Constellation Energy at Heart of Local Deregulated Energy Problems

Many individuals who live in areas where energy services have been deregulated have complained that their energy costs are actually higher than before the deregulation. Constellation Energy of Maine is one such energy supplier that has customers wondering if they are under a better program than before.

Sixteen years ago, energy services were deregulated in the state of Maine. This means that non-governmental agencies could provide energy services to consumers and that consumers now had choice in what energy provider they would use.

Many consumers believed that the deregulation would decrease the amount of money they paid out each month in energy bills. This is not always the case.

Maine PowerOptions, according to the PressHerald, is “an energy consortium operated by two of Maine’s 14 quasi-state agencies” that brings together “hundreds of municipalities, school districts and other state nonprofits to purchase electricity and fuel oil in bulk.”

In essence, Maine PowerOptions, or MPO, purchases energy in bulk from suppliers and then sells that power to consumers. Consumers under the MPO umbrella have not seen a decrease in their energy bills and are calling for more transparency from the agency.

MPO primarily purchases energy from Constellation Energy. Constellation Energy, based in Maryland, has surprisingly won every bid for supplying electricity to MPO since MPO began. Lawmakers became concerned that Constellation Energy had won every bid for over a decade in a market that was supposed to be newly competitive.

MPO was created in 1999 and is overseen by Maine Municipal Bond Bank and the Maine Health and Higher Educational Facilities Authority. MPO offered to make the transition to deregulated energy consumption easy by signing up customers and opening up to receiving bids from the largest energy providers in the country.

In 2014, a probe was opened up by the Maine Office of Policy and Management to look into how MPO was handling its finances. It found that the program lacked transparency and stated that it couldn’t be trusted. The office suggested the program be terminated or at least overhauled.

Additionally, the Maine Center for Public Interest began to investigate the program and ask questions about whether or not the agency was handling the money of consumers well. The Maine Center for Public Interest found several interesting things about MPO’s relationship with Constellation Energy.

First, MPO claims that they use a detailed and well-thought out process to select energy suppliers. However, the PressHerald reports that not only did Constellation Energy win every bid, but that MPO has very little documentation regarding the Constellation Energy bids.

Next, MPO claims that they are an unbiased, non-profit partner that advocates for consumers when it comes to negotiating low costs for energy. However, according to the PressHerald, Constellation Energy pays a monthly fee to support MPO. This, to many, looks like a conflict of interest.

Also, it was revealed that in 2008, MPO made an agreement with Constellation Energy which prohibited MPO from making any other suggestions of different suppliers to consumers. Even so, MPO claims that it wants the best interest of its customers.

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.

Join Now