Consumers Surprised by High Constellation Energy Rates

Consumers have been recently complaining about Constellation Energy rates, which allegedly became much higher soon after they switched over from their previous power company.

When customers were first approached by the company, they say they were promised significantly cheaper Constellation Energy rates compared to what they were paying with their previous power company. According to some who switched providers, the lower rates did not last.

The cheaper Constellation Energy rates stem from the recent movement of energy deregulation, which created a more competitive marketplace for companies and allowed consumers to shop around for better rates. Energy deregulation allowed for the rise of energy resupplying companies, which buy gas or electricity at wholesale value and then redistribute them to consumers.

Constellation Energy, owned by Exelon, is one of these energy resupply companies that touts itself on providing power, natural gas, renewable energy, and other energy sources for businesses and homes across the country.

According to the company’s website, approximately two million residential, public sector, and business customers have signed with Constellation Energy including two-thirds of Fortune 100 companies.

Even with the company’s popularity, consumers have still been allegedly feeling the sting of high Constellation Energy rates.

Overview of Class Action Energy Lawsuit

One of these customers recently filed legal action in May 2017, from a man from New Jersey who alleges the company had used classic bait and switch marketing tactics to get them to sign up with the company.

More specifically, consumers were allegedly presented with an initial rate that was to be fixed for a few months, a rate that was allegedly lower than local power utility companies. The claimant says he was a Constellation customer for electricity from December 2011 to January 2016, during which time he says his rates increased more than he had been led to expect.

Plaintiff Michael C. filed this class action energy rate lawsuit on behalf of himself and other consumers who allegedly experienced unreasonable Constellation Energy rates.

According to the claim, Michael was promised $0.09999 per kilowatt-hour (kWh) for 12 months, which was lower than his local utility company PSE&G. After the 12 months ended, the Constellation Energy rates reportedly went up dramatically at $0.1599 k-Wh while PSE&G charged a rate between $0.1154 to $0.1198 kWh.

These Constellation Energy rates were much higher than what was promised and exceeded the prices set by PSE&G. According to the terms of the contract, the rate charged after the initial 12 months would change, but it would be established soon after he signed the contract.

This Constellation Energy class action lawsuit is an example of an issue affecting many utility customers, especially when they are locked into a contract for several years with the energy resupply company. Customers allege that these companies have been using deceitful marketing tactics to convince customers to drop their traditional energy provider.

Some customers complain that these energy companies do not tell consumers why their rates may fluctuate and will not honor their promise to keep their rates at a competitive market rate. Deregulated companies are not subject to the same requirements as traditional public utility companies, which are expected to disclose reasons for fluctuations in energy rates.

This Constellation Energy Rates Class Action Lawsuit is Case No. 2:17-cv-03437-JMV-MF, in the U.S. District Court of New Jersey.

Join a Free ESCO Energy Class Action Lawsuit Investigation

You may qualify to file an energy service company class action lawsuit if you bought utilities through a deregulated energy supplier such as:

• Constellation
• Reliant Energy
• Verde Energy
• Spring Energy

Learn More