Amigo Energy

Amigo Energy
Private, subsidiary of Fulcrum Power Services
Industry Electricity
Founded 2003
Headquarters Houston, Texas, United States
Area served
 Texas
Services Retail electricity services
Parent Fulcrum Retail Holdings
Website www.amigoenergy.com

Founded in 2003, Amigo Energy is one of Texas’ oldest electric retailers, and they provide hundreds of thousands of Texans with reliable electricity service. Amigo Energy is a subsidiary of Just Energy Group Inc., a publicly traded company (TSX:JE) with 1.8 million active customers across North America.[1]

History

Amigo Energy was founded in 2003.

In May, 2007 the company merged with Fulcrum Power Services which had previously acquired Tara Energy.[2]

In August 2007, Amigo signed a four-year, $7.5 million sponsorship agreement for Amigo Energy to become the jersey sponsor for the Houston Dynamo,[3] a Major League Soccer team.[3]

In August 2011, Fulcrum, including its subsidiary Amigo, was acquired by Canadian firm Just Energy.[4]

Awards

In 2010, Amigo Energy was ranked #2 in the J.D. Power and Associates Customer Satisfaction Index Ranking.[5]

As of September, 2011, Amigo Energy was ranked as "Better Than Most" in all qualification areas by J.D. Power and Associates.[6]

Industry

Amigo Energy is an electricity retailer that operates as one of 71 independent power marketers participating in deregulation of the Texas electricity market. Amigo ranks as the 17th largest power marketer by number of consumers according to a 2009 U.S. Energy Information Administration report.[7] Generators are owned by power generation companies who sell the electricity they produce to retail companies, who in turn sell this power to end consumers. In order to deliver the electricity from the power plants to end consumers, Transmission and Distribution companies own the hardware – wires, meters, service trucks, etc. and also collect the meter data that are necessary for the electric industry to function. So retailers pay a service fee to the Transmission and Distribution companies on behalf of every customer, and they also pay power generation companies for the total amount of power that the end consumers use. The retailer tracks all of these costs and performs complex forecasts that ensure that they can offer a single billed rate to the customer while providing billing services, customer support, regulatory compliance, and effective customer communications.

In 2002, Texas began the process of deregulation by passing Senate Bill 7.[8] One purpose of this bill was to increase competition in the previously monopolized electric utility market and result in customers switching their service patronage to retail electric providers not affiliated with the original incumbent monopolies. In the first few years of power deregulation, the Public Utility Commission set a “Price to Beat”,[9] which was a premium price that the original incumbents must charge their customers. This allowed the new competitive retail electric companies to offer a lower price. The price to beat ended in January, 2007,[10] and the original incumbents began offering competitive prices as well. Today, all retailers in Texas compete for customers based on price, customer service, and marketing effectiveness. According to the Electric Reliability Council of Texas, as of August, 2011, 56.2% of all meters in the deregulated territory (3.7 million) have switched away from the original incumbent providers and are receiving service from competitive retailers,[11] including Amigo Energy.

The Public Utility Commission of Texas (PUCT) enforces customer protection laws for the citizens of Texas and provides access to consumer information. An important industry advance approved by the PUCT is discussed in this article on Smart Meter deployment across Texas (see reference).[12]

Community Investment

Amigo Energy is actively involved in the communities it serves. In partnership with the Just Energy Foundation, Amigo Energy is a sponsor of the Houston Food Bank. In recognition of Earth Day, it collaborated with the Houston bike-sharing program Houston B-cycle. Amigo Energy customers who enroll in their 100% renewable energy program also receive an annual membership to B-cycle.[13]

References

  1. ↑ Amigo Energy "About Us", 2012-03-13
  2. ↑ "Amigo Energy and Tara Now Under One Umbrella" Houston Chronicle
  3. ↑ 3.0 3.1 Dynamo sports soccer sombrero as Amigo Energy sponsors team, August 26, 2007
  4. ↑ Just Energy to Buy Fulcrum's Retail Electricity Business in $79M Deal, 2011-08-25
  5. ↑ J.D. Power and Associates Report - Texas Retail Electricity Companies, 2010
  6. ↑ J.D. Power 2011 Texas Residential Retail Electric Provider Customer Satisfaction Study, 2011
  7. ↑ U.S. Energy Information Administration, "Class of Ownership, Number of Consumers, Sales, Revenue, and Average Retail Price by State and Utility: All Sectors", 2009
  8. ↑ State of Texas Electric Utility Restructuring Legislative Oversight Committee, September 29, 2004
  9. ↑ City of Houston Consumer Choice Program, 2008
  10. ↑ The Dawn of Electricity Competition: Efficient Prices and Efficient Choices, June 6, 2007
  11. ↑ ERCOT Historical Number of Premises Switched (MS PowerPoint file), August 2011
  12. ↑ Official Public Utilities Commission of Texas Smart Metering Information, 2011
  13. ↑ "Amigo Energy Review" ElectricityMatch.com

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