Boycott National Power Company, Houston TX

May 14, 2008 at 10:52 am 8 comments

I elected National Power Company as my electricity provider since late August last year. The agreement is 11.9 cents per kilowatt fixed rate for 18 months with a $150-$300 early termination fee. It sounded fair that I would not change my electricity company for the next 18 months even if the price should go down. Apparently the price has gone up since last fall. I received a notice of Material change yesterday from the National Power Company. They are changing my rate from 11.9 cents per kWh to 15.3 cents per kWh. First I thought they can’t do that because it’s a fixed rate contract, and then I realized that there is a section in the contract allowing them to do that. What is the point to offer fixed rate contract if they are not going to honor the full term? I would suffer the consequence of paying the penalty if I break the contract, and yet they are benefiting from breaking the contract with me without negative consequences. I know that Texas PUC is mostly very pro-electricity industry and so are Texas courts, so Texas consumers often suffer under unfair business practices. It is an unfair, unconscientious, without consideration piece of contract. Please let everyone you know be aware that these fixed rate contracts are only favorable to the electricity companies and not to the consumers. Houston’s KPRC Channel 2 did a report about it, and if you are one of the “victimized” customer, please file a complaint with the Texas PUC.

See the news report at: http://www.click2houston.com/investigates/16251234/detail.html

File complaint with Texas Public Utility Commission at: http://www.puc.state.tx.us/ocp/complaints/filing.cfm

Entry filed under: News/Articles Clips. Tags: Bad Business Practice, Boycott National Power Company, Electricity Company, Houston Electricity Company, Houston Power Company, National Power Co, National Power Company, Power Company.

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8 Comments Add your own

1. Melvin Schuetz | May 14, 2008 at 12:50 pm

I live in Waco, and signed up a few months ago for the 12-month fixed auto-billing plan at 11 cents per kW/hr. I have not yet got a letter from them telling me my rates are going up, but saw the news about this on the Internet today. It was very clear on their facts label that the only thing that could raise the rates was an action by ERCOT or the Texas PUC, which this is not. I will be even more upset with the PUC than I have been for all these past years if they do nothing about this.
2. Mad Mom | May 14, 2008 at 9:09 pm

I strongly disagree with NPC’s claim that the “material change” clause lets them alter the price of our fixed rate plan during the set term. I interpret the contract as saying the material change clause can be invoked AFTER the initial term of X months ends. Let’s say I signed up for 12 months at 11 cents. After that 12 months is over, they can let me keep the 11 cent rate until they see fit to invoke the material change clause. That may be the day after that 12 months ends, or it may be never. Of course, they have to give me 45 days notice, as the contract stipulates. Any other interpretation renders the phrase “fixed rate” meaningless.

Also, contract law says the the burden of drafting an unambiguous, clearly understandable contract is on NPC. The phrase “material change” should be defined to some extent. As it stands now, “material change” could mean the CEO has chicken pox or a bear has farted in the woods. If they expect the consumer to be on notice of this vital clause, they should draw it to our attention and not treat it as a dead language.

The PUC must shut NPC down on this action or all fixed rate contracts will effectively become variable rate contracts. Deregulatation has been a nightmare for Texas consumers. Why do other cities pay less than half our cost for their power? It’s the same power, yet we pay through the nose and the PUC allows this highway robbery. The same kilowatts, but a bill that is half the price……Must be sweet!
3. Estella Salinas | June 3, 2008 at 10:43 am

I have received 2 letters from National Power Company and 1 letter from StarTex Power.

The 1st letter from National Power Company (NPC) essentially stated that the “company finds it necessary to raise the price it charges you for electricity to 15.3 cents per kWh.” Then on May 16, 08 I received an apology letter stating “Please be advised that the May 6, 2008 notice is hereby RESCINDED and that there will be NO chang in the original pricing and terms of your contract with National Power.”

So, I thought great! But now I received a letter from StarTex Power company dated May 29, 2008, that informs me that I am receiving power from NPC and that “Effective close of business today (May 27, 2008) NPC has requested that the Energy Reliability Council of Texas (ERCOT) begin a Mass Transition even and therefore your account is pending a switch/transition from NPC to the Provider of Last Resort (also known as POLR). The POLR was established by the Pubic Utility Commission of Texas to ensure that customer do not lose power in the event that their elected Retail Electric Provider of choice can no longer provide service to their account. Unfortunately, the POLR electricity rates have traditionally been extremely high and may subject you to an ususually high bill during these summer months.”

I tried to contact NPC, but their lines are not working? I’m not sure what to do. Has anyone else received a letter like this?

I did leave a voice message with Locl 2 Investigates and hope to hear somethim from them.
4. David | June 3, 2008 at 11:37 am

Estella,

Read my later posting: https://dkl0039.wordpress.com/2008/05/29/run-national-power-company-fixed-rate-customers/

Star Tex Power is just an opportunist and trying to get your business. They are stating what official PUC has already announced. You need to GO and find another electricity company NOW. The longer you wait the more days you will pay highest price. Go to http://www.powertochoose.org to search for what is the best power company for you. I went back to Reliant and signed up 24 months for about 14 cents. Good luck!

David
5. John Stricklands | June 7, 2008 at 8:05 pm

I signed up with StarTex after I saw that the Reliant rate was a scam. It’s 14.4 cents for 2 months and then 16.6 cents for the next 2 years! Be careful out there…especially Reliant!
6. amanda | June 9, 2008 at 1:20 pm

I received a letter from NPC and it seems that they are no longer serving Texas customers. This is unfortunate, because my POLR was TXU. . .who is now demanding a $300 deposit. I am curious, why is it OK for NPC to break a 2 year contract and not get a penalty. I am suffering the consequence of having been with NPC and now not being able to reach a customer service rep. All I want is a letter stating that I had been in good standing with them for the last 12 months. But I can’t even get anyone on the line.
7. doug | July 6, 2008 at 12:09 pm

I opened a class action suit on http://www.sueeasy.com/. However, I need additional people to sign up in order for them to proceed. Do a search on National Power. Complaining to the PUC didn’t do any good. I cannot understand how a company can simply walk away from legal contracts. This isn’t a case where they went out of business and couldn’t honor their contracts.
8. Richie Beard | August 15, 2008 at 1:59 pm

Boycott First Choice Power………..I was switched to a POLAR plan and charged .31 cents a kWh (795 kwh and a $245 bill for 7 days of energy).

I refuse to pay and they are sending my bill to collections…………….I need a good lawyer to sue the hell out them…………

They just took advantage of a situation!!!!!