Anyone else seeing these door-to-door supplier reps in the Cleveland area making wild promises? Had a client get switched to Dynegy at $0.159/kWh when FirstEnergy's SOS rate was only $0.082. Customer thought they were signing up for budget billing. The marketing materials were deliberately misleading - they highlighted the 'competitive rate' in large font but buried the actual price in tiny print. We're finding this pattern across multiple suppliers targeting senior citizens. What's the best approach for documenting these practices for complaint filings?
FirstEnergy supplier switching games in Cleveland
Frank, I'm seeing the same thing here in Youngstown with Ohio Edison territory. Direct Energy and IGS Energy are the worst offenders. They're using the 'introductory rate' scam - 3 months at below SOS rate, then jacking it up to $0.18-0.20/kWh. Document everything: the marketing materials, door hangers, any recordings of sales calls if available. PUCO has been cracking down but they need solid evidence. I've had success getting refunds by filing formal complaints citing the deceptive practice rules in 4901:1-29.
Both of you are spot on. Here in Pittsburgh with Duquesne Light, we're seeing Constellation and XOOM Energy pulling similar stunts. The key is documenting the 'bait and switch' timeline. Get copies of all the marketing materials, the enrollment confirmation, and track when the rates change. Pennsylvania's got similar consumer protection rules. One case I worked saved the client $2,400 over 18 months by getting them switched back and refunding the overcharges.
Walt, what's your success rate with PUC complaints versus just threatening to file? I've found that a strongly worded letter citing specific violations sometimes gets faster results than going through the formal process. Especially when you mention potential class action implications if they're doing this systematically.
About 60% settle after the threat letter, especially if you copy the AG's office. The other 40% you have to follow through, but PUCO has been pretty good about siding with consumers on clear deceptive practice cases. Just filed one last week against Verde Energy - client was paying $0.195/kWh for 8 months when Duquesne's default was $0.087. Verde settled for full refund plus switching fees within two weeks of the formal complaint.
You guys are lucky having decent PUCs. Here in North Carolina with Duke Energy, deregulation is limited but we still see scams with the few competitive options available. The suppliers know most people don't understand the difference between generation and delivery charges. They'll quote a 'low rate' that's just the generation portion, not mentioning Duke's delivery charges stay the same.
Derek, even in regulated markets you get those predatory marketing tactics. In Virginia with Dominion, we see 'energy consultants' trying to sell solar leases and bogus 'green energy' programs that are really just overpriced supply contracts. Always read the fine print and compare the all-in cost per kWh including fees.
Phil's right about reading everything. The cancellation policies are usually buried on page 3 of the terms. Many require 30+ days written notice or they auto-renew at variable rates that can hit $0.25/kWh. Always document the cancellation request with certified mail. I keep a template letter that references the specific contract terms and state regulations.