SFE Energy California, Inc Buyer Beware Nationwide

SFE Energy California, Inc is a very slick, door to door approach to alternative natural gas for home heating, etc. Their sales rep came to my door, invited himself in ("I need to sit down in order to write your order"), and then proceeded to start filling out an order form. They told me that I would be trading in my PG&E metered gas plan for their flat rate natural gas plan. PG&E (Pacific Gas and Electric) would still bill me, but instead of my gas being metered and charged accordingly, I would pay a mere $29.99/month. Since I work for a water utility, I really questioned the guy about how it was possible for them to deliver on such a promise. He assured me that it was because the industry had been deregulated.

I signed up because it was easier to do so and cancel within California's 3 day remorse period than it was to argue with their sales guy. I subsequently faxed my cancellation to them and received confirmation that it was indeed cancelled. I also received confirmation from PG&E that it was cancelled.

The real deal with these guys, and the part they don't tell you, is that your regular provider is still entitled to bill you for generation and delivery charges. SFE Energy is billing for the gas only. When I called PG&E, I was told that generation and delivery is the majority of what I pay for gas. Additionally, since I only use any volume of gas during December and January, paying $29.99 throughout the year would actually cost me roughly $200/yr more than what I currently pay.

This is not a rip-off, per se, but it is a withholding of information that is pertinent to the sale. Remember, they are billing for gas only. Your regular provider will still be entitled to bill you for generation and delivery of the gas.