Just finished an audit for a manufacturing client in Youngstown who was on FirstEnergy's default service for 18 months. They were paying 12.8 cents/kWh when competitive suppliers were offering 8.2 cents. Total overcharge came to $47,000 over the period. Client had no idea they could switch suppliers. Has anyone else seen this kind of spread between default and competitive rates in Ohio? The POR tariff shows default service is supposed to be competitive but clearly it's not working.
FirstEnergy default service vs. competitive supply - massive overcharge found
Duquesne Light territory has similar issues. Default service here runs about 11.5 cents while you can get competitive supply for 7.8-8.5 cents depending on term. The problem is most small businesses don't know they're getting ripped off. I've found overcharges ranging from $8,000 to $65,000 depending on usage. Pennsylvania's supposed choice program is a joke for uninformed consumers.
Georgia Power doesn't have retail choice so we don't deal with this mess down here. But I've worked on accounts in other states and the markup on default service is criminal. Sounds like your client has a solid case for recovery if they can prove they were never properly notified about competitive options. What's the statute of limitations on these claims in Ohio?
Ohio has a 4-year statute but proving lack of notification is tricky. FirstEnergy claims they send out required notices but half the time they're buried in bill inserts that look like junk mail. The real issue is the PUCO allows utilities to set default rates that aren't truly competitive. It's designed to protect utility revenues, not consumers.
PSE&G territory in New Jersey is even worse. Default BGS rates are running 13-14 cents while third-party suppliers offer 9.5-10.5 cents. I documented a $73,000 overcharge for a warehouse operation that was on BGS for two years. The spread keeps getting wider because utilities have zero incentive to be competitive on default service. It's pure profit for them.
Ameren Missouri doesn't have retail choice but I've consulted on Illinois accounts. ComEd's default service pricing is similarly inflated compared to competitive alternatives. The key is documenting that customers weren't properly informed about switching options. Most utilities do the bare minimum required by law for customer education because uninformed customers mean higher profits.
Update on my Duquesne Light cases - recovered $34,000 for one client and $51,000 for another. Both were small manufacturers who got switched back to default service without realizing it when their contracts expired. The utility's notification was a single line item on a 4-page bill. Hardly adequate disclosure in my opinion.
That's great recovery work. I'm preparing a class action referral for multiple FirstEnergy customers who got similar treatment. The pattern is clear - utilities profit from customer confusion about deregulation. Default service should be priced at competitive levels, not used as a cash cow for uninformed consumers.