Price of gas
Complaint
ADoug
Country: United States
Signed up to have Lakeshore Energy to provide natural gas at the variable rate. At first they were a few pennies under Consumer Energy price per thousand cubic feet. Last month(02/01/2014 thu. 02/28/2014) they were over double the Consumer Energy Price. Charging me hundreds of dollars more than Consumer Energy. This company promise me they would be the low cost supplier. Beware this company and its people are just rip off arties taking advantage of people.
Comments
No notice that rates were increasing!!!
I am sending a letter with return confirmation in hard copy and hope it will help.
I called Lakeshore and did not get anywhere. Any suggestions and what to do?? Complain to the BBB maybe? Or is Lakeshore trying to recoup any losses or what?
I knew then that the jig was up, and Lakeshore was simply going to sell at the raw commodities rate plus a large markup and I was unlikely to ever save any money again. In December they upped the price into the 50-60 cent range even though managed price plan was still in the 47-49 cent range. I called them to ask about the discrepancy. They told my contract was up and I was "at the mercy of the market". I cancelled my service on the spot and requested to return to DTE. I was able to get back on DTE by the January billing. *Phew*
I dodged a really big bullet on that one and saved myself about 600 dollars by doing that, because I would have been screwed hard if I decided to stay with Lakeshore.
Now Lakeshore Energy is deliberately being elusive by no longer publishing their current rates, nor do they continue to offer a comparison of their rate history with DTE's.
My advise is to steer clear from all alternative gas providers for the foreseeable future. You typically will pay more with an alternate gas provider. Why? Because regulated gas utilities do not make a profit off the GCR (the price of natural gas commodity). They are regulated to have a certain profit based on the customer charge and the gas distribution charge, both of which you pay anyways even with an alternate gas provider. With an alternate gas provider, they charge roughly the commodity rate plus a markup for themselves. In other words you are paying an additional middle man for your gas, a middle man whom has no regulations imposed by the state utility commission limiting their profits. With the phase out of coal power plants and rising exports, the price of natural gas is only going to get more turbulent as the case with the price spikes this past winter.
Now, how did people actually save money with Lakeshore Energy for so many years? It's because DTE likely got themselves caught themselves in a bad long term natural gas contract which missed out on the glut of natural gas caused by fracking and the economic collapse of 2009 which caused their prices much higher than the commodity rates for a period of years. It is most likely a white elephant event and is unlikely to reoccur any time soon.
When my Gas bill spiked this past winter, I initially thought that it was due to a severely cold winter. But when I was on the phone with MI Gas, I learned that my $450.+ a month bill was not due to the extremely cold winter, but because I was still being billed by Lakeshore Energy on a month-to-month basis at a rate of $1.29/CFF while MI Gas rates were at only .42/CFF. Meaning essentially that I was still being billed by Lakeshore Energy at a rate 307% higher than MI Gas, somewhere around $700. - $1000. more than I would have paid with Michigan Gas.
Was really surprised to learn that I was still being billed by Lakeshore Energy when I had not renewed any contract with them. After speaking with their customer service (very long hold times on the phone), I learned that they would not be refunding me any part of my bill, because I had not canceled my initial contract with them in writing, something I was completed unaware that I had to do.
So, not only price gouging, but deceptive and misleading business practices. Bottom line, no idea I was still with Lakeshore Energy. My billing was from Michigan Gas. Needless to say, I am no longer with Lakeshore Energy. Think I will follow up with your ideas to contact the Michigan Public Service Commission. Would like to know if there is any class action going on, because have heard that there are literally thousands of Lakeshore Energy customers disputing their bills.
I have purchased Natural gas from Lakeshore Energy for several years. I have not had a problem until Last month (February) I was charged at a rate of $.553 per CCF in January. In February I was charged $.781 per CCF. I cancelled my contract with Lakeshore on 2-26-14. I was charged $1.29 per CCF By Lakeshore Energy for March, my last month with them. This amounts to an outrageous 150% price increase in 3 months. As of today I am now back with Michigan Gas Utilities, their current rate is $.42 per CCF. This is 1/3 of the exuberant Lakeshore Energy price. I contacted the Michigan Public Service Commission and was referred to the Michigan Attorney General. The Michigan Attorney General's office would not help me. I am a retired and cannot afford this price gouging.
Lakeshore Energy
700 Tower Dr.
Troy, MI 48098
Phone:
888-200-3788