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Updated, 6/6:
Rushmore Energy, LLC provided the following statement concerning the matter:
Rushmore Energy, LLC's counsel, Natara Feller, announced that Rushmore Energy reached an agreement with the Illinois Attorney General to resolve certain allegations related to past marketing practices of its third-party vendors. Rushmore denies the allegations against it and entered into the agreement to avoid the time and expense of prolonged litigation.
Rushmore states, "We appreciate the opportunity to move forward and remain committed to serving our customers with integrity and transparency, and continue delivering value to customers through our price protection products in this current environment where energy prices in Illinois and in other states remain unpredictable for consumers."
Rushmore Energy, LLC was represented by Natara Feller, Esq. of Feller Law Group, PLLC.
Earlier (6/4):
In a news release, Illinois Attorney General (AG) Kwame Raoul announced a $500,000 settlement with Rushmore Energy, "that resolves allegations the alternative retail electric supplier (ARES) engaged in fraudulent, unfair and deceptive business practices to mislead Illinois consumers into paying more for electricity than consumers who stayed with their default public utility," the AG's office said
Per the AG's office, a consent order will require Rushmore Energy to pay restitution to eligible Illinois customers who received at least 30 days of residential electricity supply service from Rushmore Energy between Jan. 1, 2020 and Dec. 31, 2024.
Of the $500,000 settlement, about $400,000 will be paid into a fund to pay the restitution to customers. Settlement administration fees will be deducted from this $400,000
The restitution amounts to customers will largely be based upon eligible customers’ electricity usage during the relevant period, the AG"s office said
“Companies like Rushmore Energy must be held accountable for taking advantage of consumers with misrepresentations and false promises of lower prices,” Raoul said. “My office is committed to protecting Illinois residents from such deceptive practices and preventing people from being misled into overpaying for the energy they need.”
The settlement prevents Rushmore Energy from engaging in residential marketing activities and enrolling new residential customers in Illinois until December 31, 2028, provided that the company makes all required payments under the settlement agreement by such date. If payment has not been made by such date, the marketing and new enrollment prohibition extends until Dec. 15, 2029
The marketing and enrollment prohibition does not apply to non-residential customers
The residential marketing prohibition does not prevent customer renewals nor the issuance of renewal notices required by rule
Among other things, the AG had alleged that Rushmore, or its third-party vendors, omitted key disclosures during
telephone solicitations, and failed to obtain the consumers’ consent for the solicitation at the beginning
of the call, in violation of Section 15 of the Illinois Telephone Solicitations Act
The AG alleged that Rushmore, through its third-party vendors, made
"misrepresentations" to consumers that Rushmore rates were “low” and would save consumers
money
The AG alleged that from August 2019 through November 2022, Rushmore
customers collectively paid more than if they had stayed with their public utility for supply.
The AG alleged that Rushmore, through its third-party vendors, "repeatedly
misrepresented" to Illinois consumers an affiliation with Ameren and ComEd.
Rushmore expressly denies all of the allegations from the AG
With regards to the practices and prohibitions that Rushmore agrees to as part of the consent decree described below, any reference to a "Consumer" or "consumer" means residential consumers in Illinois, and does not apply to other customers. "Marketing Activities" specifically means residential marketing in Illinois
Among other things, the consent order provides that Rushmore will not, as described by the AG, "misrepresent" a "price protection" through a state or utility "program."
More specifically, the consent order provides that Rushmore may not use the phrases “utility choice program,” “state choice program,” or “Illinois
Choice Program” as it relates to Illinois’ deregulation law. Rushmore may,
however, accurately state that Illinois state law allows Consumers to choose an
alternative retail electric supplier for their supply of residential power.
During a telemarketing or in-person solicitation, Rushmore may not ask a Consumer to provide their
utility account number before Rushmore discloses all material terms and the
Consumer affirmatively consents to enroll with Rushmore
Upon the resumption of marketing, Rushmore agrees that, during the solicitation, Rushmore will provide, among other things, "The current default public utility rate for electricity or gas supply".
Additionally, if Rushmore resumes Marketing Activities and offers Consumers a fixed-rate
product, then it shall charge the Consumer the same fixed rate for at least six months without
increasing the rate
The consent decree provides that, if Rushmore resumes Marketing Activities to residential customers, it shall not pay its employees based
only on the volume of sales made by those employees. Rushmore shall not contract
with any subcontractor or vendor to engage in residential Marketing Activities that pays its employees
based only on the volume of sales made by those employees
The AG's office said, "Raoul’s office has recovered over $25 million through litigation related to ARES’ fraudulent and unfair business practices that deceived Illinois customers into paying millions of dollars more for electricity than consumers who stayed with their default public utilities."
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Retail Supplier To Pay $500,000 Under Settlement, Agrees To Not Compensate Agents/Vendors Based Only On Sales Volumes; Marketing Stay-Out Imposed
June 4, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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