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What was the Lawsuit about?
On May 23, 2014, the New Jersey Attorney General’s Office, the New Jersey Board of Public Utilities, and the New Jersey Division of Consumer Affairs commenced an action against Palmco Power NJ, LLC, a third party energy supplier of natural gas, and Palmco Energy NJ, LLC, a third-party supplier of electricity in New Jersey (collectively, "Palmco"). The State alleged that Palmco violated certain state statutes and regulations, including the Electric Discount and Energy Competition Act and the Consumer Fraud Act, and certain BPU regulations. The allegations related to Palmco’s advertisement and sale of gas supply service and electric generation service. Palmco denied all of these allegations.
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What does the Settlement provide?
The settlement provides that Palmco shall not engage in any unfair or deceptive acts or practices in its advertisement and sale of natural gas and/or electric supply services in New Jersey and shall comply with all applicable statutes and regulations of the BPU and the Division of Consumer Affairs. The settlement also provides for changes to Palmco’s business practices, restitution for customers, civil penalties and reimbursement of the State’s attorneys’ fees and investigative costs.
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Where did you get my information?
As part of the settlement with the State of New Jersey, Palmco provided the names and addresses of customers for whom it provided gas and/or electric supply services.
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Do I need to file a claim?
Customers for whom Palmco provided gas and/or electric supply services during the period of January, February and/or March 2014 (“Polar Vortex Customers”) were not required to submit a claim form or other documentation to receive a settlement check from Restitution Fund A. Polar Vortex Customers and non-Polar Vortex Customers are required to submit a claim form and documentation in order to receive a settlement check from Restitution Fund B.
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How much are the Restitution Funds?
Restitution Fund A was $3,502,791.66. After the distribution of Restitution Fund A is completed, Palmco will make available to the State of New Jersey a separate Restitution Fund B, in an amount of up to $1,000,000.00, which will be distributed to all Palmco customers, including Polar Vortex Customers, who submit valid claim forms and supporting documentation.
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How were the payments for Restitution Fund A calculated?
The State of New Jersey determined Restitution Fund A payments based on several factors, including a comparison of the wholesale prices of natural gas and electricity to Palmco’s prices during January February and March 2014, each Polar Vortex Customer’s natural gas and electricity consumption during those same periods, and the funds available for restitution under the settlement.
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Who can submit a claim for payment from Restitution Fund B?
Palmco customers who received natural gas and/or electric supply service during the periods of time other than January, February and/or March 2014 and up to the date of the settlement (i.e. May 23, 2016). Both Polar Vortex Customers and non-Polar Vortex Customers (Palmco customers other than during January, February and/or March 2014) will be eligible to submit claims for Restitution Fund B monies.
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What happens to the money from uncashed checks?
Any monies remaining after the distribution of Restitution Fund A will be applied to the funding of Restitution Fund B. Any monies remaining after the distribution of Restitution Fund B
(up to $400,000.00) will be returned to the State of New Jersey as additional attorneys’ fees and costs. Any remaining funds in Restitution Fund B over $400,000.00 will be returned to Palmco.
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Where can I get information as to the Restitution Fund B claim process?
Information about the Restitution Fund B claim process will be found at
www.NJAGPalmcoSettlement.com.
The deadline for submitting a claim form with the required documentation is
May 18, 2018.
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Where can I get additional information on the Settlement?
You can contact the Settlement Administrator, Rust Consulting, Inc., at 1-866-590-8523, the toll-free number that is dedicated to answering questions regarding the settlement. Please leave a message with your phone number and the best time to reach you. There is also additional information at
www.NJAGPalmcoSettlement.com.
