Credit scores used by Texas utility to determine rates charged to customers
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Credit scores used by Texas utility to determine rates charged to customers
 

Credit scores will now pay a role in determining the utility rate charged to customers of a Texas utility known as TXU Energy. TXU plans to begin pegging some of its customers' electricity rates to their credit scores, charging them more if they have fallen behind on telephone, power or cable television bills in the past.
 
The new rate structure, as of Sept. 27, 2004 affected customers outside of North Texas who switched to TXU to save money on their electricity bills. Under the plan, South Texas customers with the best credit histories will be offered an electricity rate 8% lower than the rate offered by the local incumbent utility, an amount known as the price to beat. Fifteen percent of customers will be charged a rate that is 4% better than the price to beat. The 15% with the worst credit histories will be charged the price to beat, meaning they will have saved no money by switching providers. NOTE: ICFE Certified Credit Report Reviewers are trained on credit scores and what steps consumers can take to maintain a good score or how to improve one.

About the ICFE:

The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

 
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