Gexa Energy / Unwarranted Rate Increases

Houston, TX, United States Review updated:

GEXA raised my rate from .158 to .1904 in the usage month of October, 2008. I could find no other electric provider in Texas that raised their rates during this period, especially by over .03hr. When I called them and asked why, they said it was due to their wholesale cost. When I argued with them that no other company in Texas raised variable rates and in fact most lowered them, they said there was nothing they could do and under no circumstances would they adjust my bill. I also reminded them that Reliant's rate (which GEXA claims is the rate they try to beat) is currently at .116, but that made no difference to the supervisor I talked with. I have since switched my service, but still find this to be unfair and usurous treatment. What do we have other than the company's word that their wholesale cost went up enough during this period to warrant such an increase? I also noticed they dropped their variable rate plans in my area coincidentally with this unwarranted increase. My suspicion is this increase was their way of getting me to commit to a fixed rate. Why not just ask me to switch instead of using such underhanded tactics?

Likewise, not only would I not recommend GEXA, I will make it known anywhere I can that this is not a company to do business with.

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  • Sc
      Dec 04, 2008

    I spoke with 3 unprofessional representatives this evening shortly before I filed a complaint with the Better Business Bureau & the Public Utility Commission of Texas.

    I couldn't believe my billing in November. I had been a customer for nearly 2 years, & as long as gas prices were increasing, we didn't hesistate to pay the utility bills. In November, price at the pumps had dropped very significantly. GEXA actually raised my electric rates 7%! Competition had lowered rates ~ 40%. GEXA is holding up our utility switch ... & planning to bill at 2 times the rate. We never had a late bill, & there is no explanation other than ENRON-like greed.

    The first representative I spoke with indicated they (GEXA) were trying to convert customers to long-term contracts. It was definitely the wrong approach to take with me. The 2nd representative placed my billing in dispute so electric would not be disconnected. I was to hear back on a rate edit for my billing cycle. Both representatives gave me firm feedback that their phones were ringing off the hook with dissatisfied customers. Without any further contact, I received a disconnect notice a week later. The 3 representatives I spoke with tonight threatened disconnect & credit problems. They informed me there was no dispute system. Outrageous. Houston does not need another ENRON. Billing at twice the going rate (3 times the going rate if you compare to a coal burning utility) is simply unethical. I believe the Public Utility Commission needs to step in. Do what you can to spread the word & make your voice heard. GEXA is no longer advertising contracts for other than 6 & 12 month terms in my area.

    0 Votes
  • Jo
      Jan 29, 2009

    Like both you Mike and Scott, I got screwed completely out of the blue. In my case it's particularly bad because my house is not very well insulated and tends to do pretty bad in the winter months since it's 100% electric. Therefore, I'm actually quite used to paying $400 a month for December and January. I'm trying to save up to have the necessary insulating and window replacement done, but that's all very costly. In any case, I was not prepared for the $800 bill that arrived in Jan. I've had there Gexa Green 100% renewable plan for the past two or more years, which according to my past bills has always carried a 14 cent per Kwh cost. There was never a change in that cost at all, not until starting in October, when the price started climbing a penny or so a month. Then in December, the cost went straight to 20 cents!!! Well, that combined with my crappy insulation really screwed me. I'm just amazed that a company can do ### like this. I'm seriously tempted to not pay them, credit be damned.

    As for their claim of converting people to a "Fixed Plan", that's complete and utter stupidity. Back when I signed up there was no such thing... and if there were, sure... I as well as any SANE person would have gone with a fixed plan because they are usually cheaper and half the reason most of us went with Gexa is because they were supposed to be cheap! So why on earth would they think they can bring in this "fixed" plan and not promote it, not tell anyone about it and then just bombshell all there customers with high rates because suddenly everyone is on a "variable" plan that they never agreed to be on in the first place.

    In any case, I wish there was a way to coordinate everyone who is dealing with this because then maybe we could chip in and get a class action lawsuit against them for deceptive practices. At the very least, it'd be great to collectively agree to not pay... can you imagine... half or more of their customers just not paying for a month. That'd really put them in a pinch. As is, it's likely that they screwed nearly all there customers with this rate crap they are pulling so I'd venture that they won't be around as a company much longer. In my case I actually noticed the upward price trend a couple months back so I started a switch to Reliant in mid-December, but that wasn't fast enough to stop myself from getting screwed in a final blow from Gexa.

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  • Ri
      Feb 11, 2009

    I read your complaint and I too have been gouged by Gexa Energy. Outrageous! My December bill was over $1000. Last year, Gexa charged just over $400 for more killowatts!

    Anyway, I'm fighting back. I cannot sit by while they ripe off others. See my answer to these jerks:

    If you want to include your story, send me an email. I am collecting stories of people ripped off.

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  • Ge
      Feb 19, 2009

    I am an affected customer, and an attorney, and am speaking with law firms who handle class actions. I have reason to believe their price increases were unlawful. Please let me know if you're interested in getting involved. [protected]

    0 Votes

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