Attorney general's lawsuit: Retail electric supplier duped customers

Energy customers who paid higher rates after signing up with an alternative retail electric supplier that promised them lower bills could get relief if a lawsuit filed by Attorney General Lisa Madigan is successful.

Madigan's office filed suit Thursday claiming Sperian Energy Corp. violated the state's consumer fraud and deceptive business practices act by misleading customers in order to lure them from traditional utility companies to purchase expensive alternative contracts.

Customers believed they were signing up for a discounted rate from ComEd or believed they were going to save money through a made-up energy choice program, according to the complaint. In reality, Sperian customers routinely paid higher prices for their electricity, the suit says.

Since 2012, Sperian customers paid at least $12.7 million more in rates and extra fees than they would have paid if they had remained with the regulated utility, according to Madigan's office.

"Sperian needs to be held accountable for violating the law and misleading people about the prices it charged for electricity," Madigan said in a prepared statement.

The complaint alleges Sperian sales representatives used "aggressive and deceptive sales tactics" to enroll customers then failed to disclose information about the price, length of contract and a new monthly fee they would be required to pay. According to the complaint, sales representatives also failed to inform customers the rates were introductory and applied only for a set period of time after which - if customers did not respond - they would pay a more expensive, monthly variable rate.

In an email, Sperian CEO Paul Keene expressed disappointment that Madigan filed a lawsuit "related to our Illinois sales activities that took place several years ago."

Keene declined to comment on the pending litigation, but stated that the company "takes customer satisfaction and sales compliance very seriously."

At least 96 alternative retail electric suppliers, or ARES, sell electricity in Illinois according to the attorney general's office. According to the Illinois Commerce Commission, ARES customers paid more than $152 million more for energy than traditional utility customers from June 1, 2016 through May 31, 2017.

Madigan advised consumers weighing ARES offers to read the fine print to determine whether the new rates are merely introductory.

She advised consumers against sharing their utility account numbers with anyone, either in person or on the phone and suggested they ask about monthly fees and be wary of any offer that guarantees savings.