Dive Brief:

• Reliant, NRG Energy's retail electricity subsidiary in Texas, is offering consumers unlimited electricity for a flat monthly fee on a 12-month contract.
• The fee will be tailored to each existing customer based on past energy use and publicly available information about the customer's home. 
• Unlike previous rate schemes, there will be no extra charges to the customer if their electricity consumption rises above Reliant's estimate, although significant over-consumption would be incorporated into the next contract.

Dive Insight:

The all-you-can-use electricity offer is aimed at fixed income customers, caregivers, college students and others who may benefit from the ability to budget their electric bill. 

Consumer advocates and environmental groups are worried the scheme, while attractive, could encourage unrestrained electricity consumption. When consumers get a higher-than-expected bill, it makes them conserve more energy and reduce waste, said Robin Schneider, executive director of the Texas Campaign for the Environment. "It seems to be a real step backwards," said Schneider. "I'm very disappointed that Reliant is offering this."

Reliant disagrees with Schneider's assessment, though the company acknowledges there is a risk involved. That risk, Reliant says, should be mitigated by the short-term contract period and an annual reassessment of whether the flat monthly fee reflects true usage.

"There's a risk there, but our expectation is people will continue to make good choices that [...] do right by the environment, as well as their own personal needs, but don't get excessive," said Elizabeth Killinger, senior vice president and Texas retail regional president for NRG Energy.