Chicago retail gas marketer U.S. Energy Savings Corp. issued a statement late Monday denying charges by Illinois consumer watchdog Citizen Utility Board (CUB) that its sales tactics are misleading consumers.

“We place great value on our partnerships with consumer groups and regulatory agencies across all the markets we serve,” said U.S. Energy CEO Brennan Mulcahy. “We are very disappointed that we were not made aware of this concern, or consulted prior to today’s announcement. In our view, the announcement is irresponsible and is inaccurate.”

CUB said earlier in the day Monday that U.S. Energy’s door-to-door sales tactics included deception, such as posing as gas utility representatives or stating that gas utilities, regulators or CUB endorsed its gas service offerings. CUB issued a consumer alert, warning utility customers to beware of U.S. Energy sales people using misleading sales tactics. The agency also filed a complaint against the company with the Illinois Commerce Commission (ICC) (see Daily GPI, April 25).

CUB said it received hundreds of inquiries and complaints about the retail marketer. In its filing with the ICC, the watchdog asked the commission to ban the company’s misleading tactics and levy fines for each instance of consumer fraud.

“This company is engaged in the worst kind of consumer fraud, preying on people’s fears of rising natural gas bills and resorting to deception in order to boost sales,” CUB Executive Director David Kolata said. “Today we are telling consumers if U.S. Energy — or any other company for that matter — comes to your home peddling natural gas service, shut the door on them.”

CUB said several customers reported that the company came to their door with a “petition” to freeze natural gas rates. A few weeks later, they received welcome letters stating their natural gas service had been switched to U.S. Energy.

However, Mulcahy said the company, which operates in Illinois and New York, maintains a “strong focus and commitment to consumer protection.” In a statement, he said the company’s practices include: requiring that all agents provide customers with a document identifying the agent’s name, identification number and company contact information; ensuring that the customer’s consent is confirmed by a separate recorded verification call following the sale to make sure customers know that U.S. Energy is an alternative supplier and to go over the term and price of the contract; providing training for sales agents; and offering contracts in both English and Spanish.

Mulcahy said according to CUB’s own analysis, U.S. Energy’s fixed-price plans have saved customers money this year. “While we do not promise savings, according to the CUB’s own statistics, customers who have signed up with us as recently as September 2005 have already seen a financial savings,” he said. “Those who signed five-year contracts with the company in April 2004 have so far saved $290 as of April 2006, according to the CUB.”

He said the company will “vigorously challenge the CUB’s allegations” before the ICC.

U.S. Energy Savings Corp. is part of the Energy Savings Income Fund that trades publicly on the Toronto Stock Exchange (under SIF.UN) and operates in Ontario, Quebec, Manitoba, Alberta, British Columbia, New York and Illinois.

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