Sevugan v. Direct Energy Services, LLC

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 18-3082
Decision Date: 
July 26, 2019
Federal District: 
N.D. Ill., E. Div.

Dist. Ct. did not err in dismissing for failure to state viable cause of action plaintiff’s action alleging that defendant-alternative retail energy supplier in Chicago market breached contract, which called for defendant to set kWh price based on generally prevailing market prices plus “adder” that was to be determined by defendant. While plaintiff alleged that defendant breached contract because defendant charged electricity rates at above market rates, Dist. Ct. could properly find that complaint lacks sufficient factual allegations to show that defendant’s rates were not based on generally prevailing market prices, because: (1) plaintiff failed to allege what other alternative retail energy suppliers were charging their customers in relevant market area; (2) plaintiff’s citation to rate charged by ComEd was irrelevant because Com Ed’s rate, which was set by Illinois Commerce Commission, was not “market price;” and (3) contract did not promise to charge rates lower than ComEd.