Maryland PSC Expresses Concerns with Supplier Marketing Materials Using Phrases "Pay Less" and "Lower Your Bill"

The Maryland PSC yesterday expressed concern with retail supplier marketing materials informing customers that they would "Simply Pay Less" and "lower your electric bills today" by enrolling with a retail supplier.

The review of the marketing phrases was prompted by the application of Verde Energy USA Maryland, LLC for an electric supplier license, which was granted (see related story today).

Among other things, the PSC expressed concern that the term "Simply Pay Less" used on the Verde website may confuse customers that their total bill will always be lower with Verde Energy, when only the supply portion will be affected, and distribution charges may increase regardless of enrolling with Verde Energy.

Similar concerns were voiced regarding the term "lower your electric bills today."

The PSC also expressed concern with language suggesting Verde Energy's rates were lower, with the Commission concerned that the language could be construed as Verde Energy's rates being lower than all supply rates in the market, rather than just lower than SOS rates, which was the intent of the statement. Verde had already agreed to clarify this statement in response to a Staff concern.

Ultimately, the Maryland PSC granted Verde Energy USA Maryland, LLC an electric supplier license to serve all customer classes in all service areas.

In granting the license, the PSC directed Verde, "to remove statements in their marketing material that guarantees a lower rate."

The PSC also ordered Verde Energy to file a six-month and 12-month report on complaints.