Beware of Earning Starwood Points with Energy Plus!
Jul 6, 2011, 9:42 am
#1
formerly declinespecificinformatiom
Original Poster
Join Date: Jul 2011
Location: USA
Posts: 1,140
Beware of Earning Starwood Points with Energy Plus!
I was just looking in my Starwood account to look into planning a trip and saw that Starwood had made an alliance with Energy Plus. Energy Plus is offering 5000 starwood point bonus.
Do not sign up with this company. You will end up paying higher rates than the local utility for your home and business.
Here's the angle of the business scam: a variable rate that's not tied to anything. They can (and will) raise their rates as high as possible. Given that you are billed after the fact in this industry there is nothing you can do and they can squeeze you for at least 2 months before you can do anything about it.
These types of companies pop up regularly in the market every year or so, before getting blown out for a variety of reasons. Energy Plus is one of the more insidious one's out there.
Shame that Starwood has made such a foolish decision, especially since they do have an affiliation with a major consulting firm on their own energy procurement strategies.
So Starwood: before you sully your reputation and align with these types of companies talk internally to your COO or VP of procurement. They'll contact someone within your organization that you have linked up with some clowns that will rip off your members. What's next, a partnership with Direct Buy?
Do not sign up with this company. You will end up paying higher rates than the local utility for your home and business.
Here's the angle of the business scam: a variable rate that's not tied to anything. They can (and will) raise their rates as high as possible. Given that you are billed after the fact in this industry there is nothing you can do and they can squeeze you for at least 2 months before you can do anything about it.
These types of companies pop up regularly in the market every year or so, before getting blown out for a variety of reasons. Energy Plus is one of the more insidious one's out there.
Shame that Starwood has made such a foolish decision, especially since they do have an affiliation with a major consulting firm on their own energy procurement strategies.
So Starwood: before you sully your reputation and align with these types of companies talk internally to your COO or VP of procurement. They'll contact someone within your organization that you have linked up with some clowns that will rip off your members. What's next, a partnership with Direct Buy?
Last edited by DSI; Aug 16, 2012 at 10:14 am Reason: Remove Personal Information
Jul 6, 2011, 10:04 am
#3
FlyerTalk Evangelist
Join Date: May 2001
Location: MSY; 2-time FT Fantasy Football Champ, now in recovery.
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Here's my experience.
I live in TX, and signed up with Energy Plus for AA miles. I had them for a bit over a year, until yesterday, when I switched. My initial rate was within a half cent per kwh compared to other variable rate plans. Over the year, the rate crept up a little, while other plans dropped. It got to be about 3 cents/kwh above the average, and I finally switched.
I'll compare that to another mileage-earning electric company I used to have, Gexa. When I finally noticed what they had done to my rate, I was paying about double the average kwh rate of other companies.
My point is, I don't believe that Energy Plus is the worst out there. And it's unlikely that your rate will skyrocket after the first month. I do agree that you have to keep an eye on rates, and that the miles you'll earn for monthly spend probably won't be worth the extra that you pay over time. But if you plan enroll to get the signup bonus, then switch away once that's posted, you'll probably be fine.
I live in TX, and signed up with Energy Plus for AA miles. I had them for a bit over a year, until yesterday, when I switched. My initial rate was within a half cent per kwh compared to other variable rate plans. Over the year, the rate crept up a little, while other plans dropped. It got to be about 3 cents/kwh above the average, and I finally switched.
I'll compare that to another mileage-earning electric company I used to have, Gexa. When I finally noticed what they had done to my rate, I was paying about double the average kwh rate of other companies.
My point is, I don't believe that Energy Plus is the worst out there. And it's unlikely that your rate will skyrocket after the first month. I do agree that you have to keep an eye on rates, and that the miles you'll earn for monthly spend probably won't be worth the extra that you pay over time. But if you plan enroll to get the signup bonus, then switch away once that's posted, you'll probably be fine.
Jul 6, 2011, 10:29 am
#4
formerly declinespecificinformatiom
Original Poster
Join Date: Jul 2011
Location: USA
Posts: 1,140
Gexa is also terrible. Again, my expertise is focused more on large institutional users and NOT households. Also, markets are different, and most households have pretty bad options to begin with.
Lastly, it depends on your house size. If you don't use much energy and have a smaller place, getting a bad deal for 2 months to get a few extra starwood points might make sense all things considered.
In any case, Starwood made a major blunder and there are people within the organization who would smell the scam involved since they would know that a variable rate must be tied to something specific, i.e. LMP, PJM, MISO, MCPE rates, etc... to do otherwise is as ridiculous as signing a variable mortgage that is tied to nothing rather than to LIBOR, Prime, etc...
Lastly, it depends on your house size. If you don't use much energy and have a smaller place, getting a bad deal for 2 months to get a few extra starwood points might make sense all things considered.
In any case, Starwood made a major blunder and there are people within the organization who would smell the scam involved since they would know that a variable rate must be tied to something specific, i.e. LMP, PJM, MISO, MCPE rates, etc... to do otherwise is as ridiculous as signing a variable mortgage that is tied to nothing rather than to LIBOR, Prime, etc...
Here's my experience.
I live in TX, and signed up with Energy Plus for AA miles. I had them for a bit over a year, until yesterday, when I switched. My initial rate was within a half cent per kwh compared to other variable rate plans. Over the year, the rate crept up a little, while other plans dropped. It got to be about 3 cents/kwh above the average, and I finally switched.
I'll compare that to another mileage-earning electric company I used to have, Gexa. When I finally noticed what they had done to my rate, I was paying about double the average kwh rate of other companies.
My point is, I don't believe that Energy Plus is the worst out there. And it's unlikely that your rate will skyrocket after the first month. I do agree that you have to keep an eye on rates, and that the miles you'll earn for monthly spend probably won't be worth the extra that you pay over time. But if you plan enroll to get the signup bonus, then switch away once that's posted, you'll probably be fine.
I live in TX, and signed up with Energy Plus for AA miles. I had them for a bit over a year, until yesterday, when I switched. My initial rate was within a half cent per kwh compared to other variable rate plans. Over the year, the rate crept up a little, while other plans dropped. It got to be about 3 cents/kwh above the average, and I finally switched.
I'll compare that to another mileage-earning electric company I used to have, Gexa. When I finally noticed what they had done to my rate, I was paying about double the average kwh rate of other companies.
My point is, I don't believe that Energy Plus is the worst out there. And it's unlikely that your rate will skyrocket after the first month. I do agree that you have to keep an eye on rates, and that the miles you'll earn for monthly spend probably won't be worth the extra that you pay over time. But if you plan enroll to get the signup bonus, then switch away once that's posted, you'll probably be fine.
Jul 6, 2011, 11:01 am
#5
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Join Date: Jun 2001
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Describing something as a scam is quite an acusation. Further, your complaint is actually second order: you're complaining that Starwood allows account holders to earn points by using a service. If the firm is delivering the service as described it's not a scam. If it's grievously inadequately described, take it up with your state's utility regulator.
Jul 6, 2011, 11:54 am
#6
Join Date: Feb 2007
Programs: Starwood Platinum, Marriott, Hertz #1 Club
Posts: 128
I disagree, I think using the word scam is appropriate if the product is as described. It doesn't need to be criminal - it just needs to be misleading on what it is providing, with most users being worse off.
I would refer to the practice of translating foreign currency to USD before they charge your credit card as a scam even though it is clearly legal.
Some others would call the BRG a scam when the only differentiating factor is a free breakfast provided with the lower rate.
The fact people are judging the company in whether they can sign up and get out quick enough to justify the extra expense for the 5,000 points makes it sound like a product that won't provide any benefit to many potential customers and I appreciate the heads up offered.
I would refer to the practice of translating foreign currency to USD before they charge your credit card as a scam even though it is clearly legal.
Some others would call the BRG a scam when the only differentiating factor is a free breakfast provided with the lower rate.
The fact people are judging the company in whether they can sign up and get out quick enough to justify the extra expense for the 5,000 points makes it sound like a product that won't provide any benefit to many potential customers and I appreciate the heads up offered.
Jul 6, 2011, 2:19 pm
#7
Suspended
Join Date: Jan 2011
Location: YYJ
Posts: 2,230
but then again, CAVEAT EMPTOR!!!
Jul 6, 2011, 6:02 pm
#8
Join Date: Mar 2010
Location: ORD
Programs: HH Diamond, Hyatt Globalist, Bonvoy Platinum
Posts: 1,028
i foolishly signed up with these dopes without any due diligence. Got 7500 miles for some airline, can't remember which. Took a couple of months to realize I was paying double what i had been. Yes, clearly my fault but buyer beware
Feb 9, 2012, 11:57 am
#10
Join Date: Jun 2002
Location: MHT/BOS
Programs: AA EXP; UA 1P
Posts: 200
I just got an offer for 7500 Starpoints plus two points per dollar spent on electricity. I called to ask what their rate is and was quoted a current rate of about 14.9˘ per KWh, compared to my current ComEd rate of about 7.4˘ per KWh. 
Yea, no thanks.
Yea, no thanks.
Mar 3, 2012, 1:46 pm
#11
Join Date: Aug 2011
Posts: 21
New York Engergy Plus experience
Signed up after an offer for a studio apartment. Just got my first month's bill. Cost was 10.875c/kWh. The same bill from ConEd for the same month from another apartment on my floor had 6.85817c/KwH.
Waiting for the sign up points to post before I change back. Anybody know how long it takes?
Waiting for the sign up points to post before I change back. Anybody know how long it takes?
Mar 3, 2012, 1:59 pm
#12
FlyerTalk Evangelist
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Apr 11, 2012, 12:40 pm
#13
Join Date: Jul 2003
Posts: 1,193
I just got the same offer in the mail and came on here to check for feedback. Glad I did.
Apr 23, 2012, 4:28 am
#14
Join Date: Apr 2012
Posts: 1
Hi, like many of you I was mislead into believing that by signing up to Energy Plus, I would simply gain an opportunity to earn some airmiles without my bill increasing. I only discovered two years later that the switch cost me around $3000 . I am in the process of filing a class action against Energy Plus and am looking for several consumers who want to take part as Lead Plaintiffs. If successful at court, Lead Plaintiffs will be awarded several thousand dollars by the courts. Win or lose, it will not cost you a penny.
Please contact me immediately at [email protected] or 917 714 8721 if you want to discuss further.
Gerry
Please contact me immediately at [email protected] or 917 714 8721 if you want to discuss further.
Gerry
Jun 27, 2012, 9:54 am
#15
Join Date: Feb 2012
Location: NJ
Posts: 78
Signed up after an offer for a studio apartment. Just got my first month's bill. Cost was 10.875c/kWh. The same bill from ConEd for the same month from another apartment on my floor had 6.85817c/KwH.
Waiting for the sign up points to post before I change back. Anybody know how long it takes?
Waiting for the sign up points to post before I change back. Anybody know how long it takes?
can anyone tell me how long does it take to post 5K bonus points?
