Retail Supplier Returns Customers To Default Service, Sale Process For Exit From State Does Not Find Buyer For Customer Book
March 10, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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PALMco Power OH, LLC, d/b/a Indra Energy and PALMco Energy OH, LLC d/b/a Indra Energy said in a filing at the Public Utilities Commission of Ohio that a sale of its Ohio book, contemplated as a means to exit the Ohio market per a previously reported settlement agreement, did not occur.
As first reported by EnergyChoiceMatters.com, PALMco under the settlement agreed that PALMco will not renew its Ohio certificates to provide electric or gas service in the state. The settlement, which was approved by PUCO, resolved various alleged violations of marketing rules
PALMco's gas certificate expired on 2/14/20 and the electricity certificate expired on 3/8/20
The settlement provided that, prior to expiration of such certificates, PALMco would exercise good faith
efforts to assign all remaining customer contracts to an unaffiliated third-party
supplier, in accordance with a bona fide transaction for value. The funds realized from any transaction were to be used to pay $800,000 in re-rates for all gas and electric customers who enrolled
between 10/1/18 and 11/30/18 who were not previously re-rated. If the funds realized from a transaction exceeded this obligation, then 50% of the
remaining funds were to be paid to the State of Ohio as a forfeiture, subject to a cap of $750,000
PALMco said in a March 10 filing, opposing a motion from the Ohio Consumers' Counsel for rehearing, that, "The settlement was structured to also exact a penalty of up to $750,000, as well
as provide an additional $800,000 in refunds, provided PALMco be given the opportunity to sell
its business. This last condition was necessary because PALMco cannot will money into
PALMco alleged in the March 10 filing that, "But thanks to OCC, a sale never happened. As a consequence, neither the enhanced
amount of restitution nor the forfeiture amount were paid."
PALMco said in the March 10 filing that, "PALMco has paid every
cent of restitution owed under the Stipulation."
PALMco further said, "Its certificates have expired and customers have
either chosen other marketers or defaulted to the utility."
PALMco noted that under the settlement, PALMco cannot reenter the Ohio market
for at least five years.