Updated With More Details On Alleged Violations: Retail Supplier Agrees To $35,000 Forfeiture Under Stipulation With PUC Staff

June 3, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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PUCO Staff's October 2018 notice of probable non-compliance to Great American Power, LLC has been made public, disclosing more details on allegations which led to the stipulation first reported yesterday (see original story below)

As noted below, the stipulation is not an admission or finding of liability

In the October 2018 letter, Staff alleged that, "Over the past several months, Staff has received consumer complaints disputing their enrollment with Great American. After investigating these complaints, Staff determined that Great American enrolled at least twenty-one customers without proper authorization or consent."

In the October 2018 letter, Staff alleged that Great American, "Initiated third party verification calls that were completed by someone other than the customer or an authorized person[.]"

In the October 2018 letter, Staff alleged that Great American, "Could not provide signed contracts for the customers in question despite the fact that it reported that these enrollments were obtained via door to door marketing[.]"

In the October 2018 letter, Staff alleged that Great American, "Could not provide signed acknowledgement forms for the customers enrolled for natural gas supply[.]"

In the October 2018 letter, Staff alleged that Great American, "Conducted third party verification calls that were not in compliance."

In the October 2018 letter, Staff alleged that Great American is in probable non-compliance with the following sections of the Ohio Administrative Code:

1. Ohio Adm.Code 4901:1-21-03(A), which states, "Competitive retail electric service (CRES) providers shall not engage in unfair, misleading, deceptive, or unconscionable acts or practices related to, without limitation, the following activities: (1) marketing, solicitation, or sale of a CRES; (2) administration of contracts for CRES; and (3) provision of CRES, including interactions with consumers."

2. Ohio Adm.Code 4901:1-21-05(C), which states, in part, that "No CRES provider many engage in marketing, solicitation, or sales acts, or practices which are unfair, misleading, deceptive, or unconscionable in the marketing, solicitation, or sale of a CRES."

3. Ohio Adm.Code 4901:1-21-06(C), which states, in part, that "CRES providers are prohibited from enrolling potential customers without their consent and proof of that consent as delineated in paragraph (D) of this rule".

4. Ohio Adm.Code 4901:1-21-06(D)(1)(a), which states that for residential and small commercial enrollments, "Where enrollment occurs by mail, facsimile, or direct solicitation, the customer’s signature on a contract shall constitute consent."

5. Ohio Adm.Code 4901:1-21-06(D)(1)(h), which outlines the requirements for third party verification.

6. Ohio Adm.Code 4901:1-29-03(A), which states, "A retail natural gas supplier or governmental aggregator shall not engage in unfair, misleading, deceptive, or unconscionable acts or practices related to, without limitation, the following activities: (1) marketing, solicitation, or sale of a competitive retail natural gas service; (2) administration of contracts for such service; and (3) provision of such service, including interactions with consumers."

7. Ohio Adm.Code 4901:1-29-05(D), which states, in part, that "No retail natural gas supplier or governmental aggregator may engage in marketing, solicitation, sales acts, or practices which are unfair, misleading, deceptive, or unconscionable in the marketing, solicitation, or sale of a competitive retail natural gas service."

8. Ohio Adm.Code 4901:1-29-06(B), which states, in part, that "A retail natural gas supplier and governmental aggregator is prohibited from enrolling potential customers without consent and proof of that consent as delineated in paragraph (C), (D), (E) of this rule."

9. Ohio Adm.Code 4901:1-29-06(D)(1), which states that "Where enrollment occurs by mail, facsimile, or direct solicitation, the customer’s signature on a contract shall constitute consent."

10. Ohio Adm.Code 4901:1-29-06(D)(6)(a) which requires acknowledgement forms when enrolling a customer through door-to-door solicitation.

11. Ohio Adm.Code 4901:1-29-06(D)(6)(b) which outlines the requirements for third party verification.

In the October 2018 letter, Staff's proposed corrective actions for Great American Power included the following:

• Review the third party verification script being used to enroll customers and ensure compliance with Ohio Adm.Code 4901:1-21-06 and 4901:1-29-06. Provide the updated script to Staff for review.

• Audit all enrollments involving the agents associated with the above referenced complaints and perform the following actions:

      --- Provide Staff with a list of customers enrolled in supply service by the agents identified during the investigations;

      --- Contact each customer to ensure affirmative consent was obtained at the time of enrollment;

      --- Comply with Ohio Adm.Code 4901:1-21-08 and 4901:1-29-08 for each unauthorized enrollment; and,

      --- Provide a report of the results of the completed audit to Staff no later than November 8, 2018.

In the October 2018 letter, Staff had originally sought a proposed forfeiture of $64,700. As noted yesterday, under the stipulation, Staff and Great American Power agreed to a $35,000 forfeiture by Great American

Earlier:

Great American Power has agreed to a forfeiture of $35,000 under a stipulation with Staff of the Public Utilities Commission of Ohio to resolve all of the issues identified by Staff in a Notice of Probable Non-Compliance dated October 25, 2018

The stipulation is not an admission or finding of liability

A copy of the Staff Notice of Probable Non-Compliance, detailing specific concerns, was not immediately available

However, the stipulation states that Great American Power, "has remedied the issues identified in the Notice Letter regarding Ohio Adm. Code 4901:1-21-08 and 4901:1-29-08."

Ohio Adm. Code 4901:1-21-08 (electric) governs customer access, slamming complaints, and complaint handling procedures.

Ohio Adm. Code 4901:1-29-08 (gas) governs customer access and complaint handling.

The stipulation provides that Great American Power will continually review its third party verification scripts used to enroll customers and will ensure its compliance with Ohio Adm.Code 4901:1-21-06 and 4901:1-29-06 (both rules relating to customer enrollment and consent).

The stipulation states that Great American Power has presented to Staff a compliance plan it will follow to ensure oversight of its door to door vendor and its agents

The stipulation states that Great American Power has completed various corrective action items in the Staff Notice

Case 19-1278-GE-UNC

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