Respond Power

We apologize for any inconvenience the customer experienced. Unfortunately, the energy market performed very poorly this past winter due to decreases in energy supply and increases in demand due to the cold weather. While suppliers like [redacted]/Respond Power base the rate on a daily...

rolling average and hedging, most utilities purchase energy in massive block and adjust quarterly or semi-annually. Because of that, sometimes suppliers find themselves with higher rates than utilities. Eventually trends reverse and utilities are forced to adjust their rates to make up for losses due to underpriced supply sold to customers during high markets.
Customer has already submitted a dispute to the Pennsylvania Public Utility Commission, which regulates energy supply companies like [redacted]. Following an investigation, it was determined by the PUC that the customer was validly enrolled and was billed in accordance with the terms and condition. Therefore, no refund is warranted and none will be issued. Customer's account has been cancelled since March/2014.

This customer's complaint was handled directly and the matter is now closed.

Good Afternoon,
According to the complaint, the
customer states that she is unhappy with the current rate being charged.
The customer agreed to a variable
rate contract, meaning her rate would be determined by the energy market.  We did send the...

customer a notification as
indicated by the contracted salesperson (Please see attached for proof of
mailing).
As has been widely reported, there
has been a spike in the wholesale energy market which was reflected on the most
recent bill. This is merely a reflection of the current energy market where a
shrinking supply of electricity is under the strain of massive demand due to
one of the coldest winters on record. We are referring customers to the
February [redacted]press release from the PUC regarding this issue. (Please see
attached)  In addition, this is not just happening in Pennsylvania. 
Please see this link relating to New York prices as well. [redacted]
Finally, the account has been
canceled and it is now up to the utility to process the cancellation.  Please contact your utility for budget
billing concerns.
We are truly sorry for your
experience and advise you to sign up on a fixed rate that will ensure price
protection.
Regards
 
In addition please see this informative article.
Why Have
Energy Bills Increased – Explaining Price Volatility
It has
been a record cold winter across much of the country, and many have been
expressing deep concern as to why energy bills have been so high. Regardless of
whether energy is purchased from a utility or a competitive energy supplier,
customers have seen electricity and natural gas prices spike in many parts of
the Northeast and Mid-Atlantic regions.
Why did
prices rise?
Simply
put, the issues at hand are the cold weather, electric grid and natural gas
pipeline capacity, and the increasing use of natural gas not just for heating
purposes, but to create electricity.
There is
ample gas supply in the United States, especially given the boom in shale gas.
What customers are feeling are the results of a strained transportation and
infrastructure system that delivers electricity and gas. When demand is high
and capacity is constrained, costs increase.
This
winter’s “polar vortex” has increased the demand for both natural gas and
electricity, resulting in significant congestion in the natural gas pipelines
and on the electric grid (the highways of the energy system). Everyone relies
on these natural gas pipelines and the electric grid to get energy from where
it is produced to where it is used by the homeowner, the tenant, and the
business owner. Just like only so many cars can efficiently travel along a
highway, only so much natural gas and electricity can move through the natural
gas pipeline system and the electric grid.
Also,
while more and more people are using natural gas directly for heating purposes,
electricity generators are also increasingly using natural gas to produce
affordable power. In the short-term, this electricity generation is putting
further strain on the natural gas capacity in certain parts of the country. At
the same time there are also bottlenecks on some parts of the electric grid,
preventing electricity from getting from the generators to the consumers in an
efficient manner.
It’s
known from economics that constraints on supply (such as not being able to get
gas from where it is plentiful to where it is needed) cause prices to rise, and
this has occurred in the wholesale energy markets. The result? Competitive
energy suppliers and utilities alike are paying higher than normal prices when
purchasing from the wholesale market in order to provide energy to homeowners,
tenants, and business owners. This is causing everyone’s bills to rise.
As the
winter weather gradually improves and temperatures rise, the demand for energy
to heat homes and businesses will decrease, placing less pressure on the
nation’s electricity grid and allowing energy prices from suppliers and
utilities to normalize. However, winter weather may very likely be around for
some weeks to come. Despite the unusual weather, the gas and electric delivery
systems have proven to be highly reliable this winter. A number of new natural
gas pipelines and electricity transmission lines are planned or under
construction which should reduce the chances of a similar price spike in the
future.
In the
meantime, there are some things that can be done to help manage energy bills.
Conserve energy as much as possible. For example, make sure
doors and windows are well insulated, seal any air leaks, and lower the
water temperature setting to 120 degrees on the water heater.
Customers using a competitive supplier and who are on a
variable rate plan or whose fixed contracts have expired, should review
their contract to confirm the accuracy of the pricing and call their
supplier if they have any questions.
Customers interested in price stability can also investigate
fixed price options that many suppliers offer.
Customers in need of financial assistance should investigate
their state’s home heating assistance programs. In many states, a customer
can stay with a competitive supplier and still receive assistance paying
utility bills.
Customers should visit their
state’s “energy shopping” websites to compare offers from different suppliers.
For a list of shopping websites, visit http://www.CompetitiveEnergy.org.

I would like a refund from my Feburary bill and an adjustment from my recent bill to reflect current cost  of electricity that is more in line with there competion.

To whom it may concern;
 
    Thank you for reaching out regarding this matter. I have reviewed your account and can confirm that your account has been cancelled. There seems to be some confusion, we sent a cancellation notice to the utility on 9/*/2016; however,...

it is ultimately up to the utility on what date they take back your services. The utility chose to wait until 10/**/2016 to take back your account, Major Energy has zero control over this process.Sincerely,
 
Customer Service Rep.

Good Evening,
According to the complaint, the
customer is unhappy with the recent rate being charged.
The customer agreed to a variable
rate contract, meaning the rate would be determined by the energy market.
As has been widely reported,...

there
has been a spike in the wholesale energy market which was reflected on the most
recent bill. This is merely a reflection of the current energy market where a
shrinking supply of electricity is under the strain of massive demand due to
one of the coldest winters on record. We are referring customers to the
February 14 press release from the PUC regarding this issue. (Please see
attached)  In addition, this is not just happening in Pennsylvania. 
Please see this link relating to New York prices as well.
[redacted]
We are truly sorry for your
experience and advise you to sign up on a fixed rate that will ensure price
protection.  If you are interested in canceling your contract, please contact customer service.
Regards
 
In addition please see this informative article.
Why Have
Energy Bills Increased – Explaining Price Volatility
It has
been a record cold winter across much of the country, and many have been
expressing deep concern as to why energy bills have been so high. Regardless of
whether energy is purchased from a utility or a competitive energy supplier,
customers have seen electricity and natural gas prices spike in many parts of
the Northeast and Mid-Atlantic regions.
Why did
prices rise?
Simply
put, the issues at hand are the cold weather, electric grid and natural gas
pipeline capacity, and the increasing use of natural gas not just for heating
purposes, but to create electricity.
There is
ample gas supply in the United States, especially given the boom in shale gas.
What customers are feeling are the results of a strained transportation and
infrastructure system that delivers electricity and gas. When demand is high
and capacity is constrained, costs increase.
This
winter’s “polar vortex” has increased the demand for both natural gas and
electricity, resulting in significant congestion in the natural gas pipelines
and on the electric grid (the highways of the energy system). Everyone relies
on these natural gas pipelines and the electric grid to get energy from where
it is produced to where it is used by the homeowner, the tenant, and the
business owner. Just like only so many cars can efficiently travel along a
highway, only so much natural gas and electricity can move through the natural
gas pipeline system and the electric grid.
Also,
while more and more people are using natural gas directly for heating purposes,
electricity generators are also increasingly using natural gas to produce
affordable power. In the short-term, this electricity generation is putting
further strain on the natural gas capacity in certain parts of the country. At
the same time there are also bottlenecks on some parts of the electric grid,
preventing electricity from getting from the generators to the consumers in an
efficient manner.
It’s
known from economics that constraints on supply (such as not being able to get
gas from where it is plentiful to where it is needed) cause prices to rise, and
this has occurred in the wholesale energy markets. The result? Competitive
energy suppliers and utilities alike are paying higher than normal prices when
purchasing from the wholesale market in order to provide energy to homeowners,
tenants, and business owners. This is causing everyone’s bills to rise.
As the
winter weather gradually improves and temperatures rise, the demand for energy
to heat homes and businesses will decrease, placing less pressure on the
nation’s electricity grid and allowing energy prices from suppliers and
utilities to normalize. However, winter weather may very likely be around for
some weeks to come. Despite the unusual weather, the gas and electric delivery
systems have proven to be highly reliable this winter. A number of new natural
gas pipelines and electricity transmission lines are planned or under
construction which should reduce the chances of a similar price spike in the
future.
In the
meantime, there are some things that can be done to help manage energy bills.
Conserve energy as much as possible. For example, make sure
doors and windows are well insulated, seal any air leaks, and lower the
water temperature setting to 120 degrees on the water heater.
Customers using a competitive supplier and who are on a
variable rate plan or whose fixed contracts have expired, should review
their contract to confirm the accuracy of the pricing and call their
supplier if they have any questions.
Customers interested in price stability can also investigate
fixed price options that many suppliers offer.
Customers in need of financial assistance should investigate
their state’s home heating assistance programs. In many states, a customer
can stay with a competitive supplier and still receive assistance paying
utility bills.
Customers should visit their
state’s “energy shopping” websites to compare offers from different suppliers.
For a list of shopping websites, visit[redacted]

We apologize for any incovenience the customer has experienced. Customer was enrolled in the variable rate plan. Please see attached. The rates on a
variable plan fluctuate with the energy market. Unfortunately, the energy
market performed very poorly this past winter due to decreases...

in energy supply
and increases in demand due to the cold weather. While suppliers like Major
Energy/Respond Power base the rate on a daily rolling average and hedging, most
utilities purchase energy in massive block and adjust quarterly or
semi-annually. Because of that, sometimes suppliers find themselves with higher
rates than utilities. Eventually trends reverse and utilities are forced to
adjust their rates to make up for losses due to underpriced supply sold to
customers during high markets.
Customer's account was cancelled on 4/** and processed by the utility company on 5/**. Customer was validly enrolled in the variable rate plan and no refund is warranted.

Good Afternoon,
We will resolve this issue through the PUC.  
Regards,

Good Morning,
The customer's fiance enrolled in a variable rate plan and confirmed that she was authorized to make changes to the account.  I have attached the signed sales agreement as confirmation.  The customer was enrolled with our company for over a year.  The account...

has now been cancelled.  We are sorry if the customer had a bad experience.
Regards,

Good Morning,
According to the complaint, the
customer is unhappy with the recent rate being charged.
The customer agreed to a variable
rate contract, meaning the rate would be determined by the energy market.
As has been widely reported,...

there
has been a spike in the wholesale energy market which was reflected on the most
recent bill. This is merely a reflection of the current energy market where a
shrinking supply of electricity is under the strain of massive demand due to
one of the coldest winters on record. We are referring customers to the
February **press release from the PUC regarding this issue. (Please see
attached)  In addition, this is not just happening in Pennsylvania. 
Please see this link relating to New York prices as well.
[redacted]
If you would like to cancel your account, please contact customer service.  Please contact your utility for budget billing concerns.
We are truly sorry for your
experience and advise you to sign up on a fixed rate that will ensure price
protection.
Regards
 
In addition please see this informative article.
Why Have
Energy Bills Increased – Explaining Price Volatility
It has
been a record cold winter across much of the country, and many have been
expressing deep concern as to why energy bills have been so high. Regardless of
whether energy is purchased from a utility or a competitive energy supplier,
customers have seen electricity and natural gas prices spike in many parts of
the Northeast and Mid-Atlantic regions.
Why did
prices rise?
Simply
put, the issues at hand are the cold weather, electric grid and natural gas
pipeline capacity, and the increasing use of natural gas not just for heating
purposes, but to create electricity.
There is
ample gas supply in the United States, especially given the boom in shale gas.
What customers are feeling are the results of a strained transportation and
infrastructure system that delivers electricity and gas. When demand is high
and capacity is constrained, costs increase.
This
winter’s “polar vortex” has increased the demand for both natural gas and
electricity, resulting in significant congestion in the natural gas pipelines
and on the electric grid (the highways of the energy system). Everyone relies
on these natural gas pipelines and the electric grid to get energy from where
it is produced to where it is used by the homeowner, the tenant, and the
business owner. Just like only so many cars can efficiently travel along a
highway, only so much natural gas and electricity can move through the natural
gas pipeline system and the electric grid.
Also,
while more and more people are using natural gas directly for heating purposes,
electricity generators are also increasingly using natural gas to produce
affordable power. In the short-term, this electricity generation is putting
further strain on the natural gas capacity in certain parts of the country. At
the same time there are also bottlenecks on some parts of the electric grid,
preventing electricity from getting from the generators to the consumers in an
efficient manner.
It’s
known from economics that constraints on supply (such as not being able to get
gas from where it is plentiful to where it is needed) cause prices to rise, and
this has occurred in the wholesale energy markets. The result? Competitive
energy suppliers and utilities alike are paying higher than normal prices when
purchasing from the wholesale market in order to provide energy to homeowners,
tenants, and business owners. This is causing everyone’s bills to rise.
As the
winter weather gradually improves and temperatures rise, the demand for energy
to heat homes and businesses will decrease, placing less pressure on the
nation’s electricity grid and allowing energy prices from suppliers and
utilities to normalize. However, winter weather may very likely be around for
some weeks to come. Despite the unusual weather, the gas and electric delivery
systems have proven to be highly reliable this winter. A number of new natural
gas pipelines and electricity transmission lines are planned or under
construction which should reduce the chances of a similar price spike in the
future.
In the
meantime, there are some things that can be done to help manage energy bills.
Conserve energy as much as possible. For example, make sure
doors and windows are well insulated, seal any air leaks, and lower the
water temperature setting to 120 degrees on the water heater.
Customers using a competitive supplier and who are on a
variable rate plan or whose fixed contracts have expired, should review
their contract to confirm the accuracy of the pricing and call their
supplier if they have any questions.
Customers interested in price stability can also investigate
fixed price options that many suppliers offer.
Customers in need of financial assistance should investigate
their state’s home heating assistance programs. In many states, a customer
can stay with a competitive supplier and still receive assistance paying
utility bills.
Customers should visit their
state’s “energy shopping” websites to compare offers from different suppliers.
For a list of shopping websites, visit [redacted]

Good Evening,
According to the complaint, the
customer is unhappy with the recent rate being charged.
The customer agreed to a variable
rate contract, meaning the rate would be determined by the energy market.
As has been widely reported,...

there
has been a spike in the wholesale energy market which was reflected on the most
recent bill. This is merely a reflection of the current energy market where a
shrinking supply of electricity is under the strain of massive demand due to
one of the coldest winters on record. We are referring customers to the
February [redacted]press release from the PUC regarding this issue. (Please see
attached)  In addition, this is not just happening in Pennsylvania. 
Please see this link relating to New York prices as well.
[redacted]
Finally, the account has been
canceled and it is now up to the utility to process the cancellation.  Please contact your utility for budget
billing concerns.
We are truly sorry for your
experience and advise you to sign up on a fixed rate that will ensure price
protection.
Regards
 
In addition please see this informative article.
Why Have
Energy Bills Increased – Explaining Price Volatility
It has
been a record cold winter across much of the country, and many have been
expressing deep concern as to why energy bills have been so high. Regardless of
whether energy is purchased from a utility or a competitive energy supplier,
customers have seen electricity and natural gas prices spike in many parts of
the Northeast and Mid-Atlantic regions.
Why did
prices rise?
Simply
put, the issues at hand are the cold weather, electric grid and natural gas
pipeline capacity, and the increasing use of natural gas not just for heating
purposes, but to create electricity.
There is
ample gas supply in the United States, especially given the boom in shale gas.
What customers are feeling are the results of a strained transportation and
infrastructure system that delivers electricity and gas. When demand is high
and capacity is constrained, costs increase.
This
winter’s “polar vortex” has increased the demand for both natural gas and
electricity, resulting in significant congestion in the natural gas pipelines
and on the electric grid (the highways of the energy system). Everyone relies
on these natural gas pipelines and the electric grid to get energy from where
it is produced to where it is used by the homeowner, the tenant, and the
business owner. Just like only so many cars can efficiently travel along a
highway, only so much natural gas and electricity can move through the natural
gas pipeline system and the electric grid.
Also,
while more and more people are using natural gas directly for heating purposes,
electricity generators are also increasingly using natural gas to produce
affordable power. In the short-term, this electricity generation is putting
further strain on the natural gas capacity in certain parts of the country. At
the same time there are also bottlenecks on some parts of the electric grid,
preventing electricity from getting from the generators to the consumers in an
efficient manner.
It’s
known from economics that constraints on supply (such as not being able to get
gas from where it is plentiful to where it is needed) cause prices to rise, and
this has occurred in the wholesale energy markets. The result? Competitive
energy suppliers and utilities alike are paying higher than normal prices when
purchasing from the wholesale market in order to provide energy to homeowners,
tenants, and business owners. This is causing everyone’s bills to rise.
As the
winter weather gradually improves and temperatures rise, the demand for energy
to heat homes and businesses will decrease, placing less pressure on the
nation’s electricity grid and allowing energy prices from suppliers and
utilities to normalize. However, winter weather may very likely be around for
some weeks to come. Despite the unusual weather, the gas and electric delivery
systems have proven to be highly reliable this winter. A number of new natural
gas pipelines and electricity transmission lines are planned or under
construction which should reduce the chances of a similar price spike in the
future.
In the
meantime, there are some things that can be done to help manage energy bills.
Conserve energy as much as possible. For example, make sure
doors and windows are well insulated, seal any air leaks, and lower the
water temperature setting to 120 degrees on the water heater.
Customers using a competitive supplier and who are on a
variable rate plan or whose fixed contracts have expired, should review
their contract to confirm the accuracy of the pricing and call their
supplier if they have any questions.
Customers interested in price stability can also investigate
fixed price options that many suppliers offer.
Customers in need of financial assistance should investigate
their state’s home heating assistance programs. In many states, a customer
can stay with a competitive supplier and still receive assistance paying
utility bills.
Customers should visit their
state’s “energy shopping” websites to compare offers from different suppliers.
For a list of shopping websites, visit http:[redacted]

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because:
 
 The business contacted me and told me to leave there company because they do not offer a fixed rate. I also sent them a picture of every powercompany rate compared to others. At this time the avg rate is 6 cents per kwh. They arr the only company charging 19 cents . No one else is even past 9 cents. I told them that I already canceled and they replied that they were goin to give me a discount but now that I cancled they will bot gice me a discount,  the representative even told me to cancel! He stated in his honest opinion they cant lower it and it is extremly high and I only have a variable rate available and to go back to my original supplier. These people lied and said they would lower my bill by 30% when I signed up. Said nothing about variable rates and are now charging me ten times ehat I shouldve paid for the past 3 months. I work so much overtime and its not to pay someone to rip me off. I want a refund asap!
 
 
In order for the Revdex.com to appropriately process your response, you MUST answer the question above.
Sincerely,
[redacted]

Revdex.com:
I have reviewed the response made by the business in...

reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because:

[Your Answer Here]
 If they had made a mistake, why do I have pay for it in terms of charges that have happen since I was suppose to have cancelled back in January, I want these charges taken care of and remove from that time also. This is part of this company bad business tactics.
 
 
 
In order for the Revdex.com to appropriately process your response, you MUST answer the question above.
Sincerely,
[redacted]

We apologize for the inconvenience. Unfortunately, because the customer was validly enrolled in the variable rate program, no refund is warranted. The
energy market performed very poorly this past winter due to decreases in energy
supply and increases in demand due to the cold weather. While suppliers like Respond Power base the rate on a daily rolling average and
hedging, most utilities purchase energy in massive block and adjust quarterly
or semi-annually. Because of that, sometimes suppliers find themselves with
higher rates than utilities. Eventually trends reverse and utilities are forced
to adjust their rates to make up for losses due to underpriced supply sold to
customers during high markets.

Good Morning,
The customer enrolled in a variable rate plan with our company. The rates on a variable rate plan are subject to change based on
market conditions. Unfortunately, the energy market performed very poorly this
past winter due to decreases in energy...

supply and increases in demand due to
the cold weather. While suppliers like Major Energy/Respond Power base the rate
on a daily rolling average and hedging, most utilities purchase energy in
massive block and adjust quarterly or semi-annually. Because of that, sometimes
suppliers find themselves with higher rates than utilities. Eventually trends
reverse and utilities are forced to adjust their rates to make up for losses
due to underpriced supply sold to customers during high markets.
The customer's account has already been cancelled. We are sorry to lose you as a customer after so long.  We will not be issuing any further adjustments or credits in this situation.
Regards,

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because:

[Your Answer Here]
 Once again I was not informed of the variable rate and I feel I was conveniently made to misunderstand what I was getting onto. All I was told was what a great deal this was and how much it would save me. Ha Ha joke is on me.  I guess a bill that is hundreds more than I ever pay is a great deal? Shame on you.
 
 
 
In order for the Revdex.com to appropriately process your response, you MUST answer the question above.
Sincerely,
[redacted]

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID# [redacted], and have determined that my complaint has NOT been resolved because:
The response I received is exactly what I expected but the Revdex.com would be doing a disservice to consumers if they mark it as resolved.  Yes, the PUC did advise consumers that variable rates could increase due to the severe winter but that is no excuse for the blatent overpricing of Respond Power. I knowingly did sign up for a variable rate at the urging of their door to door salesmen who promised that even if it increased, it would be very competitive and I could cancel at ANY time. They failed to mention I would only receive the competitive rate for 1 month and then it would double before it was even officially winter and that when I call to cancel, I would be stuck with them for 2 more months at a rate of almost 4 times the rate when I signed up. Obviously, they don't care if every single customer cancels because they have already made so much in overcharges, they don't need to supply any electricity the rest of the year. I'm sure they will be out next September signing up new unsuspecting consumers unless the Revdex.com or PUC alerts them of the overpricing. This issue has been all over the news and there were cases of reputable electric suppliers offering rebates to individuals that were overcharged.  Since fortunately, I don't use an excessive amount of electricity I only lost a few hundred dollars and won't waste anymore of my time on it but please do not mark that I am satisfied with the company's response.  I would be satisfied if they adjusted my last two months bills to the double rate I was charged for the second month or if they even offered a $100 rebate in good faith but I doubt that will happen.
 
 
In order for the Revdex.com to appropriately process your response, you MUST answer the question above.
Sincerely,
[redacted]

Good Afternoon,
The customer received the additional information he requested from our customer service department via email on 3/**/14.  If he should require further assistance he should continue to communicate with our customer service department.
Regards

Good Afternoon,
According to the complaint, the
customer states that she is unhappy with the current rate being charged.
The customer agreed to a variable
rate contract, meaning her rate would be determined by the energy market.
As has been...

widely reported, there
has been a spike in the wholesale energy market which was reflected on the most
recent bill. This is merely a reflection of the current energy market where a
shrinking supply of electricity is under the strain of massive demand due to
one of the coldest winters on record. We are referring customers to the
February ** press release from the PUC regarding this issue. (Please see
attached)  In addition, this is not just happening in Pennsylvania. 
Please see this link relating to New York prices as well.
[redacted]
Finally, the account has been
canceled and it is now up to the utility to process the cancellation.  Please contact your utility for budget
billing concerns.
We are truly sorry for your
experience and advise you to sign up on a fixed rate that will ensure price
protection.
Regards
 
In addition please see this informative article.
Why Have
Energy Bills Increased – Explaining Price Volatility
It has
been a record cold winter across much of the country, and many have been
expressing deep concern as to why energy bills have been so high. Regardless of
whether energy is purchased from a utility or a competitive energy supplier, customers
have seen electricity and natural gas prices spike in many parts of the
Northeast and Mid-Atlantic regions.
Why did
prices rise?
Simply
put, the issues at hand are the cold weather, electric grid and natural gas
pipeline capacity, and the increasing use of natural gas not just for heating
purposes, but to create electricity.
There is
ample gas supply in the United States, especially given the boom in shale gas.
What customers are feeling are the results of a strained transportation and
infrastructure system that delivers electricity and gas. When demand is high
and capacity is constrained, costs increase.
This
winter’s “polar vortex” has increased the demand for both natural gas and
electricity, resulting in significant congestion in the natural gas pipelines
and on the electric grid (the highways of the energy system). Everyone relies
on these natural gas pipelines and the electric grid to get energy from where
it is produced to where it is used by the homeowner, the tenant, and the
business owner. Just like only so many cars can efficiently travel along a
highway, only so much natural gas and electricity can move through the natural
gas pipeline system and the electric grid.
Also,
while more and more people are using natural gas directly for heating purposes,
electricity generators are also increasingly using natural gas to produce
affordable power. In the short-term, this electricity generation is putting
further strain on the natural gas capacity in certain parts of the country. At
the same time there are also bottlenecks on some parts of the electric grid,
preventing electricity from getting from the generators to the consumers in an
efficient manner.
It’s
known from economics that constraints on supply (such as not being able to get
gas from where it is plentiful to where it is needed) cause prices to rise, and
this has occurred in the wholesale energy markets. The result? Competitive
energy suppliers and utilities alike are paying higher than normal prices when
purchasing from the wholesale market in order to provide energy to homeowners,
tenants, and business owners. This is causing everyone’s bills to rise.
As the
winter weather gradually improves and temperatures rise, the demand for energy
to heat homes and businesses will decrease, placing less pressure on the
nation’s electricity grid and allowing energy prices from suppliers and
utilities to normalize. However, winter weather may very likely be around for
some weeks to come. Despite the unusual weather, the gas and electric delivery
systems have proven to be highly reliable this winter. A number of new natural
gas pipelines and electricity transmission lines are planned or under
construction which should reduce the chances of a similar price spike in the
future.
In the
meantime, there are some things that can be done to help manage energy bills.
Conserve energy as much as possible. For example, make sure
doors and windows are well insulated, seal any air leaks, and lower the
water temperature setting to 120 degrees on the water heater.
Customers using a competitive supplier and who are on a
variable rate plan or whose fixed contracts have expired, should review
their contract to confirm the accuracy of the pricing and call their
supplier if they have any questions.
Customers interested in price stability can also investigate
fixed price options that many suppliers offer.
Customers in need of financial assistance should investigate
their state’s home heating assistance programs. In many states, a customer
can stay with a competitive supplier and still receive assistance paying
utility bills.
Customers should visit their
state’s “energy shopping” websites to compare offers from different suppliers.
For a list of shopping websites, visit http://www.CompetitiveEnergy.org.

Good Afternoon,
According to the complaint, the customer is unhappy with the recent rate being charged.
The customer agreed to a variable
rate contract, meaning the rate would be determined by the energy market.
As has been widely reported,...

there
has been a spike in the wholesale energy market which was reflected on the most
recent bill. This is merely a reflection of the current energy market where a
shrinking supply of electricity is under the strain of massive demand due to
one of the coldest winters on record. We are referring customers to the
February [redacted]press release from the PUC regarding this issue. (Please see
attached)  In addition, this is not just happening in Pennsylvania. 
Please see this link relating to New York prices as well.[redacted]
Finally, the account has been
canceled and it is now up to the utility to process the cancellation.  Please contact your utility for budget
billing concerns.
We are truly sorry for your
experience and advise you to sign up on a fixed rate that will ensure price
protection.
Regards
 
In addition please see this informative article.
Why Have
Energy Bills Increased – Explaining Price Volatility
It has
been a record cold winter across much of the country, and many have been
expressing deep concern as to why energy bills have been so high. Regardless of
whether energy is purchased from a utility or a competitive energy supplier,
customers have seen electricity and natural gas prices spike in many parts of
the Northeast and Mid-Atlantic regions.
Why did
prices rise?
Simply
put, the issues at hand are the cold weather, electric grid and natural gas
pipeline capacity, and the increasing use of natural gas not just for heating
purposes, but to create electricity.
There is
ample gas supply in the United States, especially given the boom in shale gas.
What customers are feeling are the results of a strained transportation and
infrastructure system that delivers electricity and gas. When demand is high
and capacity is constrained, costs increase.
This
winter’s “polar vortex” has increased the demand for both natural gas and
electricity, resulting in significant congestion in the natural gas pipelines
and on the electric grid (the highways of the energy system). Everyone relies
on these natural gas pipelines and the electric grid to get energy from where
it is produced to where it is used by the homeowner, the tenant, and the
business owner. Just like only so many cars can efficiently travel along a
highway, only so much natural gas and electricity can move through the natural
gas pipeline system and the electric grid.
Also,
while more and more people are using natural gas directly for heating purposes,
electricity generators are also increasingly using natural gas to produce
affordable power. In the short-term, this electricity generation is putting
further strain on the natural gas capacity in certain parts of the country. At
the same time there are also bottlenecks on some parts of the electric grid,
preventing electricity from getting from the generators to the consumers in an
efficient manner.
It’s
known from economics that constraints on supply (such as not being able to get
gas from where it is plentiful to where it is needed) cause prices to rise, and
this has occurred in the wholesale energy markets. The result? Competitive
energy suppliers and utilities alike are paying higher than normal prices when
purchasing from the wholesale market in order to provide energy to homeowners,
tenants, and business owners. This is causing everyone’s bills to rise.
As the
winter weather gradually improves and temperatures rise, the demand for energy
to heat homes and businesses will decrease, placing less pressure on the
nation’s electricity grid and allowing energy prices from suppliers and
utilities to normalize. However, winter weather may very likely be around for
some weeks to come. Despite the unusual weather, the gas and electric delivery
systems have proven to be highly reliable this winter. A number of new natural
gas pipelines and electricity transmission lines are planned or under
construction which should reduce the chances of a similar price spike in the
future.
In the
meantime, there are some things that can be done to help manage energy bills.
Conserve energy as much as possible. For example, make sure
doors and windows are well insulated, seal any air leaks, and lower the
water temperature setting to 120 degrees on the water heater.
Customers using a competitive supplier and who are on a
variable rate plan or whose fixed contracts have expired, should review
their contract to confirm the accuracy of the pricing and call their
supplier if they have any questions.
Customers interested in price stability can also investigate
fixed price options that many suppliers offer.
Customers in need of financial assistance should investigate
their state’s home heating assistance programs. In many states, a customer
can stay with a competitive supplier and still receive assistance paying
utility bills.
Customers should visit their
state’s “energy shopping” websites to compare offers from different suppliers.
For a list of shopping websites, visit [redacted]