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

Riverway Power Electric Company

June 6th 2008 Riverway files for Bankruptcy! 4 Electric Providers Gone this Summer

Riverway over the last few months sold electric prices way below the market price most energy providers in Texas were pricing at. The prices looked a little too good to be true and sure enough all they were doing is buying their electricity on the MCPE market without hedging their investment and selling it as a fixed rate. Riverway was a provider just like National Power who tried to pass the loss in investment when rates went up to their fixed rate customers. The point to a fixed rate is that you are buying hedged energy that cannot go up. Riverway was selling unhedged energy and like rolling the dice that the market would not go upside down on them, they lost that bet. The PUCT would not let them pass on the cost to the customer and they had to eat that loss. Like 3 other electric companies that went out of business under similar circumstances, Riverway Power is another down by bad risk management.

Riverway Power is also known as Sure Electric, LLC and is a retail electric provider operating in Houston Texas. The electric company is managed by seasoned Texas electric company professionals who have been a part of the deregulation process in Texas since 2002. Riverway Power is working to expand beyond Texas to 17 other deregulated states throughout the United States.

Update on Riverway Power Electric Provider

James wrote in that Riverway Power recently canceled his 1 year fixed electric rate contract due to natural gas price increases. Many do not know this but most of the electricity in Texas is generated using natural gas. When a Texas electric company like Riverway Power buys your energy they buy the commodity natural gas. If they do not buy and hedge the commodities they sell as electricity carefully, they have to cancel their energy agreements or go bankrupt. If your energy contract was not honored with Riverway Power please feel free to let us know by commenting below so we can warn others.

Monty wrote on April 19th, 2008 at 11:47 am about Riverway Power, “They just canceled my contract. This was very upsetting as it is a pain in the rear to switch power providers and then they pull a bait and switch on you.”

What Should I Do, I No Longer Have an Electric Company?

If you were a Riverway Power customer you have been switched to the POLR company or the Provider of Last Resort. This is a back up plan where the Texas state government moves you to a new provider so you will not be without service. The POLR rate is very high, somewhere around 22 – 30 cents kWh depending on your location. You want to pick a competitive Texas electric provider ASAP! We have some discount 12 month fixed rate offers below. Bounce Energy has several different fixed rate plans in our comparison chart and Trieagle Energy follows close by and has several different fixed rate terms. Both of these Texas Power companies are reputable electric companies with no danger of going out of business. Bounce Energy has the cheapest available electric rates at this time.

Low Cost Texas Electric Providers

For Low Cost Residential Electricity with a solid reputable electric provider in Texas we recommend Bounce Energy. Sign up with Bounce on their discounted fixed electric rate in the chart above, that will not change for the entire term of the contract.

Bounce Sign up form is in the compare tool above. Start by entering your zip code

If you live in or around the Houston area you will find the best electric rate with Bounce Energy – Learn More Above!

Riverway Electric Company

Riverway Power boasts that their company is set a part from the other Texas electric providers because of their 360 degree customer focus approach. Lousy customer service is something Riverway Power works to avoid however many new electric providers get it wrong when it comes to billing their customers correctly and staying in business for the long term. As of recently they have put a huge ding on their reputation by not honoring low cost 12 month fixed electric rate contracts they were selling Texas consumers at around 11.1 cents kWh. A few more years will tell if Riverway Power will be here for the long haul or will be like many new comers that have come into Texas to do business only to leave due to a failed billing system and or unprofitable sales from bad energy trading and hedging policies within their risk management departments.

The most likely reason for Riverway Power raising their customers fixed rate electric contracts is because of not hedging their energy correctly. Most people who are familiar with Riverway Power from this incident will never trust that their fixed rate residential electric rate product is truly fixed. If I was in the shoes of James or Monty who had their fixed rate electric contract cancelled on them I would now consider any rate Riverway offers as a variable electric rate.

We sincerely hope Riverway Power will be a success story but with any new Texas electric provider these issues are always a worry and so it is good to take a cautious look when picking an energy company. If you are a commercial business or residential home and you lock in at a low rate you want to feel confident that they will not leave the state with a broken electric agreement. This would leave you with the new job of finding a different electric provider at a higher market rate. We are not saying stay away from Riverway Power but you do need to be careful with new electric providers.

Contact info for Riverway Power

You can reach Riverway Power electric company at this number: 866-321-1520. After the April 2008 incident of the adjustment in what was a fixed electric rate contract many people have called Electricity Bid explaining that they haven’t been able to reach Riverway Power.

How to File a Complaint

If you believe you have been sold a bait and switch as described in the Deceptive Trade Practices Act you may wish to file a formal complaint with the Texas attorney general Greg Abbott: Complaint Form

To file a complaint with the Public Utility Commission of Texas click here: PUCT Complaint Form

Other Electric Companies Following in Riverway’s Footsteps

Prebuy Electric and National Power Company have both had issue with not hedging their energy properly. Now that fuel costs are so high they are left eating their loss or passing this on as a higher electric rate to their customers. Prebuy Electric Company has filed for bankruptcy today and National Power Company attempted to raise their customers electric rates from around 11 cents kWh to 15 cents kWh even though the rate was supposed to be locked anywhere from 6 months to 18 months depending on the monthly term they signed up for. As of June 16th several customers of a well known provider, Dynowatt, have also been complaining that they too have had their fixed electric rate broken by Dynowatt Energy. After calling Dynowatt to confirm this is not actually true. These Dynowatt customers were on a variable electric rate or just coming off their fixed rate contract. The list of electric companies affected by the volatile summer energy market in Texas has grown to over 6 providers. Some are wondering if Dynowatt will go out of business like Riverway and National Power.

Texas Lite-Up Low Income Electric Rate Discount Program

Do You Need Electricity with No Deposit?

Lite Up Texas is a great Texas government sponsored electricity service discount program for low-income families. The problem with lite up Texas is most people are needing electric service right away with no hassle and yet they must wait for government approval before qualifying for a cheaper rate. Trying to pick a good electric company that will work with you and Lite Up Texas does not always happen as fast as people would like. So what can you do in the mean time?

Well all Texas electric companies must work with the program by law but even still it these companies may drag their feet. You may be having more of a problem coming up with a deposit rather than dealing with a high per kilowatt hour electric rate which is what Lite Up Texas is used for to bring that price down.

To start out with if you are low-income you want to at least avoid any deposits you are being asked for. I would work with a prepaid electric company to avoid a deposit as your fastest way out of this nightmare. Please call this number to order electric service with no deposit: 1-888-620-3823

You can also check other Texas electricity companies using the zip code compare box at the top right that work with the department of health and human services as well as the PUCT in offering you government subsidized cheaper electric rates. The program is based on summer prices and is always subject to change.

The Texas Public Utility Commission discount electric rate program is not always available but is often re-initiated each year based on need that allows Texas residential electric customers to receive a 12% discount on their current electric rate. The program is only available to those who qualify and certain criteria must be followed to make sure the initial qualification goes through succesfully so that you get the anticipated discount.

For instance, if you have signed up with a Texas electric provider using a different name, phone number, social security number, mailing address, or electric service address that differs with what you have given the Department of Health and Human Services then you will likely be rejected because of your information not matching what the government has on file for you. In order to make sure the Texas LITE-UP program goes through on the first try you may want to get a copy of your application on file with the HHSC and fill out the LITE-UP application using that same information.

How do I apply for the Texas LITE-UP electric rate discount program?

You must first sign up with a low cost electric provider (using our compare chart at the top right is a good way to do this) or if you have bad credit I would try a no deposit company by calling 1-888-620-3823. Once you have started service with these Texas electric companies you can begin the process of signing up with LITE-UP. They will require that you provide a current electric bill and two months of proof showing what your income is. To obtain the LITE-UP application you must call them at 1-866-454-8387.

What Type Of Discounts Can I Expect?

You will be discounted during certain historically high energy consumption months. The months that the electric rate discounts will apply will be for May, June, July, August, and September of 2008 and 2009. The discounts will not start until you have been approved and your status has been received by the Texas electric provider.

Who Can Apply For Lite-Up Texas?

You can either show proof that your income is 125% of the federal poverty guideline by submitting your last 2 months of income history to Lite-Up or if you are receiving Medicaid and or food stamps you will automatically qualify.

Public Utility Commissions (PUCT) Answer On "Is Deregulation Working?"

Public Utility Commission of Texas Talks Straight

The PUCT today explained why deregulation may not be working as planned in some areas of the state of Texas. There is not a whole lot of data prior to Texas deregulating the electric rates in 2002 but what information we do have has remained inconclusive at this point. Right after deregulation we saw several large electric monopolies become deregulated. “Deregulated” just means that the state of Texas has unbundled the pole and wires charges from the “retail energy rate”. The reason they unbundled the rate is because the pole and wires company is an altogether different operation from the energy trading desk that buys energy in the form of natural gas and other commodities and resells it as electricity to commercial and residential customers. Once the rate was unbundled any new Texas electric company that wanted to could open up business and sell the retail energy to customers while the same pole and wires company you have always used passes through the pole charges onto the electric bill with no markup. If you have picked an alternate electric provider since deregulation you can actually still see the pole and wires company number on the bill in case of an electric outage. The number on the bill helps to confirm to Texas energy customers that they still deal with the company they always have when it comes to the electric service infrastructure and transmission.

An Example Of A Deregulated Electric Utility

TXU Electric Company was deregulated back in 2002 and as you may or may not know they kept their same name when they became an independent Texas electric provider. That means that their pole and wires company was called TXU and their retail energy company was called TXU even though they legally could not be affiliated with the pole and wire division. They were basically two altogether separate companies because legally there could be coercion if they were still affiliated. Imagine if you switched to a different retail electric provider and “TXU” the pole and wires company decided they would get you back by raising your TDSP charges on your bill which covers the pole, wires and meter maintenance? This would be a good way to keep people from leaving TXU since pole and wires charges can sometimes make up 50% or more of your Texas electric bill.

TXU Electric Delivery Had To Rebrand

What ended up happening because of continuous fear and confusion, because the name was so similar to the old monopoly, was a complete rebrand of the pole and wires part of the company. TXU Electric Delivery had to rename themselves “Oncor Electric Delivery” in order for people to distinguish between TXU (The Retail Electric Provider) and TXU (The Pole and Wires Company or TDSP Company, now called Oncor). Even after reading this lengthy explanation many people will still have no idea that TXU just sells the electricity (a paper transaction bought and sold on commodity markets and hedged) and no longer maintains the poles, lines and meters. Even as of today you will still see TXU Electric Delivery as a brand name for Oncor Electric Delivery even though they are no longer called that. Oncor even owns the name “TXU Electric Delivery” although imagine if Microsoft found a company using their brand name even if not in the same line of work? Microsoft would sue their pants off and the company would immediately need to cease and desist all use of their brand name. This is not the case with Oncor as they use Oncor and TXU interchangeably which helps in the confusion process and brings in multiple electricity customers back to TXU Energy Retail Electricity. It would appear that Oncor using TXU as a part of their brand name is an effort to help TXU Energy Retail gather new and existing customers even though they are no longer the same company. Many people call TXU Energy to have their electricity turned on thinking they are calling the poles and wires company. TXU Energy signs the new customers up left and right because of this confusion process and there does not appear to be any end in site. The rate is usually not very competitive in comparison to other retail electric providers in Texas and neither does it need be considering that these customers are signing up on a brand they believe to be their only choice in “turning on new electric service”.

Example of An Alternate Texas Residential Electric Provider To Compare With TXU: Startex Power is currently the cheapest provider: learn more and Champion Energy comes in second place.

Oncor Maintains The Poles, Wires and Meters

So what have we learned? Oncor reads your meter and maintains the electric infrastructure in North Texas. They are the ones who pass through your TDSP charges on a 1 to 1 basis on your retail electric bill. The reason they are called pass through charges is because most retail electric providers like, TXU Energy, Gexa, Startex, Spark, Champion, Bounce Energy and multiple others do not markup the TDSP charges from Oncor but pass them through on a 1 to 1 basis. There are a few Texas electric providers who do in fact markup the TDSP charges while offering a competitive retail electric rate. What ends up happening is you believe that Oncor has past through those charges with no additional markup on your bill, which is the only company who can since they own the electric infrastructure in North Texas. You receive a competitive retail electric rate with no indication, except in fine print in the energy contract, that the TDSP charges have been marked up by the retail electric provider (not Oncor). This allows a few retail electric providers to come away with extra profit margin until the PUCT of Texas makes this an illegal deceptive trade practice. Until the PUCT does something about it some electric providers will continue to do this until bad publicity catches up with them.

No Historical Data On TXU Energy Electric Rates Prior To 2002

There is not a lot of data showing what the last previous 2 years prior to deregulation showed for what electric rates were at for TXU Energy. This information would be useful in understanding what the Texas retail electric rates have done before and after with TXU since deregulation began in 2002. What we would need is the electric usage data file going back before 2002 for a particular company or residence. This can be obtained from Oncor Electric Delivery in the Dallas and East Texas area and from Centerpoint Energy in the Houston area. We would then need some corresponding electric bills prior to deregulation. Any electric bills before 2002 will prove helpful. We can then compile the data and give some estimates of what electric rates have done before and after Texas deregulation in regards to TXU Energy. We would also take into account what natural gas prices have done since deregulation began. There was a time right after deregulation when natural gas spiked up to some historical highs which caused electric rates to drastically rise. This rate spike made it look like deregulation was having the opposite effect that the state of Texas was expecting.

If you have old electric bills and usage data please feel free to fax it to 1-903-484-9222 and we can use it in our analysis. We appreciate your help in this matter.

Texas Deregulation Debate, What Is the Current Controversy?

The debate right now is whether or not Texas deregulation actually caused electric rates to go up instead of down. Many people believe that NOT breaking up the monopolies would have been a better choice. Their reasons have to do with several factors.

Factor 1

One reason has to do with the natural gas spike back in the beginning of 2002. Natural gas has a 90% correlation with electric rates in Texas. Because natural gas spiked so did Texas electric rates and this was at the same time Texas unveiled deregulation. Timing was very bad in this case in giving the Texas public the perception that deregulation works to reduce electric rates.

Factor 2

The second popular reason is that city municipalities and coops near deregulated towns often pay a few cents kWh less for their electricity then the deregulated city next door. These city owned municipalities and coops give the public the perception that deregulation has done nothing but raise rates. The factor that people are not recognizing is that the prior monopoly retail electric providers like TXU, First Choice Power, Entergy, WTU, Reliant, and CPL may have had abnormally higher electric rates then some of the smaller city owned coops and municipalities. The only way to know for sure if this is the case is to provide historical electric usage data and historical electric bills prior to 2002 from one of these retail electric monopolies also known as Texas Affiliate electric providers. You can send us your historical bills and usage data and we would be glad to investigate.

Please call us at 1-800-971-4020

Factor 3

Another point to consider in regards to factor 2 is that not all city owned municipalities and coops have cheaper electric rates then the deregulated Texas electric providers. Take for instance the city of Garland Texas. The city of Garland has many times had higher electric rates in comparison to competitive Texas electric companies like Champion Energy or Startex Power. There are several other municipalities that have historically had much cheaper electric rates then the competitive Texas electric providers in the deregulated counties of the state. One such provider is in the cities of Longview and Marshall Texas. SWEPCO also known as AEP is not deregulated in these areas and is a few cents cheaper then cities just outside of it like Tyler Texas. The only explanation as to why they are able to provide a cheaper electric rate would be related to less advertising dollars spent at competing against multiple other electric companies. Texas has made the record books at being the most competitive electricity market in the world and AEP SWEPCO has avoided the issue of needing to compete with other providers by having absolutely no competition in this area of Texas. They also have the added pressure of needing to keep the rate low so that the city does not decide one day to deregulate the area because of being overcharged by their monopoly electric company. Longview must also contend with the fact that by deregulating the area they could bring in new businesses and jobs to the city which gives them more tax dollars. In the end a Texas city or county may decide to deregulate because the electric rates would be cheaper, they could add tax revenue and new jobs, and the possibility that Texas Energy lobbyists have swayed them.

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