Energetix Will Rescind Gas Price Increase

Apr 10, 2001, 01:00 ET from Energetix Inc.

    ROCHESTER, N.Y., April 10 /PRNewswire/ -- Recognizing that customer trust
 and goodwill are its most important assets, Energetix Inc., a local energy
 services company, today announced it is rescinding a recent natural gas price
 increase that would have affected a limited number of customers.
     "The impact of absorbing this increase in the cost of natural gas and not
 passing it on to our customers is substantial.  But so is the value of our
 reputation as a company that works with integrity to bring our customers the
 lowest possible gas prices," said Michael Bovalino, president and chief
 executive officer of Energetix.
     The company had announced the price increase in letters to customers --
 from 41.5 cents per therm of gas to 57.5 cents.  The price increase was driven
 by a change that required Energetix to purchase gas for its customers in a
 different manner, which will increase its gas costs.
     Because of the change, Energetix made a good-faith business decision to
 exercise its contractual right to adjust prices or terminate the contracts
 with its customers.  Several customers complained to Energetix and to the New
 York State Public Service Commission (PSC).  While the PSC does not regulate
 the pricing policies of Energetix or any other unregulated energy marketer, it
 worked with Energetix to resolve the situation.
     Energetix acknowledges that its letters to customers were confusing to
 many people, did not fully describe customer options, nor explain adequately
 that gas supply to customers would not be interrupted.  Recognizing these
 communication shortcomings and the customer confusion which resulted, the
 company decided to rescind the price increase.  The original contracts of the
 affected customers, at 41.5 cents per therm, will be restored for their full
 terms.
     The company agrees that it is important to preserve customer choice of
 energy suppliers as a more competitive marketplace evolves.
     "We want to continue to be a successful energy supplier," Bovalino said.
 "We also want to contribute to the goal of bringing about a robust,
 competitive energy marketplace in Upstate New York."
     Bovalino said Energetix will contact the few customers who left the
 company when the price increase was announced and offer them the chance to
 return.  He said anyone who has already paid the higher price in an April bill
 will receive a credit to account for the rollback in May.
     Energetix customers saved about 45 percent on their heating bills this
 past winter over regulated prices.
 
 

SOURCE Energetix Inc.
    ROCHESTER, N.Y., April 10 /PRNewswire/ -- Recognizing that customer trust
 and goodwill are its most important assets, Energetix Inc., a local energy
 services company, today announced it is rescinding a recent natural gas price
 increase that would have affected a limited number of customers.
     "The impact of absorbing this increase in the cost of natural gas and not
 passing it on to our customers is substantial.  But so is the value of our
 reputation as a company that works with integrity to bring our customers the
 lowest possible gas prices," said Michael Bovalino, president and chief
 executive officer of Energetix.
     The company had announced the price increase in letters to customers --
 from 41.5 cents per therm of gas to 57.5 cents.  The price increase was driven
 by a change that required Energetix to purchase gas for its customers in a
 different manner, which will increase its gas costs.
     Because of the change, Energetix made a good-faith business decision to
 exercise its contractual right to adjust prices or terminate the contracts
 with its customers.  Several customers complained to Energetix and to the New
 York State Public Service Commission (PSC).  While the PSC does not regulate
 the pricing policies of Energetix or any other unregulated energy marketer, it
 worked with Energetix to resolve the situation.
     Energetix acknowledges that its letters to customers were confusing to
 many people, did not fully describe customer options, nor explain adequately
 that gas supply to customers would not be interrupted.  Recognizing these
 communication shortcomings and the customer confusion which resulted, the
 company decided to rescind the price increase.  The original contracts of the
 affected customers, at 41.5 cents per therm, will be restored for their full
 terms.
     The company agrees that it is important to preserve customer choice of
 energy suppliers as a more competitive marketplace evolves.
     "We want to continue to be a successful energy supplier," Bovalino said.
 "We also want to contribute to the goal of bringing about a robust,
 competitive energy marketplace in Upstate New York."
     Bovalino said Energetix will contact the few customers who left the
 company when the price increase was announced and offer them the chance to
 return.  He said anyone who has already paid the higher price in an April bill
 will receive a credit to account for the rollback in May.
     Energetix customers saved about 45 percent on their heating bills this
 past winter over regulated prices.
 
 SOURCE  Energetix Inc.