ATTORNEY GENERAL RAOUL REACHES $3.5 MILLION SETTLEMENT WITH ALTERNATIVE RETAIL ELECTRIC SUPPLIER OVER ALLEGED DECEPTIVE AND UNFAIR BUSINESS PRACTICES

ATTORNEY GENERAL RAOUL REACHES $3.5 MILLION SETTLEMENT WITH ALTERNATIVE RETAIL ELECTRIC SUPPLIER OVER ALLEGED DECEPTIVE AND UNFAIR BUSINESS PRACTICES

December 18, 2024

Chicago - Attorney General Kwame Raoul announced a $3.5 million settlement with Palmco Power IL, operating under the name Indra Energy (Indra). The agreement resolves allegations that the alternative retail electric supplier (ARES) engaged in deceptive tactics to convince consumers to switch over to its expensive electricity, causing Illinois consumers to pay millions of dollars more than they would have if they had remained enrolled with their default public utility.

The $3.5 million settlement will provide restitution to eligible Indra customers who received electricity from the company for 30 days or more, beginning in October 2017. Refund amounts will be based on customers' electricity usage.

"Thousands of Illinoisans were contacted by Indra with promises of lower electricity rates and overall cost savings on their energy bills. In reality, consumers ended up paying more in energy costs than if they had stayed with their public utility company," Raoul said. "My office is committed to protecting Illinois consumers from deceptive practices utilized by some alternative retail electric suppliers, and preventing people from overpaying for the energy they need."

The Attorney General's complaint alleges that Indra falsely claimed to be affiliated with ComEd or Ameren to win consumers' trust; fraudulently promised free, government-subsidized tablets in exchange for enrollment; engaged in telephone solicitations without consumer consent and misrepresented the total amount consumers would pay if they switched to Indra. According to consumer complaints, Indra enrolled some consumers without their permission, a tactic known as "slamming." Consumers who switched to Indra virtually always paid more than if they had stayed with their public utility company, and many of Indra's victims were seniors.

In addition to restitution, Attorney General Raoul's office obtained critical injunctive relief in the settlement to prevent the use of such deceptive practices going forward. Under the agreement, Indra is required to stop marketing to and enrolling customers in Illinois for 18 months. If Indra resumes marketing and enrolling customers in Illinois after that time, an independent monitor will review Indra's practices for two years. The settlement includes a permanent injunction barring Indra from deceptive practices, including:

• Altering telemarketing recordings.
• Misrepresenting that consumers will save money.
• Misrepresenting an affiliation with public utilities.
• Enrolling consumers in Indra's services without their consent.

The settlement is the latest action Raoul has taken to protect Illinois residents from deceptive practices by ARES. In September 2024, Raoul announced a $10 million settlement with Teleperformance Colombia SAS, TPUSA Inc., and Teleperformance SE. That settlement resolved allegations that the third-party vendor working on behalf of several ARES, including Indra, deceived customers into switching from their public utility companies to more expensive contracts with ARES.

In May 2024, Raoul sued Southeast Energy Consultants LLC (SEC), alleging the third-party vendor working on behalf of several ARES deceived customers into switching from their public utility companies to more expensive contracts with ARES. In 2023, Raoul sued Residents Energy LLC over allegations the company's telemarketers and in-person sales agents used deceptive and unfair tactics to switch customers from their public utility companies to more expensive contracts with Residents. In 2020, Raoul's office filed a lawsuit against Liberty Power Holdings LLC alleging the company deceived tens of thousands of Illinois residents into signing contracts based on false promises Liberty would save them money on their electricity bills. The Attorney General's office previously settled lawsuits with, or investigations into Major Energy Electric Services LLC, Eligo Energy IL LLC, Realgy LLC, Atlantic Energy MD LLC, Palmco Power IL LLC, IDT Energy INC., Sperian Energy Corp., and Mega Energy of Illinois. The Attorney General's office is pursuing investigations into other ARES.

Attorney General Raoul also initiated the Home Energy Affordability and Transparency (HEAT) Act, which strengthens oversight of ARES and protects consumers from bad supplier contracts. The HEAT Act went into effect in January 2020 and gave the Attorney General's office stronger tools to shut down suppliers that engage in fraudulent and misleading conduct, and return money to consumers who have been harmed.

Consumer Protection Division Chief Susan Ellis, Assistant Chief Deputy Attorney General Thomas J. Verticchio, and Public Interest Counsel Darren Kinkead are handling the case for Raoul's office. Illinois-based law firms Edelson PC; Hughes Socol Piers Resnick & Dym, Ltd.; and Miner, Barnhill & Galland, P.C. are also assisting with the case.