Blumm v. Northwest Natural Gas Co.

Two customers of a natural gas company in Oregon filed a class action lawsuit in Oregon Circuit Court alleging that the company misrepresented the “Smart Energy” program in which they enrolled. They alleged that the company told customers that it would completely offset the carbon emissions attributable to the monthly natural gas use of customers enrolled in the Smart Energy program, for which customers pay extra. The plaintiffs further alleged that the company used the Smart Energy funds to purchase “offsets” from manure digesters at industrial dairies that “lack the core attributes of a bona fide offset: additionality, uniqueness, measurability, verifiability, and permanency.” Other allegedly deceptive actions included use of Smart Energy funds to pay the program’s marketing and administration costs. The customers also alleged that the company potentially used offsets for compliance requirements. They asserted that the company violated the Oregon Unlawful Trade Practices Act and also asserted a breach of contract claim. They requested injunctive and equitable relief, statutory and actual damages, and attorney fees.