If you punch IGS Energy into Google, you can find stories of IGS horrors. Like this. This. And this in nearby Ann Arbor. So I wondered whether this is a scam.
IGS offers a way to buy natural gas at a fixed price all season. If I stay with my utility, the gas price may go up or down -- IGS offers an insurance policy, and a chance to escape the utility monopoly in my town.
I wanted to crumple the letter up and throw it away. Last year I would have lost money, because last fall there was a big recession, and gas prices fell fast. It would not have paid to lock in.
On IGS's side, they have an A+ rating from the BBB. In their home state of Ohio, 40% of the state uses an alternate source gas company, so they are not a fly-by-night company.
IGS seems suspicious since it is hard to find out anything about it. It is a private company, and I can't find who the CEO is, where the headquarters is, and how large the company is -- not really a Red Flag, but troubling. It is not even clear if the name of the company is Interstate Gas Supply or IGS Energy. [[Update: someone from IGS posted the CEO name and the headquarters location in the comment below. Nice to see them trying. That is a good sign.]]
IGS is offering me a gas rate of 0.69/SCF (Standard Cubic Feet) whereas DTE Energy is offering 0.79/SCF. This would save me about $9/month over the season. IGS does not replace my utility; most of my bill will be other fees from my gas company.
I am still thinking about what to do. Leave a comment if you have an opinion.