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Curious About Alternative Energy Sales

BOSTON (CBS) -- What happens when someone comes to your home trying to sell you electricity?  That's going on in the Boston area and some of you are telling us you're feeling misled. 

Linda from South Boston Declared her Curiosity by asking:  "Who are these people from Just Energy ringing doorbells in my neighborhood saying they're from the electric company?" 

As we found out, Just Energy has a troubling past.

"I did feel deceived," says Laura McDonagh from South Boston. 

"I think they're going into neighborhoods and trying to con people," adds Mark Riordan from Brighton. 

Neither Laura nor Mark mince words about a company called Just Energy, after salesmen came knocking on both their doors.  "There was a gentleman there who said he was from my energy company, me electric company," says McDonagh. 

"I thought he was from NSTAR," says Riordan. 

They both thought the salesmen were from NSTAR, because NSTAR is their electric company.  And they both say the man at the door didn't dissuade them from that belief.  "These people never said who they were working for," says Laura. 

WBZ-TV's David Wade reports.

The men were working for Just Energy, which is an independent power supplier.  The company has been selling "green" electricity in Massachusetts for about a year.  Laura McDonagh says the pitch was that she could help with the environment and maybe save some money. 

Just Energy is licensed by the state to sell electricity.  If you sign up, you're making a five-year commitment and rates can change every month. 

"Thank you very much, goodbye," is what Laura told the salesman after he asked her to show him her electric bill.  She didn't realize the salesman wasn't from NSTAR until she looked at a pamphlet he gave her as he left.  It said "Just Energy."  She promptly Googled the company.  Laura learned that Just Energy has faced allegations of deceptive practices in a number of states. 

We found actions taken against the company, which was once known as U.S. Energy Savings, by the Attorneys General in New York and Illinois, as well as the Public Utility Commission in Texas and the Ohio Consumers Council.  The company paid hefty settlements in each case including a million dollars in Illinois.

"Their past raises significant questions," says David Kolata, who heads the Citizens Utility Board in Chicago, a watchdog group that has monitored Just Energy for several years.  "The vast majority of complaints that we've received have been about misleading marketing, and consumers feeling that they weren't told the whole truth," says Kolata. 

Just Energy wouldn't talk to us on-camera, but in a statement that admitted to some past problems says:  "Our current operating practices are designed to reduce and eliminate unauthorized sales statements or actions." 

But the Riordans say the company has a lot more work to do.  Mark's father, Dick Riordan, signed a Just Energy contract still thinking it was NSTAR.  He says he didn't understand the five-year deal, and that the salesman didn't tell him how much more he'd pay for green power.  "I had no idea there was another electric company in the area," he says.

"I think they're coming into your neighborhood under false pretenses," says Mark Riordan.  The Riordans are canceling, but feel like Just Energy is stringing them along.

The Massachusetts Attorney General's office says it's received a handful of complaints about Just Energy, and that the company has been responsive.

We asked Just Energy to look into the Riordans situation.  Here's the statement we received from Just Energy spokesman, Gord Potter:  "I reviewed the customer account below. The customer account was cancelled without exit fees per our customer policy, however the cancellation was not processed in a timely manner. Usually , it will take 1-2 billing cycles for the customer account to switch back to the utility and in this case we will ensure that customer is reimbursed for the additional period it has taken."

And here's what he had to say about Laura McDonagh's claims:  "After investigating the matter internally, we see this as a routine sales visit that resulted in a disinterested consumer. Our sales person acted in a professional manner and, upon review, his record supports that."

And here is the full statement we received from Just Energy regarding the allegations Laura McDonagh and the Riordans are making: 

"In the past, there have been instances where our sales people acted on their own and did not follow our code of conduct. We regret those incidents. When we learned of them, we took immediate steps to prevent them from happening again. Our current operating practices are designed to reduce and eliminate unauthorized sales statements or actions. To ensure this, all of our salespeople are screened, trained, uniformed, credentialed and equipped with pre-approved, plain-language sales materials. Additionally, customers receive an independent verification phone call confirming their understanding of our product and terms of the contract.

In the end, we believe our customers see the value in our product and our customer service. In fact, 78% of our current customers tell us they satisfied with their decisions to be our customers. Additionally, 8 in 10 of our customers would recommend us to family and friends. Beyond customer service, part of how we do business is to invest and purchase locally. In Massachusetts alone, we have made more than $1.3 million in purchases from local renewable energy facilities and we continue to create local jobs.

Just Energy has provided service in Massachusetts for a year now and we feel our track record speaks for itself as confirmed by our customers."

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