Deregulated Electricity Leads to Proposed Class Action Lawsuit Seeking Millions

Deregulated electricity in states like Maine has allowed companies to lure customers in and then sharply increase their rates.

A proposed class action lawsuit against Electricity Maine targets the company over its allegedly unfair billing practices. If it gains class certification, the deregulated electricity lawsuit will be able to seek tens of millions of dollars in damages.

Two Maine women brought allegations of unfair billing practices against Electricity Maine, according to an article by the Portland Press Herald. They claim that the company took advantage of recently deregulated electricity and deceived its customers.

According to the lawsuit, Electricity Maine promised its customers that they would have to pay no higher than the “standard offer” price for electricity. (The “standard offer” price is determined by an electric supplier, and then approved by the Maine Public Utilities Commission.)

However, after just a short period with these promised lower rates, the company allegedly hiked their prices up suddenly—significantly above that “standard offer” price the company named as its threshold.

Indeed, according to this deregulation lawsuit, customers were suddenly hit with prices at least 50 percent above that standard offer price. Some customers saw their rates double.

If the deregulated electricity lawsuit is granted class action status, lawyers could add tens of thousands of customers to the action, leading to significantly higher damages.

Deregulated Electricity

Several states, including Maine, have deregulated electricity, which separates electric companies from utility companies.

After the state of Maine deregulated electricity back in the early 2000s, Electricity Maine began trying to sign up large amounts of residential customers to use its electricity service.

Electricity Maine was able to entice new customers after the state deregulated electricity with aggressive marketing and promises of continued low prices, and then increase their rates dramatically a few months later.

The sudden price jump customers saw a few months after signing up may be in response to the money the company spent on aggressive marketing tactics, trying to get new customers in the years between 2011 and 2014.

Essentially, this means that their marketing spending—a campaign in which they promised customers low prices—forced them to later raise their prices.

Filing an Electricity Maine Lawsuit

The U.S District Court in Bangor is going to rule on a motion to dismiss the case soon. If this motion to dismiss is rejected, then these plaintiffs are expected to move forward in asking for class action certification.

Being certified as a class action lawsuit would allow plaintiffs to seek millions of dollars in damages on behalf of tens of thousands of customers who were affected by Electricity Maine’s billing practices.

Around 1,000 Maine residents have already come forward since this action was filed to see if they could join a deregulation class action lawsuit, one attorney involved said.

If you were affected by Electricity Maine price increases after being promised prices no higher than the standard offer, you may benefit from participation in a class action lawsuit.

If you have seen a sharp increase in your utility costs paid through another energy retailer, you may be able to file a deregulated electricity overcharge class action lawsuit of your own.

Join a Free Energy Deregulation Class Action Lawsuit Investigation

If you buy your electricity and gas through an energy retailer in a state where energy was deregulated and your energy costs went up, you may qualify to file an energy deregulation overcharge lawsuit or class action lawsuit.

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