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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)
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