Power company forces energy efficiency on customers

 

Jan 8 - McClatchy-Tribune Regional News - Michael Sawyers Cumberland Times-News, Md.

Allegheny Power's unsolicited mailing of energy-saving light bulbs for which the firm is charging its 220,000 Maryland customers touched off a flurry of angry reactions Tuesday, including a legislative attempt by Delegate Kevin Kelly to prohibit such maneuvers.

Kelly thought he had received two free light bulbs late last month from Allegheny Power. Only recently did he find out he was being charged $11.52 for the energy-efficient bulbs. The fee was hidden, according to Kelly, as a surcharge on his monthly electric bill.

The electric company is charging customers 96 cents a month for a year for the light bulbs.

"I find it very disturbing that the Public Service Commission would sanction this surcharge," Kelly said. "The power company is charging a premium price and I assure you, you can go to Lowe's or Wal-Mart and buy them at a significant price difference."

Tuesday, Lowe's price for two bulbs was $7.98.

The compact fluorescent bulbs are part of a campaign to alert Marylanders to the state's rising energy consumption and limited transmission capabilities, according to information provided by Allegheny Power.

Power company spokesman Todd Meyers said Tuesday that the company chose to mail the bulbs because customers had been slow in adopting new energy-saving technology.

"Maryland faces the real possibility of rolling blackouts by 2011 without new generation, new lines or significant conservation," Meyers said. "The governor made it clear that consumption has to be reduced by 15 percent."

Meyers said no extra effort was made to inform customers that they would be paying for the bulbs, but that information about the surcharge was available in filings with the PSC.

Allegheny Power made no profit on the bulbs, charging what it cost to buy and mail them, Meyers said.

"The cost of the bulbs will be equal to the customer's savings for one year. Because the bulbs can last seven years, the customer can save another $72 after the first year," Meyers said.

Flintstone area resident Sally Speicher shares Kelly's astonishment and ire.

"I didn't ask for these and I will not pay for these light bulbs. I called Allegheny Power customer service today and told them so and they told me that I would pay for them. She said they are going to teach us how to use electricity," Speicher said Tuesday. "I'm going to encourage everybody I know not to pay for them."

Kelly said he believes the majority of area residents are under the impression they received two free light bulbs from their electric company. He expects "mass dissatisfaction" when they learn that's not the case.

The legislator requested Tuesday morning via the Maryland Department of Legislative Services that a bill be drafted that would prohibit the PSC from authorizing such promotions. Kelly said he hopes to have the bill drafted and co-sponsors on board within a week. He called Allegheny Power's promotion a rip-off of an unsuspecting public.

Steven Silberman, chief of the Consumer Protection Division of the Attorney General's Office, said Tuesday he had just become aware of the matter and anticipates that his office will receive complaints.

"But it is the Public Service Commission that regulates utilities," Silberman said. "Nonetheless, we will take a look at the program to see if any consumer protection laws have been violated."

Theresa Czarski, deputy people's counsel, an independent state agency that provides legal representation to the public in utility regulation matters, said other electric providers in the state, such as BGE, Potomac Electric and Delmarva, let their customers know that the bulbs were available at discounted prices at certain retailers.

Czarski's office reviewed the distribution plans for the PSC.

"One of the reasons Allegheny was allowed to mail the bulbs is because their service area is so spread out and very rural with no large population centers to make the bulbs available," Czarski said. "There was concern at the PSC that the mailing of the light bulbs would add to their cost."

Cumberland Post Office representative Alex Taylor said that when the large loads of light bulbs arrived it was at the most inopportune time.

"They came into the dock a week before Christmas, which is a very busy time for us, so we had to call people in to work overtime," Taylor said.

In Hagerstown, Jay Jones, customer service supervisor at that post office, said workers had to individually scan more than 30,000 boxes of bulbs and some carriers made extra trips to deliver them.

At the very minimum, according to Speicher, this will be a good opportunity for average citizens to fight what she calls the arrogant corporate world that has no concern for people.

"This will show us we can have some impact," Speicher said.

The Associated Press contributed to this story.