Pennsylvania PUC Issued Proposed Settlement Agreements with EGSs for Comment

June 1, 2021

The Pennsylvania Public Utility Commission (“PUC” or “Commission”) recently issued for comment proposed settlement agreements between its Bureau of Investigation & Enforcement (“BI&E”) and two electric generation suppliers (“EGSs”) – National Gas & Electric, LLC (“NG&E”) and Eligo Energy PA LLC (“Eligo”).  The proposed settlement agreements focus on the companies’ sales and marketing practices. 

The NG&E settlement resulted from its mailing of a promotional postcard that allegedly disclosed confidential customer information, misrepresented savings, and provided inaccurate and untimely information about PPL Electric Utilities, Inc.’s (“PPL”) default service rate.  The postcard had been mailed to the Director of the Commission’s Office of Competitive Market Oversight (“OCMO”) and resulted in OCMO referring NG&E’s marketing material to the BI&E.  Under the Settlement, NG&E has agreed to: (1) pay a civil penalty of $120,000; (2) contribute $30,000 into PPL’s hardship fund; and (3) make corrective actions and revisions to its operating procedures.  The Commission’s Order and the Proposed Settlement with NG&E are available here.  

The Eligo proceeding stemmed from an informal investigation related to Eligo’s use of alleged misleading and deceptive marketing materials.  Pursuant to the proposed Settlement, Eligo has agreed to pay a civil penalty of $188,125.  The penalty includes: (1) a civil penalty of $1,000 for each mailer with the phrases “Important PUC Notice” or “Pennsylvania Public Utility Commission Notice”; (2) a civil penalty of $500 each for mailers with the phrase “Final Electric Notice: Attn Recipient; Request for Immediate Action”; (3) a civil penalty for each of the mailers with the phrase “Rate Change Notice”; and (4) a civil penalty of $125 for each of the customers that enrolled in response to the mailers.  The Commission’s Order and the Proposed Settlement with Eligo are available here.

The Commission’s Orders direct that any comments on the proposed Settlements be filed by June 9, 2021.

This Eckert Seamans Energy Supplier Litigation Blog is intended to keep readers current on matters affecting businesses and is not intended to be legal advice.  If you have any questions regarding the above, please contact Sarah Stoner (sstoner@eckertseamans.com) at 717.237.6026, or any other attorney at Eckert Seamans with whom you have been working.

 

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Sarah C. Stoner Photo Harrisburg

Sarah C. Stoner

Member - Harrisburg

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