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PUC Addresses Authority to Enforce General Consumer Protection Laws, Whether EGS Prices Conform to Disclosures

November 14, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Pennsylvania PUC has affirmed that it lacks jurisdiction to enforce the Unfair Trade Practices and Consumer Protection Law and Telemarketer Registration Act, but that the Commission may determine whether a retail electric supplier's prices conform to its disclosure statement

In an order on interlocutory review of a preliminary order in a complaint filed by the Attorney General against Blue Pilot Energy, the PUC affirmed the preliminary order's findings that statute does not grant the PUC authorization to enforce the Unfair Trade Practices and Consumer Protection Law and Telemarketer Registration Act.

However, in an adopted motion from Vice Chairman John Coleman, the PUC affirmed that the Commission has jurisdiction over alleged violations of its own regulations.

"This jurisdiction includes determining whether the Commission's regulations prohibiting deceptive or misleading conduct and/or the Commission's telemarketing regulations, have been violated by an EGS. Therefore, I believe the Commission can hear claims alleging fraudulent, deceptive, and/or misleading conduct brought against Blue Pilot under the Commission's regulations. I also believe that the Commission can hear claims alleging improper verification of enrollment of residential customers brought against Blue Pilot under the Commission's telemarketing regulations," the adopted motion states.

The PUC also affirmed that it does have the authority and jurisdiction to determine whether the prices charged to customers by an electric generation supplier (EGS) conform to the EGS disclosure statement regarding pricing

Coleman, in his adopted motion, notes that the PUC does not have traditional ratemaking authority over competitive suppliers and does not regulate competitive supply rates. "The Commission also does not have subject matter jurisdiction to interpret the terms and conditions of a contract between an EGS and a customer to determine whether a breach of the contract has occurred," the adopted motion states.

"The Commission, however, does have subject matter jurisdiction to regulate certain aspects of the services provided by EGSs. The Commission's subject matter jurisdiction over EGSs is set forth in Sections 2807 and 2809 of the Public Utility Code. Under Code Section 2809, EGSs are required to abide by the Commission's regulations, including its Chapter 54 regulations on bill format, disclosure statements, marketing and sales activities, and contract expiration notices. In addition, EGSs serving residential customers also are required to comply with the standards and billing practices in Chapter 56 of the Commission's regulations," Coleman noted in his adopted motion

Therefore, the PUC may examine whether Blue Pilot billed customers in accordance with its Disclosure Statement, and the matter was referred to an ALJ for further proceedings.

Docket C-2014-2427655

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