It looks like some of the same old tricks as have been tried before in the state of Texas are beginning to happen again. Most people know about a typical fixed electric rate plan. A fixed electric contract in Texas allows a consumer to lock in their electric rate at the same price for a specified monthly term. Right now the most popular fixed electric rate term is a 12 month fixed rate. The first time I remember this happening was with a company by the name of Tara Energy. Tara basically wrote the book on signing their electric customers up on a fixed energy contract only to go back and change the rate when natural gas prices rise. Atleast this is what several of their customers have claimed and fought in court. Most all of the cases were counter sued by Tara Energy and later settled out of court. There is still one court case that has been ongoing since 2006 between Tara Energy and The Greater Houston Retailer Association.

You can browse through a list of court filings regarding this case if you are at all interested. The question is still out if this will be another settlement or will continue on in the courts for longer. Either way this Retailer Association has been drug through the court systems for some time now. The debate is whether it's Tara Energy or GHRA who is dragging one or the other through the court litigation. Whose fault is it? You be the judge.

Docket Control Order Sept 26 2006

Defendants Counter Claim March 28 2008

Findings of Fact and Conclusions of Law by Tara Energy June 2 2008

Haynes Boone Law Firm May 16 2008

Mark Goodson and GHRA Objection to Subpoena

Motion to Compel PUB and Affordable Power Plan April 18 2008

Notice of Filing of Rule 11 Agreement

Notice of Filing of Rule 11 Agreement Tara Energy

Subpoena

Subpoena to Mark Goodson Jan 23 2008

Tara Energy Brief Supporting its Claim of Tortious Interference June 2 2008

Tara Energy Motion to Compel Docs by Public Utilities Broker of Texas April 18 2008

Tara Energy Motion to Strike May 28 2008

Tara Energy Rebutting GHRA Cases June 3 2008

Tara Energy Trial Brief on Damages for Tortious Interference June 2 2008

Tara Energy is the only provider I know of that has gone to such legal lengths at counter suing their customers after they raise their fixed electric rate. There may be others but this is the only electric company I have heard of that has done this. The court cases usually go on for 6 month to 1 year before they are eventually settled out of court. If you are a Tara Energy customer we DO NOT recommend cancelling your energy agreement with them. When your contract is up for renewal you can switch electric providers but until that time you should stay on the energy contract you agreed to with Tara Energy.

A reputable electric company would buy their energy in the form of natural gas on the commodities market and then hedge that energy. By hedging the energy it costs the electric company more but they are able to insure to their energy customers the electric price does not change during the term of the contract. Having it so a fixed electric rate can change during the term of the contract is really a variable rate and should be advertised as that. If an energy company is not going to hedge the energy they sell then I believe that should be disclosed and made readily available that the energy company is basically gambling that the market will go in their favored direction.

The next provider I can recall back in 2002 or 2003 that adjusted their fixed electric rate on their customers was TriEagle. Both TriEagle and Tara Energy were sued by their customers and investigated by the Public Utility Commission of Texas. In both cases the PUCT sided with the energy company rather then the consumers because a clause in the contract said the rate could be adjusted if their is a "material change". The material change clause is for circumstances such as natural gas prices rising higher. This clause is left very vague in the energy agreement which in most circumstances a court would tend to agree with the consumer that a contract left vague is at the fault of the company since they know enough about the product being sold to make the contract clear enough for the consumer. These unclear contracts continue to dupe many new customers into signing fixed electric agreements having them believe they are insured against a price change. Since the PUCT has done nothing to have electric providers make their facts label more clear consumers continue to fall for the same scheme again and again as new fly by night energy companies come into the Texas energy market to sell their scheme.

In April and May of 2008 the Texas electric market has been pirated once again by some new energy providers. The first occurence was by an electric company named Riverway Power which changed their customers fixed electric rates in April and gave them the option to renew at a much higher rate or shop for a different electric company. The problem with what Riverway Power has done is that almost all the customers who signed up with Riverway were believing they had locked into a fixed Texas electric rate that had no possibility of changing during the monthly term of the contract. Several people complained to the Public Utility Commission of Texas against Riverway Power but not enough disgruntled customers were available to really cause a fuss. In May 2008 National Power Company pulled the same stunt as Riverway also because they had not hedged their Texas electricity and were basically gambling that rates would not go higher then anticipated. Some customers of NPC disagree that National Power Company raised rates in an unplanned circumstance but have made known via this site: website, that National Power raises their fixed electric rates like this all the time as their standard mode of operation.

Something I found truly funny about this horrible mess is how National Power appears to have left positive comments about themselves in this article that exposed them for their rate hike. After reading about 50 different negative comments there are these out of place positive comments from a supposed customer of NPC that is happy with a changing fixed electric rate. The admin of the site traced this users ip address and it came back to nationalpowerco.com domain. So obviously the only positive comments were manufactured by NPC. This company appears to be one of the most disreputable of the bunch. Their rate hike in their fixed electricity price has been reported to the Public Utility Commission of Texas by over 300 terribly upset customers who had no idea their fixed electric rate could change. The PUCT electricity facts label is supposed to disclose in clear easy to understand terms what exactly the Texas electric rate will do. Obviously the PUCT failed to make the right adjustment to the facts label when Tara Energy and TriEagle raised their fixed rates back in 2002 and now in 2008 we wonder if the PUCT will make it a requirement to make a clear disclaimer that "This Fixed Electric Rate is Subject to Change" or something to that effect.