Regulator's Staff Seeks Notice Of Violation Against Retail Supplier

July 21, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Office of Education, Outreach, and Enforcement (EOE) of the Connecticut Public Utilities Regulatory Authority (PURA) requested that PURA issue a Notice of Violation and Assessment of Civil Penalty (NOV) against Mega Energy of New England, LLC ("Mega"), as EOE alleged that Mega has not provided restitution to customers as required by a prior order

To the extent EOE's request for an NOV were to be granted and a formal NOV were to be issued, Mega would have the right to request a hearing and contest the allegations

Under the proposed NOV, EOE sought revocation of Mega's Connecticut supplier license

As previously reported, Mega transferred its Connecticut customers to default service and earlier this year Mega filed to relinquish its Connecticut supplier license (discussed further below)

See background on the previously ordered customer restitution here

EOE's motion alleged, "On April 17, 2023, the Authority issued an NOV ordering Mega to pay restitution to customers in the form of a bill credit issued by the electric distribution companies (EDCs) and suspended Mega’s license to serve any customer for three years. (Orders No. 1 and 2). Mega did not respond to the NOV; therefore, pursuant to Conn. Gen. Stat. § 16-41(d), the NOV became a final order of the Authority twenty days after Mega received the NOV."

EOE's motion alleged, "Pursuant to Order No. 1, Mega was required within thirty days of the NOV becoming a final order to provide the ordered restitution to customers through the EDCs. The Authority’s Office of Education, Outreach, and Enforcement (EOE) issued Interrogatory EOE-29 to the EDCs requesting if Mega had provided the funds necessary to effect the Order. On July 17 and 20, 2023, the EDCs responded that Mega had not provided them any restitution funds to disburse to customers. Responses to EOE-29. As a result, the Authority has reason to believe that Mega violated Order No. 1 of the NOV and has not provided the ordered restitution to customers."

EOE's motion also alleged, "Conn. Agencies Regs. § 16-245a-1 became effective on December 27, 2022, and requires electric suppliers to post a renewable portfolio standards (RPS) security in addition to their licensing security required by Conn. Agencies Regs. § 16-245-1. On March 22, 2023, EOE issued guidance instructing all suppliers to file their RPS security on or before May 19, 2023, and included with the guidance the amount of security required by each supplier. The guidance indicated Mega was required to file a security in the amount of $443,000, in addition to its licensing security. Mega did not timely file its RPS security and on May 22, 2023, EOE issued a correspondence to Mega indicating it must file the RPS security or would face penalties under Conn. Gen. Stat. §§ 16-41 and 16-245. To date, Mega has not filed an RPS security. As a result, the Authority has reason to believe that Mega has not complied with Conn. Agencies Regs. § 16-245a-1."

EOE's motion noted that, on May 25, 2023, Mega requested to relinquish its license.

EOE alleged, "As EOE explained in its response, Mega has several outstanding obligations, including compliance with the NOV, RPS, and assessments. Having not met its 2022 or 2023 RPS obligations, Mega is required to maintain an RPS security on file with the Authority regardless of its desire to exit the Connecticut market."

EOE proposes that the Authority draw upon Mega’s licensing bond and apply the funds as necessary to Mega’s outstanding amounts owed, which EOE alleged, to date, are greater than the amount of the licensing bond. EOE's proposed NOV would state, "As a result, the Authority reserves the right to pursue through legal action collection of all remaining amounts owed."

Docket No. 13-03-09

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