Automatically switched from AEP to FirstEnergy - Is this illegal "slamming"?

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Automatically switched from AEP to FirstEnergy - Is this illegal "slamming"?

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Started 7 months ago by StowCbusCleveland
Latest reply from peanutnozone

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StowCbusCleveland
Jackson Township, Canton, OH
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Hey all,

Some of you are much better versed in the laws and rules regarding utility companies than I am, so I was wondering if someone could help me understand what's going on with my electric provider.

I recently moved away from Columbus to Canton for work, and I signed up for electric service through AEP. I've had two months worth of bills so far, no big deal. After work today, I came home to a letter in the mail from AEP letting me know that they were aware of my requested switch to FirstEnergy as my electric provider, and they told me I had until 5pm yesterday to cancel the change. My deadline to cancel the change was the day before I got the letter acknowledging my request to switch, a request that I never made.

I called AEP, and the lady on the phone was very nice but ultimately unable to do much more than give me some clues about what might have happened. Most of what she told me raised more questions than answers, and I got the distinct vibe from her that she either knew something she wasn't telling me, or at the very least she was under strict instructions not to stray from a particular set of scripted answers.

1) She told me the effective date of the change in her computer showed as August 16th. We signed the lease for our apartment on the 13th and established an AEP account on the 15th. Despite getting 2 months of bills without anyone mentioning this change, we supposedly "requested" a change to FirstEnergy the day after we signed up with AEP.

2) She said that FirstEnergy sent out a letter indicating that we would be automatically switched to FirstEnergy unless we responded to tell them that wasn't what we wanted. I pointed out that we definitely had not gotten that letter, and it very likely would have been sent prior to us renting the apartment, which sat vacant for a few months before we took control in August. She said the address was what was important, not the resident. This makes no sense to me.

3) She indicated that AEP's rate hike may have automatically triggered some sort of change, and that callers seemed to think they would be getting a 5% discount because of the switch. She had no information on FirstEnergy's rates. She really seemed interested in explaining how energy deregulation in Ohio works, but she didn't want to relate how competing energy providers had anything to do with my automatic switch from one to the other.

I honestly have no idea what happened here. The lady from AEP was nice, but ultimately unable to tell me what really happened. She referred me to FirstEnergy or PUCO, both of whom have normal 8-5 hours so I couldn't call to ask any questions.

So here's my question:

What the hell is going on?

There is information missing from this story, and AEP Lady either didn't have it or wouldn't give it to me. Surely it can't be legal to automatically switch someone's electricity provider on their behalf prior to them signing up to live there? Can anyone shed light on what this all means? I don't owe any allegiance to AEP so I don't really care who provides my electric, but this feels fishy.

Posted 7 months ago #
cc

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It is generally done through telemarketer slamming. They call you and get you to confirm a switch, often this is done under the guise of saving you money and using generalities such as 'as your electric company'. They record the conversation. I hang up when anyone asks to discuss a utility. Obviously, you need to call first energy in the morning.

Posted 7 months ago #
StowCbusCleveland
Jackson Township, Canton, OH
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See, that's what I thought the process was normally: they call you and try to sell you. In this case, my first notification was the letter, and I called them. Weird.

Posted 7 months ago #
john10

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I got this same letter today (10/20/11) and I had until yesterday (10/19/11) at 5:00 to cancel the change.

I haven't called anyone yet because I wasn't sure if this was some sort of scam to get me to call the 1-888 number listed in the letter. This thread is the only thing I found in my google searches related to it.

According to AEP's site, you have 7 days from the postmarked date to notify them of your change cancellation, so that brought up a red flag. Also, AEP's site states that they are required to send out information about you and your usage to other electric suppliers (https://aepohio.com/service/choice/residential/OptOnOff.aspx) and that you have to opt out of it if you do not want them giving out your info. How are people supposed to know about opting out of anything? Are we supposed to check the websites, on a regular basis, of every company we deal with to see if they may be giving out our info?

And a company can switch you over to them unless you write back saying you don't want to sign up with them? Reminds me of the old record and tape clubs that you had to send back your monthly request to not accept the tape of the month or you were sent it automatically and had to pay for it. If this is in fact true, why not start a company and send out letters to everyone stating they must opt out, or they are now a member of your organization with a startup fee of $50?

The thing I hate most is Firstenergy's rates are a little lower than AEP's rates. Yet, I don't like the way they are doing business of switching people without them ever knowing (is this really what is happening). I know I never spoke to anyone on the phone about anything like that as I have caller ID and never answer when I don't recognize the number.

Posted 7 months ago #
TaraMC

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Contact the Ohio Consumers' Counsel at 1-877-PICKOCC or visit their website at http://www.pickocc.org

They have always been helpful whenever I have any questions about utilities. They also have relationships with the utility companies and can sometimes help resolve issues (or at least they used to, not sure now that they've been affected by state budget cuts).

Posted 7 months ago #
cheap
Westgate
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john10 said:

The thing I hate most is Firstenergy's rates are a little lower than AEP's rates.

for now they are

welcome to the Customer Choice program,which is the biggest scam ever perpetrated on Ohio utility customers.

The budget plan passed by the Ohio House on Thursday says that the consumers’ counsel — the state’s consumer advocate on utility issues — would be barred by law from criticizing the further deregulation of the natural-gas industry.

http://ohiocitizen.org/?p=6897

Posted 7 months ago #
peanutnozone
Baltimore MD
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To the original poster:

I have worked in one such company. Here is what you have to do, and you have to find out.

First of all, do you live alone? If someone else lives with you, if someone came to the door and tried to sign up the account for the energy supplier WITHOUT your permission, it'll be easy to get them to take it off but you must know who did it, if anyone. Find out who did the switching. Normally you can just call FirstEnergy and tell them, "I want the recording that says I am the one who is responsible for the switch". If it's not you, then you have a valid complaint and you can switch back to AEP and they shouldn't charge you an ETF (early termination fee). If they DO, or they refuse to cooperate, go to the PUCO and complain, give them all info about your account with FirstEnergy and AEP, and then that should initiate something to where you can switch back. Refuse to pay anything to this other company FirstEnergy and you may go to collections; bear in mind AEP is still the distributing company so really you are paying for usage of their utility lines regardless, but as long as you follow my directions you shouldn't have a problem.

I'm sorry to hear this, it happens to people ALOT and people are left wondering what the hell happened to them. I guess my only advice is to always be cautious of who calls you, and instruct anyone in your household to be the same, ESPECIALLLY of door-to-door salespeople.

Good luck.

PM me if you have any further questions, I'd be glad to help.

Posted 7 months ago #
cheap
Westgate
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you can also change the name on the bill,it kicks the supplier right off.

Posted 7 months ago #
Rocknrolloutlaws
German Village
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You may want to contact the Ohio Attorney General. One of the things they do is deal with consumer complaints, and it sounds like what the OP described is exactly the type of thing they might be interested in. They have an online complaint form:
Ohio Attorney General -- Consumer Complaints

Posted 7 months ago #
StowCbusCleveland
Jackson Township, Canton, OH
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Well, after calling AEP again to get a more helpful CSR and then speaking with FirstEnergy and then speaking with the Township, I was able to find out what happened, or at least piece together a plausible scenario.

Last November the Jackson Township trustees put an issue on the ballot to aggregate the Township's electricity purchasing, and the issue passed. They cut a deal with FirstEnergy to be the provider of choice for Jackson where FE would agree to always beat AEP's price to compare by 3%. Part of that deal was that everyone in the city with an electric bill would be automatically switched over to them unless they explicitly opted-out.

This vote happened last November. Sometime between then and 2 months ago when I moved, letters went out to everyone informing them how this would all work. So I moved in the sweet spot: after the notification but prior to the switch.

The woman I spoke to with FirstEnergy was very nice, but when she told me there would be a cancellation fee if I decided to leave and go back to AEP, I hit the roof. Thankfully, given how recently I found out, they allowed me to cancel and go back to AEP. I'm not opposed to saving money, and it's probably as simple as saving 3%, but given that they brought up fees in my first conversation...I started wondering whether this would be like switching from Southwest Airlines to American or United: cheaper initial price, get you on the fees later. I asked both AEP and FE to send me their relevant contracts and promo materials so I could actually compare them.

I'm probably spending too much time on something that's ultimately only a $3 difference on a $100 bill, but the weirdness of the process left me with a lot of questions.

Posted 7 months ago #
StowCbusCleveland
Jackson Township, Canton, OH
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Thanks to everyone for posting further info and suggestions. I still plan on contacting the PUCO and OCC and maybe the AG. Even if it turns out that this was simply a miscommunication on a legitimate thing, I think they should be aware of how this is playing out in real situations.

Posted 7 months ago #
peanutnozone
Baltimore MD
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Glad you found out what happened. This has happened in other places, most notably in the Cleveland area with Dominion East Ohio gas. If FirstEnergy tries to get you on any fees, they should be able to be persuaded to take 'em off given your situation.

Used to deal with this stuff all the time. I still think it's a little sneaky.

Posted 7 months ago #