EnergyChoiceMatters.com

N.Y. PSC Suspends ESCO's Ability To Enroll Residential, Non-Residential Customers

March 14, 2017

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

The New York PSC has suspended Atlantic Power & Gas, LLC's ability to market to and enroll residential and non-residential customers until the Commission orders otherwise.

The PSC had in December issued a show cause order to Atlantic Power & Gas (see details here)

In such December show cause order, the PSC had stated that between October 1, 2015 and August 31, 2016, the Department received 19 complaints alleging slamming against Atlantic Power & Gas, LLC through the Department’s customer complaint process

A Staff Notice of Apparent Failure had 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

Atlantic Power & Gas outlined its compliance program and remedial measures in response to the order to show cause (see details here)

However, in its order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, in a second response to the show cause order, "Atlantic acknowledged, based upon its own investigation, that its historic enrollment and recordkeeping practices were not UBP compliant."

The PSC further said in its order suspending Atlantic Power & Gas's ability to enroll customers, "Atlantic also provided its findings for the complaints alleging slamming. For at least three complaints, Atlantic identified those accounts as being transferred to it by Amplified Power and Gas (Amplified). Atlantic also claimed that the accounts for three other complaints were never active with Atlantic. Consolidated Edison Company of New York, Inc.’s (Con Edison) records demonstrate that these accounts were not active with Atlantic only because the customers called the utility to drop the unauthorized enrollment when the customers received a notice from the utility that their account would be switched to Atlantic. These customers then placed a complaint with the Department alleging that Atlantic slammed them."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "During the January 11th meeting between Atlantic and Staff, Staff explained that they were in receipt of a taped phone conversation between a utility representative and Atlantic personnel, during which the Atlantic personnel is heard to represent himself as the customer’s authorized agent to enroll several separate accounts with Atlantic. On January 12th Staff provided Atlantic with a copy of the taped conversation and asked for comment and or explanation of the non-compliant enrollment actions that are captured on the recording. In Atlantic’s Second Response, it claimed that Mr. Xirinachs was authorized to act as a representative, however no supporting documentation was provided. On February 15, Atlantic filed an additional response (Third Response) addressing the recorded call between Mr. Xirinachs and the utility. Therein, Atlantic admitted that Mr. Xirinachs misrepresented the nature of the phone call to Staff. Atlantic, however, still maintained that the Company had the customer’s authorization to call the utility on the customer’s behalf at that time. In support of its position, Atlantic also included a letter dated February 10, 2017, signed by the customer, attesting to the fact that it gave permission to 'Michael,' which Atlantic warrants is Mr. Xirinachs, to act on its behalf in October 2015."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "However, as described in the Show Cause Order and subsequent staff findings as described herein, there is sufficient reason to discount Atlantic’s representations that it will market to and enroll customers in compliance with the UBP. Specifically, while Atlantic’s Initial and Second Responses state that Mr. Michael Xirinachs joined Atlantic in July 2016, the Department has evidence indicating that Mr. Xirinachs was in fact President of Atlantic as early as July 2014. Further, based on the aforementioned recording of the call between Mr. Xirinachs and National Grid, and the letter from the customer that was supplied by Atlantic, it is clear that Mr. Xirinachs was directly involved in Atlantic’s business as of at least October 2015."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "Regarding the recorded phone conversation that Mr. Xirinachs made to National Grid, Mr. Xirinachs stated that he was calling directly on behalf of the customer, i.e., as the customer itself, not as an employee of Atlantic calling on behalf of its customer, and claimed the accounts were switched from Atlantic to another ESCO without his authorization. Mr. Xirinachs then requested that the utility switch the customer accounts back to Atlantic."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "The UBP requires ESCOs to obtain verifiable proof of specific customer authorization for each cancellation prior to re-enrolling the customer. Because Atlantic did not have specific proof of authorization to re-enroll the customer at that time in 2015, the letter dated February 10, 2017, asserting that 'permission to act as [the customer’s representative] was extended' to Mr. Xirinachs for two years prior, is insufficient proof of authorization. If in fact Atlantic had proper authorization from the customers to reinstate these accounts, Atlantic should have sent an EDI transaction to the utility, as required by the UBP. It is unacceptable for an ESCO representative to call a utility posing as the customer."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "Atlantic’s Initial Response also demonstrates a misrepresentation by Atlantic. More specifically, in the Initial Response, Atlantic claimed that a number of the slamming complaints were a result of buying a list of one hundred customer accounts from Amplified Power & Gas (Amplified) during negotiations to acquire that ESCO. In fact, the Department has documentation from Amplified, filed at the time Amplified withdrew its ESCO eligibility in February 2015, stating that it returned all of its customers to Con Edison. These actions were confirmed by Con Edison and are in direct contradiction to Atlantic’s claim of purchasing customer accounts from Amplified. Staff’s review of those account histories as provided by Con Edison confirm that the accounts were not transferred to Atlantic by Amplified. In fact, Atlantic enrolled those accounts well after Amplified dropped the customer, in some cases almost a year later."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "Further, a review of the most current complaints, submitted subsequent to the complaints that were considered in the Show Cause Order, reveal that Atlantic presented false information in responding to Department QRS complaint, case #648848. In Atlantic’s response submitted on November 30, 2016, Mr. Xirinachs stated that he spoke with the customer and the customer had no issues with Atlantic, and that the complaint was submitted by a third party, not the customer. Staff contacted the customer regarding the complaint against Atlantic. Contrary to Atlantic’s claim, the customer confirmed that the customer did, in fact, place the complaint and asserted that it had been slammed by Atlantic on more than one occasion. Notwithstanding the above, the Department also received a notification from Con Edison alerting Staff to questionable actions involving Atlantic, such as account blocks being added and/or lifted at the same time Atlantic submitted multiple customer reinstatements, all without proper customer authorizations."

In the PSC's order suspending Atlantic Power & Gas's ability to enroll customers, the PSC stated that, "Given the apparent fundamental issues that Atlantic’s management appears to have with adhering to UBP requirements, it is appropriate to preclude Atlantic from marketing to and enrolling customers to ensure that additional customers are not harmed. Accordingly, Atlantic is prohibited from marketing to and enrolling customers until the Commission orders otherwise."

Email This Story

HOME

Copyright 2010-16 Energy Choice Matters. If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

Archive

Daily Email

Events

About/Contact

Search