Report: #580194

Complaint Review: Border Energy Service

  • Submitted: Fri, March 12, 2010
  • Updated: Fri, March 12, 2010
  • Reported By: Rochester Biz — Rochester Indiana United States of America
  • Border Energy Service
    9787 Fairway Dr,
    Powell, Ohio
    United States of America

Border Energy Service Deceptively locked into a rate 3x the market price when gas utilization was at its highest for the year. Powell, Ohio

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I signed a one year contract with Border Energy Services in the spring of 2009.  The sales pitch was they would provide natural gas to NIPSCO at a lower rate than NIPSCO.  The rate was low and variable during the summer months, when utilization is minimal.  Then they lock you into a fixed rate for the winter months. The salesman claimed their rates are always lower than NIPSCOs rate and I should see significant savings over the market rate. 


During the winter of 2009-2010 market gas rates dropped significantly lower than the 2008-2009 winter rates.  I have multiple NIPSCO accounts. Some I switched to Border some I left with NIPSCO.  The accounts that I left with NIPSCO paid $ 0.236 per therm during peak winter months.  The accounts that I switched to Border were locked in at $ 0.699 per therm.  I was stuck paying  approximately 3 times more for gas during the peak winter months on the accounts that I switched to Border. 


I called to terminate the agreement with Border in March and was told I would have to pay a $75 per account termination fee.  I will terminate the agreement when the term is up in May.  They were unwilling to lower the rate to current market rate.  So their claim of always being lower than NIPSCO is unfounded.  They simply said it is impossible to predict when gas prices will drop. 


Switching to Border Energy Services might be a good idea if you know gas prices are going to go up, but this year it cost me several hundred dollars.  If you are considering switching to a fixed price gas supplier in the spring that will lock its rates in the future proceed with caution.  It is impossible to predict what that locked rate will be or if it will actually save you money.


I will file this under Lesson Learned!

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