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Retail Supplier To Pay $325,000, Agrees To Marketing Stand-Down That Includes No Re-enrollment Of Existing Customers, Under Settlement Adopted By Regulator

June 24, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Illinois Commerce Commission today approved without modification a settlement among Great American Power, LLC ('GAP' or the 'Company'), ICC Staff, the Illinois Attorney General, and Citizens Utility Board which resolves a show cause proceeding initiated against Great American Power

As more fully described in our prior story (click here), ICC Staff had alleged that it had obtained information which led Staff to allege that GAP has, in the course of marketing and soliciting sales of GAP’s electric power and energy services, violated 83 Ill. Adm. Code 412.170(e) by failing to comply with agent training and certification requirements; violated 412.320(c)(1)(C) by failing to timely investigate and advise the ICC Consumer Services Division in writing of results of informal complaint investigations within the time prescribed by rule; violated 412.120(h) by failing to adhere to no-solicitation restrictions for in-person solicitations; violated 412.120(i) by failing to adhere to restrictions regarding multi-unit dwellings for in-person solicitations; and violated 412.170(g) by failing to properly monitor marketing and sales activities to ensure RES [retail electric supplier] agents are complying with all laws and regulations.

In a report initiating the proceeding, Staff had alleged that, "Staff is in possession of information that indicates GAP sales agents have entered multi-unit premises, without permission, to attempt to enroll, and in some cases enrolling, one or more of those buildings' residents. Staff has also received information that sales agents gained unpermitted access to a secure building managed by an Illinois County Housing Authority where a 'No Solicitation' sign is posted. Agents are prohibited from marketing in buildings with restrictions against solicitations pursuant to 412.120(h)."

See more details on the alleged behavior addressed by the settlement here

GAP has contested and continues to contest the allegations, conclusions, violations, and liability asserted in the Staff Report, including but not limited to contesting that its alleged actions or inactions failed to comply with various requirements set forth in Part 412. GAP does not admit to any liability under the settlement.

Under the adopted settlement, GAP agrees to pay the total sum of $325,000, consisting of: (i) $200,000 in refunds to GAP’s current and former residential customers in Illinois who GAP enrolled on or after May 1, 2018, and who received electric supply service from GAP for at least 120 days during the period; and (ii) $125,000 to be paid to the State of Illinois and deposited into the Department of Commerce and Economic Opportunity ('DCEO') Low Income Home Energy Assistance Program ('LIHEAP'). The $125,000 will be paid in monthly installments over five years.

Under the adopted settlement, GAP agrees to a voluntary five-year marketing and enrollment stand-down period in Illinois, during which GAP will not engage in any solicitation, marketing, or enrollment of new customers or reenrollment of existing customers

Additionally, GAP agrees to a probationary period governing any re-entry into the Illinois market, which would last 2 years and 6 months upon market re-entry.

Most notably, under the probationary period, GAP agrees to not engage in in-person solicitations at multi-unit residential dwellings. Other provisions of the probationary period include Staff review of GAP marketing materials, as well as training and compliance reporting requirements.

Docket 18-1773

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