Bounce Energy

New Low Cost Electric Provider in Texas
Bounce Energy has entered the Texas electricity market with very competitive rates. They currently compete with Reliant Energy, Dynowatt, US Energy, Spark and Startex and have a rate plan made specifically for low credit score customers that have been rejected by other electricity providers. If an energy consumer has a low credit score they will usually be asked for a deposit by other electric companies that could range anywhere from $200 - $1500. Bounce Energy electric provider offers a plan called the Fresh Start Plan that allows a low credit score customer to sign up on a slightly higher electricity price for the first 3 months. If the energy customer pays their bill on time for the first 3 months, Bounce Energy will proactively lower the electricity rate to the standard low priced plan everyone else pays. This allows you to prove your credit worthiness while having Texas electricity service in your name.

No Deposit Guaranteed, Really?
It is for real people, you can now sign up for electric service without the dispointing credit check telling you a deposit will be required. Many people try and sign up for Texas electricity service only to be told that they will need to fork over $500 to have the service turned on. They may be high school graduates with no established credit. Should good hard working young people be penalized just because they are smart enough to not own a credit card? I don't think so and Bounce Energy makes it easy to sign up with service in your name and then after 3 months when you have paid your bill on time you are switched to a lower electric rate plan in line with current fixed rates and market energy prices. So go ahead and give a No Deposit Texas Electric Company a try and see how easy it is to sign up for electricity service in your name and avoid that demeaning deposit all the other electric providers in Texas are asking for.

Comparing Their Fixed Rates
As of this writing Bounce Energy currently beats both Reliant Energy and TXU Energy on their electricity prices. This is nothing new as Reliant Energy has been facing issues regarding the credit crunch and at times has not even wanted to take on additional customers. TXU is owned by private equity groups and may also be cringing at the recent economic woes considering their debt ratio. For big energy providers in Texas they have found that they no longer have the advantage of size in their favor. The risky behavior of companies like Lehman Brothers and Merrill Lynch that provide the credit to meet the financial requirements established by ERCOT for signing up additional electric customers in Texas has proven to be a disaster for these large energy companies that relied on them to sign up customers. Without the up front capital requirement and mainly using credit to sign up new customers some of the bigger electric providers have found themselves in a similar situation as the rest of the economy and climate. We do not know the exact specific details of how Reliant and TXU operate as of today and if they have been able to pick up the pieces after the economy collapse but we know that smaller providers with a closer watch on their capital investment have been able to survive. TXU was bought by two private equity firms about a year ago in the largest LEVERAGED buyout in history.

The Conspiracy of Texas Electricity Price Manipulation
Goldman Sachs, Lehman Brothers, Citigroup, and Morgan Stanley acted as equity partners with more then 80 percent of the 45 billion purchase price as leveraged debt, meaning that KKR and TPG are borrowing 37 billion from the four investment banks to buy TXU.

Could this be one of the reasons our economy is in shambles. The 37 billion in leveraged debt is close to the 50 billion dollar ponzi scheme of Madoff. Who is really making the money in this deal? I know the executives are still getting their salary and year end bonuses. This high level of debt has ruined TXU's credit rating which has caused TXU to need to raise their electric service rates which gets past on to the energy consumer. These companies own 100% of the stock which means the public will receive no information about the status of their financials and internal workings. Why so private?

The four investment banks behind the TXU buyout have spent $6.3 billion to settle many different allegations of fraud, abuse and energy market manipulation. The 20/20 special researched the issue further and confirms that what happened with Enron and California energy price manipulation most likely happened and will happen in Texas as well. The fact that these companies now own TXU really makes you have a kind of deja vu moment when thinking back on Enron. Maybe we are just paranoid but we don't think so.