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Connecticut settles with Palmco Power over allegations of deceiving consumers

By Mark Iandolo | Aug 22, 2017

HARTFORD, Conn. (Legal Newsline) — Connecticut Attorney General George Jepsen and Consumer Counsel Elin Swanson Katz announced Aug. 17 that electric supply company Palmco Power CT LLC will pay $5 million to the state of Connecticut after allegations of deceiving consumers about the company’s rates.

"This settlement is an example of our commitment to protecting all Connecticut consumers from deceptive and unfair business practices," Jepsen said. "Palmco engaged in systemic efforts to trick electric customers. While we will continue to work to hold accountable those who engage in coercive and misleading sales tactics, consumers themselves must also remain attentive to their bills and know what they're being charged."

In the settlement, which was approved by the state Public Utilities Regulatory Authority (PURA), Palmco will also relinquish its electric supplier license for a period of five years.

"The evidence in PURA’s investigation of Palmco demonstrated that Palmco engaged in predatory marketing practices through both its telesales and door-to-door solicitations," said consumer counsel Elin Swanson Katz. "There is evidence that Palmco's agents went door-to-door pretending to be from Eversource, telling consumers they had to switch. During marketing pitches, they took advantage of consumers who were confused or didn't speak English. The company also insufficiently trained, supervised and disciplined its sales force. These tactics are unacceptable in Connecticut.”

Handling the case for Connecticut were assistant attorneys general John Wright and Michael Wertheimer, with assistance from attorney Lauren Bidra.

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Connecticut Attorney General