Attorney general files suit against Rockland energy company

By BARBARA WOLLER - THE JOURNAL NEWS - (Original publication: April 19, 2002)

New York's attorney general said yesterday that he filed suit against a Rockland-based energy services company for deceptive business practices, including misleading consumers about how much they could save by switching to its service.

Eliot Spitzer also accused ECONnergy Energy Co. Inc. of Spring Valley, which sells electricity and natural gas to residential and small business customers, of "slamming," or switching consumers to its service without their authorization.

In addition, Spitzer said ECONnergy's sales agents violated state law governing door-to-door sales and misled customers into believing they were associated with local utilities, including Consolidated Edison Co. of New York and Orange and Rockland Utilities. Spitzer said that more than 300 complaints about alleged incidents were received by his office and by the state Public Service Commission during the 18-month investigation that ran from mid-1999 to the end of last year. Most of the complaints, he said, were from Rockland and some came from Westchester. But the attorney general said it does not mean that 300 individuals complained because some could have written to both him and to the PSC.

"New Yorkers now have the opportunity to choose their energy provider, but this company's deceptive sales practices make it difficult for consumers to weigh their options in the competitive energy marketplace," Spitzer said. "Moreover, by switching consumers without their authorization, ECONnergy is depriving consumers of any choice at all."

Jonathan Gewirtz, ECONnergy's director of business development, said yesterday that he had not yet seen the lawsuit but the company has told the attorney general's office in the past that it can prove the complaints are baseless. He said complaints typically arise from confusion rather than wrongdoing, and the company responds promptly. "When complaints come in, they're handled immediately," he said. ECONnergy has more than 200,000 customers throughout New York as well as in New Jersey, Ohio, Maryland and Washington, D.C.

Among those filing a complaint was William R. Green, president of Energy Enterprises, Inc. in upstate Lakeville, N.Y. Green said in 1999 his energy procurement company asked companies to bid to buy electricity and gas for Rockland County BOCES, seven school districts and the county office building. Green said that ECONnergy was not among the bidders but he later learned that customers of the winning bidder were being switched over to ECONnergy. He said those customers were later switched back to the winning bidder and he does not believe any money was lost, but the incident created a lot of "aggravation and confusion."

Spitzer filed his lawsuit in State Supreme Court in Manhattan. It seeks restitution for consumers as well as civil penalties and costs. Spitzer said it is not yet known how many consumers will be involved or how much restitution they would receive. Consumers seeking more information or looking to file a complaint can call the attorney general's Westchester regional office in White Plains at 914-422-8755 or his toll-free consumer help-line at 800-771-7755