Attorney General Kwame Raoul has reached a $3.5 million settlement with Palmco Power IL, known as Indra Energy, to address allegations of deceptive business practices. The settlement aims to compensate eligible Indra customers who were allegedly misled into switching to more costly electricity services from October 2017 onward.
"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 stated. He emphasized his office's commitment to shielding consumers from misleading practices by some alternative retail electric suppliers.
The complaint filed by the Attorney General accuses Indra of falsely claiming affiliations with ComEd or Ameren, offering free tablets for enrollment, conducting unsolicited phone solicitations, and misrepresenting the costs associated with switching to Indra. It also highlights incidents where consumers were enrolled without consent, a practice referred to as "slamming."
As part of the settlement, beyond providing restitution, Indra is prohibited from marketing or enrolling customers in Illinois for 18 months. If operations resume post-suspension, an independent monitor will oversee their practices for two years. The agreement also enforces a permanent injunction against several deceptive practices including altering telemarketing recordings and unauthorized enrollments.
This settlement follows previous actions taken by Raoul against various ARES companies. These include a $10 million settlement in September 2024 with Teleperformance Colombia SAS and related entities over similar allegations and lawsuits against other firms like Southeast Energy Consultants LLC and Residents Energy LLC for deceptive tactics.
In efforts to protect consumers further, Raoul initiated the Home Energy Affordability and Transparency (HEAT) Act effective January 2020. This act enhances oversight on ARES and provides stronger measures against fraudulent conduct.
The case is managed by Consumer Protection Division Chief Susan Ellis along with Assistant Chief Deputy Attorney General Thomas J. Verticchio and Public Interest Counsel Darren Kinkead. They are supported by Illinois-based law firms Edelson PC; Hughes Socol Piers Resnick & Dym, Ltd.; and Miner, Barnhill & Galland, P.C.