Retail Supplier Agrees To $250,000 Forfeiture, Customer Refunds Under Settlement With PUC Staff

Alleged To Have Charged Rate In Excess Of 18¢/kWh, Called "Miscalculation" By Supplier

July 17, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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National Gas & Electric (NG&E or Company) has agreed to a forfeiture of $250,000 under a settlement with Staff of the Public Utilities Commission of Ohio to resolve alleged violations detailed in a Staff Notice of Probable Non-Compliance dated September 11, 2018

The stipulation notes that National Gas & Electric has performed the following in response to the issues contained in the Staff’s Notice Letter:

• Re-rated customers under variable-rate contracts who were charged $0.1899 per kWh and filed a complaint with the Commission or who were charged $0.18 or more per kWh for more than one month, and issued such customers refund checks. The Signatory Parties agree upon the refunds issued by the Company for purposes of reaching a settlement in the matter. The stipulation did not explicitly state at what rate customers were re-rated or upon which the refunds were based. However, Staff in the Notice of Probable Non-Compliance letter had proposed that such customers be re-rated at the utility price to compare

• Re-rated all customers who agreed to one rate during the telephonic enrollment and third-party verification process but were billed at a different rate, and issued such customers refund checks. The Signatory Parties agree upon the re-rating approach used and to the refunds issued by the Company.

• Refunded all customers billed a monthly fee at the conclusion of their fixed-rate contract.

• Released without penalty or early termination fee all customers who were telephonically enrolled with National Gas & Electric from October 2017 to July 2018 and that contacted National Gas & Electric alleging they were misled by the sales representative.

National Gas & Electric agrees to a forfeiture of $250,000 upon approval of the stipulation by PUCO

In its Notice of Probable Non-Compliance dated September 11, 2018, Staff had alleged that National Gas & Electric was:

• "Charging a high variable rate to 1,415 customers that it claimed was 'due to a miscalculation' after Staff inquired but that it would only adjust for customers who complained

• Moving customers to a variable rate prior to the agreed upon term

• Billing customers a rate other than what was agreed to during the sales call

• Unable to provide recordings of all requested sales call as required

• Not making clear offers for sale on its calls

• Making misleading statements during calls

In its Notice of Probable Non-Compliance dated September 11, 2018, Staff had alleged that NG&E was in probable non-compliance with various provisions of the Ohio Admin. Code which prohibit unfair, misleading, or deceptive actions

Among other specific codes, in its Notice of Probable Non-Compliance dated September 11, 2018, Staff had alleged that NG&E was in probable non-compliance with Ohio Adm.Code 4901:1-29-06(e), which provides that, to enroll a customer telephonically, a retail natural gas supplier or governmental aggregator shall make a date- and time-stamped audio recording of the sales portion of the call, if the customer is enrolled, and before the completion of the enrollment process, a date- and time- stamped audio recording by an independent third-party verifier

In its Notice of Probable Non-Compliance dated September 11, 2018, Staff had originally proposed a forfeiture of $610,000

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