Michigan Attorney General Bill Schuette reached a $100,000 agreement with Ferrellgas, and is suing AmeriGas for alleged price gouging last winter.
As temperatures fell in Michigan, many propane customers saw their bills skyrocket. Gov. Snyder declared an "energy emergency" in the state.
Schuette said in a statement today that the lawsuit against AmeriGas and agreement with Ferrellgas follow hundreds of consumer complaints related to propane pricing and delivery.
Affected Ferrellgas customers will receive a credit on their bill.
You can see more details in Schuette's statement:
“I’m pleased that we reached an agreement with Ferrellgas on behalf of Michigan consumers before the upcoming heating season,” said Schuette. “Under this agreement, hundreds of Ferrellgas customers who were harmed by pricing errors and the highest propane prices will receive a share of $100,000 in billing credits by October 15th.”
The lawsuit against AmeriGas in Berrien County Circuit Court alleges violations of the Michigan Consumer Protection Act.
You can read the complaint here.
The AG's statement says "AmeriGas ignored systemic problems that resulted in many Michigan customers being treated unfairly, including a statewide practice of charging grossly excessive prices last winter."
The AG's complaint includes the following alleged violations:
Price gouging: The complaint alleges that AmeriGas charged some of its customers grossly excessive prices in two distinct ways. First, it charged residential customers prices that grossly exceeded the prices being charged both by other propane retailers. Second, AmeriGas charged certain customers grossly excessive prices compared to other similarly situated AmeriGas customers. Denial of pricing established in advance contracts: AmeriGas allegedly denied many customers the benefit of guaranteed per-gallon prices that they had locked in for the winter. Failure to honor prices quoted for telephone orders: The complaint alleges that consumers’ bills did not reflect the prices that they were quoted when they placed an order by telephone.
The Associated Press says they've sent a message seeking comment from AmeriGas.
