NYAG Suing Energy Company For Deceptive Practices

LEVITTOWN, NY — New York Attorney General Letitia James has filed a lawsuit against a Texas-based energy company, claiming it used deceptive practices to lure customers into paying more for energy services.

James claims that Major Energy Services LLC and Major Energy Electric Services, LLC (known together as Major Energy) overcharged customers and used misleading and false advertisements, making people think they'd be saving money by enrolling with the company. According to James, consumers in New York paid tens of millions of dollars more for Major Energy's services than they would have if they went through their local electric utility.

“Scamming New Yorkers out of their hard-earned money is unacceptable,” James said. “We are holding Major Energy accountable for misleading New Yorkers and falsely promising lower prices, but actually overcharging consumers to make a profit. Hardworking New Yorkers deserve accuracy and honesty when it comes to paying their basic bills, and my office is committed to protecting their wallets from fraudsters.”

Major Energy is an energy service company, known as ESCOs. When purchasing gas and electricity, consumers can get it directly from their local utility, or contract the purchase through an ESCO. According to the attorney general, ESCOs purchase energy on the open market and then resell it to consumers. Because ESCOs buy the electricity and gas from the same sources as the utility companies, there is no difference in the actual electricity and gas that is purchased by consumers, regardless of whether it is supplied by an ESCO or a consumer’s local utility.

James said the action against Major Energy is part of an ongoing investigation into ESCOs by her office. James said the investigations into illegal practices by ESCOs have resulted in companies across the state paying millions in restitution and penalties.

According to James, Major Energy services customers across the state — in New York City, Long Island, the Hudson Valley, the Capital Region, the North Country and Western New York. Since at least 2011, the company used deceptive marketing and false promises to lure in customers, James said. The company's sales representatives would often falsely claim they worked for the local utility and show phony badges, or wear hard-hats and vests as they went door-to-door doing solicitations. Their goal, James said, was to get customers to switch from the local utility to Major Energy.

In many instances, James said the consumers did not realize they had been enrolled with Major Energy because sales reps would enroll them without their consent. In one instance document in the lawsuit, a Major Energy representative admitted the company receives a lot of complaints because of “misinformation” provided by the door-to-door representatives, James said.

The lawsuit is seeking a permanent injunction to stop Major Energy's misleading advertising and practices, James said, as well as seeking restitution, penalties and more.

If you have any concerns about your interaction with or the business practices of an ESCO, contact the New York Attorney General's Office and submit a complaint on our website.