The Westporter who heads a Stamford-based energy company which has agreed to refund $2.1 million in credits and cash for overcharging customers last summer said today the state found no evidence of intentional customer abuse. 
Jeffrey Mayer “Customers were compensated for any mistakes.” Dave Matlow/WN file photo
“After an investigation of our retail electricity business, the state bodies made no finding of intentional customer protection abuse,” said MXenergy CEO Jeffrey Mayer in a statement. Mayer is the Democratic chair of Westport’s Board of Finance.
“In fact, they confirmed what we ourselves discovered after an internal investigation,” he said. “We have taken several steps to make sure that all customers were compensated for any mistakes we may have made.”
The Department of Utility Control (DPUC) began its investigation in August 2008, and was joined by the Office of the Attorney General and Office of Consumer Counsel.
State officials said that last year MXenergy offered low, temporary teaser rates, but failed to give customers enough notice to cancel before charging much higher prices.
In a statement, Attorney General Richard Blumenthal said the $2.1 million settlement includes more than $675,000 in cash refunds and $1.5 million in credits or lowered bills.
MXenergy said it had filed a settlement agreement with the DPUC in connection with the docket pending before the regulatory body.
“This agreement was the result of an extensive and productive collaboration between MXenergy and all docket participants,” the company said in a statement.
“In hindsight, we now know that many of our customers unfortunately locked in their electric rates when international energy prices were at historic highs last spring,” said Mayer.
“When prices are high, companies like MXenergy must take extra precautions to make sure customers understand that if prices go down, they may actually pay more for fixed price protection.”
Mayer said “MXenergy will continue to offer customers fixed and variable rate plans to help Connecticut customers plan their monthly electricity budgets.”
