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Retail Supplier to Pay $100,000 Under Settlement

December 10, 2013

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Starion Energy PA, Inc. would make a donation of $100,000 to a utility assistance program, as well as provide remediation to customers which had complained, to settle an investigation into the supplier by the District of Columbia PSC.

The investigation had been prompted by customer complaints and allegations of Starion agents misrepresenting themselves as from the utility, as well as allegations of slamming and other alleged violations.

Under a settlement with the D.C. Office of People's Counsel to resolve the investigation, Starion agrees to make a voluntary contribution of $100,000 to the Utility Assistance Program of the Greater Washington Urban League to provide assistance to consumers in need.

Starion would also provide refunds and/or other remediation to customers with outstanding complaints. The amount of such remediation was marked confidential.

Additionally, the settlement includes a compliance plan under which Starion agrees to, among other things, provide its terms and conditions and disclosure statement to OPC for review and collaborative approval.

Starion agrees that a recorded third-party verification will be secured for all residential customers before Starion processes the customer's enrollment. In addition, a written signature will be required for all residential customers enrolling as a result of a door-to-door sale.

Starion agrees to investigate all customer complaints going forward, and if the allegations are substantiated, to recalculate the customer's charges using a rate equal to the standard offer rate if the allegations are substantiated.

Per the settlement, Starion and OPC will meet quarterly for a one year period beginning in January 1, 2014 and ending January 1, 2015 (described as a "probationary period"), at which time Starion will present its residential sales and complaint statistics, and updates on Starion's compliance efforts, including any new programs or procedures being implemented in its sales practice in the District to OPC.

The settlement remains subject to PSC approval.

Settling parties represented that Pepco, the only other party in the case (FC 1105), does not oppose the settlement.

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