Constellation Energy Power Choice Sued Over 'Fleecing' Consumers

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A New Jersey man claims in a proposed class action that thousands of consumers have paid “considerably more” in electricity costs as a result of defendant Constellation Energy Power Choice, LLC’s deceptive pricing practices. The lawsuit alleges the defendant puts forth a “classic bait-and-switch deceptive marketing scheme” to lure in consumers, who are ostensibly offered by Constellation an initial fixed rate for a limited number of months that’s lower than local utility rates. Once that initial rate expires consumers, unless they re-up for another fixed rate, customers are supposedly switched over to a “variable rate” that adjusts each month “based upon such factors as electricity market pricing, transmission costs, utility charges” and other market factors.

The problem, according to the lawsuit:

“But what Constellation does not inform consumers is that its variable rate is substantially higher than the initial teaser rate and that it does not reflect changes in the market rates for electricity because Consellation’s rate is often significantly higher than the rates local utilities charge and most other [energy suppliers] charge (including Constellation’s own fixed rates).”

Ultimately, the defendant allegedly ends up raising consumers’ costs as high as it thinks it can “without causing customers to quit” without regard for its competitors’ prices or market rates. The case, at its core, claims Constellation takes advantage of consumers who are told upfront there is no connection between electricity market rates and the defendant’s variable rates.