Iowa Based Utility Accused of Price Gouging During February Deep Freeze

IOWA - A sister company to MidAmerican Energy is being sued for price gouging.

Texas based J&M Plastics says MidAmerican Energy Services illegally jacked up charges by $54,000 after the February deep freeze.

J&M says the utility broke its fixed-price plan agreement.

MidAmerican Services has not commented on the accusations It serves customers in unregulated areas, including some in Texas.

MidAmerican Energy Services is owned by Warren Buffett and is based in Des Moines.

In its court filing, it's proposing a class action lawsuit and is expecting other companies to join in.

The lawsuit says the electricity supplier improperly charged commercial, fixed-rate plan customers with line-item fees during the winter storm that devastated Texas in February. The suit claims there were violations of the Texas Deceptive Trade Practices Act.

According to Plastics Today, J&M Plastics manufactures items such as flower pots, coat hangers and dog bowls.

Major Winter Storm Blankets Northeast With Snow

Photo: Getty Images

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