default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

Letter: Some deals sound good, but aren’t

Font Size:
Default font size
Larger font size

Posted: Saturday, December 21, 2013 12:00 am

On Sunday, four young men canvassed my neighborhood, going door to door offering great savings on your gas bill.

The polite man at my door told me he was from energy service provider XYZ (I changed the name of the company), and that with deregulation they can lower my gas bill substantially. As the young man continued with his script to entice me with cheaper rates and overall savings, his spiel offered only limited information in order to make the sale.

Sure, they can offer you a flat lower rate for the commodity only — gas.

But here’s the rest of the story. Public Utility Commission has no authority over private energy service providers. All energy service providers get their commodities (gas) from the same source. XYZ can purchase it cheaper; however, they still have to use someone else’s transmission lines (pipes in the ground). Public Utility Company ABC owns the transmission lines and will apply transmission fees to the customer who purchases gas from XYZ. Furthermore, ABC offered base line allowances, which may be lost from XYZ, who only offers a flat rate.

When you purchase gas from Public Utility Company ABC, they charged you for the gas and transmission. Let’s say that the gas came to $60 and the transmission fees were $40.

For the same amount of gas from energy service provider XYZ, the gas came to $50, but Public Utility Company ABC, which owns the transmission lines, charges $60 to use their lines. Therefore, over all you paid $10 dollars more for your gas.

XYZ charges a monthly fee of a few dollars and often a one-time fee to set up your account — and in small print, if you try to cancel before the end of the contract, there is an additional penalty.

Buyer beware! Just because the nice young man said it was in the contract doesn’t mean it is. Read what you sign, call your current public utility company or public utility commission, and have them explain if this may have unintended consequences to your bill.

Remember the old adage: “If is sounds too good to be true, it is.”

Jane Lea


Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.

Recent Comments

Posted 6 hours ago by Angie McDaniel.

article: Steve Hansen: Climate change is real, b…

So you admit that Dr. Powell is NOT a relevant expert?


Posted 7 hours ago by Simon Birch.

article: Lodi City Council candidates talk jobs,…

The video of the forum is almost 2 hours long. It took awhile to process. It's now online.


Posted 7 hours ago by Jien Kaur.

article: Letter: Vote for a better future for all

This must be most similar to the Sarah Palin who make this claim (and before speak about some of the people are the real American and not o…


Posted 7 hours ago by Jien Kaur.

article: Steve Hansen: Climate change is real, b…

This show interest in juvenile exchanges rather than mature thought.


Posted 7 hours ago by Jien Kaur.

article: Gwin Paden: On learning Welsh, and kind…

This has to be one of the strangest and most ill inform claim I have heard. I think you should go back and do some research Mr Lauchland.



Popular Stories



Your News

News for the community, by the community.

Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists