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cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

1 recommendation

reply to big_e

Re: Coming soon from Frontier... Natural gas service!?!

Frontier isn't in in the business reselling any energy products. From the press release if you read far enough:

quote:
FTR Energy Services LLC is a subsidiary of Crius Energy LLC. FTR Energy Services was created through a strategic marketing relationship with Frontier Communications (NASDAQ: FTR). FTR Energy Services uses the FTR name under a license agreement with Frontier Communications.
"Strategic marketing relationship" is marketing speak for Crius paid Frontier $X so that they could use their name to market their energy services available under deregulation.

Most people haven't heard of Crius. People have heard of Frontier. Frontier is a utility company that has an established brand. Crius is just using that established brand to further enter the market. Frontier never has to lift a finger with anything to do with electricity or natural gas, but they get to make a few bucks in the process.

big_e

join:2011-03-05
Reviews:
·Comcast

The big question is if Frontier Communications customer service representatives will start pushing sales of the natural gas/electric to their customers in Ohio in the same manner they currently push bundling satellite TV service to their customers elsewhere. Imagine if McDonalds licensed their name to a Jiffy Lube franchise and after asking if you want fries with that, they offer to sell you a voucher for an oil change.

I don't see this being very good for the consumer, especially if gas/electric services are being sold at price higher than that of the incumbent utility under the guise that "a big rate increase is (potentially) coming so lock in your rates now." which is a very common practice with alternate energy providers.



cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

said by big_e:

The big question is if Frontier Communications customer service representatives will start pushing sales of the natural gas/electric to their customers in Ohio in the same manner they currently push bundling satellite TV service to their customers elsewhere.

Honestly, I doubt it. Maybe you see it referenced along with your monthly bill, or online. But I doubt it will be mentioned by an actual person. Telco CSRs aren't going to be equipped to answer any type of questions regarding it since it's not Frontier Communications that is providing the service. Satellite service is pushed as Frontier Communications handles the billing, but FTR Energy Services is just the energy provider and your local gas or electric company still handles the billing and delivery.

I don't see this being very good for the consumer, especially if gas/electric services are being sold at price higher than that of the incumbent utility under the guise that "a big rate increase is (potentially) coming so lock in your rates now." which is a very common practice with alternate energy providers.

I don't know what their electricity rates are, but according to the website, I can get $.499/therm pricing for natural gas for a price-locked 12-month contract, or $.509 currently for a non-contract price. According to my last bill, my Jan gas supply charge was $.4526/therm. So my existing supplier is cheaper going to month to month currently.

However if I wanted to to price protect my rate for 12 months, my supplier's rate is either a fixed $.585/therm, or $6 + the lesser of the current rate and .575/therm. In that case, FTR Energy Services is slightly cheaper.