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Wondering How to Pick a Power Company

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General Electric Company Analyst P/E Ratio Growth RatesA couple of weeks ago my wife and I bought a house that was just across the state line in Texas. We have lived in Louisiana and Arkansas and this is in the same area, but obviously in Texas. Apparently if you go to the web page Choosetexaspower.org you can see that in Texas they let you choose the electric power company that you want to use. It is not like you get a vast variety of them. In this area you get three or four choices. The companies do not mean that much to me. I have heard of a couple of them I think. I believe that there is one of them which used to sponsor the football stadium of one of the Texas NFL teams, probably the Houston Texans. That is called Reliant energy and they are the only one that I am sure that I have heard of. That does not seem like a valid reason to pick them, although I suppose the opposite might be true of the others.

The only really good thing I think to ask about a power company involve the rate that they charge on the power or how quickly they are going to solve a problem when they come up. I am guessing that the rates are all going to be rather close to the same. They are all going to know what the other fellow is charging and they are not going to let any of those other companies cut their rate by too much. That seems like it is a sure thing. Especially when you are talking about the rates in the local market, which is going to be the only one that is relevant to the customer. Obviously it is a big deal to have them fix the power when it goes down.


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