Michigan PSC Adopts Proposed $25,000 Charitable Contribution to Settle Slamming by Retail Supplier

The Michigan PSC has adopted Direct Energy Services, LLC's proposal to make a $25,000 charitable donation to resolve 13 Michigan enrollments which occurred without customer authorization, with such unauthorized enrollments the result of four sales agents that, "purposefully manipulate[d] DES's quality assurance measures and engaged in conduct disregarding applicable laws and regulations."

The proposal had been first reported by Matters (see prior details for additional details on unauthorized enrollments)

Specifically, the PSC approved the $25,000 donation, as well as remedial measures and corrective actions previously undertaken by Direct Energy Services, as resolution of the matter. The $25,000 contribution will be made to Michigan Interfaith Power & Light, a 501 (c) (3) coalition of 185 nondenominational houses of worship and congregations. The goals of this statewide organization include improving the operational energy efficiency of their facilities via technical assistance through energy evaluations, attractive financing for projects, direct installation of low and no cost measures, and energy education for their congregants.

"Under the circumstances, the Commission finds that subjecting DES to a radical regulatory defenestration is not warranted. Once DES became aware of the misdeeds brought about by the rogue contract salespersons, DES acted swiftly to remedy the situation. The rogue salespersons were terminated, their office was closed, all affected customers were contacted, held financially harmless, and voluntarily compensated for the inconvenience. Slammed customers were returned to their rightful providers. Moreover, it is noteworthy that DES took ownership of the situation and kept the Staff advised of the extent of the problem and of the company's corrective efforts," the PSC said.

As an added precaution, the Commission did direct its Service Quality Division to continue to monitor the situation and to file a report in this docket in the event that any reoccurrence of the slamming of any customers by DES's salespersons is brought to its attention either by a customer or by DES within the next 12 months

Case No. U-14537