Ambit Energy Unit Beats Utilities Rate-Hike Suit

By Y. Peter Kang (March 21, 2016, 4:45 PM EDT) -- A Pennsylvania federal judge on Monday dismissed a proposed class action claiming that a unit of Ambit Energy Holdings LLC jacked up customers' rates after luring them into switching energy providers with promises of lower prices, ruling that Ambit's practices were clearly stated in its terms of service.

U.S. District Judge Eduardo C. Robreno agreed with Ambit Northeast LLC's assertion that provisions in its customer service agreements give Ambit complete discretion to change the rate based on energy market price fluctuations.

"The provision in the terms of service reflects that Ambit has discretion in setting the rate it charges for electricity,...

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