The attorney general today announces legal action against a propane company it says is gouging local customers.

We reported last week Inergy Propane and it's local gas suppliers are being sued for the high prices they're charging some customers for home heating propane by a Grayling man. He won a suit against his subsidiary--Gaylord Gas--last week, and now he's expanded the suit to make it class-action, and include local customers.

Lawrence Friedman says Gaylord Gas raised the price of propane for his home by a dollar at their last delivery, and then required he pay to have it pumped out. The price they charged was about a dollar more than any other company he called.

Many customers complained to the Attorney General about similar situations, and Tuesday, Cox filed notice that he intends to act. It's a warning to the company to stop such behavior.

Local subsidiaries include Northwest Energy, McBride Oil and Propane, and ProGas.

The propane company accused of gouging local customers is defending its pricing policy. Inergy says they price based on market demand. It says the customers charged higher prices did not use a pricing plan like most customers. Inergy says it hopes to meet with Cox before the end of the week.