Lubbock manufacturing client signed with Verde Energy Solutions 18 months ago. Rate started at 6.8 cents/kWh, now it's 14.2 cents. Xcel's standard rate is 7.9 cents. Contract has $15,000 termination fee. Client is furious and wants to sue. Any suggestions?
Xcel Energy Texas - broker contract gone wrong
Texas broker contracts often have these escalation clauses buried in fine print. I've seen similar with CenterPoint and Oncor customers. Calculate if early termination saves money long-term.
Tennessee doesn't have deregulation so I don't see this, but $15K penalty seems high. Check if the contract complies with Texas PUC rules on early termination fees.
Oklahoma has some of these variable rate products too. PSO customers getting burned by teaser rates that spike after 12 months. Always read the entire contract, not just the sales presentation.
California auditor here. Our market is different but I've seen similar bait-and-switch tactics. Document everything and file complaints with state regulators. Public pressure helps.
This is why I always recommend reviewing the entire contract term costs, not just introductory rates. Help your client file a complaint with Texas PUC and consider consulting an energy attorney for the termination fee issue.