HOUSTON -- Note: The following story is a verbatim transcript of an Investigators story that aired on Wednesday, May 14, 2008, on KPRC Local 2 at 4 p.m.

A local electric company is yanked from the state's Power to Choose Web site following a Local 2 investigation Monday night.

We told you National Power Company promised dozens of Houston customers a low fixed rate and then broke that promise, raising the rate mid-contract.

Investigative reporter Amy Davis received the latest news from the public utility commission Wednesday afternoon.

A fixed rate is a fixed rate, according to the PUC. A commission spokesman says since our story aired Monday, they’ve received nearly 200 complaints from unhappy customers. It's why the PUC has launched a full investigation into the Houston-based company.

Gregg Hughey's electric bill already takes a huge chunk out of his monthly budget; but a letter he received from National Power Company means he'll have to shell out even more.

"It's going to be at least an extra 40 bucks," Hughey told investigative reporter Amy Davis.

Hughey found the National Power Company on the state's Power to Choose Web site and locked in a low 11.3-cent rate last August.

"It said this is an 18-month price guarantee," Hughey explained. "You wanted to lock in to take advantage of this rate. And it would protect me through the summer."

But just NINE months later, the National Power Company informed Hughey and all of its fixed rate customers it is raising their rates to 15.3 cents a kilowatt.

"So what about that guarantee?" Davis asked Hughey.

"Exactly. That's my point," Hughey answered. "It seems like that would be illegal, in my book."

By phone, PUC spokesman Terry Hadley told me that's exactly why his office is concerned.

"This is troubling; and that's why we're announcing the beginning of the investigation, if only to send a signal to other providers that a fixed rate should be exactly that," said Hadley.

So what can the PUC do? Legally they can fine National Power Company up to $25,000 per violation.

But they could also work with the company to honor its contracts with its customers.

The problem now? The PUC says it can't get any answers from company officials at National Power and the PUC says that does raise a red flag.

If you've received the notice of a rate increase from National Power Company on a fixed rate contract, the PUC wants to hear from you. Officials say you should save all of your contracts and correspondence with the company and contact them now.

File your PUC complaint online at www.puc.state.tx.us/ocp/complaints/filing.cfm.

Previous Local 2 Investigates Story:

May 12, 2008: Local 2 Investigates Discovers Electricity Pricing Deception