TYLER - As the price of energy soars, scam artists are hard at work with an electricity scheme that's being reported across the country.

Investigators say the purported scam is not to defraud consumers. Rather, they say, the pyramid scheme appeals to gullible people who are looking for a way to earn extra money as distributors, by selling electricity door-to-door.

"So, far, we haven't seen electricity sold through a pyramid-type sponsorship in East Texas...yet," said Kay Robinson, director of the Central East Texas Better Business Bureau. "But it could happen."

Robinson said the pyramid scheme works like this: Salespeople at the top recruit people and these people, often called distributors, recruit more people. They, in return, get a cut of the entrance fee of each new recruit and each new person that signs up down the line. The pyramid is aimed to allow the person at the top to make all the money.

The BBB says "electric" pyramid schemes are rigged to rake in the fees that each so-called "distributor" must pay.

In that case, it's illegal.

"A pyramid scheme never works because you eventually run out of people," said Robinson.

The Better Business Bureau admits that because of the deregulated market, people should also be on the lookout for independent salesmen showing up at your door.

They warn that it doesn't necessarily mean the product is not legitimate - but rather they encourage consumers to check resources and be aware of the potential dangers.

"They are selling electricity, but who are they buying it from? Probably from the big guys. So consumers should just watch out."