Etricity Electric Company, No longer in business?

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Did Etricity go out of Business?

We have been told that Etricity electric company out of Denton Texas is but another electric company that has gone out of business here in Texas. What is the likely reason they had to close their doors? Most likely, just like National Power Company, they did not hedge their energy. Etricity may have bought their energy straight off the MCPE index market in Texas without hedging their energy. The problem with that is that it is like buying one stock and hoping it goes up even though you do not have a portfolio of other stocks to hedge against one of your stock picks tanking.

These Electric Retail Margins are Thin

Electric companies in Texas work from very small tight margins. When an electric company sells straight MCPE rates as fixed electric rates and do not hedge the price of the energy they either have to eat the loss if the price goes backwards or attempt to pass that cost onto the customer. The PUCT has recently put a stop to allowing electric companies to pass on the cost to the customer. A major problem with National Power company and Etricity Electric provider is that they have $200 – $300 deposits entrusted to them by their customers that these customers will never see again. Another company by the name of Prebuy Electric did not require a deposit but some customers who prepaid for their electricity never received that electricity and were switched to the POLR rate before they could run out their prepaid electric service with PreBuy Electric. A lot of people who really need that money no longer have it.

If you are an Etricity customer you have been switched to the Provider of Last Resort by the Texas government and are paying anywhere from 22 – 30 cents kWh. In comparison a cheap 12 month fixed electric rate as of June 4 2008 goes for about 14 – 15 cents kWh. If you were an Etricity customer you need to sign up with a new provider ASAP to avoid paying the 22 – 30 cent kWh rate.

Discount Electric Provider Recommended for Etricity Customers

We recommend Startex Power as a reputable low cost provider to switch to. You can sign up on their discount electric rate here: Startex Power discount 12 month fixed rate offer. (Other terms available)

If you would like to speak to someone immediately you may call the number below and an energy consultant will answer your questions.

1-800-971-4020

PreBuy Electric Contact Names and Phone Numbers

Do you Need a Texas Electric Company with No Deposit? Try Our zip code widget to check for offers in your area.

If you need to contact Prebuy Electric you may be able to reach them at one of the following emails or phone numbers. Prebuy Electric Company (I was told) filed for bankruptcy today, May 16 2008 and has made this known to the Public Utility Commission of Texas. Another source has told us they were unable to make their financial obligation to the PUCT (Public Utility Commission of Texas) which manages the Texas grid.

All of their customers have been moved to the POLR company or the provider of last resort so they do not lose their electric service. A PreBuy company associate contacted us to say they have not filed for bankruptcy although after having lost all their customers I assume they may file for bankruptcy soon or have to change things up quite a bit.

If you are a PreBuy Electric Company customer you may want to begin looking around for a competitive Texas electric company. The POLR electric rate you are now on is a back up plan and is by no means a competitive electric rate. The sooner you can get off it the better or just wait until you receive your first bill and see what I mean.

No and Low Deposit Option

If you need a no or low deposit electric provider in Texas then you can sign up with several no deposit offers by utilizing the green widget on the right. Many of these companies are very flexible and have a low and no deposit plan some but not all based on credit score that will work out well for everyone.

If you need a shorter term electric rate or just want to get on a month to month no contract rate then we recommend a reputable low cost provider by the name of Startex Power. Startex Power has never reneged on a Texas electric service agreement and is an ethical company.

If you need to sign up with someone quick again we recommend using our compare widget on this page. The widget can compare providers, rates, and show you what the market looks like right now. PreBuy Electric Companies appeal was their no deposit option.  You may be able to sign up with some providers with no deposit if you have ok credit but to confirm begin with our widget. When you sign up online using our comparison widget you will be ordering electricity through companies we have vetted are offering legitimate plans without any tricks.

Prebuy Electric Company has often been mistaken for the name Prepaid Electric. If you come to this site looking for your electric company you may refer to them by Prepaid or Prebuy because the names are easy to confuse. Both names refer to PreBuy Electric who filed bankruptcy on May 16 2008. Prebuy Electric offered consumers in Texas the option of purchasing their energy in advance thereby having no need to check for credit or require a deposit. Prepaid electricity appeals to a large segment of the Texas population but there are not very many electric providers in Texas who offer it. If you need a prepaid electricity choice we unfortunately know of no other electric provider but PreBuy who offers this option.

If you would like to learn more about PreBuy Electric’s status you can reach them at one of the following numbers below. Also, if you have any experience with what has happened to you as a customer of PreBuy Electric Company since they went bankrupt please comment below to let other PreBuy Electric customers know what is going on. We would really appreciate it.

Information, Phone Numbers, and Email Addresses

Primary: Authorized Rep
PRE-BUY ELECTRIC LLC
1703 16TH STREET

BRIDGEPORT, TX 76426
Main: 940-683-1853
Alt: 866-777-0406
Fax: 866-883-8302
Email: lbosley@prebuyelectric.com

Company / Physical
PRE-BUY ELECTRIC LLC
1703 16TH STREET

BRIDGEPORT, TX 76426
Main: 940-683-1853
Alt: 866-777-0406
Fax: 866-883-8302
Email: jim@prebuyelectric.com

Contact
PRE-BUY ELECTRIC, LLC

Main: 940-683-1853
Alt: 866-777-0406
Fax: 940-683-8302
Email: jim@prebuyelectric.com

Contact
PRE-BUY ELECTRIC, LLC.
1703 16TH ST.
PO BOX 1460
BRIDGEPORT, TX 76426
Main: 866-777-0406
Alt: —
Fax: 866-883-8302
Email: regulatory@prebuyelectric.com; mhanley@prebuyelectric.com

Contact
PRE-BUY ELECTRIC, LLC.
1703 16TH ST.
PO BOX 1460
BRIDGEPORT, TX 76426
Main: 940-683-1853
Alt: 866-777-0406
Fax: 866-883-8302
Email: regulatory@prebuyelectric.com; lbosley@prebuyelectric.com

Contact
PRE-BUY ELECTRIC, LLC.

Main: 940-683-1853
Alt: 866-777-0406
Fax: 940-683-8302
Email: lbosley@prebuyelectric.com

Pre Buy Electric of Texas, Bankrupt, Yes No?!

Need an Electric Rate in Texas with No Deposit?

Sign up with Bounce Energy’s low Deposit Plans – Click Here or call 1-800-971-4020 ask for the “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.

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