• Report: #1127226

Complaint Review: Constellation Energy

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  • Submitted: Fri, February 28, 2014
  • Updated: Sat, March 01, 2014

  • Reported By: mrbhagav — New Jersey
Constellation Energy
100 Constellation Way Baltimore, Maryland USA

Constellation Energy Constellation Energy Variable Rate Scam in New Jersey Baltimore Maryland

*Consumer Comment: You KNEW they were market based when you signed up...right?

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I was a contract with Consellation Energy for electric supply in New Jersey for more than 2 years.  When my contract ended in December, I did not renew immediately, expecting that Constellation would be ethical enough to charge me a variable rate that would not be materially above the market rate for electricity in NJ.


Much to my consternation and dissapointment, Constellation Energy charged me the following rates:

- January 2014: 15.9 cents per kWh, when PSE&G's rate was 10.9 cents per kWh.  Constellation's fixed rate is about 11.9 cents

- February 2014: 21.4 cents per kWh (!!!) when PSE&G's rate was 11.2 cents/kWh and Constellation's fixed rate is about 11.9 cents


I noticed this scam in January and immediately ordered a switch to PSE&G.  However, it takes two billing cycles for the switch to me implemented.  In the meantime, Constellation Energy has carte blanche to charge whatever rate they like to gouge consumers like me.  I called Constellation several times to try to have them be reasonable on variable rates and to apply a lower rate retroactively if I agreed to renew the contract, but to no avail.


In the meantime, I will end up paying over $400 in excess of what I would have paid if I were at the PSE&G rate.  The discrepency between fixed and variable rate charged by Constellation Energy is a complete ripoff.  They more than recoup any savings provided on the fixed rate with just one month of a variable rate charge!


Constellation Energy uses very unethical and sharp business practices.  DO NOT switch to this company; you will get ripped off sooner or later!




This report was posted on Ripoff Report on 02/28/2014 07:20 AM and is a permanent record located here: http://www.ripoffreport.com/r/Constellation-Energy/Baltimore-Maryland-21202/Constellation-Energy-Constellation-Energy-Variable-Rate-Scam-in-New-Jersey-Baltimore-Mary-1127226. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment

You KNEW they were market based when you signed up...right?

AUTHOR: Ken - ()

You gambled, came out ahead for awhile, then the wholesale market price skyrocketed and the retaillers had to pass it along to their cusotmers. Here are some of the companys accused of price gouging, fraud and ripoffs in the past couple of weeks"

Blue Pilot, Liberty Propane, IDT Energy, Suburban Propane, Systrum Energy, HIKO Energy, Viridian Energy, NJG&E, Constellation Energy and I'm sure I missed a few. 

The conspiracy theorists are already pushing a class action lawsuit. I think they're alleging they weren't warned of the price increase, when in fact their contracts cover that very possibility. IF, and I emphasize IF, there is any conspiracy it would appear to be more appropriate to look into wholesale market pricing. Propane and natural gas are byproducts of the petroleum refining process and can not just increase supplies at will. When Propane is in short supply, it's imported and the expense is passed on first to the importer and then the retailler and then, of course the consumer.

Regulated companies ie: non market based, purchase future product at a fixed rate and are better able to absorb huge increases.  Natural gas, where I live went up in January about 50%...a noticeable, but not devastating increase.  We've just installed an automatic damper on our fresh air intake to keep that cold out when the furnace is off. We're doing all we can to conserve, but realize the heavy burden the energy pricing is placing on people.  Let's hope this cold goes away real soon.


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