Norwalk electric supplier North American Power agreed to pay $2.6 million to nonprofits on Thursday, in order to settle allegations of deceptive marketing practices, according to the Connecticut attorney general.
The Public Utilities Regulatory Authority opened an investigation two years ago into North American Power, following complaints that the company offered low introductory rates and then quickly replaced them with variable rates at prices significantly above market rates.
The $2.6 million settlement will be paid in $100,000 installments over 26 months to Bloomfield nonprofit Operation Fuel, which provides fuel assistance to the needy.
Ratepayers can choose to work with electric suppliers for the generation portion of their utility bill. The bill still comes from their power distribution utility (Eversource Energy, United Illuminating), but the rate for electricity is set by the contract between the ratepayer and the third-party supplier. Ratepayers also can choose to stay with the utility default rate.
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