Like many New Jerseyans, George Rahey has a damp basement.
He headed out to Costco in September, hoping to find a solution.
Rahey picked up some ham, cheese, blueberries and corn, plus a 50-pint dehumidifier, manufactured by Midea. The unit cost $149.97, but because it was an Energy Star-rated appliance, it was eligible for a $40 rebate.
Or was it?
“There is a sticker on the box indicating a $40 rebate is available,” the Middletown man told Bamboozled.
Indeed, it says just that, not in black and white but in green, white and blue, complete with the JCP&L logo and a website to find the rebate application.
Rahey completed the application, but instead of a $40 check, he received an unexpected response about a month later.
“After careful review of your appliance(s) application, we regret to inform you that you are not eligible for a rebate” because the unit was not Energy Star rated, an email from JCP&L said.
The Middletown man asked Costco about the rebate and the sticker on the box. It said it didn’t handle rebates, which were between the utility and the manufacturer.
Rahey next tried Midea, the manufacturer, in early November. He explained what happened by email and asked how he could get the promised rebate.
A representative took all the details and said the case would be escalated.
On Nov. 12, the rep confirmed the unit was an Energy Star model. She suggested he speak to his utility company.
Rahey wasn’t taking kindly to the shuffle. He forwarded JCP&L’s response to Midea.
“So someone owes me the rebate. Costco says it’s not their problem. The power company says no. And Midea is telling me to go back to the power company,” the retired sales director said. “Something isn’t right.”
The Midea rep said a team was looking at it internally and thanked him for his patience.
We’re not so sure Rahey was patient. But he waited.
On Nov. 19, the representative once again confirmed the unit was Energy Star certified.
“This model was certified on October 27, 2023,” the representative said, suggesting it may not be on the Energy Star website because it’s a Costco-specific model. She referred him again to the utility.
And there was more back and forth through December, with Rahey getting nowhere. But you get the picture.
“This is a big runaround,” Rahey said, and he asked Bamboozled for help.
UNTANGLING THE CASE
Consumers can save money through rebates by purchasing Energy Star-rated appliances.
“To earn the Energy Star, they must meet strict energy efficiency criteria set by the U.S. Environmental Protection Agency or the U.S. Department of Energy,” the federal Energy Star website says. “Since they use less energy, these products save you money on your electricity bill and help protect the environment by causing fewer harmful emissions from power plants. And you get the features and quality you expect.”
Savings for New Jersey’s clean energy program used to be run at the state level, but it’s now handled by individual utilities.
Given that JCP&L’s name was on the sticker on the Costco dehumidifier box, we took a look at the utility’s website. It lists what appliances are eligible, and this one wasn’t on the list.
We asked JCP&L to double-check, and we also reached out to Costco and Midea.
The manufacturer didn’t respond, but Costco did.
That same day, a Costco representative called Rahey and sent a follow-up email with a mea culpa and an offer.
“I’m sorry for the hassle around the utility rebate,” she wrote. “The EPA changed requirements for Energy Star certification in October which made our unit (and others) non compliant.”
She offered to send Rahey a $40 gift card to make up the difference.
That was great news. We asked Costco to confirm the resolution, but we also wanted to know more.
How many other units were sold as Energy Star after it no longer qualified? Did other customers complain?
Or, was Costco planning to proactively check its files and reach out to other purchasers with a similar resolution?
And finally, how many of the units remained on the shelves, and was Costco planning to remove them — or at least — remove the stickers?
Costco did not respond.
Rahey said he was pleased with the $40 gift card offer, but he blames the manufacturer, not Costco, for the mistake.
He said he felt for others who might have had rebate applications rejected.
“And once it gets rejected then it’s too bad, so sad,” he said. “It took me weeks.”
Then in an unexpected twist, JCP&L made an offer of its own.
“We know this is a frustrating situation, and since the Energy Star sticker was still on the box by mistake, we’re honoring the rebate,” spokesman Christopher Hoenig said.
That would leave Rahey with $80.
We let Costco and JCP&L know of each other’s offers, but neither pulled back their payments.
So what will Rahey do with the extra money?
“Really, I am going to give the money to my wife because she has been hearing me complaining about this for almost two months now,” Rahey said.
The lesson here? Mistakes happen. In this case, Costco and JCP&L both made it right, but no one should count on getting a positive result after an error.
But before you buy an Energy Star product of any kind — at any retailer — check your utility’s website to make sure it’s eligible for the rebate you expect.
