A NEW SPY TECHNIQUE AS BIG BROTHER STRIKES AGAIN

A Program of Dubious Value

If you followed my blog “Journey into Sunland”, you already know I’m not a big fan of NVEnergy. To be fair, in the past, NVEnergy had some worthwhile programs. The solar energy program offered by NVEnergy is fraught with problems and leads to finger-pointing between the company and the Public Utility Commission of Nevada. But that’s a discussion for another time.

This time around I’d like to tell you about the company’s newest offering which is already starting to short-circuit. The new energy saver of questionable value is called mPower. This latest offering provides you with a free programmable thermostat and free installation if you have a wireless router and a high-speed Internet connection. The promise from the company is it will save you money, however, after investigating how this operates I seriously question the value of the promise.

Oh, before you stop reading this thinking because you are in another state this does not apply to you, think again. Pacific Gas and Electric in California is working on a similar program with Honeywell, maker of digital programmable thermostats. At least two electric companies in the state of Texas are working with the EcoFactor and Nast Labs on Big Brother type ideas to track your electric usage.

About a week ago I had a flyer attached to my backdoor the described this new NVEnergy offering. If memory serves me right the thermostat is valued at $299 and the installation is $99 all for free. That word free makes my mouth water. That salivation stopped after I did some homework.

Before we get to the results of my research, let’s talk about the word value and the word free for a few seconds. As mentioned earlier, the declared value of the NVEnergy thermostat is $299. That number is based on the manufacturer’s suggested retail price and not necessarily what you would pay for an Internet programmable thermostat. I found several Internet capable programmable thermostats online for about one half the price of the NVEnergy thermostat. Then there is the installation value of $99. If you have basic skills and can read a schematic you can install the thermostat in about 15 minutes. The question then becomes, “is that worth $99?” My answer is I doubt it.

Now let’s examine the word free. Of course, the power company is promoting this as a free option. But keep in mind although the company wants you to believe it is free, it is actually being paid for by all of the NVEnergy customers that pay their bill every month. In the event this program falls flat NVEnergy will just go to the Public Utility Commission of Nevada and request a rate increase to cover the cost of the failed program.

The literature for the mPower program touts 10 to 15% savings on your summer cooling. I believe you’ll find like most sales literature, these numbers are slightly inflated and perhaps highly inflated when you consider some other factors.

If you have a regular thermostat and are not on any special money-saving programs offered by NVEnergy (such as the Time Of Use program), and you are willing to let the electric utility adjust your thermostat on occasion from their location, then at least 10% savings may not be out of the question. However, I do believe 15% savings would be a stretch. If you already own a programmable thermostat and use it wisely, along with being on the Time Of Use program you might have trouble realizing any savings.

Here are the basics of the program. The electric utility company installs a digital programmable thermostat in your home, which then feeds your program information over the internet to the utility company. The thermostat has four program settings, plus a setting for when you go away for a weekend or on vacation. You can also access this digital thermostat from utility company’s website and make changes to the program virtually anywhere you have Internet access. Admittedly, there are some pretty cool features with this (cool pun intended). Let’s say you forget to shut off the thermostat before you leave for a vacation and realize it while you are at the airport. If the airport has Wi-Fi access and you have your computer, you can connect to the website and shut off your thermostat. Kind of neat, huh? Now let’s say you come home from vacation and your thermostat is off.  Before you leave the airport to go home you can, once again, connect to the website and set your heater or air conditioner so that when you get to your house the heating or cooling process has already started.

Part of the money-saving factor is the utility company will ask you if they can, on occasion, adjust your thermostat a few degrees. Their literature says the few degrees won’t be noticed. Likewise, that is where some of the money savings is realized.

In the long run, the utility company is getting the lion’s  share of the benefits. Here’s how. The utility company is able to monitor your settings on the thermostat and the outside weather conditions. They can then gauge how much electricity you will use over a given period of time with your automatic thermostat. Now let’s say 100,000 people sign up for this program. They will be able to gauge the electric usage of all of those customers during a certain period of time. This means the energy company will be able to plan energy usage and buy or sell electricity accordingly and perhaps getting the best rate possible. This is definitely a plus for them.

A couple of things really bother me about this program. In order to get on the program at the NVEnergy website, you are asked to enter your account information and it will check to see if you have a digital smart meter. When I did that I got a message saying I was ineligible because I had an old meter. Their system was not intelligent enough to know that I have had a smart meter on my home for more than four years.

Then there’s the strange coincidence of the electric bill I just got this month. Normally I get an electric bill for 28, 29, 30, or 31 days. This month I got an electric bill for 64 days, which happen to be some of the hottest days of the summer. Around this time of year my electric bill is about $220 per month. Of course, with a 64 day electric bill the total was $445. That is still about $95 less than the average home my size pays for electricity. But, I guarantee a lot of people failed to calculate that they have not had an electric bill for two months and have already spent that cash. That means they’re going to come up short of cash, probably a little cranky, and it won’t be because of the heat. If NVEnergy’s system is not smart enough to mail me a monthly electric bill, how can I trust them to get this program correct?

The question really comes down to how much do you want your utility company to know about your electric usage habits? I know it really doesn’t seem like much, however, with all of the other ‘I Spy’ things going on these days, do you really want the utility company to be part of it? This is especially true when you can achieve nearly the same results by buying the thermostat yourself and not connecting it to the utility’s website. I don’t know about you, but I am particularly tired of Big Brother spying on everything I do.

Think about it. The satellite company or cable company can tell when you tune into porn. Of course, they can’t tell what you are doing while you are watching it. That is, at least for now.

© Krystalco LLC 2013  Any publication or reuse of the information on this blog, in part or 
    whole, without express written consent is prohibited.

HOW TO AVOID OVERPAYING FOR A HOME.........

Better still follow these 9 techniques and save, Save, SAVE!

As a 4 time home owner I can tell you there are two basic reasons some home owners overpay.

1.      They develop an emotional attachment to the prospective property.  

    

2.     They fail to do their homework.

    

   Let’s take a closer look at #1.  Any good real estate agent wants the client to fall in love with the house they are showing.  They point out all of the positives, such as large closets, new carpeting, recent remodeling projects, water softener, new hot water heater, easy access to schools and shopping, etc.  Think about your dealings with an agent and you’ll remember all of what I just said.  

    

   The next step is to ‘gloss over’ or simply ignore any negatives.  They will never mention the graveyard that boarders your backyard, the murder that happened in the home, basement flooding, the previous fire, the old water heater, the furnace that was installed in 1921, the leaking roof, the total lack of insulation, the neighbors all hate each other and don’t get along, etc.  Again, if you’ve ever owned a home, I’m sure you remember a few negative shockers that you found after you sealed the deal.

    

   How to avoid the above:  

   
   
   1. Never fall in love with an inanimate object.  And be weary of forming an emotional attachment with animate objects.  The very second you or your significant other says, “I love this house”, you lose.  That’s exactly what the real estate agent wants to hear.  Never say it and better still never think it. 
                  
      The agent selling the home wants to form an emotional bond with you and that’s why I added be weary of forming an emotional attachment with animate objects.    
      No bonding with the agent.  Your primary function in this transaction is to get the absolute best
      deal.  The agent is a sales person trying to separate you from your money.      
      That is the long and short of it.
      
      
      2)      Know what you absolutely must have in your new home.  Make a list.  Things like an attached garage, fireplace, 3 bedrooms, 2 baths, large kitchen, family room, etc.  Don’t waste your time and emotions looking at homes that don’t make the cut of the list you make.  Don’t waste your time with an agent that tries to get you to see a home that doesn’t meet your criteria.  If the agent says, “Oh, you must look at this house.  You’ll love it.  Yes, I know it doesn’t have 2 baths, but really take a look.”  Say goodbye to both the home and that agent.  Oh, make sure you tell the agent upfront that you don’t want to spend time looking at any home that doesn’t match your needs. 
      
      
      3)      Never, Never, Never negotiate on price.  Know what you are willing to pay and not a penny more.  Not one penny and let the agent know you DO NOT negotiate price.  Tell the agent to let the seller know this too.  You will make 1 offer and 1 offer only.  Take it or leave it.  In a soft real estate market there is never a need to play the price game.  (Side note – some of these tactics can be used when buying a new car.)  The way to avoid the price negotiation game is simple.  Ask for the moon with a list of things that you want to remain with the home.  Ask for it especially if you don’t care if you get it.  Ask for things like all appliances, the curtains, that clock in the hall, install a new garage door opener, the patio furniture, put in a new furnace and/or water heater.  These are called throw-aways.  If you get them, great.  But since you will not negotiate on the price, you can remove these from the deal.  Let’s say you get the appliances and you really don’t want them.  Simple – sell ‘em and you keep the money. 
      
      
      4)      Walk away.  Never be afraid to do this.  When it comes to the most expensive purchase you will make in your lifetime, it’s your way – all the way.  If you found this home there will be several others out there that will meet your expectations.  Again, this is especially true in a soft real estate market that is top heavy in foreclosures.  (The walk away technique is a ‘must use’ when buying a car.)
      
      
      5)      Shop your loan.  Check all of your resources so you get the absolute best interest rate.  Fixed rate only and no adjustable rate mortgage (ARM).  It’s not a question of “If inflation kicks in” but “when”.  It you have an ARM you will get hurt.  Put as much money down as you can and go for the shortest length of mortgage you can afford.  The shorter the mortgage the less you will end up paying in interest. 
      
      
      6)      Be pre-approved for your loan.  Know the maximum amount you want and get pre-approved for as much as you can afford.  Remember you don’t have to borrow that amount if you come in under what you expected, but you will have it available if you need it.  Here’s the big plus in pre-approval – when you say you don’t negotiate on price and you are pre-approved for the loan the agent knows the sale will go through.  Be sure the agent tells the perspective seller and make sure he/she understands when (not if) they agree to your offer the sale of the home is virtually a done deal.
      
      
      7)      This may sound a bit sick or twisted, but find a motivated seller.  By this I mean someone that has to move for their job, because of a divorce, an estate sale, foreclosure, etc.  Ask the agent why this person is selling the home.  If he seller is truly motivated it makes it easier for you to win.
      
      
      8)      Meet the neighbors.  Knock on doors and talk with others before you commit.  The more you talk with the better.  If you get a bad gut feeling see #4.
      
      
      9)      Know and keep in mind this game is being played with YOUR MONEY.  The more you keep the better off you will be in the end.
      
      
      Finally -  © Krystalco LLC 2013  Any publication or reuse of the information on 
                   this blog,   in part or whole, without express written consent is
                   prohibited.