Wittels McInturff Palikovic has filed a multi-state class action on behalf of thousands of electricity customers who were charged exorbitant electricity rates after switching from their local utility to Major Energy Electric Services LLC (“Major Energy”).
Traditionally, residential gas and electricity were supplied by regulated utilities like Con Edison and the rates that these utilities could charge were strictly controlled. However, in the 1990s, Enron’s unprecedented lobbying campaign resulted in the deregulation of state energy markets such that consumers were permitted to choose from a variety of companies selling residential energy. Seizing on deregulation, independent energy service companies (“ESCOs”) like Major Energy entered the energy market.
New York-based Major Energy sells electricity in 8 states and Washington, D.C. Its underhanded customer acquisition tactics and deceptive electricity sales have amassed a damning public dossier, including investigation and legal action taken by the Illinois Commerce Commission and the Maryland Public Service Commission. Major Energy lures customers with a promise of competitive variable rates reflective of market conditions, but these rates have proved anything but. In fact, its exorbitant rates have no relation to market conditions, and have, at times, even doubled those of the local utility.
Only through class action litigation can customers remedy Major Energy’s wrongdoing. Because the monetary damages owed to each customer are small compared to the much higher cost that customers would incur in trying to challenge Major Energy’s unlawful practices on an individual basis, it does not make financial sense for an individual customer to bring her own lawsuit. Further, many customers don’t even realize that they are victims of Major Energy’s deceptive conduct. With this proposed class action, Wittels McInturff Palikovic seeks to level the playing field and make sure that companies like Major Energy and other ESCOs engage in fair and upright business practices.
For more information, or to join this case, contact us.