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Excerpts from Illinois Attorney General’s press release announcing a settlement with Palmco Power for deceptive marketing practices:

{***} Attorney General Kwame Raoul announced a $3.5 million settlement with Palmco Power IL, operating under the name Indra Energy (Indra). The agreement resolves allegations that the alternative retail electric supplier (ARES) engaged in deceptive tactics to convince consumers to switch over to its expensive electricity, causing Illinois consumers to pay millions of dollars more than they would have if they had remained enrolled with their default public utility.

The $3.5 million settlement will provide restitution to eligible Indra customers who received electricity from the company for 30 days or more, beginning in October 2017. Refund amounts will be based on customers’ electricity usage.  

“Thousands of Illinoisans were contacted by Indra with promises of lower electricity rates and overall cost savings on their energy bills. In reality, consumers ended up paying more in energy costs than if they had stayed with their public utility company,” Raoul said. “My office is committed to protecting Illinois consumers from deceptive practices utilized by some alternative retail electric suppliers, and preventing people from overpaying for the energy they need.”

The Attorney General’s complaint alleges that Indra falsely claimed to be affiliated with ComEd or Ameren to win consumers’ trust; fraudulently promised free, government-subsidized tablets in exchange for enrollment; engaged in telephone solicitations without consumer consent and misrepresented the total amount consumers would pay if they switched to Indra. According to consumer complaints, Indra enrolled some consumers without their permission, a tactic known as “slamming.” Consumers who switched to Indra virtually always paid more than if they had stayed with their public utility company, and many of Indra’s victims were seniors.

In addition to restitution, Attorney General Raoul’s office obtained critical injunctive relief in the settlement to prevent the use of such deceptive practices going forward. Under the agreement, Indra is required to stop marketing to and enrolling customers in Illinois for 18 months. If Indra resumes marketing and enrolling customers in Illinois after that time, an independent monitor will review Indra’s practices for two years. The settlement includes a permanent injunction barring Indra from deceptive practices, including:

• Altering telemarketing recordings.
• Misrepresenting that consumers will save money.
• Misrepresenting an affiliation with public utilities.
• Enrolling consumers in Indra’s services without their consent. {***}

Final Judgement And Consent Decree 

The consent decree was filed in Docket No. 2024CH10487, Cook County IL circuit court, county department, chancery division.