Energy service company agrees to New York consumer refunds

An energy service company has agreed to pay $800,000 as part of a settlement over deceptive marketing practices.

New York Attorney General Eric Schneiderman says the settlement with Energy Plus Holdings and Energy Plus Natural Gas is part of a wider investigation into energy service companies, or ESCOs. The settlement funds will be used for consumer restitution , penalties and fees.

Schneiderman says Energy Plus lured consumers with false promises of lower utility bills and then fleeced them with much higher bills.

Energy Plus spokesman David Knox says the company is committed to serving customers in New York in full compliance with the settlement.

ESCOs buy energy on the open market from utilities and sell it to consumers, who can choose to buy directly from the utility or through an ESCO.