PUC must act after power company reneges on fixed rates

Buying electricity in North Texas is already complicated and expensive -- and now, something even worse: you could get stiffed on a long-term contract.

Last week, National Power Co. of Houston sent out a "Dear Valued Customer" letter that canceled its existing fixed-rate plans and jacked up rates to 15.3 cents a kilowatt hour. The higher charge is in line with many local providers today, but it represents a huge markup -- up to 50 percent -- for customers who signed annual contracts last winter, before natural gas prices started to rise.

This is a consumer betrayal of grand proportions, not only because it unilaterally breaks a contract. It hits people at the worst time, with natural gas prices high, summer around the corner, and Texans about to rack up their highest bills of the year.

So far, this action is limited to one small company, with regulators pledging to nip it in the bud. Still, the move raises questions about Texas' deregulated electric market, which was widely scorned by consumers just a few years ago.