PUC Issues Rehearing Order On Door to Door Marketing Resumption

August 12, 2020

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Reporting by Paul Ring • ring@energychoicematters.com

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The Public Utilities Commission of Ohio denied the application for rehearing filed by the Office of the Ohio Consumers’ Counsel concerning the Commission’s June 17, 2020 entry which allows competitive retail electric service providers and competitive retail natural gas service suppliers to resume door-to-door marketing services, pursuant to all applicable requirements and best practices issued by the Ohio Department of Health and any relevant local health authorities

In its rehearing request, the OCC cited a recent, previously reported enforcement case initiated by the Commission to investigate two marketers, SFE Energy Ohio, Inc. (SFE Energy) and Statewise Energy Ohio, LLC (Statewise), who are alleged to have engaged in a pattern of unfair, deceptive, unconscionable, and dangerous acts or practices surrounding their marketing actions merely a week after the Commission’s June 17, 2020 door to door resumption order. Among the allegations are that an SFE agent was not wearing a mask in a door to door solicitation.

OCC had also argued that the pandemic has worsened and that door to door marketing increases the risk of personal contact.

PUCO denied rehearing.

"Initially, we note that our decision in that Entry was clearly informed by the public health guidance formulated by the Director of the ODH through Orders issued by ODH during May 2020. These Orders rescinded various requirements of the Stay Safe Ohio Order to safely open up the economy, subject to social distancing requirements. Emergency Case, Entry (June 17, 2020) at ¶¶ 13, 15. Because the Commission is not a public health agency, we must abide by the health guidance issued by the ODH and direction from the Governor," PUCO said

"Further, as both the Marketers and IGS have noted, we have put into place several guardrails, which CRES providers and CRNGS suppliers must follow to resume door-to-door solicitation. Given the nature of door-to-door solicitations and due to the heightened risk to the elderly, vulnerable populations, or others in their homes, the Commission urged CRES providers and CRNGS suppliers to proceed with caution and strictly adhere to the relevant requirements and best practices issued by the ODH and any relevant local health authorities to ensure the health and safety of Ohioans. We directed entities to contact the Director of the Commission’s Service Monitoring and Enforcement Department (SMED), or his designee, 48 hours before commencing door-to-door solicitations. We also directed CRES and/or CRNGS suppliers to inform the Director of SMED in the event they received, from a state or local enforcement authority, a warning or more formal citation for failure to comply with such requirements and best practices, including any applicable local 'Do Not Knock' registry or solicitation permitting provisions. Further, we clarified that we would treat a violation of our rules or any relevant health code violations committed by an agent of a CRES provider or CRNGS supplier the same as if the violation were committed by an employee of the provider or supplier. Finally, we alerted entities that, if we receive complaints that a CRES provider or CRNGS supplier, or its agent, failed to leave a customer’s premises immediately upon request, we would investigate and strictly enforce Ohio Adm.Code 4901:1-21-06(D)(1)(j) and 4901:1-29-05(E)(3) using our full statutory authority. Emergency Case, Entry (June 17, 2020) at ¶¶ 15-16," PUCO said

"Moreover, the SFE Energy Case demonstrates that we will swiftly act when suppliers violate the precautions we put into place through the June 17, 2020 Entry to ensure Ohioans’ safety," PUCO said. "The day after receiving Staff’s letter, the Commission opened its investigation into SFE Energy and Statewise. And by July 15, 2020, the Commission directed SFE Energy and Statewise to cease all marketing and enrollment of residential customers and cease all door-to-door marketing to small commercial and mercantile customers during Staff’s investigation. Consequently, we disagree with OCC’s argument that the June 17, 2020 Entry allows energy marketers to self-regulate their conduct because the SFE Energy Case demonstrates the Commission is stringently carrying out its statutory duties of regulation and enforcement of utility companies," PUCO said

"We are cognizant of the Marketers’ contention that there have been no widespread violations of the Commission’s June 17, 2020 Entry by suppliers. Further, OCC has not demonstrated a causal link between the rise of COVID-19 cases in Ohio and door-to- door marketers, which could cause the Commission to single out this industry alone. At this time, based on the alleged bad conduct of one entity alone, we decline to cease door-to- door solicitation of all CRES and CRNGS," PUCO said

Case 20-1040-GE-UNC

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