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Post date: April 10 2001

Rochester Energy Supplier To Honor Consumer Gas Supply Prices

Attorney General Spitzer today announced that he is closing an investigation into the marketing practices of Energetix, a Western New York energy service company, after it confirmed it will honor its promises made to its customers.

Energetix, Inc. of Rochester is an unregulated subsidiary of RGS Energy Group, Inc., the holding company that also owns the Rochester Gas and Electric Corporation. Energetix announced earlier today that it has decided to continue to provide some 4,000 consumers gas at the price fixed in contracts agreed to in the spring of 2000.

Last month, Energetix notified customers with fixed price contracts for gas at 41.5 cents per therm that due to certain regulatory changes at Rochester Gas and Electric, it was raising the price of gas 16 cents effective April 2001. This represents an increase in natural gas charges of 39 percent. Energetix has now voluntarily agree to honor the 41.5 cent per therm price through the end of the contracts next year.

"The best outcome of an investigation is for a company to do the right thing as soon as the issue is brought to its attention. I commend Energetix for deciding that consumer trust was more important that exercising a disputed contract escape clause."

Following consumer complaints about Energetix's proposed premature price increase, Spitzer's Office began looking into Energetix's conduct to determine whether the proposed price increase was consistent with New York's consumer protection laws. Today's action by Energetix ends the need for further investigation.

This case was handled by Assistant Attorney General Carlos Rodriguez of the Rochester regional office with the assistance of Assistant Attorney General Charlie Donaldson of the Telecommunications and Energy Bureau.