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Posted: Monday, 26 November 2007 1:36PM

Don't Be Fooled -- Natural Gas Not A Cheaper Alternative



CHICAGO (WBBM)  -- Faced with high heating bills, many homeowners are tempted to switch natural gas companies as we head into winter.

WBBM's Nancy Harty reports.

More information about natural gas prices is on the web at www.citizensutilityboard.org
But a utility watchdog group says that may not be a good idea.

The executive director of the Citizens Utility Board says 93 percent of the offers they reviewed didn't provide savings - and many cost more.

Aggie Patros of Chicago's Hegewisch neighborhood says she fell for one of those sales pitches.

The Chicago police officer switched to U.S. Energy Savings Corp when a salesman said her bill would probably stay the same, go down or only increase a tiny amount.

So she was shocked and angry when her first monthly bill was 100 dollars higher than it used to be.

Patros says she tried to cancel, but the company told her she would have to pay a fee of between 600 and 700 dollars.

After working with the Better Business Bureau and the Illinois Attorney General's office, Patros was told by U-S Energy Savings that they would waive the fee and refund the difference.

Patros says she's not sure if she'll ever see the check, but she's happy to be returning to People's Gas.

A spokeswoman for U.S. Energy Savings Corp says their representatives specifically tell potential customers that "we do not promise savings.  We promise piece of mind and stability."

Nadine Evans compares a contract with the natural gas provider to a fixed-rate mortgage, saying "it's going to be more expensive than an adjustable rate, but many people select that fixed rate because they value price stability".

She also says customers who signed up with U-S Energy when the company entered the market three years ago have already saved money because of increases in natural gas prices.

CUB's David Kolata said deregulation has not brought much savings in the natural gas industry.

He says he's found only one guarantee of savings - through IGS Energy.

Kolata warns consumers to do some research before switching.

Contents of this site are Copyright 2007 by WBBM
 
 
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