FlyerTalk Forums - View Single Post - Reliant Energy and 7500 AA miles
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Old Jan 22, 2008 | 5:20 pm
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HKG_Flyer1
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Join Date: Mar 2001
Location: Dallas
Programs: AA EXP/5MM; DL DM; HHonors DIAM; Marriott GLD
Posts: 4,132
Without doing any research, I signed up for this offer awhile back. Over the past weekend, I did a little research and discovered this deal has the potential to be a bit of a scam. When one signs up using the AA "promotion code," Reliant essentially jacks your rate up by an amount which may more than offset the cost of the miles.

Researching the rates in the "Oncor Service Area," which is where I live, I discovered that Reliant charges AA promotion customers a fixed rate of $0.137 cents per Kwh, with a minimum one year term.

If I were to sign up for their most comparable program without taking advantage of the AA promotion, I would only pay $0.126 per Kwh (although I would have to commit to a 14 month term, rather than AA's 12 month term.

Reviewing my billing history, which is definitely much lower than that of a typical family living in a single-family home, I found that I will pay about $150 more than a regular customer over the course of a year. This works out to a cost per mile of $0.02 ($150/7,500 miles)--- about the same as the cost of purchasing miles outright.

I suspect that those AAdvantage members with above-average sized single-family homes (who consume more electricity than I do) would come out on the losing end of this deal.

However, if this is the trade one is willing to make, it is important to cancel the deal after the first year, otherwise Reliant makes out like a bandit while you pay through the nose (no additional AA miles are awarded after the 1 year term is up).

Just thought I'd pass this along.
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