CHICAGO – Attorney General Kwame Raoul announced a $500,000 settlement with Rushmore Energy that resolves allegations the alternative retail electric supplier (ARES) engaged in fraudulent, unfair and deceptive business practices to mislead Illinois consumers into paying more for electricity than consumers who stayed with their default public utility.
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Once approved by the court, the consent order will require Rushmore Energy to pay restitution to eligible Illinois customers who received at least 30 days of residential electricity supply services from the company between Jan. 1, 2020 and Dec. 31, 2024. The restitution amounts will largely be based upon eligible customers’ electricity usage during that period.
“Companies like Rushmore Energy must be held accountable for taking advantage of consumers with misrepresentations and false promises of lower prices,” Raoul said. “My office is committed to protecting Illinois residents from such deceptive practices and preventing people from being misled into overpaying for the energy they need.”
The Attorney General’s office filed a complaint alleging that Rushmore Energy violated the Illinois Consumer Fraud and Deceptive Business Practices Act by deceptively enrolling consumers in its services, at times charging them electricity rates nearly double the default public utility rate.
In addition to restitution, the settlement includes critical injunctive relief to prevent Rushmore Energy from using such deceptive practices going forward. For instance, Rushmore Energy will be banned from marketing activities in Illinois until Dec. 15, 2029, or until the company makes all required payments under the agreement. Rushmore Energy will also be permanently barred from deceptive practices including:
- Enrolling consumers in Rushmore Energy services without their knowledge or consent.
- Failing to obtain consumers’ consent to telemarketing solicitations, as required by the Telephone Solicitations Act.
- Misrepresenting that consumers would save money.
- Misrepresenting an affiliation with the public utility or government.
- Unfairly and deceptively obtaining consumers’ account information.
- Misrepresenting a “price protection” through a state or utility “program.”
- Failing to disclose new rates and new terms.
Raoul’s lawsuit and settlement are the latest actions Raoul has taken to protect Illinois residents from deceptive practices by alternative energy suppliers and their third-party vendors. Since becoming Attorney General, Raoul’s office has recovered over $25 million through litigation related to ARES’ fraudulent and unfair business practices that deceived Illinois customers into paying millions of dollars more for electricity than consumers who stayed with their default public utilities.
Most recently, Raoul announced $8.4 million settlement with Clearview Electric Inc. in September 2025, and a $12 million settlement with Direct Energy Services LLC in April 2025.
In January 2025, Raoul announced a lawsuit against Spark Energy LLC and Spark Energy Gas for allegedly using deceptive business practices to mislead Illinois consumers into paying millions of dollars more for electricity. This followed a similar lawsuit filed in May 2024 against Southeast Energy Consultants LLC, a third-party vendor working on behalf of several ARES, alleging customers were deceived into switching to more expensive ARES contracts.
Attorney General Raoul also initiated the Home Energy Affordability and Transparency (HEAT) Act, which strengthens oversight of alternative energy suppliers and protects consumers from bad supplier contracts. The HEAT Act went into effect in January 2020 and gave the Attorney General’s office stronger tools to shut down suppliers that engage in fraudulent and misleading conduct and to return money to consumers who have been harmed.
Consumer Protection Division Chief Susan Ellis, Consumer Fraud Bureau Chief Elizabeth Blackston, Consumer Fraud Bureau Chief Greg Grzeskiewicz and Franchise Bureau Chief Philip Heimlich are handling the case for Raoul’s office. Illinois-based law firms Edelson PC; Hughes Socol Piers Resnick & Dym, Ltd.; and Miner, Barnhill & Galland, P.C. are also assisting with the case
