Regulator Imposes $1 Million Fine On Retail Supplier For Failure To Pay Previously Ordered Customer Restitution, Revokes License

September 7, 2022

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

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The Connecticut Public Utilities Regulatory Authority (Authority) issued an order finding that Sunwave Gas & Power CT, Inc. (Sunwave): "(1) failed to comply with Authority orders and (2) lacks managerial and financial capability in violation of Conn. Gen. Stat. § 16-245(c)."

"Consequently, the Authority revokes Sunwave’s license, fines Sunwave one million dollars ($1,000,000), and affirms Sunwave’s obligation to pay restitution to customers," PURA said

As previously reported, Sunwave's customers were dropped to default service in early 2022, due to Sunwave's suspension at ISO New England earlier this year

Under a prior PURA order relating to such drop, "Sunwave [was] required to reimburse customers that the EDCs returned to standard service who were being served by Sunwave on contracts with rates lower than the current standard service rate in the applicable service territory an amount equal to $20 per month for the remainder of the contract term for residential customers, and $40 per month for the remainder of the contract term for non-residential customers[.]"

PURA found in its latest order that, "Sunwave admits that it did not comply with [this prior restitution order], stating that it 'did not provide restitution to customers because it simply did not have the financial capability to do so.'"

"Notably, the Company claims that it has 'no customers, no revenue, [] no cash . . . [and] no assets and significant liabilities.' Sunwave Letter, pp. 1-2. More specifically, Sunwave states that 'it simply did not have the financial capability to [make restitution].' Id., p. 1. Although the Company did not provide documents in support of these claims, the assertions are sufficient for the Authority to find that Sunwave has not demonstrated financial capability [to be a retail supplier]," PURA said

In addressing the level of the civil penalty, PURA said, "the Company’s supposed inability to properly compensate customers for the financial harm the customers have incurred does not mitigate the gravity of the harm. Sunwave’s actions have resulted in a direct economic impact to customers. That Sunwave has so mismanaged its finances to be unable to provide restitution is no salve to these customers and no basis for tempering sanctions."

"Next, Sunwave asserts that 'the size of the sanction as compared to the size of the Company is overwhelming.' Sunwave Letter, p. 2. Notably, Sunwave did not raise the issue of its financial condition when first ordered to pay restitution. Equally important, Sunwave failed to provide any evidence, such as financial statements or other documents, demonstrating its dire financial condition, and the Company has not filed for bankruptcy protection or indicated that it would do so. Consequently, there is insufficient evidence to find that the ordered restitution and the assessed civil penalty of $1,000,000 is inappropriate. Apart from its lack of financial capability, Sunwave did not offer any evidence as to other mitigating factors such as good faith efforts for compliance or ensuring future compliance," PURA said

See more background on the previously ordered restitution here

Docket 13-09-06

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