Energy Choice
                            

Matters

Regulator Issues Cease and Desist Order to Retail Supplier Over Use of Marketer's Brand

November 20, 2014

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

The Connecticut PURA has issued a cease and desist order to Public Power, LLC after alleging that Levco Energy, in marketing supply from Public Power, is doing so under the name Levco Energy rather than Public Power.

"Specifically, LEVCO has been making telemarketing calls, distributing advertisements (a sample is attached), answering customers' calls and maintaining a website, using the name 'LEVCO Energy,'" PURA alleged.

"LEVCO Energy is not a licensed Connecticut electric supplier. Public Power may use third-party contractors to perform marketing and/or enrollment activities; however, all such activities must be conducted under Public Power's name and licensing docket number, and all marketing materials must bear Public Power's name exclusively," PURA said (emphasis added).

PURA cited Section 16-245o(h)(1), as amended by Public Act 14-75, which provides that, "No third-party agent may sell electric generation services on behalf of an electric supplier unless (A) the third-party agent is an employee or independent contractor of such electric supplier," however, this does not appear to squarely address the use of the brand of a non-supplier marketer in "selling" electricity.

"When acting on behalf of Public Power, LEVCO Energy may not use its own name. All legal agents of Public Power must make it clear that consumers are dealing with Public Power and not any other company, such as LEVCO. For example, LEVCO must answer the phone as 'Public Power' and not 'LEVCO Energy' to avoid misleading or otherwise confusing customers," PURA said.

"Public Power is hereby directed to take immediate steps to correct these deficiencies. If Public Power fails to remove all references to 'LEVCO Energy' in its marketing materials, website, enrollment activities or interactions with customers, within three business days of receipt of this letter, Public Power shall be subject to civil penalties and/or other action by the Authority," PURA said.

Public Power provided the following statement to EnergyChoiceMatters.com:

"Public Power is currently working closely with the Connecticut Public Utilities Regulatory Authority (PURA) to eliminate any confusion that may have been created by the broker's advertising. Our company routinely conducts marketing spot checks as part of Public Power's rigorous commitment to compliance. We appreciate PURA's efforts to bring any undetected deficiencies to our attention so that Public Power can quickly rectify them in order to maintain our reputation as one of the Northeast's leading retail energy suppliers."

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Senior Energy Markets Pricing Analyst
• NEW! -- Energy Markets Analyst
• NEW! -- Utility Rules Analyst -- Retail Supplier
• NEW! -- Compliance Analyst -- Retail Supplier
• NEW! -- Manager Government and Regulatory Affairs - Texas -- Competitive Supplier
• NEW! -- Account Manager -- Retail Supplier -- New York
• NEW! -- Natural Gas Sales/Operations
• NEW! -- Business Development Director
• NEW! -- Director - Business Analyst and Pricing -- Retail Supplier -- New York
• NEW! -- Regulatory and New Markets Manager -- Retail Supplier -- New York
• Manager, Risk Management -- Retail Supplier -- Houston
• Customer Experience & Retention Manager -- Retail Supplier
• Sales Business Development Manager -- Retail Supplier -- Houston