Brown v. Agway Energy Servs., LLC

328 F. Supp. 3d 464
CourtDistrict Court, W.D. Pennsylvania
DecidedSeptember 13, 2018
DocketCiv. A. No. 18-321
StatusPublished
Cited by2 cases

This text of 328 F. Supp. 3d 464 (Brown v. Agway Energy Servs., LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Agway Energy Servs., LLC, 328 F. Supp. 3d 464 (W.D. Pa. 2018).

Opinion

Nora Barry Fischer, United States District Judge

I. INTRODUCTION

Presently before the Court is Defendant Agway Energy Services, LLC's ("Agway") Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) and Brief in Support, (Docket Nos. 21, 22); Plaintiff James Brown's ("Plaintiff") Response, Brief in Opposition, and Exhibits in Support of Opposition to Motion (Docket Nos. 32, 33, 34); and Agway's Reply Brief, (Docket No. 35). Agway seeks dismissal of all claims asserted by Plaintiff in his March 13, 2018 Class Action Complaint ("Complaint"). (Docket No. 21, at 1). Count One of Plaintiff's Complaint is a claim for breach of contract. (Docket No. 1, at 18). Count Two pleads, in the alternative, an unjust enrichment claim. (Id. at 19). Plaintiff withdrew Count Two, leaving only one claim- breach of contract-pending before the Court. (Docket No. 33, at 8 n.1). This Court exercises subject matter jurisdiction over Plaintiff's remaining claim pursuant to 28 U.S.C. § 1332(d)(2)(A) (Class Action Diversity). After careful consideration of the parties' positions and for the following reasons, Agway's Motion to Dismiss will be granted.

II. BACKGROUND

Agway is an electric generation supplier ("EGS") that purchases energy directly or indirectly from energy production companies and, in turn, sells that energy to consumers.1 (Docket No. 1, at ¶¶ 17, 19). Consumers may opt to switch from a public utility to an EGS, at which point the EGS sets the price for the consumer's energy supply.2 (Id. at ¶ 21). Plaintiff switched to Agway, an EGS, for his electricity needs in March 2016, contractually binding him to electricity rates set by Agway in accordance with Agway's "Customer Contract." (Id. at ¶ 34). The Customer *466Contract, attached to Plaintiff's Complaint as Exhibit A, is a two-page document with key terms provided in an easy-to-read chart on the first page and more comprehensive language enumerated in sections on the second page. (Docket No. 1-1). The first page contains the following relevant language:

Price Structure: The Electric Variable Rate shall be set each month at Agway's discretion and reflect the cost of electricity acquired by Agway from all sources (including energy, capacity, settlement, ancillaries), related transmission and distribution charges, renewable energy compliance charges and other market-related factors, plus all applicable taxes, fees, charges or other assessments and Agway's costs, expenses and margins. The underlying costs are a derivative of the PJM market. The monthly variable price will be communicated to you in your invoice from your Electric Distribution Company (EDC). There is no limit on how much the variable rate can change from one billing cycle to the next.
Electricity Supply Price: The first month of the Initial Term will be at an Introductory Rate per kWh for electricity; thereafter a monthly variable rate will apply.
Statement Regarding Savings: Participation in this program is NOT a guarantee of future savings.
....
Incentives: EnergyGuard™ Repair Program
....
Cancellation/Early Termination Fees: Either party may terminate this agreement at any time without prior written notice. There is no early termination/cancellation fee for Variable Rate service.

(Docket No. 1-1, at 2) (emphasis in original).3 The second page of the Customer Contract contains more detailed terms and conditions that take on a more legal tone:

1. Service. This is an agreement between Agway Energy Services, LLC ("Agway") and the undersigned customer ("Customer") under which Customer will be enrolled as an electric generation supply customer of Agway (the "Agreement"). The Agreement includes the Cover Letter and any approved addenda. Subject to the terms and conditions of this Agreement, Agway agrees to sell and cause to be delivered, and Customer agrees to purchase and accept, Customer's full requirements of electricity for the location(s) listed herein, as estimated by Agway, acquired by Agway from a variety of third party sources. Agway is not affiliated with your Electric Distribution Company ("EDC"). Your EDC will continue to deliver the energy supplied by Agway. Generation price refers to the charge for production of electricity. Transmission price refers to the charge for moving high voltage electricity from a generation facility to the distribution lines of an EDC.
2. Term. This Agreement shall commence as of the first day of the billing cycle which commences immediately after your EDC switches *467your electric generation supplier to Agway, and shall continue for twenty-four (24) months thereafter (the "Initial Term"). Unless otherwise agreed to, upon completion of the Initial Term, this Agreement will renew with a monthly variable rate methodology with no change to the Agreement without the Customer's affirmative consent. Either party may cancel or terminate this Agreement at any time.
3. Price. The price for electricity sold during the initial term will be at an introductory rate/kwh. All electricity sold under this Agreement will be at a variable price. The variable price will be calculated by Agway, at Agway's discretion, on a customer specific basis each billing cycle and will include all of the costs incurred in providing service to customer, including the following: electricity acquired by Agway from all sources (including energy, capacity, settlement, ancillaries), transmission and distribution charges, renewable energy compliance charges, other market-related charges, plus all applicable taxes including the gross receipts tax, fees, charges or other assessments and Agway's costs, expenses and margins. The underlying costs are a derivative of the PJM market (PJM Interconnection, LLC is a regional transmission organization that coordinates the movement of wholesale electricity in all or parts of 13 states, including Pennsylvania). This price will be calculated for each meter each month, depending upon factors such as changes in wholesale energy prices, or other variables listed above, and so the price for each meter, even for the same customer, are likely to be different each month. All charges will be included in our monthly, per kwh charge. There is no limit on how much the variable rate can change from one billing cycle to the next. Historical prices are not indicative of present or future prices. To obtain historical average billed prices, please contact us at 1-888-982-4929 or www.agwayenergy.com.
a. Generation prices are set by the electric generation supplier you have chosen, in this case, Agway. The Pennsylvania Public Utility Commission regulates distribution prices and services. The Federal Energy Regulatory Commission regulates transmission prices and services.
4.

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Cite This Page — Counsel Stack

Bluebook (online)
328 F. Supp. 3d 464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-agway-energy-servs-llc-pawd-2018.