Retail Supplier to Pay $6.5 Million to Settle Class Action Lawsuit

SCANA Energy Marketing, Inc. would pay $6.5 million under a proposed settlement with plaintiffs filed in federal court to resolve a class action lawsuit related to its variable price plans.

Plaintiffs had alleged that beginning in March 2007, SCANA Energy charged existing customers enrolled in certain rate plans more than the published rate filed by SCANA Energy with the Georgia PSC for the plan plaintiffs contend to be SCANA's standard variable offer. Plaintiffs alleged such behavior violated O.C.G.A. §46-4-160(h) and PSC Rule 515-7-6-.02(a)(5).

Plaintiffs also alleged that beginning in March 2007, SCANA changed the methodology for how it computed the price charged for natural gas in certain rate plans without providing customers enrolled in those plans with the appropriate written notice, which plaintiffs alleged violated PSC Rule 515-7-6-.02(a)(9).

Among other defenses, SCANA Energy argued that any disputes under the contracts had to be addressed in arbitration first.

Under the settlement, SCANA Energy denies all allegations of wrongful conduct as asserted in the suit.

To settle the suit, SCANA Energy would contribute $6.5 million to a settlement fund. All individuals or entities who were, during the period from March 1, 2007 to the present, Georgia residents, SCANA Energy customers, and enrolled in SCANA Energy's (a) Standard Variable rate plan, (b) Choice Variable rate plan, or (c) Two-Part Variable rate plan, would be eligible to receive payments from the settlement fund.

Individual customer payments would range from $10-25, depending on the length of time the customer was with SCANA Energy.

The $6.5 million fund would also be used to pay attorney fees and higher "incentive payments" to the class representatives.

Other relief SCANA Energy agreed to under the settlement includes a provision that SCANA Energy will provide advance notice to residential customers on SCANA Energy's Standard Variable rate plan if SCANA Energy introduces a new variable rate plan that is available to all new SCANA Energy customers who seek to be enrolled in a variable rate plan. The notice will include information on how the customer may choose other rate plans available from SCANA Energy and the identification of the rate plan in which the customer will be enrolled if no action is taken.

Case 1:12-cv-02356