State Adopts "First In" Approach in Granting Retail Licenses to Companies With Similar Names, Raises Concern on Use of Terms 'Choice,' 'Energy' by Multiple Companies

The Maine PUC, in response to multiple retail suppliers and brokers seeking licensure with names using the terms "choice" and "energy," has adopted a "first in" policy in adjudicating which companies shall be allowed to use names which are similar.

The PUC's policy was prompted by the licensure of several retail suppliers and brokers which have similar names using the terms "choice" and "energy," and the application of two additional companies with similar names.

Specifically, the PUC had previously granted licenses to broker First Choice Energy, LLC, retail supplier Choice Energy, LLC d/b/a 4 Choice Energy, and broker Energy Choice, Inc. Of these companies, only Choice Energy, LLC d/b/a 4 Choice Energy was licensed to serve residential customers.

The separately filed applications of Choice Energy Services, Retail LP and Choose Energy, Inc. for broker licenses prompted the PUC to address naming rights.

A recommended decision would have denied the ability of Choice Energy Services, Retail LP and Choose Energy, Inc. to operate under their sought names because the Commission had already licensed an entity with a very similar name that is currently offering service to residential customers, as the draft order found that licensing additional entities to provide services to residential and small commercial customers is likely to cause significant and harmful consumer confusion.

In a final order issued yesterday, the PUC shared the concern that, "many residential customers are not aware that they can choose their electricity supplier and assume their supply still comes from the utility."

"For the residential market to be successful over the long-term, it is essential that customer confusion about the electricity market be minimized at this early stage. The presence of several providers with similar names is likely to cause confusion and may well damage the development of a competitive market for residential customers in Maine as customers lose confidence in the existence of a legitimate market."

The PUC said that businesses, regardless of whether they are large or small, are capable of distinguishing among entities with whom they may conduct commercial transactions.

In its final order, the PUC found that since it is not a court, it would be inappropriate for the Commission to adjudicate trademark disputes. "Therefore, we take a 'first in' approach and allow those entities whose names use the term 'Choice' that already have a CEP [competitive electric provider] license from this Commission to retain their licenses. However, for the reasons noted above, the 'first in' approach will apply only to entities that seek to provide service to residential customers," the PUC said in its final order.

As Choice Energy Services, Retail LP clarified that it seeks to serve only non-residential customers, the PUC granted Choice Energy Services, Retail LP an electric aggregator/broker license to serve all non-residential customer classes in all utility service territories.

With regard to Choose Energy, Inc., which had applied to serve residential customers, the PUC ruled that a name that includes "Choose" is sufficiently distinguished from names that include "Choice," so that significant customer confusion is not likely to result. The PUC, therefore, granted Choose Energy, Inc. an electric aggregator/broker license to serve residential and small non-residential customers at Central Maine Power and Bangor Hydro-Electric.

Dockets: 2012-438, 2012-531