Pennywise Power Electricity rates more than doubled from month 1 to month 2 of service Houston Texas

PENNYWISE AND POUND FOOLISH!

We switched electricity providers to Pennywise Power in July 2013.  We found them on www.powertochoose.org which is a website maintained by the Texas Utilities Commision to help consumers find the best rates for electricity.

We chose a "variable" rate plan.  We were told the rates would vary based on the price of natural gas, which made sense.  We had been on a variable plan with our old provider for a year, but rates never really changed much from month to month because natural gas prices have remained stable. We had paid an average of 6.8 cents per kw hour over the year we were with the old provider.

The first month's rate with Pennywise Power was 6.1 cents per kilowatt hour.  Everything was fine for the first month.

Then the second month's bill came due, and the rate had more than doubled to 12.5 cents per Kw hour!  So they doubled my rates from month one to month two with no advance notice whatsoever, during the highest usage season of the year.

I called Pennywise to complain.  They said my rate was "promotional" for the first month. This was not disclosed upon enrollment, as they told me the rate varied based on natural gas prices.  Natural gas prices had not changed from month one to month two.

I went to their website, and they are still offering the 6.1 cent variable rate plane to new customers, but they would not give me that rate. 12.5 cents per kw hour is highway robbery.  You can find 12 month fixed rates for 8 cents per kw hour.

So in summary, Pennywise Power is playing a bait and switch game with their customers.  Do not fall for their trap! I hope this company goes out of business very soon! You would truly be penny wise and pound foolish to sign up with these crooks!