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  • Report:  #289317

Complaint Review: Universal Gas And Electric Corporation

Universal Gas And Electric Corporation 1st bill +$65.00 more and unable to cancel services due to a $250 Southfield Michigan

  • Reported By:
    warren Michigan
  • Submitted:
    Thu, December 06, 2007
  • Updated:
    Fri, December 21, 2007
  • Universal Gas And Electric Corporation
    30555 Southfield Road
    Southfield, Michigan
    U.S.A.
  • Phone:
    248-594-2345
  • Category:

Last month my wife signed us up for UNIVERSAL GAS AND ELECTRIC CORP. to start supplying us with our natural gas and we finally received the 1st BILL! Lets put it this way, I figured out what we would have been paying $65.00 less that what Universal Gas & Electric just charged us for only 1 month.

I had the wife call them and (ATTEMPT TO) cancel their services, that way we could just go back to the way it was with Consumers Energy charging us for our natural Gas.. Well Universal Gas told the wife that they already purchased us 5 years worth of Gas (at the locked in rate) and if we cancel now, there will be a $250.00 penallity. My advise, avoid them....

Gary
warren, Michigan
U.S.A.

1 Updates & Rebuttals


Guitarhead

Grand Rapids,
Michigan,
U.S.A.

Now you will understand why....

#2UPDATE Employee

Fri, December 21, 2007

Natural gas rates have increased by 300% since 2001. The price per ccf was $0.28 in 2001. The winter of 05-06 prices peaked at high as $1.18!!! Natural gas rates increase more than gas prices at the pumps. You don't realize this, because you pay your bill once a month. I talk to hundreds of people a day. and 98% of which, do NOT even know what they pay per ccf. All people do, is pay their bills, and that is it, they do not research, and evaluate why the prices are so high. Most people do not pay attetion to the charges. So most of my customers are ill-informed, or a lack their of. When I go to a door, the first thing most people think, is that I am their to switch the utility. Well, if most people were smart, they would realize that NO ONE can do that. The utilities pipelines are in the ground, so therefore, the utility cannot be changed.... unless you want to dig them up, and put in piplelines of your own. Since I've been working this job, I've realized how closed minded all people are. We live in a "NOW" society and no, it wouldn't make any sense to pay a higher rate than what they are being charged now, but which would you prefer?
A- pay a 25% increase now, and that is the ONLY increase for the next five years.
OR
B- Pay a 300% increase over a period of five years.

Our rate is 1.04/ccf... for all five years. That rate will NOT go up. So, tell me this is a ripoff, when you, the people voted for a choice, now you have that choice and you reject it.in example: an ethiopian BEGS for food, and that food arrives, and he chooses to starve once it's brought to him. That is exactly what is happening here. There were petitions sent out, for this gas customer choice program. So, you say this is a scam, but you allowed this to happen. This is not a scam, because you chose gas to be deregulated, and now that it has in Michigan, you now have a choice to choose a supplier through the utility. Just like gas stations, you have choice, there is not just one that you can go to. While I'm on the subject of gas stations, say that there are 2 stations right next to eachother. gas station "A" has gas for $3.00/Gallon. Gas station "B" has gas for $3.10/gallon. your first instinct is going to be go where the gas is cheaper. That is just common sense. BUT, if gas station "B" guarantees that their prices will stay at $3.10/gallon for 5 years, while the other gas station's prices skyrocket for 5 years which one would you go to then?? Use your head folks, think about the future, and not now. Think outside of the box. Now there are summer rates, and winter rates. You use little or no gas in the summer, so rates are low, somwhere around the area of $.75/ccf
But...then comes along winter and it costs you so much more to heat our homes, so as supply goes down, demand goes up...and so does price. That is why your bill gets higher each winter. As we all know natural gas is a commodity that can not be replenished, and gas rates are getting to be higher as time goes on. Gas prices may go down by some freak chance, but you'd have more luck getting water from a rock than that happening. For the historical trends of gas please visit www.cis.state.mi.us/mpsc/gas/rates/gasrates.pdf so you can educate yourself a little better. We offer a service, because you, the people chose this. And now you are entitled to it. Do some research and pull your heads out of your asses and think FUTURE!!! What have gas prices done, and what will they do? It's no question that they will increase. It's just a matter of whether you want yours to increase now that you have a CHOICE, the Michigan Gas Customer Choice Program.

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