PA PUC doling out penalties for deceptive energy marketing

August 20, 2013 | By Barbara Vergetis Lundin

The Pennsylvania Public Utility Commission (PUC) is weighing two settlements with two electric generation suppliers (EGS) over informal investigations into alleged suspect marketing practices.

The Commission voted 5-0 to issue the proposed settlements between the suppliers and the PUC's independent Bureau of Investigation & Enforcement (I&E) for comment for the next 20 days.

The proposed settlement with IDT Energy follows an informal investigation into 21 consumer complaints in connection with marketing incidents with one of the company's independent sales agents. The PUC's I&E alleged that IDT violated PUC regulations and the Pennsylvania Public Utility Code after I&E was able to substantiate allegations of slamming and fraudulent, deceptive, or unlawful sales and marketing actions.

The proposed settlement includes a civil penalty of $39,000, which it agrees not to recover from Pennsylvania consumers. The company must also retrain certain sales agents; implement better quality control; provide the PUC with written notification of marketing activities, as well as a list of independent marketers; and increase reporting of consumer complaints to the PUC.

The second proposed settlement with APG&E follows an informal investigation into consumer allegations of slamming. The PUC's I&E alleged that APG&E violated PUC regulations and the Pennsylvania Public Utility Code by failing to obtain the direct oral confirmation or written authorization from multiple customers to change their EGS supplier; engaging in fraudulent, deceptive or otherwise unlawful acts in the process of marketing services to consumers; violating the "Do Not Call" provisions of the Telemarketer Registration Act; and violating the code of conduct for licensed suppliers.

According to the proposed settlement, the company must pay a civil penalty of $43,200, which cannot be recovered from Pennsylvania consumers and send annual information to its customers stating that the company has no affiliation with the customer's electric utility. APG&E must also provide written notice to the PUC of any changes to its marketing practices and increase its reporting on consumer complaints to the PUC.

The companies in the settlements admit no wrongdoing.

For more:
- see this report

http://www.fierceenergy.com/story/pa-puc-doling-out-penalties-deceptive-energy-marketing/2013-08-20