Is Liberty Power Filing for Bankruptcy?

Do you remember when Liberty Power came into the ComEd Illinois marketplace somewhere between 2009 - 2010? They had aggressive rates, aggressive upfront payouts, and maintained some great relationships with their clients.

When we launched Ananta Energy in 2011, the top three energy companies we worked with were Hudson Energy, Direct Energy, and a newer supplier, Energy.Me. Ananta did pursue Liberty Power as a possible option, however, at that time we had more agreements in place from companies like Constellation, Ameren Energy Marketing ( now Dynegy), Champion Energy, Nordic Energy, Bluestar Energy (now AEP Energy), etc. 

It is difficult to see any energy company File Chapter 11: Bankruptcy, but to see Liberty Power filing for bankruptcy raises some questions.

When you navigate to this link on Liberty Power's website, the page begins with the following message: 

“Liberty Power Remains Open and Continues to Service Customers Across Entire Footprint.”

Business as usual, right?

However, Liberty Power has notified one of our newest clients that they have recently filed for bankruptcy and due to that ruling, they are required to terminate their existing energy contracts. The message dives into great detail about why they’ve filed for bankruptcy.

In their frequently asked questions (FAQs) section, they do mention terminating their remaining energy contracts and switching their clients automatically to a Provider of Last Resort (POLR,) in the event their clients do not pick a new supplier.

Please read carefully as this has gone into effect. If you’re a Liberty Power customer who’s energy contract is being terminated prematurely, please give us a call at 312-520-4220 or send us an email to info@goananta.com with your inquiry and we’ll have an associate you help you shop around for electricity rates. 

Below you can read the email that was sent to one of our clients:

IMPORTANT NOTICE REGARDING YOUR ELECTRICITY SUPPLY PLAN

This email will be followed by a mailed notice with account specific details.

Account Name: ABC Company, LLC

Dear ______,                                                                                                                     

At Liberty Power, we appreciate your business and have enjoyed serving as your retail electricity supplier.  As you are likely aware, Liberty Power Holdings, LLC and its subsidiaries filed for Chapter 11 bankruptcy on April 20, 2021 and June 4, 2021 respectively. This notice is to inform you that the United States Bankruptcy Court for the Southern District of Florida, overseeing the Liberty Power bankruptcy proceedings has entered an order effectively ending your contract with Liberty Power. This means your electric supply service from Liberty Power will be ending and your service will be assumed by your designated Provider of Last Resort (POLR).

What Happened?

In February, an unprecedented winter storm in Texas caused market prices to rise to extremely high levels.  Liberty Power’s fixed rates did what they were designed to do – protect customers from spikes in wholesale market rates – but by protecting its customers, Liberty Power and its subsidiaries took on substantial financial losses and ultimately declared bankruptcy in April and June 2021, respectively.  As a result, Liberty Power can no longer provide electricity supply to customers in that region.   

What to Expect Now

Don’t worry.  There will be no interruption of your electric service because of this issue.  Liberty Power will no longer be your Retail Electricity Provider (REP) and will not provide your electricity supply.  Your existing agreement with Liberty Power is now ending (without any additional costs to you); this is in accordance with a ruling from the United States Bankruptcy Court. Also by regulation, you will be transitioned to the designated POLR provider in your service area on their default supply rates. You will receive a separate notice from your assigned POLR provider that will disclose your exact service start date.

For More Information

If you have questions about your current service with Liberty Power, please call 1-866-769-3799, Monday through Friday from 9 a.m. to 5 p.m., or email customercare@libertypowercorp.com.  You can also contact the Public Utility Commission of Texas (PUCT) toll-free at 1-888-782-8477, or via email at customer@puc.state.tx.us.

Sincerely,

Liberty Power Holdings, LLC

Frequently Asked Questions of Liberty Power Customers

Q1: Do I need to do anything on my end?

A1: No. There is no action you need to take.  The transition to your POLR providers supply service will be automatic, unless you elect to choose another supplier.   

Q2: What if I want to switch to a new, alternative retail energy supplier instead of POLR? 

A2: You still have the ability to move away from the default POLR program by choosing a competitive product or service offered by the POLR provider or another competitive Retail Electric Provider (REP).  If you would like to see offers from different retail electric providers, please access www.powertochoose.org, or call toll-free 1-866-PWR-4-TEX (1-866-797-4839) for a list of providers in your area.  You may accelerate the switch to a new REP by asking for a special out-of-cycle meter read.

Q3: Will I experience any interruption in my electricity service with the transition?

A3: No. The transition to your assigned POLR provider will not cause any service interruptions.

Q4: What will happen to my current pricing plan with Liberty Power?

A4: Your plan with Liberty Power is being cancelled.  As a result, your POLR provider will set new pricing.

Q5: Will I owe anything to Liberty Power?

A5: Yes, you will be charged for service provided through the date of transfer.   These charges will be presented on your final invoice subsequent to transition.   Liberty Power will pursue any unpaid charges which may result in your account bring reported to consumer reporting agencies. 

Q6: How do I make my final payment to Liberty Power?

A6: There is no need to do anything differently. Your last invoice and any payments for your remaining balance for your Liberty Power account can be made in the same manner you have used to pay your previous invoices.   

Q7: What happens to the deposit I had with Liberty Power?

A7: Deposits will first be applied to any outstanding balances owed on your account.  Liberty Power will then refund any remaining deposit to you within seven (7) days of your account being transferred to the assigned POLR provider.

Q8: What happens to the credit balance I had with Liberty Power?

A8: Once outstanding balances are settled, Liberty Power will refund your credit balance to you after your account is transferred to your assigned POLR provider and your Liberty Power account has been closed.

Q9: What happens to any loyalty or reward programs I was on? 

A9: Liberty Power’s reward programs have been canceled.  You will still have the ability to redeem your rewards points however you will no longer accumulate new rewards points.