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ESCO Responds To NY PSC Show Cause Order

January 6, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Atlantic Power and Gas LLC has filed an initial response to a show cause order issued by the New York PSC.

As more fully detailed in our prior story (click here), a PSC Staff Notice of Apparent Failure alleged that Atlantic Power & Gas LLC did not produce authorization for several enrollments, and that two TPV recordings which were produced omitted verifications required under the UBPs

In its initial response, Atlantic Power and Gas LLC addressed the PSC's direction that the company show why it should not be precluded from enrolling new customers until the Commission orders otherwise.

"Atlantic’s [Atlantic Power and Gas LLC] executive team is actively reviewing internal procedures and has undertaken several steps to address the concerns raised by the Commission regarding its marketing, enrollment, and dispute resolution practices, and respectfully submits that suspension of its eligibility to enroll new customers if not necessary at this time," Atlantic Power and Gas LLC said

Atlantic Power and Gas LLC further said, "The UBP violations alleged in the Show Cause Order are not reflective of its current practices and conflict with Atlantic’s business practices and commitment to customer satisfaction. It respectfully submits to the Commission this Initial Response, outlining the steps it has taken and is continuing to take towards compliance, and requests that the Commission decline to suspend its eligibility to market and enroll natural gas and electric customers during the pendency of this proceeding."

Regarding allegations concerning its record retention and response to PSC Staff inquiries, Atlantic Power and Gas LLC said, "While Atlantic was in the beginning stages of refining its marketing practices, on July 26, 2016 it received a Notice of Apparent Failure ('July NOAF') which focused on five (5) complaints and alleged slamming by Atlantic. Atlantic reviewed the customer accounts underlying the complaints for a number of factors: (1) which employee/agent handled the account; (2) how they were enrolled with AP&G; and (3) gathering all available documentation for the account, all but one of which was handled by Thomas Graham. Mr. Graham oversaw the Customer Service Department and was responsible for maintaining customer records, including TPV recordings and executed agreements. Mr. Graham passed away very suddenly on June 8, 2016, and Atlantic staff has had extreme difficulty in retrieving his records, several of which were on his personal computer. Timely and sufficient response to the Commission was also hindered by the passing of Usher Fogel, who had been Atlantic’s legal counsel since its formation in 2013."

"Since Mr. Xirinachs joined Atlantic’s team in July 2016, he has implemented a number of changes, including improvement of its recordkeeping practice. Atlantic has brought in a new IT team, which ensures all Atlantic customer data is securely stored (and accessible), via Amazon Web Services. All terminals that have access to customer information are password protected (this includes an encrypted message sent to the user cell phone before gaining access). All potential customer accounts before being put into the EDI SYSTEM are carefully screened by Mr. Xirinachs to ensure complete compliance, including (but not limited to) Mr. Xirinachs reviewing contracts and listening to TPV recordings and randomized welcome calls to ensure complete understanding from the customer," Atlantic Power and Gas LLC said

Regarding alleged slamming incidents, Atlantic Power and Gas LLC provided individual responses to each complaint, stating that several complaints were deemed "unfounded" by the PSC, while others appear to be the result of miscommunication and the customer had been satisfied and expressed a desire to stay with Atlantic Power and Gas LLC. Atlantic Power and Gas LLC detailed other instances in which customers were returned to the utility and provided refunds.

Atlantic Power and Gas LLC said that three complaints, "were related to Amplified Power & Gas ('Amplified') (624108, 618937, and 636868). Atlantic began talks to acquire Amplified Power and Gas in July 2014, and during the months of negotiations, Amplified sold Atlantic approximately one hundred (100) customers. However, Amplified was ultimately sold to a company called Silver Bear, which formed a new entity called Amplified Power and Gas to take over the accounts, including those customers that had been sold to Atlantic. Atlantic has returned any Amplified customers either to Amplified or the utility"

Atlantic Power and Gas LLC also detailed new training and monitoring procedures made in response to Staff's earlier inquiry. Atlantic Power and Gas LLC also moved to a new TPV provider.

"As also outlined in Atlantic’s email to Staff on September 13, 2016, Atlantic’s Compliance Officer will monitor the Company’s progress through meetings with the CEO, the COO, and Atlantic’s counsel. Presently the group meets at least weekly to monitor the implementation and effectiveness of the compliance and sales measures adopted in response to the December Order to Show Cause as well as any other changes developed subsequently by Atlantic. At the meetings, Atlantic’s Compliance Officer, CEO, COO and counsel will jointly review complaints and generally support implementation of improvements to the sales and compliance processes. Through these meetings, and with the assistance of other internal tools, Atlantic will track complaints closely to ensure elimination of slamming-related complaints, and Atlantic’s counsel and Compliance Manager will spot check customer enrollment procedures and TPV scripts," Atlantic Power and Gas LLC said

Atlantic Power and Gas LLC said that, "Over the past three years, Atlantic has built up a strong and loyal base of customers. Most customers have been enrolled with Atlantic through its affiliations with several unions and associations. In 2015, for example, Atlantic was selected by a major civil service association to act as their electric and natural gas energy provider. Under this partnership, members may choose from a variable rate program, with a 5% direct rebate on their monthly bill or a fixed rate program. Other customers have been enrolled through telephonic or electronic solicitation. Atlantic does not engage in door-to-door solicitation, nor does it actively telemarket. Atlantic’s existing relationships, in combination with new customers it acquires through referrals from existing customers, is a testament to its high customer standards."

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