Alert: PA Settlement Filed Resolving PUC Complaint against Energy Services Providers, Inc. d/b/a Pennsylvania Gas & Electric
March 25, 2015
In a proposed settlement just filed with the Pennsylvania Public Utility Commission (“PaPUC”), electricity supplier Energy Services Providers, Inc. d/b/a Pennsylvania Gas & Electric (“PG&E”) set forth a proposal to settle the complaints filed against it by the Pennsylvania Office of Consumer Advocate (“OCA”), Pennsylvania Office of Attorney General (“AG”) and the PaPUC’s Bureau of Investigation and Enforcement (“BI&E”). The Administrative Law Judges will need to issue a recommended decision regarding the proposed settlement which will then need to be approved by the Commission before becomes final.
This is one of five complaints filed at the PaPUC in the summer of June 2014 by OCA/AG and BI&E in response to increased consumer complaints against the companies following the Polar Vortex. All the cases have been moving through the PaPUC administrative process which has involved numerous procedural motions addressing the legal authority of the PaPUC and processing of the complaints.
This settlement represents the first case that has been amicably resolved. The key elements of the settlement are the following:
- Refunds: PG&E agrees to pay the total sum of $6,836,563 into a refund pool which will take into account prior cash refunds provided to customers by the PG&E. Prior to settlement, PG&E voluntarily provided $4,511,563 in cash refunds to customers. Therefore, the net Refund Pool amount due upon the effective date of the PaPUC’s final order is $2,325,000. OCA/AG shall determine which customers were affected and how much restitution to offer to any individual customer based on the individual customer’s usage, price charged and refund amounts already received directly from PG&E. The Refund Pool is to be administered by 3rd party administrator with the first $100,000 of costs and expenses to be paid by PG&E.
- Civil Penalty: PG&E agrees to pay a civil penalty in the amount of $25,000 to the General Fund. PG&E also agrees to make a total contribution of $100,000 to the hardship funds of the electric distribution companies.
- Injunctive Relief: For a period of eighteen months, PaG&E agrees not sell variable rate products in Pennsylvania and will offer fixed rate products pursuant to which the customer’s price is fixed for six-months or longer. The settlement also includes specific details about PG&E’s marketing and consumer contracts. Of specific note is a requirement that all sales presentations are required to be recorded.
- On-going reporting: Within 30 days of implementation of the training and compliance and semi-annually thereafter for a period of five years, PG&E agrees to provide to the Commission and OCA specific reports regarding processes.
A copy of the settlement can be found at: https://www.puc.state.pa.us/pcdocs/1349568.pdf
This Eckert Seamans Energy and Utilities Blog post is intended to keep readers current on matters affecting businesses and is not intended to be legal advice. If you have any questions about the content of this post, please contact Deanne O’Dell at dodell@eckertseamans.com or (717) 255-3744.