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NY Attorney General — Consumer Fraud Complaint **ESCO:** American Power & Gas (APG) **Complainant:** Earl Co **Accounts:** 8 residential gas & electricity accounts across Albany and Watervliet, NY ## NATURE OF COMPLAINT American Power & Gas engaged in deceptive business practices prohibited under NY General Business Law § 349 and the AG's 2016 ESCO enforcement actions. ## SPECIFIC VIOLATIONS 1. **Bait-and-switch pricing:** Solicited via phone (~Feb 2025) with low teaser rate (~$0.09/kWh in Apr

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# NY Attorney General — Consumer Fraud Complaint

**ESCO:** American Power & Gas (APG)
**Complainant:** Earl Co
**Accounts:** 8 residential gas & electricity accounts across Albany and Watervliet, NY

## NATURE OF COMPLAINT

American Power & Gas engaged in deceptive business practices prohibited under NY General Business Law § 349 and the AG's 2016 ESCO enforcement actions.

## SPECIFIC VIOLATIONS

1. **Bait-and-switch pricing:** Solicited via phone (~Feb 2025) with low teaser rate (~$0.09/kWh in Apr 2025), then increased to $0.30–$0.35/kWh without meaningful notice — a 300% increase within months.

2. **Failure to provide written variable rate disclosure (16 NYCRR 10.2):** APG confirmed on June 10, 2026 that **no written contract exists** — only a verbal recording made during the enrollment call. This directly violates NY ESCO reform requirements for written disclosure of variable rate terms.

3. **No "net benefit" to consumer:** Rates consistently 2-3x utility default across all 8 accounts. The NY PSC's 2016 order requires that ESCO variable-rate plans provide a net benefit to consumers. APG's rates fail this test by a wide margin.

4. **Telephonic enrollment without clear oral disclosure of variable rate risks:** The recording APG relies on as its "contract" is also the evidence of their inadequate disclosure.

5. **Pattern of predatory enrollment across multiple properties:** APG enrolled at least 8 accounts under the same bait-and-switch scheme, resulting in over $18,000 in overcharges.

## COMPARABLE RATES

| Period | APG Supply | NG Default | Premium |
|--------|-----------|-----------|---------|
| Apr 2025 | $0.09/kWh | $0.09/kWh | 0% (teaser) |
| May 2025 | $0.17/kWh | $0.08/kWh | 113% |
| Jul 2025 | $0.23/kWh | $0.08/kWh | 188% |
| Oct 2025 | $0.31/kWh | $0.09/kWh | 244% |
| Nov 2025–Jan 2026 | $0.34–0.35/kWh | $0.10/kWh | 240-250% |

## PATTERN MATCHES PRIOR AG ENFORCEMENT

This mirrors the AG's 2016 enforcement actions against ESCOs for exactly these practices. The July 2016 settlement with North American Power and other ESCOs established that:
- Variable rates must provide net benefit
- Written disclosure is required before enrollment
- Teaser rates that spike within billing cycles are deceptive

APG's conduct is identical to the patterns that triggered those enforcement actions.

## ESTIMATED DAMAGES: $18,168.47+

| Account | Address | Overcharge |
|---------|---------|------------|
| 4191273304 | 86 Madison Ave FL 1 | $8,590.83 |
| 2671274125 | 84 Madison Ave FL 1 | $940.99 |
| 2651274236 | 84 Madison Ave FL 2 | $4,619.38 |
| 4251273206 | 88 Madison Ave FL 1 | $1,025.81 |
| 5771273258 | 88 Madison Ave FL 2 | $2,904.91 |
| 5783640189 | 724 3rd Ave FL 1 | $86.55 |
| 5651273116 | 90 Madison Ave | (pending analysis) |
| 7471273218 | 90 Madison Ave FL 1 | (pending analysis) |
| **TOTAL (6 analyzed)** | | **$18,168.47** |

## REQUESTED RELIEF

1. Investigation of APG enrollment and pricing practices across all NY accounts
2. Restitution of overcharged supply amounts ($18,168.47+)
3. Injunctive relief requiring APG to comply with NY ESCO disclosure rules
4. Referral to PSC for enforcement action
5. Request for APG to produce the enrollment call recording for review

## DOCUMENTS ATTACHED

- National Grid usage/billing CSVs showing rate progression per account
- Account activity ledger for account 4191273304
- APG rate comparison analysis across all accounts
- APG confirmation of no written contract (June 10, 2026)