About Air and Water

Tuesday, May 20, 2008

Pre-Buy Electric customers are switched to other providers after firm defaults

By ELIZABETH SOUDER - The Dallas Morning News - Monday, May 19, 2008

The Electric Reliability Council of Texas is switching customers of Pre-Buy Electric LLC to other retail electricity providers after the company defaulted on some payments to the state’s grid operator.

It’s the first time ERCOT has used its automated switching process for a mass customer transition.

ERCOT said in a statement Monday that Pre-Buy, based in Bridgeport, Texas, defaulted on payments on Friday.

ERCOT began switching the company’s 8,430 customers to default providers on Saturday, and expects to finish the switches Monday.

The customer count includes 8,394 residential customers, ERCOT said.

Pre-Buy officials didn’t answer calls to the customer service line or respond to an e-mail on Monday.

Customers who are switched to the default provider, known as the provider of last resort, may face higher electricity prices. The default provider system is designed to ensure customers don’t lost electricity service while they search for a new provider.

ERCOT said that both Pre-Buy and the default electricity providers must notify customers of the switch.

Customers may contact the Public Utility Commission consumer hotline, 1-888-782-8477, or go to the PUC website: www.puc.state.tx.us/ocp/index.cfm.

Read more in the Dallas Morning News

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