Shaun Zinck May 21, 2015, 12:39pm


A Pennsylvania electric generation supplier will pay nearly $2 million to settle a lawsuit with the state that accused the company of deceiving consumers over its variable electric rates, said state Attorney General Kathleen Kane.

Pennsylvania Attorney General Kathleen Kane announced Monday her office had reached a $1.6 million settlement with HIKO Energy over allegations that the company deceived consumers about its variable electric rates.
Pennsylvania Attorney General Kathleen Kane announced Monday her office had reached a $1.6 million settlement with HIKO Energy over allegations that the company deceived consumers about its variable electric rates. | Shutterstock

Kane made the announcement on Monday, and added many of the consumers who signed up for HIKO Energy's services complained about the spikes in rates during the winter. About $1.6 million will go towards refunding eligible consumers who were enrolled in the company's 1 to 7 percent savings program, and $352,000 will go to other customers who were on variable rate plans.

HIKO has already paid about $159,000 to consumers, and will also contribute $25,000 to the Electric Distribution Companies' hardship fund. The Attorney General's Bureau of Consumer Protection and the Office of Consumer Advocate filed the lawsuit against HIKO.

Kane said this is the second settlement with an electric supplier over variable rate plans. Recently Pennsylvania Gas and Electric agreed to pay $2.3 million in refunds over allegations its variable rate plans were unfair to consumers.

Those who used HIKO Energy will be contacted by a third party administrator if they qualify for a refund, Kane said. Refunds will be based off of how much electricity an individual household used, what their plan said and the price they were charged during that time period.

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