Amigo Energy
Encyclopedia
Amigo Energy is a privately owned, full-service retail electricity provider]] (REP) for residential and commercial customers, located in Houston, TX, United States. Amigo Energy was founded in 2003, and has provided electricity to customers across nearly all deregulated areas in Texas.
. Amigo ranks as the 17th largest power marketer by number of consumers according to a 2009 U.S. Energy Information Administration
report. In Texas, retailers are not permitted to own power generation plants. 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. 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”, 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, 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, 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).
Customer Satisfaction Index Ranking.
As of September, 2011, Amigo Energy was ranked as "Better Than Most" in all qualification areas by J.D. Power and Associates
.
The jury findings were subsequently disregarded by the trial judge.
History
Amigo (Spanish for friend) was founded in 2003 by the Vega family. In 2007, an agreement was made for the acquisition of Amigo Energy, and thus became a wholly owned subsidiary of Fulcrum Power Services. Javier Vega was to remain onboard as president and CEO of Amigo Energy, and became senior vice president of Fulcrum Energy. In August 2011, Fulcrum was acquired by Canadian Just Energy.Industry
Amigo Energy is an electricity retailer that operates as one of 71 independent power marketers participating in deregulation of the Texas electricity marketDeregulation of the Texas Electricity Market
Electricity deregulation in Texas was the result of the coming into force of Texas Senate Bill 7 on January 1, 2002. According to the law, deregulation is to be phased in over several years....
. Amigo ranks as the 17th largest power marketer by number of consumers according to a 2009 U.S. Energy Information Administration
Energy Information Administration
The U.S. Energy Information Administration is the statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and...
report. In Texas, retailers are not permitted to own power generation plants. 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. 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”, 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, 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, including Amigo Energy.
The Public Utility Commission of Texas
Public Utility Commission of Texas
The ' is a state agency that regulates the state’s electric and telecommunication utilities, implements respective legislation, and offers customer assistance in resolving consumer complaints....
(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
Smart meter
A smart meter is usually an electrical meter that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the...
deployment across Texas (see reference).
Awards
In 2010, Amigo Energy was ranked #2 in the J.D. Power and AssociatesJ.D. Power and Associates
J.D. Power and Associates is a global marketing information services firm founded in 1968 by James David Power III. The firm conducts surveys of customer satisfaction, product quality, and buyer behavior for industries ranging from cars to marketing and advertising firms. The firm is best known for...
Customer Satisfaction Index Ranking.
As of September, 2011, Amigo Energy was ranked as "Better Than Most" in all qualification areas by J.D. Power and Associates
J.D. Power and Associates
J.D. Power and Associates is a global marketing information services firm founded in 1968 by James David Power III. The firm conducts surveys of customer satisfaction, product quality, and buyer behavior for industries ranging from cars to marketing and advertising firms. The firm is best known for...
.
Controversy
In 2008, then-CEO Javier Antonio Vega was terminated. Vega filed suit, claiming wrongful termination and seeking a return of the value of his equity in the company, as well as unpaid salary and bonus. On August 1, 2011, a Houston jury decided unanimously in Vega's favor.The jury findings were subsequently disregarded by the trial judge.