July 22, 2022

AG Tong Settles with Eversource Over Unfair Trade Practices

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

Connecticut AG William Tong has reached a $1.8 million settlement with Eversource to resolve allegations that the company violated the Connecticut Unfair Trade Practices Act by using deceptive, high-pressure tactics to entice consumers to convert to natural gas.
According to the AG, the investigation leading to the settlement was opened following a report in the state’s newspaper on allegedly fraudulent notices Eversource distributed to consumers, misrepresenting that if consumers did not convert to natural gas now, they would be unable to for several years due to a “paving moratorium” following the completion of road work. The AG’s investigation revealed that no such paving moratoria existed in several towns where Eversource distributed the notices.
The AG’s settlement will include a $1.6 million payment to Operation Fuel to assist low-income ratepayers, and $200,000 to AG Tong’s office to use for consumer education and enforcement purposes.
This settlement follows a separate $1.8 million penalty Eversource paid to the state’s Public Utilities Regulatory Authority (“PURA”) in 2021 for allegedly failing to disclose funding sources for gas expansion solicitations. According to the AG, PURA’s investigation resulted from a petition filed by the AG and Office of Consumer Counsel.

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