This commercial law case involves a large energy services company in California that was accused of over-pricing electricity for thousands of customers under the terms of a variable rate contract. The variable rate contract meant that customers were charged the “market rate” for electricity, meaning that their costs could fluctuate from month to month. Nevertheless, customers were frequently charged more than 2 times the rate offered by a competing electricity company, and occasionally were charged more than 5 times more than the daily rate offered by the competing service. It was alleged that the use of a fixed profit margin within the variable rate that the company charged led to exorbitant prices for electricity.
Question(s) For Expert Witness
- 1. Do you have experience with ESCO's?
- 2. What is your experience working in the wholesale energy market?