Brighton residents left behind by green energy company to receive portion of class-action settlement

Brighton residents who participated in a program to access affordable, renewable electricity are set to receive a portion of a $1.375 million settlement in a class-action lawsuit following the abandonment of the contract by the energy company. The town of Brighton had entered a two-year agreement in January 2021 known as Community Choice Aggregation (CCA) with ICON Energy operating as Source Power. Through this agreement, residents could select a 100% renewable energy source at a fixed rate, which, when purchased collectively, was more cost-effective than other available options.

For roughly 18 months, the program operated smoothly, according to Brighton Supervisor Bill Moehle, until an unexpected turn of events in June 2022. Source Power, operating under ICON Energy, unexpectedly defaulted on its contractual obligations, prompting a switch back to Rochester Gas & Electric for all customers of the CCA program in Brighton. In response to this breach, the town and program manager Joule Assets initiated legal action against the company, citing breach of contract, misleading practices, and other grievances on behalf of approximately 10,000 affected residents and small businesses that had signed up for the program.

Joule Assets, responsible for securing electricity supply agreements from sustainable sources for municipalities across New York State, had opted for Source Power due to its competitive bid among a limited pool of candidates. As part of the settlement, the town will receive $960,000, while the remaining sum will cover legal fees and associated expenses, as disclosed in an official statement by the town. Individual program participants can expect an average payout of $121.22 without the need for any further action. Disbursement from the settlement fund is expected to take place by year-end.

The abrupt termination of the agreement by Source Power left residents and small business owners facing higher energy costs, necessitating legal intervention to seek compensatory relief. Despite the setback caused by the supplier’s actions, the settlement serves as a form of restitution for affected individuals in the Brighton community. The outcome of the class-action lawsuit underscores the importance of consumer protection and accountability in the renewable energy sector, reassuring residents that recourse is available in situations of contractual breaches or deceptive practices.

The settlement reflects a measure of justice for residents who were left in a challenging position due to the unilateral actions of Source Power and reaffirms the commitment to uphold the integrity of energy supply agreements. Through collective efforts and legal advocacy, Brighton residents affected by the supplier’s contract default will receive compensation that acknowledges the financial impact caused by higher electricity prices following the termination of the CCA program. As recipients await the impending disbursement of settlement funds, they can anticipate a degree of relief from the financial strains incurred as a result of the unexpected turn of events in the energy supply landscape.