Michigan Attorney General Sues Over Propane Costs

LANSING (AP/WWJ) - Michigan's attorney general is suing one propane seller alleging price-gouging last winter and has reached a more than $100,000 agreement with another propane company.

Bill Schuette said in a statement Monday that the lawsuit against AmeriGas and agreement with Ferrellgas follow hundreds of consumer complaints related to propane pricing and delivery.

The lawsuit against AmeriGas in Berrien County Circuit Court alleges violations of the Michigan Consumer Protection Act. According to the complaint, AmeriGas ignored problems and charged excessive prices.

The Associated Press sent a messages seeking comment from AmeriGas.

Separately, under an agreement with Ferrellgas, more than 600 propane customers will receive a share of more than $100,000. The agreement resolves an earlier announced investigation.

Ferrellgas says Monday it's working with customers and is pleased to announce the resolution.

Last January, Gov. Rick Snyder declared an emergency in Michigan because of a temporary shortage of heating oil and propane caused by increased demand in subzero weather.  The governor said the shortage was also due to record-breaking snowfall that delayed delivery of heating oil and propane.

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.