Metromedia Energy, Inc.

Review: My business had been purchasing Natural Gas from Metromedia Energy under contract, as the contract was ending I had a pending sale on my business. I notified Metromedia I was selling my business and therefor not going to renew my energy contract. They continued to bill me and increased the price per therm for the gas by 350%. My contract stated that if the contract expired my rate would be "market rate plus $.09 per therm". I emailed and wrote a letter pointing out what I thought was an error in the billing. They then increased the rate by 750% on a subsequent billing. The rates are grossly over market rate and not in line with what I should have been billed. They have ignored my calls, letters, and emails. They sent me one email showing false market rate data to try and justify the billling, when I pointed out that it was incorrect market rate data they stopped responding and failed to provide back up for the billing.

TO SUMMARIZE: THEY HAVE PRICE GAUGED, FAILED TO HONOR CONTRACT, IGNORED ATTEMPTS TO RESOLVE, AND FALSLEY REPRESENTED MARKET PRICEDesired Settlement: Correct my billing to the true rate which should have been roughly $1.00 per therm

Business

Response:

Metromedia Energy entered into a natural gas contract w/[redacted] for the period 8/1/12 through 7/31/13 @ Fixed rate of $.569 per therm. Towards the end of customer's contract (and subsequent months thereafter), MME sales rep, [redacted] was in contact with [redacted] concerning a contract renewal. [redacted] responded that business was to be sold in Jan 2014 and didn't want to enter into another contract. Therefore, in accordance with Provision No. 16 of MME Contract

Terms and Conditions, natural gas service would continue as "evergreen" . Agreement would automatically be renewed at a Market rate (MME cost) plus $.09 per therm and could be terminated, in writing, at any time within guidelines established by servicing Utility. Customer continued to be provided with natural gas , under this evergreen, for period August 2013 through February 2014. Termination request was received in January and, per customer, effective date of termination was March 1, 2014. For the months of December through February, Market gas prices soared to record levels and, unfortunately, any customers on "evergreen" were paying very high prices accordingly. At this point[redacted] Partner with [redacted], was communicating with [redacted] about the high priced invoices and voicing his displeasure. We provided [redacted] with daily calculation of market price and copies of [redacted] Daily pricing reports which is a major price component of Market priced natural gas. [redacted] was not satisfied with this support and, subsequently, we provided several daily Deal tickets from our Wholesale supplier, [redacted], as additional proof of market prices. To date, MME has offered generous extended payment terms to customer to help alleviate

this unfortunate situation. Attached please find copy of original contract, pricing calculations and support, and numerous email copies between MME and customer.

Thank you,

Office/Accounting Manager

Metromedia Energy, Inc.

Review: We were promised lower prices of we switched from [redacted] to Metromedia. Our average monthly bill for Gas usage was approximately $800 per month. December we were charged $6,089.34 for one monthDesired Settlement: A bill adjustment

Business

Response:

Good afternoon,

I am sorry , this complaint was misdirected to our New England office and to further complicate matters, I have been out of the office on jury duty. I will be responding shortly.

Thank you,

Billing Manager

Business

Response:

We apologize for the delay in responding to [redacted] complaint-.

Customers, such as [redacted], which did not have fixed price contracts in place, were billed at a rate reflecting Metromedia Energy's ("MME") cost of providing service plus .09.

Unfortunately, as you are aware, gas prices this past winter were at all time high. The $6,089.34 mentioned in the complaint was actually for two months, not one. Nevertheless, the prices for January and February were very high. However, during periods in which prices are relatively low, our cost-based pricing customers benefit. Our fixed price and hedged customers see no such fluctuations either up or down.

Whether to risk a price run-up with a fluctuating rate contract, or risk missing a price decline with a fixed price contract, is up the customer,- [redacted] has been on a cost plus contract since 2009 when his fixed rate contract expired. l'm afraid either way risk remains and Metromedia Energy does not guarantee cost savings to our customers. [redacted] invoice from Metromedia Energy does indeed accurately reflect Metromedia Energy's costs, which in turn are in line with market rates, therefore, no adjustments will be made..

MME takes its role and responsibility as a natural gas marketer seriously and we do our utmost to make sure that customers both understand and enjoy the benefits of a deregulated energy marketplace.

MME does offer certain customers time to pay invoices. But the amounts invoiced are correct and must be paid. MME is currently out-of-pocket for all but a small portion of the amounts billed.

Please feel free to contact me if you require any further information.

Review: My contract was over with this company 6 months ago, I called to cancel my account with them. They said "okay but we would have to bill you one additional month" I said that was fine and canceled my account. My next bill was 300% more than what my regular bill usually is. They said "I was not covered under contract" than what was the point of billing me for one last month? to charge me 300% more so you could take back twice more money than what you saved me in last 16 months>? Totally unacceptable. This company should not be Revdex.com approved! Everything SHOULD NOT BE MONEY!Desired Settlement: Change my due amount to whatever it was supposed to be and I will make a payment in full! [redacted] should not be working at this company, he does not value his customers. Some one needs to retrain this person from scratch, even then I'm not sure if he could provide good customer service.

Business

Response:

Customer had contract with MME (4/1/12 - 3/31/13) for a fixed rate of $.5685 per therm. Customer elected not to renew contract but did not submit written termination of services request. Therefore, in accordance with Provision No. 16 of MME Contract Terms and Conditions, natural gas service would continue as "evergreen" . Agreement would automatically be renewed at a Market rate (MME cost) plus $.09 per therm and could be terminated, in writing, at any time within guidelines established

by servicing Utility. Customer continued to be provided with natural gas , under this evergreen, for period April 2013 through February 2014. Termination request was received in January and, per [redacted] guideline, effective date of termination was February 28, 2014. During the months of Apr 13 through Oct 13, market gas rates were low and flat (averaging approx. $.62 per therm). In November, market rates increased to approx. $1.00. For December through February, market rates soared to record breaking highs (averaging appro $2.75 per therm). MME sales rep, [redacted], advised [redacted] (field rep for customer) on Nov 18, 2013 that market natural gas prices were expected to exceed $2.00 per therm in January 2014. In summary, MME attempted to renew contract with this customer on several occasions without success. The Natural Gas market in the Northeast is very volatile in the winter months and will continue for several years. It is very imperative that customers have a firm contract

where MME can "lock in " prices with wholesale supplier. Attached is various documentation and market price support foryour review. Also, MME disputes the customer's comments on [redacted] He is a valued and respected MME employee who treats customers with courtesy and professionalism.

Sincerely,

Office/Accounting Manager

Metromedia Energy, Inc.

Consumer

Response:

Review: [redacted]

I am rejecting this response because: 1) Noone contacted me to renew/cancel my contract. 2)I sent my cancellation request in mid-january, [redacted] stated they could have switched over on January 31st (New billing cycle every 1st). Metromedia waited another month to transfer my gas supplier back to [redacted]. [redacted] gas stated they could transfer over beginning of every billing cycle, ours is on 1st of everymonth. So, even if Metromedia asked to change on 31st of January, they could have.

Regards,

Consumer

Response:

Review: [redacted]

I am rejecting this response because:

What is the purpose of these two attachments? I have my bills to refer to also. My point was you guys did not request the transfer to [redacted] on purpose. My billing cycle with [redacted] is every 31st of the month. I submit cancelation in January. You guys did not request a transfer to [redacted] till later on February. Just so you could charge my account for the month of February also.

Regards,

Business

Response:

The first attachment refers to customer termination request dated January 24, 2014, MME Notice of termination to customer dated January 28, 2014, and [redacted] Gas customer termination list which includes [redacted] and the effective termination date of February 28, 2014. The second attachment is the Tariff which makes reference to one month written notice. In conclusion, MME processed this request on a timely basis and have to abide by the rules set forth by [redacted] Gas.

Office/Accounting Manager

Metromedia Energy, inc.

Review: We received notice that our energy contract was going to expire in 30 days on a statement dated 1/14/14. We had a new signed contract to them by 2/19/14, but it was not in time to avert a lapse in contract that expired at the end of January, 1/31/14 which threw us to the mercy of market rates for natural gas which are 3 times the amount of our contracted rate. Needless to say, they did NOT give us 30 days notice. It was more like 15 days.

On the statement received 3/12/14, we saw the damage. A bill for $11,816.65 for one month of service. This is at least $8000 more than our non-profit budget can handle in a single financial year. Here is what we proposed to them in an email on 3/18/14:

"Mark,

Thanks for taking my call and working with me on our unexpected and extraordinarily large balance of $11,816.65. I understand your proposal that we can work this off in four payments of $2954.60 and we appreciate your flexibility in at least this arrangement.

However, what would really help us absorb this anomaly would be to pay two payments of $5908.32, the first one due this month and the second one on January 2015 after we have passed into a new financial year.

We have valued our relationship with Metromedia up to this point and are very dismayed by the lack of advance notice from your company that our contract was expiring and what it would mean for our rate to almost triple on the open market. We are a non-profit with a tight budget and to have our rate triple suddenly in one of the coldest winters on record places quite a strain on our already limited resources.

I trust that you will do everything within your power to meet us halfway on this obligation. Please call if you have any questions."

Resent this email on March 26 and still NO RESPONSE.Desired Settlement: As stated above:

However, what would really help us absorb this anomaly would be to pay two payments of $5908.32, the first one due this month and the second one on January 2015 after we have passed into a new financial year.

Business

Response:

This customer is handled by an outside broker, [redacted] who negotiates and generates contract to be submitted to Metromedia Energy for processing. Unfortunately, this particular contract was handled by individual no longer affiliated with [redacted] and was never initiated for renewal until after the original contract expired. Consequently, customer was "off contract" for one month and subjected to high market price. Metromedia Energy was not informed by [redacted] of this oversight and could not "lock in" new contract due to timing restrictions. Metromedia Energy notifies customers 90 days prior to any contract expiration. The notice is included on invoices for the last three billing cycles before contract terminates. It is an unfortunate situation but Metromedia Energy has provided a payment plan extended through January 2015. Metromedia Energy can not reduce the amount of the outstanding obligation as natural gas purchased from supplier are subject to same market conditions.James C[redacted]Accounting ManagerMetromedia Energy, Inc.[redacted]

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted] and find that this resolution is satisfactory to me.

Regards,