Archive for bankrupt electric companies
Blu Power of Texas, Letting Customers Go
Posted by: | CommentsOther No Deposit Guaranteed Electric Providers
Since Blu Power closed down in Texas we recommend other electric companies for those needing to avoid a deposit. Blu Power sold pre-paid electric service although there is now an electric provider in Texas that will allow you to sign with a no deposit or low deposit depending on your credit. The plan was called the “Fresh Start Plan” but that plan has been discontinued. We now recommend asking Bounce when calling for their best option for low credit low income to avoid a large deposit amount. Check it out here:
No Deposit and Low Deposit Plans, Bounce Energy.
or call 1-866-945-8937
5 Texas Energy Companies out of Business in Texas
Another electric company in Texas were hit by the index market skyrocketing prices when they couldn’t afford the wholesale market financial requirements. The MCPE market spiked and they were not able to afford to keep their customers. They have started the process of letting all 2,000 of their customers go who are primarily Texas prepaid electric service customers. These Blu Power Customers will be getting back any money owed to them by Blu Power of Texas according to the electric company. Blu Power has said that many of their customers owe them money then they who owe their customers.
When Will it End?
With this now being electric company number 5 now out of the electric business you begin to wonder when this going out of business thing is going to stop? How many other small electric companies got into this business over their head? Some of the Texas electric companies came into the Texas market without a good understanding about just how volatile the Texas energy market is as well as what kind of capital investment you need as leverage against the hottest summer and the coldest winter to continue to stay in business.
Blu Power Electric Service Customers
If you are a Blu Power Electric customer we recommend checking out some of the discount electric rate offers we have at the top left of this page. If you have any questions please feel free to give Electricity Bid a call at 817-929-7095. Further questions can be answered by the PUCT (Public Utility Commission of Texas). Some of the other providers that have gone out of business in Texas for similar related issues are, National Power Company and Riverway Power.
Riverway Power’s Bankruptcy Will not Be Going Through
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Riverway Power attempted to declare bankruptcy as a way to keep their existing Texas electric service customers to reorganize and start over again. The Public Utility Commission of Texas asked them if they would be going ahead with the bankruptcy filing and the owner of Riverway Power said, “no we will not be able to declare bankruptcy.” For whatever reason, Riverway Power lawyers advised them to not go ahead with bankruptcy. Because Riverway will remain in business without filing bankruptcy they will have all of their customers transfered to the provider of last resort by the Texas state government.
If you are a Riverway Power customer you need to know a few things about this issue. If things occur as they have with National Power company who also had their customers transferred to the POLR rate you may lose your deposit with Riverway Power. Not only will you potentially lose your deposit but you will be put on the POLR rate which could be anywhere from 22 – 30 cents kWh depending on the area you live in. The POLR rate is something you want to get off ASAP as the rate is double and triple what you can get elsewhere.
Low Cost Reputable Electric Provider
If your in the Houston area Affordable Energy has the best 12 month fixed residential rate as of June 2008
If you are in the Dallas Fort Worth area and other areas you can sign up with Startex Power at one of the lowest rates out there right now.
Shredding Documents at NPC
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An ex-employee at NPC has provided some information on the status of National Power as of today (June 6 2008). Apparently they are shredding documents. This may be a good or bad thing. Since all their customers credit card information is on file in hard copy they may be trying to destroy that information so that no one steals your information. If that is the reason then good for them. They only have a couple accountants left there and a few phone customer support people. According to the ex-employee they are going to tell you whatever they have to in order to collect your balance. From the employees and customers of National Power’s experience, NPC has been lieing to collect balances due. Be careful when speaking with them in being lured into them telling you what they have to to get you to pay up. They broke your fixed electric rate agreement, not the other way around.
Freedom Power, are they a Good Electric Provider?
Posted by: | CommentsLooking for a Good Electric Provider that Doesn’t Require a Deposit?
Most electric companies in Texas require a deposit when signing up for electric service. There are a few that do not require a deposit and out of these there are only a couple that we would recommend using. Bounce Energy has a very good “low deposit plan” with no deposit or a low deposit depending on your credit score. You can sign up with Bounce Energy here and avoid a large deposit that most other electricity companies would require if your credit score isn’t currently the best. The only other option is prepaid electricity service that is usually based on estimated electric usage instead of actual electricity usage. Freedom Power and DPI Energy are two of the more well known prepaid electric companies in Texas. In our opinion a no deposit or low deposit choice is a better option as you are billed for actual electric usage and are rewarded a lower electric rate.
Sign up Now – No Deposit and Low Deposit Plans or call 1-866-945-8937
Freedom Power is one of only a few Texas electric companies that offers a prepaid electricity service option for Texas energy consumers. We regularly receive calls and comments from disgruntled Freedom Power customers who claim their service was cut off without proper notice. Chances are most of these customers just simply did not live up to their part of the deal by paying their prepaid service for the following month. The PUCT does however require that a Texas electricity company give their customers proper notice before turning that customers service off because of non payment. It is important that you go back and read the contract you signed with Freedom Power as a reminder to what you may have agreed to when signing up with this electricity company. This will help determine if you or your electric company is to blame for the disconnection of your electricity service.
If you have a question about your Freedom Power electricity bill we recommend you call Freedom and have them go over your bill with you as well as answer any questions you may have. You can also call the PUCT and confirm that your electricity bill and contract are according to PUCT rules and regulations if you have further questions after talking with Freedom. The state should be able to send you to the PUCT website where you can read the rules and regulations Texas electricity companies must follow and confirm if your bill and contract as well as possible termination is according to the rules the PUCT has setup.
A Texas electric provider needs enough capital for the hottest summer and the coldest winter or they will go out of business. You just can’t enter the Texas market with $100,000 and no more capital then that and expect to stay in business. An electric company in Texas is easily exposed to energy market risk and volatility. Since Freedom Power sells electricity as a prepaid service they are not exposed to as much risk as other electricity companies because if the customer stops paying for electric service they can cut off service. This allows this electric company to offer a prepaid electric service to low credit customers and protects them from multiple customers defaulting on their electricity bill.
If you would like to leave a customer review of Freedom Power positive or negative please use our comment section below.
If after talking directly with Freedom Power to resolve a question or issue and you still have more questions you can file a complaint with the Public Utility Commission of Texas here or call them: File a Complaint
The nature of the prepaid electricity business requires for more disconnects than Texas electricity providers that take on good credit customers. Because more people fail to pay their charges with a prepaid electricity company there will be more disconnects on average. Customers from time to time may be confused regarding electricity costs and charges and have been known to refuse to pay their electricity bill. These confusions could be real or imagined but either way it is important to call your electric provider right away to get down to the bottom of the issue.
Any ambiguity in the advertised electricity rate in the contract is usually translated how the electric service customer perceived the electric rate they were agreeing to rather than what the electricity provider may have meant. It is important that the electric company make the rate clear and understandable to any potential customer coming to their ad or website to sign up for electricity service. If you feel like you are paying a higher rate than you were advertised just call your provider and explain your issue. Take down notes about the terms of service they refer to when summarizing what you originally agreed to. You can always take this information to the PUCt and go back over it to explain why you believed the rate was something other than what the provider intended.
A comment below from someone talking about their upstairs neighbor isn’t accurate as Freedom probably disconnected that customer because they did not pay their electricity bill. Prepaid electricity requires the customer to take a more proactive role in paying for their electricity service since you pay and then receive electric service. Most of us use electricity and then we are billed for it. We then have time to review the bill and pay for the service. A low credit bad credit risk customer put in the situation of being proactive in paying their electricity bill does not make for a good situation. Chances are these customers may frequently wait until the last minute to prepay each and every month. If prepaid electricity service isn’t something you like we recommend saving up for the large deposit that will be required when using a more traditional electricity company like TXU Energy or Reliant Energy.
My upstairs neighbor is (Was?) a Freedom Power customer. Their power just got cut-off. They have been on hold for almost an hour now. Is it possible that Freedom failed to pay the upstream provider for the power they are reselling and the upstream provider issued the disconnects? Sounds like the rats have already left the ship, and it is their customers that are screwed. Now my neighbors will have to get a new provider immediately, pay a new deposit, and join the inevitiable class-action suit to get their money back (which they will never see).
Customers would like their REP License Revoked
There is a Petition to the Public Utility Commission of Texas to Revoke Retail Electric Provider Certificate No. 10078 of Freedom Group, LLC d/b/a Freedom Power.
Lawsuits in the Works
There are electric customers of Freedom Power in settlement discussions. If anyone has information on what Freedom Power may have done to their electric customers we would like to know. Please feel free to leave a comment on the status of the lawsuit with Freedom Power, a Texas electric provider.
Freedom Power Office Location and Phone Number
Agent: Peter J Grosso
Address: 401 B Ferris Avenue, Waxahachie TX 75165
MARVIN E SINGLETON III DIRECTOR PO BOX 560803 DALLAS, TX 75356-0803
PETER J GROSSE DIRECTOR PO BOX 560803 DALLAS, TX 75356-0803
PENI BARFIELD SECRETARY PO BOX 560803 DALLAS, TX 75356-0803
PENI BARFIELD TREASURER PO BOX 560803 DALLAS, TX 75356-0803
KEN WEAVER PRESIDENT PO BOX 560803 DALLAS, TX 75356-0803
Assumed Company Names
Freedom Power
La Raza Electridad
Pre Buy Electric of Texas, Bankrupt, Yes No?!
Posted by: | CommentsNeed an Electric Rate in Texas with No Deposit?
Sign up with Bounce Energy’s No and low Deposit Plans – Click Here or call 1-866-945-8937 ask for the “No or Low Deposit Plans Available”
Today Pre Buy Electric of Texas has Gone Bankrupt or Have They?
Wow, Texas electricity rates are at a 3 year high right now and with electric companies breaking fixed rate contracts on their customers it is no surprise that Pre Buy Power also known as Pre Buy Electric has gone out of business and had all 9,000 electric customers transferred off their electric service and onto a higher electric rate managed by the government which is called the POLR rate. In Houston, Reliant Energy provides the temporary back up rate until the consumer decides to shop for a competitive offer. You don’t want to stay on the POLR rate to long as it is just a back up and much higher then try some other competitive offers with reputable electric providers out there.
This electric provider was not operating their business correctly as far as the hedging of their energy, risk management and the credit risk of their customers. Having your customers pre purchase their energy definitely helps as positive insurance you will receive payment from your customer base but then speculating on the energy market without hedging your energy leaves your electric company to really high levels of exposure to market volatility. The energy provider was forced into bankruptcy (according to PreBuy company associate they have not yet filed for bankruptcy) by ERCOT (The Electric Reliability Council of Texas) because they were not able to meet their power payment obligations. PreBuy Electric customers were switched to the Provider of Last Resort (POLR) over the weekend by ERCOT so they would not be without electric service. In the Dallas area the POLR company is TXU Energy and in Houston it is Reliant. The POLR electric rate is a higher inflated rate and is only temporary. A PreBuy customer on the POLR rate is encouraged to sign up with a competitive electric provider ASAP to avoid paying a higher then the average electric bill they may be used to.
We are asked quite frequently for a recommendation of an electric provider like Pre Buy Electric Company that will let you into an energy contract with no or a low deposit and the best one right now is a Texas electric company by the name of Bounce Energy. Bounce guarantees you can sign up on their “no or low deposit plan” to assist low income low credit score customers, Click Here and Check Rates and Sign up Now. If you have decent credit history some providers are more lenient then others. In rare circumstances some electric companies will allow someone else to personal guarantee your residential electric contract but that is very rare. The pre buy energy option is one way to avoid a deposit and besides Pre Buy Electric Company I know of no one else who offers this arrangement. Some Texas electric providers offer lower deposits then others and some consider one credit score passable while another one will want a deposit. We recommend Startex Power for those needing a low rate with a relatively low deposit if they even end up requiring one. For a guaranteed no deposit electricity choice we recommend going with Bounce Energy.
The Irony of PreBuy Going Bye Bye
I was talking to my brother today about PreBuy who sells Texas prepaid electric service and how ironic it is that they have their customers prepay for their electric service but they themselves had bad execution of some sort and went bankrupt because of it. An unhedged energy price is basically like never locking in on a set price so you are completely exposed as to whatever the market may do. Ouch they got hit, and so did a few other electric providers who tried to sell electricity without hedging their bets. The PUCT came down on a couple of these companies but Prebuy was one of those electric providers that just couldn’t eat the loss. Riverway Power and National Power Company found themselves in a similar situation and the word is still out on if they will be able to stay in business since the PUCT would not allow them to pass the loss on to the customer.
No Credit, No Problem Appears to be the Mode of Operation
The way Pre Buy Power has setup their business model is to let energy customers into an agreement by having them prepay for electricity. The problem once again is that they were selling unhedged energy to credit risk customers. It takes a smart cookie to run a Texas retail electric provider as you have to have well trained energy trading experts who know how to buy and hedge natural gas futures while maintaining a healthy risk management policy. Some electric providers like Pre Buy Power can make a bundle by betting that the market will go their way while selling unhedged energy and these electric companies could potentially make a lot of profit for years and years. The problem is that when companies like Pre Buy Electric leave themselves exposed with no risk management policy firmly in place they will eventually get burned. Unfortunately Pre Buy Power has sold their last energy contract unless they restructure and go at it again.
Pre Buy Electric Company Website Still Shows Open for Business?
We checked to see if (prebuyelectric.com) was still open for business or atleast had some type of news worthy information but everything appears to be business as normal as far as the site goes. I tried calling every number available on the site but could not get through. All indications is that the company doesn’t have plans to start back up anytime soon. If you need an alternative electric company to Pre Buy Electric Company that offers a low deposit then we recommend Bounce Energy of Texas. Bounce usually lets you in at a reasonable deposit if you have bad credit. If you pay on time for the term of your contract they may let you renew with no deposit at all. As far as Prepaid electric service in Texas we know of know other company besides PreBuy that offers this option.
Alternative Discount Offer we Recommend for Pre Buy Power Customers
If you would like to sign up with Startex Power at their discounted electric rate we have a special offer for you below:
Riverway Power Electric Company
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June 6th 2008 Riverway files for Bankruptcy! 4 Electric Providers Gone this Summer
Riverway over the last few months sold electric prices way below the market price most energy providers in Texas were pricing at. The prices looked a little too good to be true and sure enough all they were doing is buying their electricity on the MCPE market without hedging their investment and selling it as a fixed rate. Riverway was a provider just like National Power who tried to pass the loss in investment when rates went up to their fixed rate customers. The point to a fixed rate is that you are buying hedged energy that cannot go up. Riverway was selling unhedged energy and like rolling the dice that the market would not go upside down on them, they lost that bet. The PUCT would not let them pass on the cost to the customer and they had to eat that loss. Like 3 other electric companies that went out of business under similar circumstances, Riverway Power is another down by bad risk management.
Riverway Power is also known as Sure Electric, LLC and is a retail electric provider operating in Houston Texas. The electric company is managed by seasoned Texas electric company professionals who have been a part of the deregulation process in Texas since 2002. Riverway Power is working to expand beyond Texas to 17 other deregulated states throughout the United States.
Update on Riverway Power Electric Provider
James wrote in that Riverway Power recently canceled his 1 year fixed electric rate contract due to natural gas price increases. Many do not know this but most of the electricity in Texas is generated using natural gas. When a Texas electric company like Riverway Power buys your energy they buy the commodity natural gas. If they do not buy and hedge the commodities they sell as electricity carefully, they have to cancel their energy agreements or go bankrupt. If your energy contract was not honored with Riverway Power please feel free to let us know by commenting below so we can warn others.
Monty wrote on April 19th, 2008 at 11:47 am about Riverway Power, “They just canceled my contract. This was very upsetting as it is a pain in the rear to switch power providers and then they pull a “bait and switch†on you.”
What Should I Do, I No Longer Have an Electric Company?
If you were a Riverway Power customer you have been switched to the POLR company or the Provider of Last Resort. This is a back up plan where the Texas state government moves you to a new provider so you will not be without service. The POLR rate is very high, somewhere around 22 – 30 cents kWh depending on your location. You want to pick a competitive Texas electric provider ASAP! We have some discount 12 month fixed rate offers below. Champion has 2 different 12 month fixed rate plans below and Startex Power has several different fixed rate terms. Both of these Texas Power companies are reputable electric companies with no danger of going out of business. Startex has the cheapest available electric rates at this time.
Low Cost Texas Electric Providers
For Low Cost Residential Electricity with a solid reputable electric provider in Texas we recommend Startex Power. Sign up with Startex on their discounted fixed electric rate below, that will not change for the entire term of the contract.
Startex Promotional Electric Rate – Sign up Now!
If you live in or around the Houston area you will find the best electric rate with Startex Power – Learn More Now!
Riverway Electric Company
Riverway Power boasts that their company is set a part from the other Texas electric providers because of their 360 degree customer focus approach. Lousy customer service is something Riverway Power works to avoid however many new electric providers get it wrong when it comes to billing their customers correctly and staying in business for the long term. As of recently they have put a huge ding on their reputation by not honoring low cost 12 month fixed electric rate contracts they were selling Texas consumers at around 11.1 cents kWh. A few more years will tell if Riverway Power will be here for the long haul or will be like many new comers that have come into Texas to do business only to leave due to a failed billing system and or unprofitable sales from bad energy trading and hedging policies within their risk management departments.
The most likely reason for Riverway Power raising their customers fixed rate electric contracts is because of not hedging their energy correctly. Most people who are familiar with Riverway Power from this incident will never trust that their fixed rate residential electric rate product is truly fixed. If I was in the shoes of James or Monty who had their fixed rate electric contract cancelled on them I would now consider any rate Riverway offers as a variable electric rate.
We sincerely hope Riverway Power will be a success story but with any new Texas electric provider these issues are always a worry and so it is good to take a cautious look when picking an energy company. If you are a commercial business or residential home and you lock in at a low rate you want to feel confident that they will not leave the state with a broken electric agreement. This would leave you with the new job of finding a different electric provider at a higher market rate. We are not saying stay away from Riverway Power but you do need to be careful with new electric providers.
Contact info for Riverway Power
You can reach Riverway Power electric company at this number: 866-321-1520. After the April 2008 incident of the adjustment in what was a fixed electric rate contract many people have called Electricity Bid explaining that they haven’t been able to reach Riverway Power.
How to File a Complaint
If you believe you have been sold a bait and switch as described in the Deceptive Trade Practices Act you may wish to file a formal complaint with the Texas attorney general Greg Abbott: Complaint Form
To file a complaint with the Public Utility Commission of Texas click here: PUCT Complaint Form
Other Electric Companies Following in Riverway’s Footsteps
Prebuy Electric and National Power Company have both had issue with not hedging their energy properly. Now that fuel costs are so high they are left eating their loss or passing this on as a higher electric rate to their customers. Prebuy Electric Company has filed for bankruptcy today and National Power Company attempted to raise their customers electric rates from around 11 cents kWh to 15 cents kWh even though the rate was supposed to be locked anywhere from 6 months to 18 months depending on the monthly term they signed up for. As of June 16th several customers of a well known provider, Dynowatt, have also been complaining that they too have had their fixed electric rate broken by Dynowatt Energy. After calling Dynowatt to confirm this is not actually true. These Dynowatt customers were on a variable electric rate or just coming off their fixed rate contract. The list of electric companies affected by the volatile summer energy market in Texas has grown to over 6 providers. Some are wondering if Dynowatt will go out of business like Riverway and National Power.