PSA: Check your utility supplier rate

Submitted by poldim t3_11tviec in baltimore

My mom called me crying because she got a $510 bill electricity bill from BGE. When I looked into it it's shown that NRG is the electricity supplier selling her power at 17.4 c/kwh while BGE's 3-month rate is 9.9 c/kwh. The bill's ratio of supply/distribution charges was 77%/23%.

I called NRG as asked WTF and they tell me she's on the variable rate. Apparently, her account was transferred to NRG when they (NRG) bought Dominion Power in 2014. The variable rate would imply that at some point it should be beneficial to you as the ratepayer (ie energy is below 3-month average rate as I'm sure they have to hedge their risk in that rate), but looking at her bills for the last 12 months, she's been paying 17.4 c/kwh for the last 6 months.

When I tell them I want to cancel them as the supplier they tell me they have a 3-month rate of 9.3 c/kwh. Over the last 12 months, the variable rate that she's been billed has ranged from 155%-190% of BGE's weighted SOS rate.

Is there any recourse for these predatory practices of switching you to a very variable rate if you don't call and choose to stay on a 3-month rate?

35

Comments

You must log in or register to comment.

dopkick t1_jcmiqhx wrote

This is why I never change my supplier. Not worth the headache of saving a few bucks turning into a bill that doubles randomly.

15

reccenters t1_jcozvos wrote

I get my energy through an energy co-op. It uses a negotiated rate and I have a year long set rate. I don't have the bill in front of me right now but it's been a touch lower than the 3 month rate listed above.

2

S-Kunst t1_jcoqq0m wrote

This is another example that the "free market" is not the best option for all situations.

The state of MD, with all its $$ needs to be funding public genertated electricity. Some will say that government cannot encroach on the private market place. But here there is no ability for a fully free market answer. Even when smaller renewable energy supply start to take a larger portion of the industry, there will be a regional grid and public lands which take the electricity to the consumer. Add to this the current thought that private vehicles will be shift from fossil fuel to electric. That adds a lot to be at the whim of the profiteers.

In the 1930s the federal government pumped huge sums of money in providing electric lines to the rural areas of the country, though many of those areas are now suburban sprawl. So its not like the state or federal government have not been involved and stepping in to fill the void that the private sector does not want to fill.

1

TheRainbowpill93 t1_jcr3gpq wrote

Yeah , I need to get out of this NRG supply ASAP. Those bills have been insane !

1