Officials Look Into Ignites Money Saving Promise

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5/11/2006

Officials looking into energy club's money-saving promise

The Harris County District Attorney’s office has questions about an electricity club that promises to save money.

Lois Barrow may well agree.

The suburban housewife has combined her new energy provider, Stream, and her new business, into one thanks to Ignite – the marketing arm of Stream Energy.

“All I had to do was get three people who wanted to make money and 10 people who wanted to save money, and that’s all there was to it,” the independent sales associate for Ignite said.

The setup for her business cost $319. Maintaining her Web site costs $20 a month.

She joined in March and said she’s already made money.

But Harris County prosecutor Russel Turbeville has also done some research into Ignite.

“Flutters and swims like a duck you know,” he said. “Sounds like a pyramid, looks like a pyramid.”

His concern: You can sign up for Stream Energy at its low, advertised rates on its own Web site, bypassing Ignite and bypassing any fees.