Many people may remember a few months ago we saw Riverway Power Company and National Power Company with outstanding low electric rates on the Power to Choose website. They were for 6 month and 12 month fixed electric rate terms and were a couple cents cheaper then the other electric providers. The government Power to Choose website gives any company listed on their a bit of authority as many people including myself assume that the rate must be accurate if the Texas government lists it on their site. This however has not been proven to be true as these two companies sold one thing and then a few months later told their customers, “Sorry looks like we will have to raise that “fixed rate” on you a few cents higher.”
This rate hike on a supposedly fixed electric rate had a huge backlash as their energy customers contacted about every consumer protection agency in existence telling them they had been dupped in a bait and switch scheme by a Texas electric provider. The Public Utility Commission of Texas did not take this lightly but instead abruptly took these two electric companies rates off their website. The PUCT made National Power honor their original fixed electric rate they offered their customers and as of today they have gone out of business. Up until National Power went out of business they were asking customers to stay with them as they would be honoring the original advertised electric rate. Now National Power customers are left searching for another electric provider when the Texas electricity market is close to an all time historical high.
Many people question if the exact same thing is going to happen to Riverway Power Company and their customers.
The official notice of their filing to go out of business is in the below Electric Reliability of Texas communication.
NOTICE DATE: May 27, 2008
DAY AFFECTED: May 28, 2008
LONG DESCRIPTION: National Power Company Inc. (NPC), a Qualified Scheduling Entity (QSE) and a Load Serving Entity (LSE) in the ERCOT Region, has informed the Electric Reliability Council of Texas, Inc. (ERCOT) that NPC will be unable to comply with its obligations under the Standard Form Market Participant Agreement as of Close of Business on May 27, 2008. As such, NPC has asked ERCOT to proceed with a Mass Transition event pursuant to the ERCOT Protocols and Retail Market Guide.
Pursuant to Protocol Section 15.1.3, Mass Transition, and Retail Market Guide (RMG) Section 7.11, Mass Customer Transition Process, ERCOT will begin the Mass Transition of NPCâ€™s Customers to the Providers of Last Resort (POLRs) on May 28, 2008.
The size of the associated Load is approximately 616 MWhs per day and the total number of ESI IDs involved is approximately 15,163.
ERCOT has been working closely with the Public Utility Commission of Texas (PUCT) and affected Market Participants to ensure an efficient and effective transfer of customers.
ERCOT’s Legal Department is also available should your entityâ€™s legal department have any specific questions. You may reach Chad V. Seely (email@example.com) at (512) 225 7035.