The intention behind deregulation was that ARESs would find ways to obtain electricity at lower costs and pass those savings on to customers. The complaint notes, “Because Illinois utility rates do not include any profits, they serve as pure reflections of average market costs of wholesale electricity and associated costs over time.”ĪRESs such as Spark Energy have different options for obtaining electricity. Their rates are based on these wholesale prices, taking into consideration transmission, capacity, ancillary, congestion, and administrative costs, but without any markup or profit. Utilities buy electricity at competitive wholesale prices on a multiyear rolling basis. In Illinois, alternative retail electric suppliers (ARESs) compete against utilities such as Commonwealth Edison, or ComEd. The class for this action is Spark Energy customers in Illinois who were charged a variable rate for its residential electricity services between March 2009 and the present. In this case, the retail energy supplier is Spark Energy, LLC. The customer switches, then discovers that rates are higher and seem to “vary” mostly in one direction. The complaint for this class action tells a familiar story: An alternative retail energy supplier encourages customers to switch from their old supplier by promising competitive variable rates.
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