Retail Supplier Allegedly Returns Fixed Price Contract Customers To Default Service While Mid-Contract

August 9, 2022

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

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A formal complaint before one regulator, as well as multiple social media and similar public posts from customers in multiple states, allege that Planet Energy, and/or its brands Value Plus Energy and RiteRate Energy, have terminated such customers' fixed rate contracts in mid-contract, and has returned such customers to default service

In a statement to EnergyChoiceMatters.com, Planet Energy stated that, "Planet Energy’s business and contractual relationship with its customers, regulators, and other parties are confidential. Planet Energy will not be making any further comment in this matter."

As such, EnergyChoiceMatters.com cannot verify any of the allegations discussed herein, nor can the number of customers impacted be determined

In Ohio, a customer has filed a complaint before the Public Utilities Commission of Ohio alleging that the customer had a fixed rate contract with RiteRate Energy, a trade name of Planet Energy (Ohio) Corp., that ran through October 2022, but that the customer was informed by Planet Energy that the contract would terminate in May 2022. The customer alleged that the fixed rate was .0569 [sic] for 12 months, purchased in October 2021. The customer noted that their price paid for electricity would increase as a result of the fixed rate contract termination

The customer's complaint included a letter from AEP Ohio stating, "This letter is to confirm the request that Planet Energy (Ohio) Corp no longer provide your generation service as of May 2, 2022. If you have questions about this change, please contact your supplier for further information. You still have the option of remaining a Choice customer or returning to AEP Ohio's Standard Offer Service ... To return to Standard Offer Service, you need not take any action."

An entry from a PUCO attorney examiner states, "Pursuant to Ohio Adm.Code 4901-9-01(B), a copy of the [customer] complaint was mailed to Planet Energy on June 1, 2022, directing Planet Energy to file its answer and any other responsive pleading within 20 days after June 1, 2022. A review of the Commission’s records reveals that Planet Energy has not filed any responsive pleading as required by Ohio Adm.Code 4901-9-01(B). Planet Energy is ordered to file its answer and any other responsive pleading in this matter no later than August 23, 2022."

Multiple online complaints filed with the Better Business Bureau (BBB) allege similar behavior, including the alleged drop of a customer to PPL in Pennsylvania

The BBB online complaints include responses alleged to be from Planet Energy, but, particularly given the statement from Planet Energy noted above, EnergyChoiceMatters.com cannot verify the authenticity of any response which are labeled as from Planet Energy on the BBB site

One response alleged to be from Planet Energy on the BBB site states, "The reason for the consumers earlier cancellation is that there have been substantial increases in ancillary costs, including PJM costs, which cannot be hedged against. As the consumers rate is a fixed rate, costs cannot be adjusted as they may be via a variable rate agreement. As the changes are a material adverse affect to Value Plus Energys [sic] abilities, it processed an earlier cancellation pursuant to the terms of the agreement."

EnergyChoiceMatters.com again cautions that Planet Energy has stated that, "Planet Energy’s business and contractual relationship with its customers, regulators, and other parties are confidential. Planet Energy will not be making any further comment in this matter," and EnergyChoiceMatters.com cannot verify the authenticity of the BBB responses alleged to be from the company, but the above example is included here for context and transparency

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