Gas customers taking a gamble with fixed rate program

by Sarah Rice (srice@wsbt.com)

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complaints filed with Indiana Attorney General's Office against U.S. Energy Savings

Four complaints have been filed with the Indiana Attorney General's Office against U.S. Energy Savings. (WSBT photo)

By WSBT News1

SOUTH BEND — Heating bills constantly fluctuate and customers look for ways to save. But some are getting locked into a fixed rate they may not want.

NIPSCO offers customers what's called a Choice Program. It's a program made up of several independent gas suppliers.

One in particular is U.S. Energy Savings Corporation. Some of their representatives may have knocked on your door recently.

They do offer a legitimate program to lock customers in at a fixed rate. But I spoke with one person who signed up for it thinking it would save her money, and she says that's not what happened.

With her husband just home from Iraq, Kacey Fiekman couldn't wait to move into her new home this past July.

"We were really excited about moving here, and everything went pretty smooth all in all," Fiekman told WSBT News.

That's until someone came knocking on her front door. That someone was a representative from U.S. Energy Savings asking to see her NIPSCO bill.

"She said, 'Well we just want to make sure our name is on there to make sure that you're set in this price,'" said Fiekman.

And when the representative didn't see U.S. Energy's name on the bill, Kacey says they urged her to sign a contract for their long term fixed price program.

"Nothing wrong with that. Everybody wants to save money," said Fiekman.

So she signed on the dotted line. But Kacey says the representative didn't mention the rate, and Kacey didn't notice it on the contract. So when the bills started rolling in, so did the questions.

"I was like, 'What's going on here? I don't understand what happened!'" Fiekman said. "They were probably at least $50, anywhere from $40 to $100 more."

That's because Kacey's contract locked her into a rate at $1.14 per therm or per unit of heat. That's a big difference compared to NIPSCO's prices.

In 2006, NIPSCO charged customers an average of 74 cents per therm. In 2007 it was 73 cents. NIPSCO says this proves why customers should carefully look at their bills each month.

"Very important for a customer not only to look at what their actual monthly payment is, but also what they're paying per therm, especially if they're looking at signing up for one of these programs," said NIPSCO spokesman Mike Charbonneau.

A statement released from U.S. Energy Savings says the company offers stability, not savings: "Our sales representatives are carefully trained to explain the product carefully. They are not permitted to guarantee savings, as we cannot predict what the future energy prices will be.”

But Kacey says the representative did say she would save money.

“You almost felt like you were safe with what this person was telling you and then you realize it was all a lie," said Fiekman.

Officials can't stress enough that customers need to ask a lot of questions. This includes finding out exactly how much they'll be paying, how long the term will be and if there are any charges if customers decided they want to cancel.

Four complaints have been filed with the Indiana Attorney General's Office against U.S. Energy Savings.

The AGO says they're actively investigating these cases. Meanwhile, U.S. Energy says they will be looking into Kasey's case.

Tuesday, Apr 15 at 5:55 PM Isabella wrote ...

Your best bet is to post signs that say no trespassing or soliciting. Once you post this, you have notified them that you do not wish to be contacted. If they do, call the police. I live in a condo and these people came to my door. As homeowners, we tell them to leave the property or we call the cops. I have posted another warning by my door that states the same thing. A co worker of mine is a retired cop, and she states this is perfectly legal process, as long as you post signs.

Sunday, Mar 30 at 3:12 PM donna wrote ...

watch out for igs energy company your bills really increase and if you complain too nipsco you get no where you have too talk too this company i turnedthis complain in too the attorney general office please read carefully what your signing up for but in my case they called me on the phone

Sunday, Mar 30 at 3:07 PM donna garbison wrote ...

i got a phone call called igs energy it was suppose too save me money . and lock my rate they charge double what nipsco charges . and after i agree on the phone i never signed anything but i started seeing a big increase on my bills i had too call them several times too finally hopefully get off thier program they said it can take 2 too 3 cycles before it removedand igs can still bill you during this time well thanks too this company my nipsco up for disconnect 415.44 the other from igs 310.o8

Monday, Mar 3 at 5:34 PM Local Resident wrote ...

I would like to know who this lady is. She also knocked on my front door and then opened the door and knocks while also turning my door handle and trying to open my locked front door. With my husbands police car sitting in the driveway only shows that this lady and the US Energy are out to get you. Who knows they are probably the ones breaking into houses in the county while people are at work during the day. I would love to have this companys phone# to call and tell them what happened today

Friday, Feb 29 at 9:21 PM DMS wrote ...

All of these comments are created by those who cancel within the first year of the contract. It is a five year program. It takes time for the market to mature and provide the chance for savings, though it is true the purpose is stability not savings. Talk to the customers who stuck it out for the whole 5 year period and you will here a different story because five years ago prices were around the 30 cent mark and have hit $1.44 since.

Friday, Feb 29 at 3:26 PM Jeff wrote ...

Hi,I signed up for one of those DEALS and just CANCELLED it after seeing WSBT NEWS.Will keep checking my BILLS to see if its off.I liked the idea of sleeping over it and then sign if you want to.

Friday, Feb 29 at 2:55 PM m in sb wrote ...

Always read a contract,get it in writing! Every company knows we do not read the print or fine print but sign away our money. What an insult to the working people of america. Why even offer this through NIPSCO? Makes it look like the blame is on their company!

Friday, Feb 29 at 11:13 AM LARRY wrote ...

NIPSCO IS RUNNING THE SAME SCAM.I SIGNED FOR THEIR FIXED RATE PLAN & MY BILLS HAVE DOUBLED.

Friday, Feb 29 at 9:36 AM Kris wrote ...

I was suckered into US energy also, but I got out of it with out paying a fee. I didn't pay my first gas bill with them so they cancelled me off of their program. My gas bill was 100.00 more than if I would have stayed with Nipsco. That all happened in Dec. I received my Jan bill showed US energy back on by gas bill, I called and really complained to US energy that they cancelled me, I ended up getting quite a large credit off of my gas bill from them dating back to Dec. no fees. fight

Friday, Feb 29 at 9:29 AM andrea wrote ...

i signed up for this. When i got my first bill from Nipsco it was 140.00 more than normal. I called and spoke with US Energy and cancelled my contract. They were not very happy, but this was the 1st month of this and i had enough. I told these people that i could not afford to pay this kind of bill. They did not charge me any cancelation fees. But i will never do this again. I also called and talked with Nipsco and they were very helpful. I am glad this is over.

Friday, Feb 29 at 8:31 AM mad hoosier wrote ...

i got scammed by this company too...i am paying approx. $50 more a month than my neighbor! i called U S ENERGY, AND was told it is $250 to get out of the contract! i guess i am locked in for 4 more years!

Friday, Feb 29 at 7:12 AM Indiana wrote ...

NEVER, NEVER, NEVER sign anything on the first meeting. ALWAYS read and sleep on it. Salesmen bank on selling a "great idea" or a "great savings" and then having people jump on impulse. You will rarely be sorry if you think on it for a day, sleep on it for a night and read more. Salesmen KNOW that people's common sense will kick in with thought that's why the dishonest ones pressure you to do it now, now, now. Remember this rule; don't sign it until you sleep on it!!

Friday, Feb 29 at 7:01 AM MikeM wrote ...

I too was involved with a program to "lock in" gas prices over a four year period. Shortly after signing, gas prices dropped and never climbed to or above our locked in rate. It took the $50 fee to cancel the contract. The reps will tell you that you will never pay more than a set amount if and when gas prices rise above that figure BUT, if gas prices decline, you still get to pay the higher rate for the length of the contract. Look these things over carefully before you committ.

Thursday, Feb 28 at 11:40 PM Your friendly neighbohood Chemical Engineer wrote ...

The idea behind a fixed rate is not that you save money in the first year but over the course of 5 years. When a normal gas price increases over extended periods of time yours will stay fixed and in the end you come out on top. More than that, if gas prices spike in a given year (ex: Gulf Coast Hurricane) while you are on the program, your gas price will be the same. I think that it is a fine program and customers know what they are getting into when they sign. -Satisfied US Energy Customer

Thursday, Feb 28 at 9:31 PM Mr.D wrote ...

They came to my door and I said leave me some info and after I look it over I'll decide, after the rep left it got filed with the junk mail cause it smelled fishy from the get go.

Thursday, Feb 28 at 9:20 PM Me too wrote ...

They knock on my door too, but I had some experience with locked rates and told them I would take my chance with the open market, so far so good.

Thursday, Feb 28 at 8:47 PM wilson g wrote ...

I was unfortunate enough to sign up with mxenergy. It was one year contract with a one year auto renew. After 4 years I realized they were still on my service and after talking with Nipsco found out their rate was double that of Nipsco. (The first year was a savings) After that they shaft you. It cost me $50 to terminate my contract but is cheap compared to the extra 200 to $300 I was paying each month. what a rip. Is this really legal?

Thursday, Feb 28 at 7:58 PM JOhn wrote ...

Should have read your contract! If you don't understand don't sign. Its that easy. When will people be responable for there actions and quit blaming others.

Thursday, Feb 28 at 7:30 PM Mishawaka Resident wrote ...

I got scammed by this too. Rep knocked on the door and convinced us to sign a contract but lied to us and said it wasn't for a rate lock but a therm cap (my words, the same I used while asking questions to the rep). At the time our highest therm usage was 12, so I was more than willing to sign up. Sure enough a month later the bill came and it was a rate lock... exactly the opposite of what the rep told me. Calls to this company went nowhere, but our contract is open and can be ended anytime

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