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More Tricks and Traps from Usage-Based Billing: Pay A Penalty for Not Using Enough Service

Phillip Dampier August 25, 2011 Consumer News, Data Caps, Video 3 Comments

The telecommunications industry better not take a tip from some Texas power companies that have found new ways to increase profits: charging customers a penalty when they do not use enough electricity during the month.  Imagine if broadband providers with Internet Overcharging schemes followed suit.

After Texas deregulated electric utilities, an increasing number of companies are using their freedom to find new, creative ways to tack on additional fees and surcharges that might normally be considered the cost of doing business.

CenterPoint Energy, a Fortune 500 corporation providing service in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas would like to introduce you to its Minimum Usage Penalty — a $9.95 fee applied to Texans caught using too little electricity from the company.

While most utility companies set a basic customer charge applicable to everyone, which covers the cost of your electric meter, power lines and their upkeep, billing, and other administrative expenses, many Texas power companies are billing consumers a monthly fee for conserving too much electricity.

The concept flies in the face of common sense, especially as the state contends with dozens of 100+ degree summer days and pleas from utilities for customers to cut back on energy use.  But if some do, especially low-consumption customers in apartments or those who maintain part-time residences, they’ll pay a penalty for doing so.

The Texas Electricity Ratings Blog found more than a dozen power companies with similar policies, with penalties as high as $12.96 for using less than 1,000 kWh per month:

Ambit Energy: $9.99 for less than 1000 kWh per month
Amigo Energy: Depending on the plan it is $9.95 of $6.95 for less than 1000 kWh per month
Bounce Energy: $4.95 for less than 1000 kWh per month for almost all of their plans, except intro plans are $6.96 per month for less than 1000 kWh.
Champion Energy: $4.95 for less than 500 kWh per month
Cirro Energy: $5.25 for less than 1000 kWh per month
Direct Energy: I couldn’t find a Monthly Fee in their Terms of Service or EFLs
Dynowatt: $6.95 for less than 1000 kWh per month
First Choice Power: $5 for less than 650 kWh per month, plus a $4.95 base charge
GEXA Energy: Seems to simply use a sliding rate per plan for different usage w/o a minimum charge
Green Mountain Energy: Didn’t seem to see any minimum usage charge in the EFL or Terms of Service
Mega Energy: $12.96 for less than 1000 kWh per month
MX Energy: Seems to simply use a sliding rate per plan for different usage w/o minimum charge
Reliant Energy: $9.95 for less than 800 kWh per month
Southwest Power & Light: I didn’t see minimum usage but they had a $7.95 monthly meter fee.
Spark Energy: $8.99 for less than 1000 kWh per month
StarTex Power: $4.99 for less than 500 kWh per month
Tara Energy: $6.95 for less than 500 kWh per month
Texas Power: $10.00 for less than 1000 kWh per month
TXU Energy: TXU uses a base $4.95 charge and sliding rates for less or greater than 1000 kWh, per plan.

[flv width=”600″ height=”358″]http://www.phillipdampier.com/video/KTRK Houston Higher Bills for Not Using Enough 7-11.flv[/flv]

KTRK in Houston provides surprising information about Texas utility usage-based-billing rates — power companies will charge you a penalty for not consuming enough electricity.  Better hope broadband providers angling for UBB don’t catch on.  (3 minutes)

Time Warner Cable Introduces SignatureHome Premium View: Pay More, Get Premium Channels

Phillip Dampier August 25, 2011 Broadband Speed, Competition, Consumer News, Video 2 Comments

When Time Warner Cable introduced its SignatureHome service, the company claimed it wanted to deliver a comprehensive experience to its most premium-customers.  But oddly, the best broadband speeds, phone service, and digital cable TV lineup from the cable company didn’t include any premium movie channels.

“I was ready to sign up for SignatureHome, but I assumed it included major premium channels, and it didn’t,” says Stop the Cap! reader Liam in Los Angeles.  “I thought it would be a real money-saver but I would rather have the premium channels than their phone service, which I don’t actually use as I depend on my cellphone.”

Scott elected for a cheaper promotional bundle foregoing phone service and the fastest Internet speeds, choosing to stick with Road Runner Turbo service.

“Powerboost on their Turbo product is more than enough for me and I don’t need faster upload speed — if SignatureHome included the premiums I would have taken it,” he says.

Now Time Warner has introduced an addition to their super-deluxe package — SignatureHome Premium View, which bundles HBO, Showtime, Cinemax, The Movie Channel and Moviepass with everything else on offer for $30 more a month — $229.99.  The package excludes Starz!, a premium movie channel Time Warner has barely promoted over the years.

With many markets increasing prices to as high as $15 for channels like HBO, getting five premium networks for just under $30 isn’t a bad deal, assuming you watch them and benefit from SignatureHome‘s other features.

“When my promotion expires, I’ll consider this new option,” Scott says.  “Yes, I realize $230 for cable service should really be an outrage, but the way the company is pricing services these days, the more you bundle, the less you ultimately pay compared to trying to build your own package of services.”

That may be exactly the point.  For customers who rely on Time Warner for phone, broadband, and cable-TV, SignatureHome can be a reasonable value if you crave the company’s highest 50/5Mbps broadband speeds.  Building a comparable bundle on your own is much more expensive.  Now the same is true for premium movie channels, which run between $11-15 a month each a-la-carte.

[flv width=”534″ height=”320″]http://www.phillipdampier.com/video/NY1 Signature Home Arrives 12-9-10.mp4[/flv]

NY1, Time Warner Cable’s 24 hour news channel in New York City, talked about the introduction of SignatureHome last December.  (2 minutes)

Groups Sue AT&T Over San Francisco U-verse Cabinets: Environmental Review Demanded

Phillip Dampier August 25, 2011 AT&T, Competition, Consumer News, Public Policy & Gov't, Video 1 Comment

Some proponents for AT&T U-verse suggest people will quickly get used to AT&T's metal cabinets.

A coalition of neighborhoods opposed to the installation of more than 700 4-foot tall metal cabinets across the city of San Francisco have filed suit against AT&T in Superior Court demanding the city follow its own environmental codes and conduct an environmental impact assessment.

The suit comes in response to last month’s close 6-5 vote by the Board of Supervisors permitting AT&T to install up to 726 boxes on the public-right-of-way — typically street corners and sidewalks — to support expansion of its U-verse television, broadband, and phone service.

San Francisco Beautiful, San Francisco Tomorrow, the Potrero Boosters Neighborhood Association, the Dogpatch Neighborhood Association, and the Duboce Triangle Neighborhood Association are all parties to the lawsuit filed Wednesday, which calls the boxes graffiti targets, a safety problem for traffic and pedestrians, and just plain ugly.

Milo Hanke, past president of San Francisco Beautiful, accuses the city of ignoring its own rules to give a green light to AT&T.

“We really don’t want to sue, but we are left with no choice when the city refuses to uphold its own environment codes and is about to give away our sidewalks for the benefit of a private company without objective review,” Hanke told the San Francisco Chronicle.

Long time observers of city politics are frankly surprised AT&T won permission for the controversial boxes.

“It wasn’t that long ago that something like this would have been stopped dead in its tracks in [one] environmental review [after another],” said KCBS-TV reporter Phil Matier.  “But this year, whether it’s a change in the tone for business or for jobs it actually got the six votes needed, and that is going to be interesting as this plays out in an election year in San Francisco.”

Lane Kasselman, an AT&T spokesman countered: “This is about choice and competition for San Francisco residents. It’s about new, better technology that enhances peoples’ lives. AT&T thanks the San Francisco Board of Supervisors for supporting the deployment of U-verse throughout San Francisco. We’ve already started construction and are working as quickly as possible to bring next generation IP network services to every block and household that wants it.”

But Hanke thinks the city has gone too far for the benefit of AT&T at the expense of local residents.

“This is a private enterprise with a benefit to private parties,” Hanke told KCBS.  “Why should the public be subsidizing a Dallas-based corporation, and having to look at these ugly boxes in the process.”

Sean Elsbernd, who serves on San Francisco’s Board of Supervisors personally thinks the boxes are a great idea, suggesting Comcast needs competition.

“I have a suspicion that four or five months after they are in, people aren’t going to notice them anymore,” Elsebernd said.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/KCBS San Francisco Groups Sue ATT 8-24-11.mp4[/flv]

KCBS in San Francisco covers the continuing controversy over AT&T’s 4-foot tall utility boxes and the lawsuit designed to stop or delay their installation.  (3 minutes)

[flv]http://www.phillipdampier.com/video/KBAK Bakersfield Homeowner fights utility project in her front yard 5-27-10.flv[/flv]

KBAK in Bakersfield shows what happened when AT&T brought their lawn refrigerator-sized boxes to that city in the spring of 2010 — one woman woke up and found AT&T crews tearing up her yard, without any notice, as part of a major construction project.  (3 minutes)

Sprint’s iPhone? Company Rumored to Introduce Iconic Phone in October

Phillip Dampier August 24, 2011 Broadband Speed, Competition, Consumer News, Data Caps, Sprint, Video, Wireless Broadband Comments Off on Sprint’s iPhone? Company Rumored to Introduce Iconic Phone in October

Rumors are swirling Sprint will begin selling Apple’s iconic iPhone this October, bringing the number of carriers supporting the wildly popular phone to three.  Sprint shares soared 10 percent on the news.  But while Sprint customers and shareholders are celebrating the potential imminent arrival of iPhone, launching the phone on the Sprint network is no simple matter, especially for the last remaining carrier delivering truly unlimited data.

On the Plus Side

Apple’s iPhone has become a must-have for a significant number of consumers.  They won’t leave the phone behind to switch carriers, not even for Verizon Wireless, until they introduced the phone earlier this year.  Now Sprint can win its own share of iPhone devotees.

Sprint’s iPhone promotions could draw customers away from larger carriers, especially enticed by Sprint’s worry-free unlimited data plan that has become extinct at other wireless companies.

The iPhone locks customers into new two-year contracts with Sprint, helpful security at a time when AT&T threatens to further consolidate the wireless industry in its efforts to acquire T-Mobile.

On the Down Side

Sprint’s phone subsidy expenses will skyrocket with Apple’s iPhone, which commands the highest subsidies in the industry.  Analysts suspect AT&T currently shells out up to $425 for iPhone 4 and $375 for iPhone 3GS.  Then AT&T sells the phone to consumers for $200 or less, making the subsidy back over the life of the two year contract.  That hits AT&T’s cash on hand hard.  For Sprint, regularly accused by Wall Street of spending too much on customer promotions, it will only increase those costs.  Sprint pays less than $150 for its top of the line Evo phones in comparison.

One guarantee the iPhone always delivers: Lots of data hungry users.  The introduction of the iPhone may ultimately threaten Sprint’s unlimited usage experience because of demand placed on an already burdened 3G network.  There is also no guarantee the first Sprint iPhone will support Sprint’s 4G network.

[flv width=”480″ height=”290″]http://www.phillipdampier.com/video/KMBC Kansas City Sprint May Sell iPhone in October 8-24-11.mp4[/flv]

KMBC in Kansas City talked with customers looking forward to Sprint’s iPhone.  Sprint is a major employer in Kansas City.  (2 minutes)

Time Warner Cable: Fix My Fence

Phillip Dampier August 23, 2011 Consumer News, Video Comments Off on Time Warner Cable: Fix My Fence

Corpus Christi resident Sonny Tristan wants Time Warner Cable to fix the fence he claims they damaged more than a year ago when the company installed cable service at his Texas home.

Tristan says the cable company dug a trench to install the underground cable wire, but didn’t complete the job, leaving his backyard fence unstable and threatening to fall down.

Even a cable company technician agreed it was Time Warner’s responsibility to fix the problem, but for weeks all he got was talk and no action.

Like so many cable and telephone company problems Stop the Cap! covers for consumers, public exposure by local or online media is what usually draws enough attention to get a supervisor involved to fix the problem.  This time, Tristan went to KZTV’s Troubleshooters to try and cut through the red tape.

After the station called Time Warner, repair crews quickly arrived with word they were going to fix the fence without further delay, at no charge.

[flv]http://www.phillipdampier.com/video/KZTV Corpus Christi Troubleshooters Cable Company Damages Fence 8-17-11.flv[/flv]

Too often, media attention is the only effective way to cut through red tape that keeps cable and phone companies from fixing problems for customers.  KZTV in Corpus Christi reports it took their Troubleshooters team to get Time Warner out to fix a resident’s fence damaged by their installers.  (2 minutes)

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