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PUC Considers Settlement Imposing Civil Penalty on Retail Supplier For Alleged Theft By Vendor Sales Agent During Door-to-Door Visit

November 9, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

WGL Energy Services, Inc. would pay a civil penalty of $1,000 under a settlement issued for comment by the Pennsylvania PUC to resolve an investigation of WGL Energy in which it was alleged that a door-to-door sales agent employed by a third party marketing vendor, conducting sales calls on behalf of WGL Energy, stole a wallet from a potential residential customer.

PUC Enforcement Staff had alleged that on January 7, 2014, a sales agent employed by the vendor was in the process of soliciting EGS services from a potential residential customer. When the customer went to his bedroom to retrieve his PECO bill, the agent allegedly took the customer’s wallet, which contained $203, and left the premises. According to Enforcement Staff, the resident called police, and the police found the wallet without the $203 and located the agent who had $203 in his possession

According to the settlement, the local police informed WGL Energy that the agent had a prior arrest record for a similar incident. WGL Energy investigated the incident and confirmed that a criminal background check had been performed for the agent and that no criminal history record had been uncovered. On January 14, 2014, WGL Energy contacted the PUC's Bureau of Consumer Services (BCS) to self-report the incident

Following the incident on January 7, 2014, WGL Energy directed its vendor to change the criminal background check service used to screen sales agents in Pennsylvania. The vendor now uses a service different from the previous service. Additionally, after WGL Energy confirmed the arrest of the agent, WGL Energy required its vendor to remove the agent from WGL Energy's sales program.

WGL Energy's internal investigation concluded that its vendor had followed proper procedures regarding its door-to-door sales agents, including the required criminal background check processing. WGL Energy contended that there was no basis for its vendor to have known that the background check service was inadequate. In response, WGL Energy continued its business relationship with its vendor but with a new criminal background check service. However, WGL Energy’s contract with its vendor expired on October 31, 2014, and WGL Energy has since stopped its door-to-door sales operations in Pennsylvania

PUC Enforcement Staff was prepared to allege in a formal complaint that WGL Energy or an agent of the company was engaged in fraudulent, deceptive or otherwise unlawful acts in the process of marketing EGS services of the company to Pennsylvania consumers. Specifically, Enforcement Staff noted that the agent involved in the incident was charged with theft and receiving stolen property. According to Enforcement Staff, the allegation against WGL Energy, if proven, would be a one count violation of 52 Pa. Code § 54.43(f).

Additionally, Enforcement Staff was prepared to allege that WGL Energy or an agent of the company failed to comply with Chapter 111 of the Commission’s Regulations, 52 Pa. Code Ch. 111, titled "Marketing and Sales Practices for the Retail Residential Energy Market." Enforcement Staff would have argued that the company or its agent failed to properly conduct door-to-door sales activity by virtue of the arrest of the agent related to the theft of the wallet. This allegation, if proven, would be a one count violation of 52 Pa. Code § 111.9(b).

WGL Energy Services, Inc. would pay a civil penalty of $1,000 to resolve the matter, if the settlement is approved by the PUC.

PUC Enforcement Staff noted WGL Energy's cooperation and "good faith" efforts to comply with the regulation in recommending approval of the settlement

WGL Energy offered the following statement concerning the settlement, "As noted in the settlement, WGL Energy took immediate corrective action and proactively reported the incident to the Public Utility Commission. We regret this incident, an isolated event that does not reflect the high standards we expect from our third-party sales agents."

Docket M-2015-2401964

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