Blu Power of Texas, Letting Customers Go

Other 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 compare several prepaid providers using our compare tool at the top right. You can use it right now to find a provider that will work with your credit situation.

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.

Champion Electric

Champion Energy

Cheapest recommended residential Texas electric company rates are listed in the compare tool to the right. To compare Champion Energy with other electricity providers in TX please type in your zip code to the right and click on “Compare”. If you do not live in either Dallas or Houston you may still click on the button and enter your zip code to check rates in your area.

Champion Energy offers only one term for their residential electric plan, we currently recommend Startex Power over Champion Energy at this time. They have the cheapest electric rate and there is no monthly service fee. As of February 2009 their electric rate is 11.3 cents kWh with no monthly service fee and this is for 12 or 6 months fixed(as of Feb 23 2009). I have yet to see a better offer then this.

Since these electric rates have been published electric rates could come up across the board among all providers if the energy market makes a move up. Feb 2009 represents a fresh low in energy prices.

If you would like to see the cheapest electric providers rates and terms of service in comparison to Champion Energy’s current electric rates you may click on the yellow gold boxes above. Enter your zip code and all available terms with Startex Power will come up at their lowest available prices. This is their promotional electric rate and you can sign up on this promotional offer using the promo box above. The promo code is built into the link so their will be no need to enter it as it will be filled in for you.

Since we wrote about this offer in February the Texas electric market could have gone up or down since then. Because of this the discount rate now could be higher or lower from what was offered in February 2009. Once you lock in to the electric rate it is fixed but Texas electric rates change quite frequently with the commodities market so it is important to lock in at the right time.

Texas Residential Electricity Explained

Residential electric companies competing in Texas have begun to offer several different electric rate products that are a mix match of both fixed terms and variable rates. What first looks to be like a great offer can come back to sting you later. The latest issue I have seen is with Texas Retail Electric Providers requesting that you sign a 12 month contract to be on their variable rate. The issue we have with this is that these energy companies are working with a base energy rate that they do little in the form of hedging.

This means if the rate skyrockets they pass that issue on to you and you end up paying a really high bill one month when the variable market goes through the roof. To request that the customer sign a contract to a rate they have no guarantee on is a bit insulting to me. Most electric companies out there however will have you sign a 6, 12 month or longer contract for a fixed electric rate.

There is absolutely nothing wrong with this as they have bought and hedged this energy at this term in order for you to buy it and insure that you pay that same rate the rest of the year. There is an actual service being performed here and a reason you need to sign a contract. If you were to break the contract early if perhaps energy rates went down and then signed up with a different electric company your previous electric company would be out of pocket for the difference in the rate they sold you and where the market is at now. Since they bought this electricity back when the market was higher they now have to sell it back at a lower price then they paid for it.

They end up losing money on you leaving and going somewhere else. The variable market rate however is not hedged and is basically just an index price. The retail electric provider adds their adder onto the index price and that is their margin. They don’t hedge the energy but allow it to go up and down and sell it as a market rate with you carrying the risk. There is no reason to sign a contract on this type of rate as the risk is past on to the customer.

Learn more about Texas Electricity

Startex Electric

Note: We no longer offer Startex Power on our comparison chart. This is an old blog post written back in January of 2008.

You may still compare multiple electricity companies and their rate plans using our zip code tool at the right. If Startex has quoted you a price you may look at what they quoted you side by side with the detailed residential electricity quotes on this site.

Startex Energy offers several electric rate terms such as the 3 month plan, 6 month, 12 month, 24 month and 36 month. The rate goes up as you sign up for a longer monthly term. The reason the electric rate goes up on longer terms is due to the correlation electric rates have with natural gas in Texas. Did you know that most of our electricity in Texas is generated by Natural Gas power generation plants? Because of the reliance upon natural gas most providers buy a portion of the electric rate they sell to you on the natural gas futures market. These futures contracts go up in price as you go out on a longer term. If you have questions about the rate comparisons in the box to the left just give us a call at 1-800-971-4020. We pride ourselves in going above and beyond to make sure all fees and charges are disclosed with every electric provider in our comparison chart. You will know exactly what your rate is after viewing the list of electric rates and energy companies in the zip code tool to the left.

Electric Contracts Nothing Like Cell Phone Contracts

You may have determined by now that electric rate pricing is nothing like how a cell phone company determines to charge you for air time. Rewarding you for signing a longer term contract just isn’t a possibility as the electric company would be losing money to charge you less for a rate on a long term contract. Because of the confusion of monthly term electric contracts many people choose to get on a month to month plan. The problem with the month to month plans is you never have a guarantee for what the electric rate will be the following month. Startex Power is good in that the month to month plan they offer actually shows the last 2 consecutive months of where the variable rate has been at historically. Because Startex does not hide this fact you can feel safe to say that you would be getting on a rate built for the person who just doesn’t want to sign a contract. Some people don’t want to lock in for any length of time and this type of product allows that person to ride the wave of the market. The only issue with the month to month electric rate contracts is the premium you pay. You generally are offered a great 1st month rate and then the rate goes up to a premium that is quite a bit higher then the first month. For instance, Startex may give you a rate the first month for 9.1 cents kWh but then the 2nd and 3rd month rates would be 12.3 and 12.6 cents kWh.

This energy product is good for those only needing electricity for a short time because they will be moving soon or something of that nature. If you were to break a fixed term contract most providers will charge you some type of early termination penalty that is usually somewhere in the ballpark of $100. The month to month contract allows you to escape the contract with no fees. Of course, once your fixed term contract is up you are free to shop elsewhere but don’t cancel earlier or most providers will make you pay their termination fee.

If you would like to sign up with Startex Power’s month to month promotional electric rate or one of their many fixed rate energy products you can sign up via the promotional link below and receive their discounted electric rate.

Startex Power’s Discount Promotional Rate – Sign up here Note: We no longer offer Startex as a provider on our site

If you are just needing the best 12 month term fixed electric rate we recommend you sign up with Champion Energy’s promotional 12 month energy rate here – Sign up now

Tyler Texas Electric Rates Compared

Comparing Rates

I called Texas Power today to find out what their residential electric rates were. I heard an interesting radio advertisement from them and even saw a billboard with an ad that appeared to show that they had a lower electric rate then several other energy companies in Tyler Texas. So I call Texas Power Electric Company and ask them what their residential electric rate is. They tell me they can lock me in on a rate at 11.9 cents kwh. They explained that this is not an introductory rate but it is a variable electric rate (meaning it can change). They explained that it changes price based upon the Natural Gas price. If Natural Gas goes up then their rate will go up. If it comes down then their rate should come down. It sounded fair enough but I checked into natural gas and discovered that natural gas is at a 2 year low and is currently heading up. Not only that but they want $10 a month if you don’t use over 1,000 kwh a month in customer service charges. This charge would easily eat up any savings I thought I was getting. I past on this deal as I found another rate plan that is fixed for 12 months at 10.8 – 11.8 cents kwh depending on your area and has no monthly customer service charge regardless of how much or less energy you use. This rate plan was with Startex Power. Update: As of February 2009 Startex 12 month electric rate is 10.8 cents kWh in the Dallas area. This was a promotional electric rate with Startex Power. You could sign up on this promo rate at a link in the past but we now have other offers and providers available through the use of our compare tool.

Looking for a No Deposit Plan?

If you have a low credit score or bad credit you may have noticed most electric companies in Texas want a very high deposit. We have a no deposit or low deposit choice available with Acureed Energy and several others. Use the compare tool at the top right to check all prepaid offers out and order online.

What Would Be The Best Electric Rate Plan

If you are going to pick a plan in Tyler Texas then it really isn’t any different then other areas of Texas. Different regions in Texas have different pricing but this is regulated by ERCOT (A Texas Agency) and not something the energy provider controls. Your concern should not be the brand name of the company or how they market their product. If you go out to the Texas website www.powertochoose.com they will show you several electric company rate plans along with the Facts Label. The Facts Label is like the government required nutrition label on the back of a can of food. You can’t go wrong by comparing an energy plan’s facts label with another energy plan’s facts label.

Here is an example of Spark Energy’s Facts Label:  Facts Label

More about Tyler Texas Electric Companies

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