May 27, 2008 admin

We called it, National Power is Going out of Business

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 NPC’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 entity’s legal department have any specific questions. You may reach Chad V. Seely (cseely@ercot.com) at (512) 225 7035.

DP/DG

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About the Author

admin Donny started ElectricityBid.com back in 2007 from his parents basement and has since married his wife Melody and had three sons, John Adam (7) and Noah (4) and our new 20 month old son. He enjoys tech related things, softball, kickboxing, going to the gym, excursions and activities together with his wife Melody. Our service allows you to shop and compare commercial and residential electric rates and providers. Would you take the time today to try our service and see how you like it. Thank you! and God Bless You!

Comments (4)

  1. Powerless?

    Why pay your last bill to NPC? Offset the damages they owe you for breaking the contract. Who's going to be around to try to collect the balance? Who's going to be around to report you to a credit bureau? If someone buys the accounts and bills you, dispute the charges in writing and assert the offsets. Who's going to send the final bill? ERCOT? Bankruptcy trustee? Any thoughts?

  2. Eve

    I think they wil stil be around to collect money of course. Even though the fronts doors wont be open they might still try to collect for the old bills.

  3. radio306

    NPC took my $250 deposit in March, for a 10c rate. At this time I don't know if they ever moved my service to them or not. NPC hasn't my answered phone calls, faxes, or email. My complaint to the PUC so far, hasn't resulted in anything except a mention of a letter from NPC to PUC saying they would honor their contracts. I guess they lied to the PUC, based on the recent news.

  4. johnsmike

    National Power company left a bill for my ex-wife after I moved out for about $300. She was not aware of the bill, and there were no late notices, bill invoices … to verify that the bill was legitimate.

    I paid the bill in September through my online banking, but it came back as a bad address. I called the phone number, but it doesn't work either. I'm thinking nobody's there to take payment or explain the nature of the bill.

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