Nations Power Prepaid Texas Electric Company Review

I discovered a new prepaid electric company opened up in Texas today called Nations Power. This company offers a fixed kilowatt hour rate as well as a variable pay what you can plan.

Regardless if you go with a traditional electric company that gives you 30 – 45 days to pay your bill or you go with a prepaid provider where you pay in advance I would choose the fixed rate every time.

Many electric companies will not hesitate to raise your variable rate on you beyond what you were expecting.

It is true not all variable rate plans are bad but to be on the safe side a fixed electric rate with Nations Power is probably the way to go.

The reason you would want to order electric service through a prepaid electric company like Nations Power is if you know you will not be able to afford deposits by other providers.

The Texas government does offer assistance to low-income families for deposits and rate subsidies but for most of us the hassle in qualifying for these assistance programs is simply not worth it.

If your credit is okay or bad you will likely have to pay a deposit with most all the Texas electric companies.

For instance, if you call TXU and Reliant they will likely both ask for a deposit ranging from $200 – $500 depending on how bad your credit is.

Of course if you have good credit no deposit is needed. Now lets say you have called these two large electric companies, TXU and Reliant, if you go on to call Bounce, Green Mountain, and Texas Power they will likely ask for a deposit as well.

Why would all these providers ask for a deposit? They all work from a credit checking service to manage their risk. There is about a 50% customer default rate below a certain credit score number and what score this is remains a tightly held secret.

There is simply no way of working with a provider that bills you 30 days out for service in negotiating a deposit and that is why a company like Nations Power can come in handy.

By going with a prepaid electric company you avoid the deposit but will sacrifice on price. Most prepaid electric companies have higher prices than traditional electric companies that check your credit.

Nations Power is based out of Allen Texas and has recently launched their company as a Texas prepaid electric provider. You may reach them at (866) 356-6850.

If you have used this prepay electric company please give our community feedback in a review format in the comment section below.

Interesting to note, the company with the same PUCT license number is Catalyst Energy Inc. which is a PA oil and gas exploration company. The activities of Catalyst encompass the exploration, development, production, transmission and processing of oil, natural gas and liquid hydrocarbons. Since Texas relies on natural gas for the production of much of the electricity it is worth noting that Catalyst now has a stake in both the production and retail aspect of natural gas. There is often an inverse relation to the cost of producing electricity using natural gas and the actual cost of natural gas. If these two factors of natural gas price and “heat rate” are managed well there can be a big payoff in being in the production and retail side of natural gas. Most important is to not gamble to much in the process of doing both.

Earth Day Tomorrow, Go Green at a Discount

Tomorrow is officially earth day and there are a few electric providers offering a green renewable energy option to residential home owners at a discount to encourage you to buy renewable energy. This is a great opportunity to sign up on a renewable electricity plan since green electricity service is generally more expensive then a non-renewable energy choice. This particular green electric plan below comes with a $50 home depot gift card. This is a promotional discount offer that is only cheaper during earth day which is April 1st. Be sure to check it out if you will be making your decision on an electricity plan on April 1st.

Learn More About the Renewable Green Residential Electricity Plan please use the compare tool at the top right of this page.

If you decide to “Green Up” your home using the Bounce Energy link above then be sure to do so on April 1st when this discount green plan goes into effect. This is a 100% renewable energy plan and is available in all deregulated areas in Texas. If you are more interested in just finding the cheapest electric rate then I recommend checking out our offers on the top left of this page. We keep the cheapest available electric rates for residential homes listed on the site and updated daily.

If you need a no deposit electric rate we recommend going to our no deposit electricity page and checking out our plans there. For people who have a bad credit score but need electric service turned on quick and need to avoid a deposit this is a great way to solve the headache of getting Texas electric service turned on in your name.

No Deposit Residential Texas Electric Company

There are Low and No Deposit Options Available in Texas

We recommend you use the compare tool at the top right to see what prepaid options are available in your area. Once you compare the providers you can order service online.

For energy customers who have bad credit or just no established credit you may have found yourself being asked for a very large deposit to have electric service in Texas turned on in your name. This has been an issue facing many Texas energy consumers for some time as most electric providers in Texas do not offer a flexible electricity service rate plan for those with bad credit or no established credit. When an energy consumer signs up for electric service with bad credit the deposit requirement asked for by an electricity company can be anywhere from $150 – $1500 depending on the electric provider and the credit score. To avoid this type of deposit issue you can choose an energy supplier that has a low or no deposit electric plan. The provider we recommend above all other low or no deposit electric companies is Bounce Energy. Bounce Electric Company once offered a Fresh Start Plan that allowed a low credit score energy service customer to sign up with them at a slightly higher rate than their normal low cost rate. You remained on this higher rate for 3 months and proved to Bounce Energy that you could pay your electric bill on time and they would proactively lower your electric rate to their normal cheap electricity rate plan. This allowed you to quickly sign up for electric service at a home or apartment without having to worry about how you will come up with up to $1500 to pay a deposit requirement. Most people do not have this kind of extra cash on hand, especially for a deposit you will not receive back until your contract ends. Unfortunately their guaranteed no deposit plan is no longer available although they still have alternative plans that may get your lights turned on with no deposit required or at a low deposit cheaper than most electricity providers require.

Who is Bounce Energy

Bounce Energy is a new electric provider in Texas that was started by a seasoned software director and overall customer experience project leader at a large online marketing and back office electric service customer tracking company. Because of the extensive knowledge this company has on how to sign up electric customers, capital requirements needed to continue signing up energy customers, the ability to bill accurately and timely, and the overall customer satisfication points to consider when working to keep and renew current electric service customers in Texas makes this new electric provider one of the best new energy companies to work with. We are confident that you will find their electric rate, flexible energy agreements and overall abilities to make your customer experience enjoyable that we want to recommend their Guaranteed No Deposit Electric Rate plan as the preferred No Deposit option for customers in a credit crunch.

 

Freedom Power, are they a Good Electric Provider?

Looking 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. Our compare tool on the top right allows you to see several no deposit offers. Typical providers check your credit history but no deposit providers get in without a deposit. 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.

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

Amigo Energy Houston

Need a Texas Electric Provider with a Guaranteed No Deposit Requirement?

Bounce Energy is currently offering a “no deposit or low deposit plan” that will allow those with bad credit scores to qualify for a no or low deposit electric rate depending on credit score. The rate is a cheap Texas electric rate and many times cheaper than some of the bigger brand name electricity providers in the state.

If you are looking for a no deposit plan please use our compare tool at the top right of this page.

Compare Amigo With The Others

Amigo Energy has an updated electricity facts label on the www.powertochoose.org website. Their electric rate continues to be one of the lowest electric rates with pretty fare terms and agreements when comparing with some of the other discount electric providers in Texas. For instance, as of 9-12-2007 they have a 12 month rate at 10.7 cents kWh but if you add the $6.95 monthly customer charge you will be paying a rate of about 11.4 cents kWh cents. Because there is a $6.95 cent monthly base charge this would actually make the rate a little higher then Spark as they do not charge a monthly customer charge. Spark Energy which is offering a 10.3 cents kWh rate for 6 months and a 11 cents\kWh rate at 12 months has no monthly customer service charge. If you want to sign up with them you can click here and do it online immediately – Spark Energy 11 cents kWh | No Monthly Customer Service Charge | Very Low early termination fee | No Hidden Charges | No Deposit Under Most Situations

Amigo Energy Facts Label

Here it is, Amigo Energy’s Residential Electricity Facts label. The Facts Label is the equivalent of the nutrition label on the back of a can of food. It is really all you need to compare rates prior to signing a contract. They can’t mislead you on the facts label and then offer a different electric contract or they would be in serious trouble with the (PUC) Public Utility Commission.

Electricity Facts
Amigo Energy Services
Electronic Offer 12-mo Commitment Program featuring E-Billing and direct debit payments Rate Code: ONLINE-12
9/12/2007

Electricity
Price

Average monthly use: 500 kWh 1,000 kWh 1,500 kWh
Average price per kilowatt hour:
TXU (Oncor) Area: 10.7 ¢ 10.7 ¢ 10.7 ¢
Centerpoint (Houston) Area: 11.2 ¢ 11.2 ¢ 11.2 ¢
AEP Central (CP&L) Area: 10.8 ¢ 10.8 ¢ 10.8 ¢
TNMP Service Area: 11.1 ¢ 11.1 ¢ 11.1 ¢
AEP North (WTU) Area: 11.5 ¢ 11.5 ¢ 11.5 ¢


This price consists of the price per kWh charge plus a $0 fixed monthly charge for meters using at least 500 kWh per billing period. At or above 500 kWh per billing period your average price per kWh for electric service will not vary regardless of usage.

This price consists of the price per kWh charge plus a $6.95 fixed monthly charge for meters using less than 500 kWh per billing period. Your average price for electric service per kWh will vary according to how much electricity you use.
 

 

 

2 Average Months: JUN &SEP
Average Month kWh Charge: above
8 Off-Peak Months: OCT-MAY
Off-Peak kWh Charge: 0.23 ¢ off-peak discount
2 On-Peak Months: JUL-AUG
On-Peak kWh Charge: 0.57 ¢ on-peak charge


Contract

Minimum Term: 12 Months Early Termination Fee: $69.95

See Terms of Service for a full Listing of fees, deposit policy, and other terms.

Sources of
power
generation

 Â

Texas

Â

This Product

(for comparison)

Coal and Lignite

32%

32%

Natural Gas

51%

51%

Nuclear

10%

10%

Renewable Energy

4%

4%

Other

3%

3%

Total

100%

100%

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