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Company Offering 50% Free RECs To Customers For Taking Over Retail Electric Provider Bill Payment, Account Info

August 19, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Update, August 30: Arcadia Power informed ECM that it does not offer its bill payment service in competitive areas of Texas.

Original story, 8/19:

Arcadia Power announced a program under which it will offer wind RECs equal to 50% of the customer's usage at no cost when customers enroll in the company's program under which the company acts as the customer's agent in paying the customer's utility (or REP) bill

Arcadia Power offers the service nationally, including acting as the customer's agent for electricity bill payments to competitive retail electric providers. Arcadia Power's online sign up specifically lists a handful of Texas REPs under Texas zip codes (with an "other" option if the REP is not listed). In other choice states, only EDCs are listed, but an "other" option is available.

To be clear, no agreement between Arcadia Power and the REP is needed for the customer to use Arcadia Power's service, as the customer gives Arcadia Power necessary credentials and authorization to access their account and to make needed changes to the customer's electricity account to participate (such as using e-billing). The REP may not even be aware that their customer is using the program

Under the program, customers authorize Arcadia Power to retrieve the customer's utility account information that is maintained online by the utility. Arcadia Power automatically pays the bill for the customer. Arcadia Power then itself separately bills the customer for the utility charges plus any Arcadia Power charges (fees or 100% REC offering noted below), using an auto-debit from a checking account or credit card. Customers pay Arcadia Power, not the utility, under the arrangement, and Arcadia Power, "will facilitate payment," to the utility as the customer's agent and on the customer's behalf.

Arcadia Power's terms of service provides that, "You understand and agree that payments facilitated by Arcadia Power may incur a Fee. This Fee will be included on your Arcadia Power Bill. The Fee may vary, depending upon factors, including but not limited to your Utility, the Payment Method, and promotions run by Arcadia Power. The Fee is subject to change at any time without prior notice and will be disclosed to you prior to payment submission."

An FAQ states that there is a 3% processing fee to use a credit card or debit card. There is no fee to use a checking account.

Arcadia Power's FAQ states that customers will not receive a bill from their utility (or REP as the case may be). "Arcadia Power will receive your local utility bill and we will send you one bill that combines your local utility charges with your Arcadia Power Wind Energy RECs," the FAQ says

This obviously raises issues with respect to customer receipt of bill messaging, both for utility public policy messages, as well as marketing messages (in the case of REP bills).

Indeed, Arcadia Power's terms of service provides, "You authorize Arcadia Power to receive Utility Account Notices on your behalf and you understand and agree that we may not pass along any or all of these Notices to you. You agree that Arcadia Power shall not be liable for any delays, failure to deliver, or misdirected delivery of any Utility Account Notice."

Arcadia Power's terms of service also provides that, "We will use reasonable efforts to facilitate your payments properly. Arcadia Power makes no guarantees, warranties, representations or commitments regarding when payments will reach your Utility. You understand and agree that any timeline provided by Arcadia Power regarding payments is an estimate only. Arcadia Power cannot be held responsible for any fees, penalties, or late payment interest charged to you by your Utility or any third party as a result of a delay in payment."

See Arcadia Power's terms of service here

Arcadia Power also offers a 100% wind REC product for a 1.5¢ per kWh premium

Arcadia Power recently raised $3.5 million in funding led by BoxGroup and Wonder Ventures.

The $3.5 million capital raise will allow Arcadia to expand its consumer energy options to include community solar and on-bill financing of energy efficient products like smart thermostats and LED lighting.

Arcadia said that nearly 10,000 customers have already chosen Arcadia’s premium wind offering

Arcadia Power offers a rewards program, has partnered with various green-focused organizations, and offers up to $25 for customer referrals (with a $25 credit to the referred customer as well)

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