Retail Supplier Agrees To $100,000 Forfeiture Under Settlement With PUC Staff

June 2, 2020

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

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In a stipulation with Staff of the Public Utilities Commission of Ohio, Provision Power And Gas, LLC d/b/a Quake Energy has agreed to a forfeiture of $100,000, upon approval of the stipulation, to resolve alleged violations contained in a Notice of Probable Non-Compliance dated January 13, 2020

In the January 13, 2020 notice letter, Staff had alleged, "In response to complaints to the Public Utilities Commission of Ohio ('PUCO') by customers disputing their enrollment with Quake Energy, Staff reviewed call center contacts and investigation records from June 2019 to November 2019. After reviewing sales calls, third-party verification (TPV) recordings, and responses from Quake Energy, Staff determined that Quake Energy is contacting customers through telemarketing Robocalls and misleading customers during the sales call and enrollment process. During the investigation, Staff identified numerous calls where customers were misinformed and provided information that was not compliant with the Ohio Adm.Code. Issues include the following: not providing proper rate information, not providing cancelation contact information for the supplier, requesting utility account information without making an offer for service, and promising potential customers discounts on their current utility bills. During the investigation, several customers clarified that sales agents representing Quake Energy failed to inform them that they were being offered a variable rate, when in actuality these were only introductory rates that increased after the first month."

Under the settlement, in addition to the forfeiture, Provision agrees to re-rate all customers that have filed a complaint with the Commission regarding alleged misleading marketing or enrollment practices if the enrollment occurred from May 1, 2019 until April 1, 2020, provided that the customers have not been re-rated previously or that re-rating will not cause the customer to be charged more for their service.

The stipulation noted that, within approximately three days of the Staff notice, Provision voluntarily ceased all telemarketing and enrollment activities until the matter was resolved

The stipulating parties agree that Provision may re-start its marketing activities and solicitation of customers on June 1, 2020, in accordance with any restrictions ordered by the Commission due to the COVID-19 pandemic.

Provision also agreed to develop a compliance plan and agreed to monitor third-party vendors under the settlement

The stipulating parties agree that the settlement is to be used for settlement purposes only and is not an admission of guilt of non-compliance or violation of law or the Commission’s rules, and cannot be used against Provision in the future as such.

Staff's January 13 Notice of Probable Non-Compliance had originally proposed a forfeiture of $140,000

Staff's January 13 Notice of Probable Non-Compliance had alleged probable non-compliance violations of the following rules:

1. Ohio Adm.Code 4901:1-21-03(A) “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 (3) Provision of CRES, including interactions with consumers.”

2. Ohio Adm.Code 4901:1-21-05(A) “Each competitive retail electric service (CRES) provider that offers retail electric generation service to residential or small commercial customers shall provide, in marketing materials that include or accompany a service contract, sufficient information for customers to make intelligent cost comparisons against offers they receive from other CRES providers.”

3. Ohio Adm.Code 4901:1-21-05(A)(3) “For variable rate offers, a clear and understandable explanation of the factors that will cause the price to vary, including any related indices, and how often the price can change.”

4. Ohio Adm.Code 4901:1-21-06(D)(2)(a)(iv), which requires that for telephonic enrollments, CRES providers make a date and time stamped audio recording verifying, among other things, “A verbal question and the customer's acknowledgement that the customer wishes to enroll with the provider.”

5. Ohio Adm.Code 4901:1-21-06(D)(2)(a)(xi), which requires that for telephonic enrollments, CRES providers make a date and time stamped audio recording verifying, among other things, “A verbal request for and the customer's provision of the customer's mailing address.”

6. Ohio Adm.Code 4901:1-29-03(A) “A retail natural gas supplier [“CRNGS”] or governmental aggregator shall not engage in unfair, misleading, deceptive, or unconscionable acts of 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. (3) Provision of such service, including interactions with customers.”

7. Ohio Adm.Code 4901:1-29-05(A) “Each retail natural gas supplier and governmental aggregator that offers competitive retail natural gas service to customers shall provide, in marketing materials that include or accompany a service contract, sufficient information for customers to make informed cost comparisons.”

8. Ohio Adm.Code 4901:1-29-05(A)(1)(a) “The cost per Ccf or Mcf, whichever is consistent with the incumbent natural gas company's billing format, for natural gas supply, if the product is based on a per-unit price or, for flat-monthly rate offers, a specific listing of the rate to be charged per month for the duration of the contract.”

9. Ohio Adm.Code 4901:1-29-05(A)(2)(a) “A clear and understandable explanation of the factors that will cause the price to vary (including any related indices) and how often the price can change.”

10. Ohio Adm.Code 4901:1-29-06(E)(1)(j), which requires that for telephonic enrollments, CRNGS providers make a date and time stamped audio recording verifying, among other things, “A verbal request for and the customer's provision of the customer's natural gas company's account number.”

11. Ohio Adm.Code 4901:1-29-06(E)(1)(k), which requires that for telephonic enrollments, CRNGS providers make a date and time stamped audio recording verifying, among other things, A verbal request for and the customer's provision of the customer's mailing address.”

Case No. 20-1107-GE-UNC

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