Connecticut Discount Power Variable Rate Class Action Settlement

A settlement has been proposed in a class action lawsuit alleging Discount Power Inc. misled customers by falsely representing that its variable rate for electricity supply services would fluctuate based on changes in the “wholesale power market.”

If you were enrolled in a Discount Power variable rate electric plan in connection with a property located in Connecticut at any time from June 1, 2013 and July 31, 2016, you may be entitled to a cash payment from the Discount Power class action settlement.

Plaintiffs Holly Chandler and Devon Ann Conover initially filed the Discount Power class action lawsuit in November 2014. They claim that Discount Power Inc. (DPI) represents in its marketing materials and contracts that it offers a variable rate plan that is tied to the market rate in the wholesale power market.

“However, contrary to DPI’s representations and obligations, DPI consistently and improperly charges an extraordinarily high premium rate for electricity regardless of fluctuations in the underlying market price,” the Discount Power class action lawsuit alleges.

Chandler and Conover assert Discount Power “routinely charges its customers two, three or nearly four times the underlying market rate, notwithstanding DPI’s representations that its variable rates ‘reflect’ monthly wholesale electric prices.”

According to the Discount Power class action lawsuit, DPI’s rates increase to match the spikes in the underlying market price, but the rates remain at an inflated level when the market prices go down, subjecting consumers to “consistent and unlawful ‘heads I win, tails you lose’ pricing.”

Discount Power maintains that it did nothing wrong and that it followed all of the terms contained in customers’ contracts. However, it agreed to settle the variable rate class action lawsuit to avoid the cost and risk of trial. According to the class action settlement documents, Discount Power will pay $850,000 into a settlement fund.

Class Members who would like to opt out of or object to the Discount Power variable rate settlement must do so no later than Feb. 27, 2017.

Who’s Eligible

Class Members of the Discount Power settlement include all individual residential and small business consumers enrolled (either initially or through “rolling over” from a fixed rate plan) in a Discount Power variable rate electric plan in connection with a property in Connecticut at any time between June 1, 2013 and July 31, 2016.

Potential Award

Varies.

The amount each claimant will receive depends on the amount of variable rate electricity they used during the Class Period as a percentage of variable rate electricity used by all claimants during the Class Period. The amount may be reduced on a pro rata basis depending on the number of claims filed.

Proof of Purchase

N/A. Class Members may need to provide their CL&P, Eversource or United Illuminating electric utility account number for the account in which they enrolled in Discount Power’s electricity supply services.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

3/10/2017

Case Name

Chandler, et al. v Discount Power Inc., Case No. HHD-CV-14-6055537-S, in the State of Connecticut Superior Court, Judicial District of Hartford

Final Hearing

3/27/2017

Settlement Website

www.DiscountPowerSettlement.com

Claims Administrator

Discount Power Settlement
c/o Kurtzman Carson Consultants (KCC)
P.O. Box 43034
Providence, RI 02940-3034
1-877-435-2043
info@DiscountPowerSettlement.com

Class Counsel

Seth R. Klein
Robert A. Izard
IZARD KINDALL & RAABLE LLP

Defense Counsel

James Shearin
David Atkins
PULLMAN & COMLEY LLC