When changing energy suppliers, check the details

May 15, 2011|By Andrew Maykuth, Inquirer Staff Writer
  • Gloria Levinson was expecting big savings when she shifted her power supplier from Peco, but her rate has risen dramatically this year.

Gloria Levinson has some advice for Peco Energy Co. electric customers like her who bravely embraced deregulation this year and switched power suppliers:

Take a close look at your electric bill. Very close.

"I'm unhappy," she said.

The Havertown retiree thought she was getting a big discount when she switched suppliers in February, signing up with a Brooklyn company whose quoted rate was 14 percent less than Peco's default-service price for those who don't shop.

Levinson chose Respond Power L.L.C., whose variable rate was among the lowest posted with the Pennsylvania Public Utility Commission.

"Based on our excellent history, you may save up to 10 percent annually," the company told Levinson in a letter.

Story continues below.

Not at this rate.

Unbeknownst to Levinson, Respond Power's variable rate has increased dramatically this year. While Peco's rate has risen less than 1 percent, from 9.92 cents per kilowatt-hour to 9.99 cents, Respond has boosted its prices by 14 percent since January, from 8.49 cents to 9.69 cents this month.

Its rate is now among the highest of more than 26 suppliers competing for Peco customers.

"It's market-driven," said Saul Horowitz, chief executive officer of Respond Power. Variable rates are just that - they can change every month.

Levinson was unaware of the increases because, contrary to PUC regulations, Respond did not list its price per kilowatt-hour on its portion of the monthly Peco bill.

In reality, Levinson's savings during the two months Respond has been supplying her power amounted to a meager $2.52.

Levinson said the supplier responded curtly to her complaint: "They said, 'We don't put the rate on the bill.' "

They should. PUC spokeswoman Denise McCracken said suppliers were required to include the price per kilowatt-hour on the bill.

On Friday, Horowitz blamed Respond's contracted billing vendor for the lapse, and he said Respond would take over the function. "This will ensure that all necessary info is clearly defined on each customer's bill," he said in an e-mail response.

Irwin A. "Sonny" Popowsky, Pennsylvania's consumer advocate, agreed with Levinson's advice: "People need to look at their bills."

Under the state's Electric Choice Act, which took effect Jan. 1 in Peco territory, traditional utility companies such as Peco became solely distributors of power - "wire companies." New Jersey and Delaware have similar systems.

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