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Attorney General Takes Action Against Gas Company

U.S. Energy Savings Used Deceptive Tactics, Lawsuit Claims

CHICAGO (CBS) ― U.S. Energy Savings is an alternative energy supplier that makes millions selling natural gas to homes and business. The 2 Investigators exposed how the company's salespeople use apparently deceptive tactics to sign customers to five-year fixed rate contracts.

Now CBS 2 Investigator Pam Zekman reports those tactics have gotten the company in big trouble with the Illinois attorney general.

U.S. Energy Savings and its five offices around Chicago are feeling the heat – Attorney General Lisa Madigan filed a lawsuit citing more than 3,000 complaints in the last 36 months about the company's sales tactics ranging from false statements of savings to false offers to cancel contracts without a penalty.

"It's horrible," Madigan said. "They're taking advantage of senior citizens. They're taking advantage of people who don't speak English. They're taking advantage of everybody."

Fabiola Garza speaks very little English. U.S. Energy Savings convinced her that she'd save money by signing a contract to pay it $1.19 per therm -- almost double what she had been paying with Peoples Gas.

She said she would never have signed the contract if she understood that at the time.

As a trainee, a CBS 2 undercover producer learned salesmen are taught to tell customers they'll save money -- a claim company official Gord Potter said is not approved.

How does he justify the name U.S. Energy Savings?

"The fact that they save on peace of mind and the understanding that they won't be hit with large or increased natural gas bills," Potter said.

Another misleading claim, the lawsuit alleges.

The lawsuit seeks more than $15 million in fines, the contracts canceled without penalties and restitution for customers.

"This is just a terrible deal for people," Madigan said. "They didn't understand the contracts they were entering into. This practice has to stop."

Madigan also said she'll push for legislation that will better regulate the way these companies operate, or put them out of business.

A U.S. Energy official said Friday, that while disappointed about the lawsuit, they intend to address the allegations with the attorney general and seek a constructive resolution.

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