ED Magedson – Founder
Major Energy100 Dutch Hill Road Orangeburg, New York USA
Major Energy/ Respond Power "Tremendous spike" (to use their own words describing energy prices) in energy cost. More than triple the norm Orangeburg New York
When we received our February ’14 bill ($367.99) from our utility company BGE I was a little worried because it was a lot higher than what we are used to. Then again, the winter had been cold, so I “blamed” it on that and I noticed a small rate increase. Then I received the bill in March and was absolutely shocked. We used 155 LESS kWh yet our bill increased to $491.01. The rate went from 12 cents per kWh to 19 cents. I immediately picked up the phone and called Major Energy who is our electric supplier. There was a recording stating that “they were aware of an issue with the latest BGE bill and that a letter was being mailed out” So, I hung up the phone believing that a mistake had been made, they were aware of it, and a letter explaining it was on its way.
A week later I still had not received this letter. I got on the phone with Major Energy again and this time spoke to a “real” person. I explained that I still had not received the letter that they said they had mailed. The person on the other end proceeded to tell me that it was a post card, not a letter and that I should’ve received it. He then said that the post card stated that the rate was going way up because electric rates were going way up. He offered me a two-year fixed rate plan at 9.8 cents per kWh. I was so disappointed in the way they had treated me and others I’m sure, by supposedly sending me a post card stating the rates were going up after the fact, that I declined his offer of the two year fixed rate plan and cancelled our subscription.
Little did I know that the change-over back to BGE would not happen until the end of the billing cycle. The next bill we received was $655.02 The rate had increased from 19 cents ( a rip-off) the month before to almost 35 cents (a scam) per kWh. This while the going-rate is around 10 cents a kWh.
This was the message on the postcard that we finally received two weeks later:
Dear Valued Customer,
You may have noticed a recent rise in your utility bill. As you know, an almost unprecedented Polar Vortex weather system has hit our area and caused a tremendous spike in energy prices - the likes of which haven't been seen in many years. The rate on your bill reflects the current month's energy costs and that is why you have seen an increase. If your utility's rate is lower, it's because they adjust rates only quarterly. They too will have to capture these same costs and their rates will soon skyrocket while our rates will soon drop as the energy market prices fall back down to their normal range.If you have and questions or would like to secure a rate under our Price Protection Plan for your area, please call or email us.
Major Energy responded to a letter of inquiry stating: “Unfortunately the market was quite poor this past winter for various reasons. This is the reason why the customer’s bill was higher than expected. Additionally, customer’s usage increased, as expected, during winter time” This is where they are wrong. Our usage did NOT increase. It went down!! THEIR RATES TRIPLED, THAT IS WHAT HAPPENED!!
I don't know how it is possible that they can get away with this. They somehow check the variable rate on the contract and when you question that they say it is the way they write up a contract. This will never happen to me again but I want to warn others about companies out there that are doing everything in their power to rip you off.
This is their statement on the homepage of their website: Major Energy, and its sister company Respond Power, are Energy Service Companies (ESCO) serving residential and commercial customers in the deregulated natural gas and electric markets of New York, Pennsylvania, Maryland, New Jersey and Illinois. Additional markets will be added soon. We are licensed and approved by the respective State Public Service or Public Utility Commissions and by your local utility to supply natural gas and electricity to commercial & residential customers.
It is time to regulate these companies AGAIN!!!
This report was posted on Ripoff Report on 04/01/2014 09:44 AM and is a permanent record located here: http://www.ripoffreport.com/reports/major-energy/orangeburg-new-york-10962/major-energy-respond-power-tremendous-spike-to-use-their-own-words-describing-energy-1135347. 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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