Citizens Utility Board Scam Warning

The Illinois Citizens Utility Board had some helpful information warning about scammers and also advice on getting the best rates for your electric service in the News-Gazette today:

Citizens Utility Board warns about electricity-rate scams
Champaign Public Works Director Dennis Schmidt said customers in the city who didn't opt out of Champaign's municipal electric aggregation deal with Homefield Energy have continued to save some money, though it's been in the $12- to $15-per-year range...

CUB spokesman Jim Chilsen said savings aren't guaranteed with every municipal aggregation offer.

"But most community power deals have had solid consumer protections — no exit fee, for example — and CUB has been pleased with that," he said.

Some tips from the CUB to avoid making bad power deals on your own:

— If you live in a community that has an aggregated power supply deal, such as Champaign and Urbana, beware of door-to-door marketers claiming they're affiliated with the community's power supplier. Municipal aggregation programs such as Champaign's don't do this kind of marketing, and they won't send people to your home about that.

— Sales people claiming to be from "the electric company" offering deals at your home could be trying to obtain your account number to sign you up for an alternate supplier without your permission.

— Before you sign up for an alternate deal, some good questions to ask are how the company's rate compares with your local utility's price, whether this is a fixed or variable rate, whether it's an introductory rate subject to increases, whether there is a monthly fee and whether there is an exit fee for those leaving a plan before a contract is up.

The CUB said it has seen fees as high as $9 a month among alternate power suppliers. The group also said it receives many complaints from consumers who said the lower price they signed up for with an alternate supplier skyrocketed a few months later.

Full article here.