Constellation NewEnergy Electricity Rate Lawsuit Investigation

Our attorneys are investigating allegations that Constellation is convincing consumers to change electricity providers with a promise of a low fixed rate, which later changes to a much higher variable rate. One Illinois consumer says, “Don’t get fooled by [their] teaser rates and a $75 gift card.”

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Deregulated Energy Sellers, Like Constellation, Use Teaser Rates to Lure Customers

Many states, such as California, Illinois, and New York, have deregulated their energy markets, so that in addition to utility companies, marketing companies can also sell electricity to consumers. Often, the energy is still provided by the utility, which owns the power lines and gas mains. Utilities generally need state approval to increase their rates. Deregulated providers are often free to charge whatever they like.

Deregulated sellers like Constellation NewEnergy often hire large teams of door-to-door salespeople who try to lure consumers away from their local utility to use the deregulated seller instead. They often promise a fixed electricity rate that is lower than the local utility, but when this rate expires, customers report that their rates can be double what they were paying before.

One New Jersey consumers says that Constellation failed:

to give notification when the fixed term of the contract is expiring (as promised) and secondly they raised the unpublished variable rate (which kicks in as soon as the fixed rate ends) from .0799 to .1734 cent per kWhr even though their contract says their unpublished variable rate will never be more than .1500cent per KWHR.

Our Consumer Protection Practice

Eric Gibbs

A founding partner at the firm, Eric has negotiated groundbreaking settlements that favorably shaped laws and resulted in business practice reforms.

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Amy Zeman

Amy has built a reputation in the plaintiffs’ bar for delivering results to consumers and sexual assault survivors in class actions and mass torts.

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Dave Stein

Dave represents clients in cases nationwide, ranging from securities and financial fraud cases to product liability, privacy, and data breach suits.

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Steve Lopez

Steve represents consumers, employees, and whistleblowers harmed by corporate misconduct in a variety of complex litigation cases.

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Our Consumer Protection Practice

For nearly 30 years, our consumer protection attorneys have challenged unfair business practices that erode consumers’ confidence and compromise their rights. We have recovered hundreds of millions of dollars for clients in litigation against the world’s largest corporations, earning some of the largest consumer settlements of all time and establishing our reputation as a skilled and trusted advocate for consumers

About Us

Gibbs Law Group is a California-based law firm committed to protecting the rights of clients nationwide who have been harmed by corporate misconduct. We represent individuals, whistleblowers, employees, and small businesses across the U.S. against the world’s largest corporations. Our award-winning lawyers have achieved landmark recoveries and over a billion dollars for our clients in high-stakes class action and individual cases involving consumer protection, data breach, digital privacy, and federal and California employment lawsuits. Our attorneys have received numerous honors for their work, including “Top Plaintiff Lawyers in California,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” “Best Lawyers in America,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
titan of plaintiffs bar award
best law firm ranking
chambers USA leading firms award
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Electricity rates unreasonably high?

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