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Ferrellgas takes offensive against AG
Propane retailer probed by Swanson's office wants court to block complaint.
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Minnesota Attorney General Lori Swanson has been busy suing companies for scamming consumers, but this time one of her targets has made a pre-emptive strike, saying her office is going too far.
A major supplier of propane to Minnesota is accusing Swanson's office of bullying it, and the fuel retailer is seeking a court order to resolve the matter.
Ferrellgas Partners, a publicly-traded propane supplier based in Overland Park, Kan., said it wants a judge to intervene so that it doesn't get "strong-armed into an onerous settlement agreement," according to the lawsuit Ferrellgas filed Wednesday in Ramsey County District Court in St. Paul.
Ferrellgas has some 50,000 customers in Minnesota, where propane is used in many rural areas to heat homes. Ferrellgas also supplies the "Blue Rhino" propane cylinders many urban dwellers use to fire up their backyard grills.
Swanson said that it's the first time she can recall that a company has sued an attorney general to try to head off a complaint. She declined further comment, saying she'll have more to say later in the week.
Her office on Wednesday forwarded copies of several class-action lawsuits that have been filed against Ferrellgas in other states. One, filed in 2007 in Arkansas, accuses the company of adopting "master agreements" that rope captive, unsuspecting customers into pricey requirements. One requirement was for customers to fill their propane tanks to minimum levels or face a "no use" fee of $150, buy the tank for $600, or pay $300 to remove it.
In the current clash with Minnesota, Ferrellgas said it has no idea what the state's precise issue is with its business practices.
Ferrellgas said in its lawsuit that Swanson's office has been scrutinizing it for possible unspecified violations of the state's deceptive trade practices act and unlawful practices act. In March and again in August, the Attorney General's office asked the company to respond to questions and provide information. Ferrellgas claims that it complied but that Swanson's office refused to meet with anyone from the company to discuss the issues until last month, when state attorneys suddenly proposed an agreement to settle the matter.
The company said the proposal "would have regulated virtually every aspect of Ferrellgas' dealings with its residential propane customers." The company insists it hasn't violated any laws and wants a declaration that Swanson has exceeded her authority.
Jim Saladin, a spokesman for Ferrellgas, said the company still doesn't know what prompted the state's investigation or the exact nature of its issues with Ferrellgas. Saladin said the state appears to be concerned about pricing and the advance disclosure of fees.
"We're very upfront about pricing with anyone who asks," Saladin said.
Jennifer Bjorhus • 612-673-4683
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