different format. I mean, look at these two examples

1. Is my rate 7.9 or do I need to add the 4.3 Energy charge and the 3.3 Delivery charge to come to my actual rate

http://i1102.photobucket.com/albums/g458/dallasjhawk/DEEFL_zps20d3335b.jpg

2. IS my 1000 KWH 7.9 ¢ or do I need to add the Energy charge $.101 the deliver charge $.03 (notice the tricky switch from ¢ to $) to come to 9.2 and what is the $60 residential usage credit, do I get a $60 credit if I use 1000KW or are they charging me $60 for using more than a 1000,

http://i1102.photobucket.com/albums/g458/dallasjhawk/GEXAEFL_zps5fc8a0bb.jpg

This is the shit that is confusing. It should say this is your monthly KwH rate, I dont give a fuck who gets what, let me just compare the damn the rates. And to get charged for not using enough electricity? What the fuck type of shit is that, I want to conserve so charge me more?!?!?!?!?

TheRuddSki topcommenter

@ScottsMerkin

The confusion is a feature, not a bug.

ThePosterFormerlyKnownasPaul topcommenter

@ScottsMerkin

The electricity market deregulation was not about the consumer. It was about the generators with nuclear and coal fired plants being able to sell electricity at the same rate as the gas fired peaking power plants.

Don't forget that the wholesale power market is a bid in process and everyone gets paid at the same rate as the highest bidder. The bid amount only determines the order in which the power is purchased.

Remember a few years ago when TXU wouldn't bid in for anything less than $150/MWhr (15¢/kWhr)?

ScottsMerkin topcommenter

@TheRuddSki So now after 2+hrs I figured the the average kWh includes all the charges except the charge for not using enough power on certain plans. Now to pick the best deal. It appear Gexa is the best for 1 yr

ozonelarryb

Same with so many things. Like dealing eith a call center. Fine print, TOS, scripts designed to make you nuts with frustration so you drop the issue and just keep sending them money.