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Initial Decision Would Affirm Pennsylvania PUC Cannot Adjudicate Claims Under Consumer Protection Law
In a serendipitously posted initial decision, a Pennsylvania PUC ALJ would affirm that the PUC lacks jurisdiction to enforce the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTP/CPL), and would dismiss a complaint against a retail electric supplier.
The Attorney General filed complaints against five suppliers on Friday, and although the complaints alleged violations of PUC regulations, much of the complaints allege violations of the Consumer Protection Law (click here for more details).
However, in an initial decision dated June 16 but served on Friday, an ALJ would affirm that, "It is well settled, however, that the Commission does not have jurisdiction to enforce the UTP/CPL. See, Mid-Atlantic Power Supply Assoc. v. PECO Energy Co., Docket No. P-00981615, 1999 Pa PUC LEXIS 30 (entered May 19, 1999); see also, Pa. Pub. Util. Comm'n, et al. v. The Bell Telephone Co. of Pa., 71 Pa. PUC 338, 341 (1989)."
"The Commission cannot find that an entity has violated the UTP/CPL," the ALJ says.
The ALJ's initial decision would grant summary dismissal of a complaint brought against Palmco Energy, from a customer which was dissatisfied with their variable natural gas rate.
Regardless of the PUC's lack of jurisdiction, the ALJ's initial decision would also dismiss the complaint after concluding that Palmco has not engaged in misleading or deceptive conduct, and no violation of the PUC regulations (or statute were the question jurisdictional) occurred.
The ALJ found that Palmco properly disclosed the nature of its variable rate, and was explicit that there was no ceiling on the rate. The customer conceded that they understood the rate was variable at the time of contract signing, the ALJ noted.
One of the claims from the complainant was that Palmco's posting of introductory rates for new customers on PA Gas Switch, which were lower than its variable rate for existing customers, allegedly amounted to a "bait and switch".
However, the ALJ noted that the PA Gas Switch rate explicitly said that it was, "valid for new customers only."
"[I]t is not unreasonable, nor is it false advertising or unethical business practices, for Palmco to offer a low introductory rate to entice new customers while charging customers a different rate that had increased following the expiration of the introductory rate," the ALJ said.
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June 23, 2014
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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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