My mother has lived in subsidized housing for the elderly and disabled for ten years.  Her apartment consists of a living room, kitchen, bath room, and one bedroom and measures 560 square feet.   It is connected on either side to other apartments which helps save energy.

Some time ago she received a telephone call from someone said they wanted to ‘renew her agreement with their company as her electric provider’.  She asked the person on the phone whether they were with her current provider and was told ‘yes’. 

Imagine her surprise when her next electric bill showed PA Gas & Electric as her energy provider.  That bill was $116.00 for the month of November.   More surprising was her January bill of $308.00.  I find it interesting that this increase happened after she called PA Gas & Electric in December to terminate her relationship with them.  It took them a month to make that switch.  During that time they more than doubled her rate.

In doing some research on the internet I found that PA Gas & Electric is actually US Gas & Electric and that they are based in Florida, not Pennsylvania.   Wherever they sell electricity they use a name that includes the name of the state they are selling in.  In PA, instead of US Gas & Electric, they are PA Gas & Electric.  In Connecticut they are CT Gas & Electric, and so on.  This gives the impression to potential customers that they are local.  

One of the things I found during her research is this film clip from NBC Connecticut which you can find here . 

It talks about a chiropractor’s wife, Mrs. Palmisano, who signed up with CT Gas & Electric (US Gas & Electric) and found that her electric bill increased by 

87% in one month.

From that interview:  “She was under the impression that the company had roots here in CT. What she found is that parent company is U.S. Gas & Electric based out of North Miami Beach, FL. The company uses the state’s name in each the 11 states where they operate. In Pennsylvania, they go by the name Pennsylvania Gas & Electric. Palmisano says with CT in the name, she thought it was a local company. It’s all perfectly legal, and some would argue even great marketing.

“Whether we’re local or not is not really that important,” said Doug Marcille, President and CEO of U.S. Gas and Electric.

“When asked if using the name Connecticut Gas & Electric implies they are somehow based in the state, he said no. “It just means that we’re selling electricity in CT using that brand.”

“Marcille says his company’s business model is to buy electricity for the current market price, unlike companies that establish a fixed rate by making bulk purchases in advance. He says that ultimately allows customers to save over the long term.”  

“But the Troubleshooters (“Connecticut’s largest team of broadcast journalists dedicated to investigative coverage. Ten investigators, including on-air and behind-the-scenes journalists, work with our viewers to get results, hold leaders accountable and provide consumer-oriented solutions.”) compared what Palmisano paid with Connecticut Gas & Electric, and what she would have paid with CL&P (CT Light & Power). In all but two months, she paid more with Connecticut Gas & Electric, and in February nearly triple.”

Be careful what you say and agree to on the telephone.  Sales calls are sales calls.  They are trying to make money for themselves and for their company, they are not helping you to save money.  Mom has switched back to her original provider and there is nothing that will make her change again.  Her advice to others?  If you get a sales call from anyone,  hang up.