ResCom Energy to Contribute $4,500 to Fuel Fund to Settle Connecticut Notice of Violation

ResCom Energy LLC is to make a $4,500 donation to a Connecticut charitable fuel fund, in lieu of a civil penalty, under a settlement of a Connecticut PURA Notice of Violation which alleged ResCom engaged in unauthorized customer switches.

The settlement between ResCom and PURA Prosecutorial Staff would resolve Staff's earlier allegation that ResCom failed to obtain confirmation of each customer's desire to be switched using verification methods required under Conn. Gen. Stat. Sec. 16-245o(e) in 11 incidents from 2010 through early 2011.

Independent of the settlement, ResCom is voluntarily relinquishing its Connecticut electric supplier license. As first reported by Matters last year, ResCom reached an agreement to sell its Connecticut customer book to Public Power, LLC (11/23). While ResCom originally contemplated retaining the Connecticut license, despite a three-year non-compete clause with Public Power in the Connecticut market, it has now elected to relinquish the license, which will alleviate it from the ongoing bonding requirement.

Due to operational issues, ResCom said that the transfer of customers to Public Power may not be completed until April 1, 2012, which is after the current March 16, 2012 expiration date of ResCom's bond posted for security.

As part of the settlement, ResCom agrees that it will meet with representatives of PURA, the Office of Consumer Counsel, and the Office of the Attorney General at least 60 days prior to ResCom's re-entry into the marketplace.

Citing an increase in complaints against ResCom, and its marketing agent Positive Energy, from 36 in 2010 to 74 in 2011, which ResCom attributed to an increase in marketing, Prosecutorial Staff said that it, "believes that ResCom will need to assure all of the parties that its operations and practices will be improved and will not continue the negative trends that have been on display since calendar year 2010."