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.