PUC Approves Separate Settlements With Two Retail Suppliers Collectively Totaling Over $500,000

April 17, 2024

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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Public Utilities Commission of Ohio has approved without modification a stipulation between PUCO Staff and XOOM Energy Ohio, LLC (XOOM), and a separate stipulation between PUCO Staff and Direct Energy Services, LLC, with each stipulation resolving alleged marketing violations

XOOM Energy

PUCO approved a settlement under which XOOM Energy Ohio, LLC (XOOM) agreed to a forfeiture of $120,000 and to return certain subsets of customers to default service to resolve alleged violations raised in prior Staff reports, including alleged slamming

Under the settlement, XOOM also agreed to make a one-time donation of $100,000 to the Dollar Energy Fund to fund grants to be used for bill payment assistance programs

XOOM Energy Ohio provided the following statement concerning the matter:

"We are pleased that the Commission has approved the settlement in this case. We appreciate the support of the PUCO Staff and OCC in bringing this matter to a resolution in a way that benefits Ohio energy customers. As soon as XOOM Energy became aware of this issue in early 2021, we reported to PUCO Staff and took immediate proactive steps to mitigate any impact to the customers who were affected."

--- Statement from XOOM Energy Ohio

As more fully detailed in our prior story, Staff had alleged, "Staff’s investigation found that more than one independent representative of XOOM’s channel partner, ACN Inc., was soliciting Ohio consumers via telephone then enrolling the customer through Xoom’s website, giving the appearance of an internet enrollment instead of a telephonic enrollment. Xoom’s agent completed the enrollment online, not the customer."

Click here for full details of the alleged behavior addressed by the stipulation

As more fully described in our prior story on the stipulation, the stipulation provides that Xoom shall, for a subset of 309 customers, return such customers to default service (to the extent all were still with Xoom), provide refunds to such customers for costs in excess of the applicable default service rate, and provide an additional $75 to each account. Xoom will also reimburse such customers for any applicable switching fees or early termination fees incurred by the customer due to the switch to Xoom

Additionally, the stipulation provides, "for every customer complaint forwarded to XOOM from the Commission or received by XOOM directly from a customer about an unauthorized enrollment that occurred from January 1, 2021 to the present date by ACN Inc., and that is confirmed by XOOM to be an unauthorized enrollment[,] XOOM will return all such customers not already addressed [by the terms noted] above to the utilities’ default service and provide rerates based on the difference between the rates charged by XOOM (if such rates exceed their utility’s default rate) and the applicable utility default service rates."

Xoom has also implemented various corrective measures as detailed in our prior story linked below

See full details on the stipulation, which was approved without modification, in our prior story here

The stipulation states, "This Stipulation is not an admission or a finding of violation or liability."

Case No. 22-267-GE-COI

Direct Energy

The Public Utilities Commission of Ohio has approved without modification an amended stipulation between PUCO Staff and Direct Energy Services, LLC to resolve all of the issues identified by Staff in a Notice of Probable Non-Compliance dated June 9, 2021 (Notice Letter), which had alleged, "that representatives of Direct Energy provided misleading and deceptive information to consumers; that Direct Energy failed to maintain accurate records; and that Direct Energy’s enrollment information is incomplete."

Under the settlement, Direct Energy agreed to pay a forfeiture of $275,000 and to make a one-time donation of $100,000 to the Dollar Energy Fund to fund grants to be used for bill payment assistance programs

Direct Energy Services, LLC provided the following statement concerning the matter:

"We are pleased that the Commission has approved the updated settlement with the PUCO Staff regarding Direct Energy’s door-to-door and telephone sales activities from three years ago, when NRG acquired Direct Energy. We have since brought Direct Energy under NRG’s sales quality standards and look forward to continuing to focus on serving our customers."

--- Statement from Direct Energy Services, LLC

Additionally, under the amended stipulation that was adopted without modification, Direct Energy agrees, for a period of 12 months, to not use the digital third-party verification option, approved via s supplier-specific waiver in a prior PUCO proceeding, when enrolling customers in Ohio

Full details concerning the alleged behavior addressed by the settlement was covered in our prior story here

The adopted stipulation also provides that, for all door-to-door enrollments completed within the 3 months preceding a PUCO Staff Notice Letter concerning the alleged violations, Direct Energy will give each customer contacted the option to cancel without any penalties or to re-enroll with Direct Energy, in which case, new enrollment and consent must be obtained in accordance with Ohio Adm.Code 4901:1-21-06 and/or 4901:1-29-06.

The stipulation states, "This Stipulation is not an admission or a finding of violation or liability."

Case 22-0583-GE-UNC

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