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PSC Approves $100,000 Settlement with Retail Supplier

February 7, 2014

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

The District of Columbia PSC approved a settlement between Starion Energy PA, Inc. and the D.C. Office of People's Counsel under which Starion Energy will 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 Starion's marketing practices.

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.

The settlement had been first reported by EnergyChoiceMatters.com last year (click here)

Under the adopted settlement, Starion will 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 will 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 will, among other things, provide its terms and conditions and disclosure statement to OPC for review and collaborative approval. The PSC did condition its approval of the settlement on Starion and OPC filing with the Commission a copy of all consumer education and disclosure documents that they develop as part of the settlement agreement prior to their use.

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.

In adopting the settlement, the PSC said that, "[t]he Commission is eager to grow the competitive energy supply market in the District and welcome new entrants into our market. But growth in the competitive energy market must not be at the expense of District consumers. As shown by this investigation and our continuing review of consumer protection issues related to the competitive energy markets in Formal Case No. 1107 this Commission will be actively monitoring the activities of the competitive energy suppliers who are operating in the District."

"Finally, the Commission wants to again commend OPC and Starion for their response to this investigation and for the settlement that was reached. The Commission will be monitoring the Voluntary Compliance Program that the Settling Parties have committed to put in place. It promises to produce marketing materials that will better explain to consumers the terms of the energy services being offered by Starion and result in better door-to-door solicitation practices. When this investigation was started, Starion voluntarily suspended its marketing in the District until this matter was resolved. With the approval of this Settlement Agreement, we welcome Starion back as an active participant in our competitive energy supply community," the PSC said.

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