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PUC Seeks More Information On Specific Nature of Allegations Which Led To $18,000 Settlement Between Retail Supplier, PUC Staff

September 20, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Pennsylvania PUC sought more information on allegations which prompted Great American Power, LLC to enter a settlement with the PUC's Bureau of Investigation and Enforcement (I&E) under which Great American Power, among other remedial actions, would pay $18,000.

The settlement results from I&E's review of Great American Power's marketing practices and 37 marketing-related complaints lodged by Pennsylvania consumers

After its investigation, I&E was prepared to allege that outside sales agents acting on behalf of Great American engaged in marketing conduct and sales practices that failed to meet the established standards and practices for marketing and sales activities for EGSs and their agents to ensure the fairness and integrity of the competitive residential market pursuant to Commission regulations.

The settlement states that I&E was prepared that Great American Power, as responsible for the actions of any of its agents, "engaged in fraudulent, deceptive or otherwise unlawful acts in the process of marketing electric generation supplier services of the Company to Pennsylvania consumers." I&E was prepared to allege violations of 52 Pa. Code § 111.7, pertaining to customer authorization to transfer account, transaction, verification and documentation, and 52 Pa. Code § 111.10, pertaining to telemarketing

However, the settlement does not detail any specific actions alleged to have violated the code.

That prompted the PUC, in addressing the settlement, to conclude, "In this proceeding, we do not believe that we have enough information to evaluate whether the civil penalty and corrective actions are sufficient to address the alleged violations. Neither the Settlement nor the statements in support contain sufficiently clear information about the referenced twenty incidences – the seventeen received by the Company and the three received and investigated by BCS."

"We note that the Settlement references thirty-seven marketing related customer complaints. Other than describing seventeen of these incidents as involving unacceptable or questionable marketing practices, there is no further description of the occurrences. The circumstances surrounding the three additional incidents received and investigated by BCS are similarly unclear," the PSC said

Therefore, the PUC directed the settling parties to provide further information related to the dates, descriptions of the complaints, the research conducted by the company, and the findings and actions taken by the company or by the PUC's Bureau of Consumer Services.

Apart from an $18,000 payment, Great American has taken various remedial actions under the settlement, including terminating its relationship with the third-party marketer involved in the alleged violations

Great American Power issued the following statement:

"Great American Power is working in conjunction with the Pennsylvania Public Utility Commission to resolve this matter. We would like to make clear that the situation in question is from 2012 and Great American Power has had no similar issues since that time. Great American Power is committed to a fair and transparent energy marketplace that promotes a healthy competitive environment."

Docket M-2016-2536806

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