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Don't Waste Your Money on FirstEnergy Add Ons

3/2/2015

40 Comments

 
Have you been getting random mailers from "Potomac Edison," "Mon Power," or another FirstEnergy distribution affiliate trying to sell you an "Exterior Electrical Line Protection Plan from HomeServe?"

Just say no.

Go outside and look at your electric meter.  You are responsible for some components of your electric service connection.  The utility is responsible for the meter components and any underground service lines.  You are responsible for maintaining the rest.  Is your service drop overhead, or underground?  Read the fine print:
The meter that measures the amount of electricity used, any underground service entrance conductor, and the meter base (materials only) are not covered under this plan, but are covered by your local FirstEnergy Company.  Your local FirstEnergy Company will supply the materials to repair or replace the meter base...
So, what is covered?  An overhead connection to your house (cost estimated at $200) and the labor to replace the company-supplied meter base (estimated to cost another $200), if they ever need to be replaced!  So, how much will FirstEnergy's insurance cost you?  $5.49/month.  Forever.  You'd be better off putting that $5.49 in a mason jar every month, on the off chance that you ever do need these unusual electrical repairs, so that you can hire a local electrician to fix them.  FirstEnergy's literature claims that your homeowner's insurance won't cover these repairs.  Know why?  Because the cost of repairs is usually lower than your deductible!

Why would you want to give a bunch of money to the utility for "insurance" against an unusual problem that only costs a couple hundred bucks to fix?  It doesn't say "stupid" on my forehead.  Oh, but wait!  If you sign up you will receive a "special" phone number to call to get your service.  If you remember what you did with that phone number and the rest of your paperwork when you have an outdoor electrical line issue, then you could avoid the hassles of looking for an electrician in the yellow pages and "waiting" for service (because service dispatched through Akron, Ohio, is much quicker than calling an electrician in your own town).

Sounds like a scam to me!

So, I've been a Potomac Edison (or Allegheny Power, when that name suited them) customer for nearly 30 years.  How come I'm just now being bombarded with these junk mailers?  Because the West Virginia PSC recently sold me out to the company, going against the advice of its own Staff, the Consumer Advocate Division, and the findings of one of its own Administrative Law Judges.

Say what?  Take a look at WV PSC Case No. 13-0021-E-PC (look up "Case Information" here).  Two years ago, FirstEnergy asked the PSC for permission for its two West Virginia distribution companies (Potomac Edison and Mon Power) to market these useless "services" and products to their customers and to add the cost of any purchases to the customer's electric bill.

The Staff of the PSC and the Consumer Advocate objected to FirstEnergy's plan, which, in addition to the "Exterior Electrical Line Protection Plan," will soon be offering you:

1.  O
ther Home Solutions maintenance and repair plans (i.e. insurance) for other appliances you own, your natural gas service lines and even your plumbing. 

2.  Surge suppression service (which they already separately offer as part of their regulated service activity in West Virginia).

3.  Customer Electrical Services Program that allows your electric company to "arrange" electrical service work to be performed in your home.  You still pay for all the work they do, your monthly fee just alleviates your "hassle" of finding your own electrician and negotiating a reasonable fee for service with him.

4.  Online store - where you can buy all sorts of useless crap and energy-wasting space heaters, and pay for it all on your monthly electric bill.

A hearing was held, and the PSC's Administrative Law Judge recommended that the Commission prohibit this kind of promotion.  However, FirstEnergy didn't like that decision, so they filed exceptions to the Judge's Order and the Commission disregarded it and made a new finding that FirstEnergy could continue to promote these useless "services."


Remember, none of these services are regulated, so if you have an issue with service or billing of these add-ons, the PSC can't help you.  You're on your own to solve the problem with the company (and it's not even the utility you'll be fighting with, but some third-party "insurance company") or through the court system.

So, how much money does FirstEnergy make off these products?  Is the company really that desperate that it needs to peddle space heaters and worthless "insurance" to its customers?  It's not about the few pennies in kickbacks FirstEnergy receives from these third-party companies for selling you a "service," it's about the half a million bucks FirstEnergy was paid by one of these third-party companies for "licensing rights and utility bill access fees" to access Potomac Edison's or Mon Power's customer records and to have your utility bill you for their services.  FirstEnergy is essentially selling an asset -- its customer base and monthly billing system -- to a private company that hopes to make money selling things to the customer base.  There is a commercial value to a customer base of 500,000 customers.  When the customer base is acquired through a regulated monopoly, should the utility be able to sell it for private profit?  Your WV Public Service Commission says they can.

Tell your legislators to ask the PSC why they have allowed Potomac Edison and Mon Power to sell you out like that.  And think twice about jacking up your monthly electric bills with "insurance" you'll probably never need and overpriced lightbulbs from FirstEnergy's online store.

And want to have some fun right now?  All those junk mailers they're sending you have postage paid return envelopes to "Plan Administrator."  The envelope instructs:  "Include only your form and nothing else."  If you don't sign up for the plan, you won't need a "form," so go ahead and stuff them with "nothing else" or whatever you want and return them.  See how much scrap paper you can fit into the envelope!  Or perhaps your child would like to draw a picture for "Plan Administrator?"  Go ahead, have some fun!

And then, get serious.  The fine print instructs:
If you would prefer not to receive these solicitation from HomeServe, please call 1-888-866-2127.
Tell them you don't want to receive any more offers for their services from Potomac Edison or Mon Power and see what happens.  Of course, this won't stop the other offers from the other vendors mentioned above, but it's a start.  I'd like to know who's really controlling the mailing list here -- is it FirstEnergy or is it HomeServe?  Let me know what you are told in the comments section of this blog post...
40 Comments
Patience
3/1/2015 11:39:36 pm

I'd sure like to know why the commissioners even bother to get staff recommendations when they have a history of ignoring them ... (Funny thing - the recommendations usually are looking out for consumer interests, while the commissioners' decisions are designed to protect (or pad) the utilities' bottom lines.)

Reply
Walking Fingers
3/1/2015 11:48:56 pm

It occurs to me that it would be easier for me to find my yellow pages than it would be to find some insurance company paperwork with a phone number on it.

Reply
WV fried
3/2/2015 01:59:06 am

what good is surge protection insurance when the company denies every claim you make as an act of God?

Reply
Chuck
3/2/2015 02:14:27 am

rip off!!!!!!!!

Reply
PTB
3/2/2015 02:19:44 am

One more way Potomac Edison rips off the elderly!

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Debbie
3/4/2015 08:46:29 pm

Thank you Keryn!
Can you put this in all the local papers so that more people can read and understand and do not get ripped off?
You are always finding a fun way to toy with them :)

Reply
Keryn
3/5/2015 11:23:40 pm

The bit about the PSC decision came from Patience -- maybe she'd like to put it in the local papers?

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Lynn
7/22/2015 01:59:05 am

I just called Home Serve to ask that I be removed from their mailing list for this ridiculous "coverage." I also said that I considered their relentless mailings to be predatory, especially in a state with such an overwhelmingly high percentage of elderly residents. I said that while the letters describe the "plan" as optional, their tone is misleadingly urgent, fear-mongering, and tailored to appeal to those anxious about protecting their home without the ability to understand or further research the true cost and need for such "coverage." I said I'd be writing my legislators and the PSC about this. The operator said it would take 4-6 weeks to get me off the list. We'll see.

Reply
Keryn
7/22/2015 02:47:00 am

Lynn - you're my hero!

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Theodore L Kneupper (Ph. D.)
9/25/2015 06:58:50 am

I smelled a scam. Big money seems relentless in its efforts to heist as much as it can get away with from consumers. Yet another reason for more regulations and stiff penalties for what seems to be the insatiable appetite of the corporation-mentality, which thrives on selling useless junk by appealing to fear. Hopefully this era of unabashed shamelessness of the corporate world becomes widely known and it falls into the garbage pail of the medieval usurers.

Reply
Marie
11/14/2015 09:28:38 pm

Thanks so much for this post, I just received a mailing for exterior protection services in Western MD and it felt sketchy but this confirms it (also Potomac Edison/First Energy).

Reply
Tom link
1/5/2016 01:21:20 am

Thanks for the information! As I read all the fine print, it became more and more obvious that the plan was not worth the $72 per year with an increase to come each year!

Reply
Clark
2/22/2016 03:07:05 pm

Thanks for confirming what I suspected!

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JEF
4/20/2016 11:06:02 am

All you need do is take all the materials you received, fold it up and place it back in the return envelope and send it back to them.

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Lori Nagy
8/9/2019 09:38:18 pm

Don't forget the envelope the junk mail came in. Cut it up to fit into their return envelope. Add any other junk mail that fits and mail it. They pay for their own junk mail to be returned!

Reply
carol
8/29/2019 01:25:16 pm

I just now put the info back in the prepaid envelope along with a few other scraps of paper and its going back to them, im not falling for this at all

Tom
7/25/2021 06:18:12 pm

Brilliant! I am telling all my friends about this idea. I am so tired of these mailers.

Debbie ardinger
7/2/2016 07:27:29 am

I already accepted one for yhe exterior. Ca. I get'out of it and stop it ?

Reply
Christie G. link
7/31/2016 08:32:37 am

Thank you so much for posting this extremely helpful information! I was beginning to buckle under to the pressure of the constant bombardment of these flyers, and thought I really need to go ahead and pay for this ridiculous thing that I felt deep inside was a rip-off. I googled the info first and found you! Thanks for saving me some $$$!

Reply
Katie Murray link
8/26/2016 02:12:48 pm

So what do I do if these components are damaged? I did my own research from the companies website and found this so does my homeowners cover the cost? I am on a fixed income and what if I have trouble.

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carl martin
10/14/2016 09:12:11 am

Total rip off!! I bought this insurance and it covers nothing! My outside wire is falling off my house and they will not repair it! They say I have to have a loss of power.

Reply
Jim McNelly
11/30/2016 07:54:12 pm

Buying this insurance for external equipment is like buying insurance on a ten ton boulder in your yard. This equipment CAN NOT fail because of normal wear and tear.
Failure by any other means is not covered. I would be surprised if they EVER settle a claim. Total SCAM!!!

Reply
Tarin T
12/22/2016 05:47:56 am

I've been getting these mailing for a long time and always threw them away knowing deep down that something wasn't right. Why after years of not being offered coverage are we now all of the sudden getting the mailings that try to have you believe that if you don't act now you could be up s*&t creek? They arrive to the house in a potomac ed envelope leading everyone to believe that you MUST buy to protect yourself. I got another mailing today after months of not receiving one....so I googled it and this page popped up after Homeserve ads appeared. I'm so glad that this page is here, to confirm my gut instinct. Why are these big companies allowed to sell our info and why doesn't our gov't shut this crap down? We already pay outrageous bills that can hardly be kept up with. I'm a light nazi and still my bills range from $250 - $600 a month. How can there be such a wide range when nothing in my home changes? If anything, since adding insulated curtains and putting plastic up on the windows, my bill should have gone down. It just amazes me how big companies take such advantage of customers...of all ages.

Reply
Patty B link
1/6/2017 06:11:48 am

Can you give me your opinion about the furnace protection plan offered by Dominion for $5.95 a month? Is it worth buying this coverage?

Reply
Kim
1/17/2018 08:19:11 am

You need to read the plan and see exactly what and how the furnace is covered and under what circumstances the coverage works for you. Most likely it is crap. Put your $5.95 a month into a separate account and use it for your furnace repairs.

Reply
Anthony
1/16/2017 12:09:01 pm

For some years I had been receiving these flyers from HomeServe here in Indiana where I'm served by IMP. These flyers also stated that IMP is not affiliated with HomeServe ect., blablabla yadayadayada. But now recently I have been receiving flyers directly from IMP itself stating "Indiana Michigan Power recommends that you consider accepting Exterior Electrical Line Coverage from HomeServe." Hhhmmm. After reading this article I now suppose that IMP has sold us out here in Indiana to HomeServe! Oh well. As soon as I get these flyers in the mail, I always toss them into the recycle bin anyway!

Reply
Just Me
2/5/2017 07:49:07 am

Came across your article/blog while googling for an answer to my question if it'd be worth signing up for the service. (I assumed not, but...)
Thanks for the useful/clear info. Very helpful!

Reply
Jorge Fernandez
2/24/2017 12:14:29 am

Thank you for the useful information!

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Ryan
3/19/2017 05:00:15 pm

Thank you for this. And thanks for being the first site on Google. Lol

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Bob M.
4/5/2017 01:42:26 pm

Thanks. This helps a lot. Very annoying to get these all the time and likely some of the junk phone calls too.

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KEVIN GAINER
4/9/2017 06:55:04 pm

In my neighborhood, HomeServe is scamming water utility customers. I wrote a paper analyzing and documenting the costs to the local economy arising from just this one scam of HomeServe. The costs (the losses to consumers and the local economy) are substantial. If you want a copy of the paper, feel free to e-mail me at [email protected]. Like others, I would just like to see these scams cease.

Reply
Ric Widdifield
12/31/2017 04:30:39 am

Just another plan, by the man, to keep a brotha down!

Reply
Jeff
3/3/2018 10:15:25 pm

What about the Homeserve Interior Electrical and Heating System plan? I mean, you never know when a mouse is going to chew through a wire or when a circuit breaker is going to malfunction or when an electrical outlet gets hot etc. Not to mention heat pump repairs that seem to happen at the most inconvenient times. I guess what one is really paying for is peace of mind, if you never have to submit a claim. If you are on a fixed income, coming up with repair money is next to impossible. Knowing the most you will have to pay if something needs repaired is a $50 service fee is much better than calling someone out and being told your repair is going to cost upwords of $500 at a time. I guess it DOES have it's advantages but I see the point behind the exterior electrical plan, not too sensible to have that considering what it would cost to repair the only two things that could go wrong and knowing the likelihood of needing to call them would be very slim.

Reply
Jazz
4/5/2019 11:05:22 am

Jeff made a good comment regarding home heating system protection plan. I'm in NJ and PSE&G is my gas supplier. I have the Home Protection Plan for my furnace with it, and it has been working very well especially in most needed time as Jeff indicated. As for the Exterior Electric System, for ordinary home residence, it looks like a scam because per JCP&L, most of the exterior system is power company's responsibility expect you have special power equipment installed by yourself. Thanks.

Reply
Dawn link
7/2/2018 09:17:57 am

So I signed up for this through aep.com. My water pump (for my well) has no electricity going to it for some reason now. It is tied into meter riser. I just spoke with a HomeServe USA rep who told me that this issue isn't covered. So what the hell am I paying for? Ridiculous! I'll be canceling this service. Wish I had seen your article first!

Reply
Thom
11/17/2019 06:51:37 pm

Thank you so much...

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TonyC
2/18/2020 04:16:10 pm

I get these every month in NJ and wonder who in their right mind would buy this. PSE&G sends out this junk also for furnaces and hot water heaters, and gas pipes in the wall. Good luck having them replace your hot water heater for free if you don't replace the sacrificial rod inside it every year. I was a firefighter for 38 years it a town with 20,000 commercial, industrial, and residential buildings and the only times I have seen problems with the exterior wiring is when a tree or branch falls on it and takes it down; a passing vehicle pulls it down off the building; the splice the electric company put in the wire pulls apart, and that is usually the neutral wire causing lights to flicker in the building. The utility comes out and fixes it for nothing, its a fire hazard. And lightning. Don't waste your money. None of that stuff is covered by this scam. Phone companies used to have a similar plan for the "inside" wiring. What could go wrong with that? Good to see this info on here.

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Tiger Tails link
7/17/2020 12:24:02 am

It’s a great source of knowledge; I think it will be helpful for lot of people who are looking for learning more about if I should go for FirstEnergy add ons... Thank you very much for sharing this article, looking forward for more on this page. I have also found this resource Mitchellelectrical.nz useful and its related to what you are mentioning.

Reply
Chris Pederson link
10/27/2020 01:15:01 pm

Thanks for the tip to keep the phone number you get from the electrician that installs your electrical equipment. That way you can avoid looking for one. They'd also have the most knowledge about it in the end.

Reply
Stanley Burns
9/15/2021 06:20:23 pm

Thanks, I was ready to sign up (WestPennPower, PA),
until I read the above

Reply



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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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