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Pa. PUC Investigation & Enforcement Staff Seek $330,000 Fine Against Retail Supplier In New Complaint

December 20, 2016

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

The Pennsylvania PUC's Bureau of Investigation and Enforcement (I&E) has filed a complaint against Plymouth Rock Energy LLC in which I&E is seeking a $330,000 civil penalty against the supplier, alleging that, for certain months in 2014, the rates charged by Plymouth Rock Energy to hundreds of customers, "did not reflect the Initial Term price offering promised by the Company."

"In the marketing of electric supply to potential customers, Plymouth Rock offered several EGS price offerings to residential electric customers in Pennsylvania wherein Plymouth Rock marketed a fixed rate for a certain Initial Term and upon completion of the Initial Term, Plymouth Rock would bill the customer a variable rate on a month-to-month basis," I&E alleged

"Plymouth Rock offered such Initial Term price offerings to residential electric customers in the PPL and PECO service territories wherein a fixed rate per kilowatt hour (kWh) was guaranteed for an Initial Term consisting of either three or twelve months," I&E alleged

I&E alleged that this requirement was reflected in various Plymouth Rock documents provided to customers, including a Welcome Letter and Disclosure Statement

"When a customer was first enrolled in the Initial Term price offering, Plymouth Rock was obligated to put the customer on a fixed rate for the first three or twelve months of service. After the Initial Term, the rate automatically changed to the Company's variable monthly rate," I&E alleged

"Based on billing data provided by Plymouth Rock to I&E via discovery, there was a period of time during the first several months of2014 when Plymouth Rock's rates did not reflect the Initial Term price offering promised by the Company ('guaranteed discount rate') and, as a result, residential customers were overcharged," I&E alleged

"Billing data provided by Plymouth Rock to I&E demonstrates that from January 2014 through August 2014, Plymouth Rock billed a large number of residential customers within the PPL and PECO service territories a unit rate for electricity supply during the customers' Initial Term that exceeded, and sometimes far exceeded, the guaranteed discount rate which was the fixed rate agreed-upon at the time of each customer's enrollment as a Plymouth Rock supply customer," I&E alleged

As one example, I&E alleged Plymouth Rock customers at PPL within an Initial Term of three months under rate offerings named "G5-TM 3Mo PPL/Elec- Fixed- 0.069900000," "ECP 3Mo-Var_ShortT PPL/Elec- Fixed- 0.06990" or "SavingToday 3Mo-Var_ShortT PPL/Elec-Fixed- 0.06990," were guaranteed a rate not to exceed $0.0699 per kWh for the first three months of service.

"In PPL's February 2014 electric bills, which includes service provided to customers in January 2014 in accordance with PPL's meter cycle, some customers enrolled in Plymouth Rock's 3-month Initial Term price offering were charged a generation rate ranging from $0.0766 to $0.1520, even though the customers were within the initial three months of service," I&E alleged

"In PPL's March 2014 electric bills, which includes service provided to customers in February 2014 in accordance with PPL's meter cycle, some customers enrolled in Plymouth Rock's 3-month Initial Term price offering were charged a generation rate ranging from $0.0700 to $0.3800, even though the customers were within the initial three months of service," I&E alleged

I&E alleged billings in excess of the contract rate continued until August 2014 for certain customers

I&E said that if the allegations are proven, they would constitute a violation of Section 54.5(g)(1) of the Commission's regulations as they existed at the time

I&E proposes that Plymouth Rock pay a civil penalty of $125 for each of the alleged 2,476 instances of such over-charging, equaling $309,500.

I&E also proposes that Plymouth Rock pay a civil penalty of $100 per day, equaling $21,000, for each day that it allegedly failed to provide notice to affected customers of a change in terms to their fixed term agreements for invoices issued between February 1, 2014 and August 31, 2014

I&E proposes that Plymouth Rock refund, or provide proof that refunds to each of the customer accounts in the PPL and PECO service territories for overcharges incurred from February through August 2014 have already been provided, consisting of the cumulative difference between the amount each customer was billed and the guaranteed Initial Term fixed rate the customer was entitled to receive pursuant to the applicable Initial Term price offering.

Plymouth Rock Energy issued the following statement to EnergyChoiceMatters.com: "We have retained counsel and are reviewing the allegations in the complaint. We plan to answer the allegations formally and will have a more definitive response at that time."

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