Just Energy to Pay $111,000 in Ohio Settlement Regarding Complaints, License Renewal

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November 5, 2010

Staff of the Public Utilities Commission of Ohio and Just Energy have entered into a stipulation to resolve customer complaints received by PUCO, and Staff's earlier recommendation to suspend Just Energy's gas supplier certificate (02-1828-GA-CRS).

Staff's motion for a temporary suspension of Just Energy's gas operating certificate was first reported by Matters (9/22).  Staff's allegations against Just Energy are more fully detailed in our 9/22 story.

Under the settlement, also joined by the Ohio Consumers' Counsel, Just Energy would receive a two-year renewal of its license while paying a minimum of $111,000 to the Ohio general fund.

Just Energy is to provide customers contracted between April 1, 2010 and September 20, 2010 the opportunity to cancel their contract without penalty, with customers provided with a three week window to decide whether to exercise this right.

Just Energy will implement a revised Third Party Verification process for all residential door-to-door sales, under which verification shall begin after the sales agent leaves the property of the customer.  

The settlement calls for Just Energy to hold $200,000 in abeyance.  If Just Energy has 10 verified complaints for a calendar month, for any two calendar months in a rolling three month in period during 2011, concerning residential door-to-door marketing solicitations or customer enrollments involving conduct that is misleading, deceptive and/or unconscionable, such complaints shall trigger a payment of $100,000.  A subsequent three-month period with such number of complaints would trigger the payment of the remainder of the amount held in abeyance, and could prompt Staff or OCC to seek suspension, rescission, or conditional rescission of the company's certification.

Just Energy will hire a number of quality assurance personnel whose compensation will be salaried and not based on any commission in order to provide adequate oversight of the company's sales force.  Just Energy will also implement additional training.

Just Energy will remove from its contracts language stating that customers can be required to submit to binding arbitration under the American Arbitration Association rules, which Staff has argued contravenes regulations providing customers the right to request that Staff mediate any complaint.

The settlement mandates that Just Energy provide residential customers the right to terminate their contract within the first 30 days following the issuance of the first bill without an early termination penalty.  Just Energy had already been been offering this extended no-fee cancellation period on a voluntary basis.

Just Energy admits no wrongdoing under the stipulation.

   
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