Updated:

Pa. PUC I&E Bureau Seeking To Revoke License of Active Retail Supplier, Nearly $9 Million Fine, For Alleged Marketing Violations

I&E Alleges 179 Instances Of Unauthorized Switches By Slamming Or Upon False Information

I&E Alleges Several Unauthorized Switches Involved The Supplier Enrolling A Customer Who Was Deceased

I&E Alleges Nearly 4,000 Instances Where Supplier's Agent Attempted To Or Successfully Accessed Online Customer Accounts Without The Customer Consent

January 31, 2020

Email This Story
Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

Update #2: 1/31/20 4:47 pm

Verde Energy provided the following statement on the matter:

"Verde Energy does not comment on ongoing regulatory or legal matters. We do not condone misleading sales practices under any circumstances and are committed to providing green energy choices for Pennsylvanians in full compliance with all laws and regulations. We look forward to working with the Bureau of Investigation and Enforcement to address these allegations." -- Verde Energy

Updated:, 1/31/20, 4:21 p.m.

In proposing revocation of the EGS license of Verde Energy USA (Verde), first reported in the earlier story below, the Pennsylvania PUC's Bureau of Investigation and Enforcement (I&E) said in its complaint that, "as a result of the egregious behavior described herein and in the best interest of the consumers of this Commonwealth, I&E seeks the revocation of Verde's license to provide electric generation services in Pennsylvania for failing to follow the principles of 52 Pa. Code § 54.43, violating multifarious applicable provisions of the Public Utility Code, violating the Pennsylvania consumer protection law, and transferring customer accounts without the customer's consent, i.e., slamming. See 52 Pa. Code § 54.42(a)(6)-(9)."

In addition to the proposed civil penalty of over $8.8 million first noted in the earlier story below, I&E proposes that Verde provide a refund for any bills rendered during the first two billing periods to any customer whose supplier was changed to Verde without the consent of the customer pursuant to 52 Pa. Code § 57.177(b).

I&E also proposes that Verde reimburse any customer who was charged a cancellation fee from their prior supplier as a result of an unauthorized switch pursuant to 52 Pa. Code§ 57.177(c).

In discussing the alleged behavior prompting the complaint, I&E alleged in the complaint that, "From February 2017 to present, Verde, and/ or a third-party marketing agent acting on Verde's behalf, has conducted deceptive and misleading sales tactics, enrolled customers without authorization (i.e., slamming) and accessed customer accounts without authorization while participating in Pennsylvania's competitive supplier retail market."

I&E alleged in the complaint that, "On or about June 12, 2019, the Commission's Office of Competitive Market Oversight ('OCMO') held its routine monthly phone call with PPL. PPL alerted OCMO to its concerns of Verde's deceptive marketing practices and unauthorized account access and enrollment within PPL's service territory."

I&E alleged in the complaint that, "Of grave concern, PPL alerted OCMO to Verde's potential use of the Eligible Customer List to employ deceptive practices and access approximately 4,000 customer accounts on PPL's website without the customer's knowledge or authorization."

I&E alleged in the complaint that, of the referenced 339 consumer complaints against Verde received by PPL, 288 of the complaints alleged that Verde conducted misleading and deceptive telemarketing conduct

I&E alleged that the 288 telemarketing complaints alleged an average of five (5) regulations and/or code sections violated per customer account.

In addition to the alleged behavior noted in our earlier story below, I&E alleged in the complaint that the "misleading and deceptive telemarketing conduct" included but was not limited to the following (quoted as alleged by I&E):

• "The Verde agent or agents misrepresented a relationship with PPL or other electric generation suppliers that does not exist, such as: i) Representing that Verde is affiliated or a part of PPL; or ii) Representing that Verde is affiliated with or a part of other, unrelated electric generation suppliers."

• "Representing that the customer's current electric generation supplier was going out of business, bankrupt, or not providing services in Pennsylvania[]"

I&E alleged that of the referenced 339 consumer complaints against Verde received by PPL, 39 of the complaints alleged that Verde conducted misleading and deceptive door-to-door sales conduct.

I&E alleged that the 39 door-to-door complaints alleged an average of six (6) regulations and/or code sections violated per customer account.

I&E alleged that of the referenced 339 consumer complaints against Verde received by PPL, 179 or 52% of the complaints indicated that Verde processed and completed an unauthorized switch by slamming or upon false information

I&E alleged that eighty-three (83) of the complaints received by PPL relate to allegations of an unauthorized switch or slamming.

I&E alleged that ninety-six (96) of the complaints relate to allegations that the deceptive conduct and representation of the Verde agent resulted in the unauthorized switch or switch based upon false information.

I&E alleged that, "Of grave concern, three (3) of the unauthorized switches involved Verde enrolling a customer who was deceased."

I&E alleged that, "Of the referenced 339 consumer complaints against Verde received by PPL, 29 of the complaints indicated that Verde released private customer information to a third party."

I&E alleged that, "Of the referenced 339 consumer complaints against Verde received by PPL, 16 of the complaints indicated that Verde used private customer information to falsely report a power outage or falsely submit a disconnection of service request."

I&E alleged that, "In addition to complaints received by customers, PPL identified 3,922 incidents where a Verde agent either attempted to or successfully accessed online customer accounts without the customer's consent or authorization."

The specific number of all alleged violations, and monetary penalty I&E is seeking for each type of violation, can be found in I&E's complaint here

Earlier:

Note: This is a breaking story. This story will be updated later as more details in the complaint are reviewed

The Pennsylvania PUC announced in a news release that, "Prosecutors from the Bureau of Investigation and Enforcement (I&E) – the independent investigation and enforcement bureau of the Pennsylvania Public Utility Commission (PUC) – have filed a formal complaint against Texas-based Verde Energy USA (Verde)."

The PUC said in a news release that, "The I&E complaint is seeking more than $8.8 million in civil penalties for alleged violations of energy sales and marketing regulations and the Pennsylvania Public Utility Code, along with the revocation of Verde’s license to provide electric generation services in Pennsylvania and refunds/reimbursement for consumers."

The PUC said in a news release that, "According to the I&E complaint, Verde allegedly engaged in misleading and deceptive telemarketing and door-to-door sales activity," including, as described by the PUC in a news release:

• Unauthorized switching of customers’ energy suppliers (slamming) – including enrolling several customers who were deceased.

• Threatening to disconnect customers’ services and/or using private customer information to falsely report power outages or falsely submit requests to disconnect service.

• 'Spoofing' phone numbers on telemarketing calls to falsely identify the call as coming from other utilities or local telephone numbers.

• Agents misrepresenting themselves as representatives or employees of a utility, including allegations that agents wore clothing or provided documents that included a utility logo.

• Falsely claiming to have been sent by a utility to check customers’ meters or rates/bills.

• Refusing to leave after customers expressed no interest in the service.

• Refusing to cancel enrollments after customers complained or brought deceptive acts to Verde’s attention.

• Claiming that customers’ current electric generation supplier was going out of business, bankrupt or not providing service.

• Suggesting that customers were required to switch or choose Verde.

• Representing that the customers’ current electric generation supplier was purchased by or merged with Verde.

• Providing false and misleading information about the customers’ contracts or rates with their current electric generation suppliers.

• Misrepresenting that Verde is a discount program.

• Making misleading claims about potential savings.

The PUC said in a news release that, "Collectively, the I&E complaint alleges nearly 9,000 violations of energy marketing regulations or other sections of the public utility code – including 339 customer accounts impacted by deceptive telemarketing or door-to-door activities and 3,922 incidents where Verde representatives allegedly used confidential customer information to access or create an online customer account without the customers’ consent or authorization."

Verde has 20 days from the date the complaint was served to file an answer to the I&E complaint.

The full complaint is available here

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Senior Consultant - Competitive Energy Markets -- Houston
• NEW! -- Channel Relations Manger -- Retail Supplier
• NEW! -- Customer Service Representative -- Retail Supplier
• NEW! -- Renewables and Energy Trader -- Retail Supplier