People's Counsel Seeks Investigation of All Retail Suppliers; Requests Sanctions; Names 7 Suppliers in Petition

The Office of the People's Counsel of the District of Columbia petitioned the D.C. PSC to initiate an investigation into the business practices of all alternative energy suppliers licensed in the District.

"Upon investigation and a finding of violation of statute, regulation, rule or order adopted and issued by the Commission, the Office requests imposition of sanctions against the offending supplier(s)," OPC said.

"The overriding issue before the Commission is whether, and the extent to which AES [alternative energy supply] companies operating in the District of Columbia are engaging in unlawful, misleading or deceptive practices to the detriment of DC consumers. This is a recurring problem previously addressed by the PSC. Unfortunately, it appears to be reemerging and worsening," OPC said.

"Within the last several months, OPC has received an inordinate number of queries from DC residents citywide, expressing concern regarding potential unlawful business practices of several AES companies doing business in the District. Specifically, the Office has received questions concerning the following alternative energy providers: Clear Choice Electricity ('Clear Choice'), Constellation New Energy ('Constellation'), Horizon [Power and Light], Public Power, NOVEC Energy Solutions ('NOVEC'), Starion Energy ('Starion'), and [Washington Gas Energy Services] ('WGES')," OPC said.

"Based on the queries received, it appears that senior citizens are once again the core group of residents affected by the alleged aggressive and deceptive business tactics of alternative energy providers. As in F.C. 1092 OPC requests the Commission formally investigate consumer claims that alternative energy suppliers are engaging in the unauthorized switching of customer accounts (commonly known as 'slamming'), overly aggressive marketing practices and other business practices that are unlawful, misleading, and deceptive," OPC said.

"The Office has received inquiries concerning aggressive door-to-door and telephone solicitations by all of the previously named alternative energy suppliers," OPC said.

"[C]onsumers have contacted OPC to question the tactics of alternative energy suppliers who have been said to misrepresent affiliation with utility companies such as Potomac Electric Power Company ('Pepco') and Washington Gas Light ('WGL')," OPC said.

"According to the inquires received, not only are customers misled into believing that alternative energy suppliers are affiliated with Pepco, they are also led to believe that their bills will significantly decrease when they enroll in what alternative energy suppliers coin as their cost savings programs. It is very apparent, based on the inquires received, that many residents are agreeing to enrollment in variable rate programs -- without being fully informed of what variable rates are, how they work and the implications on their monthly bills -- under the guise that they will receive lower rates. After enrollment, however, customers note skyrocketing bills as opposed to the big savings and decrease in monthly billing promised," OPC said.

"Many of the consumers that are enrolled in new service with alternative energy suppliers, whether knowingly, via 'slamming' or through coercion, have expressed difficulty in the cancellation process. Some customers experience trouble reaching representatives to request cancellation, while others are being blind-sided with significant cancellation fees by companies," OPC said.

OPC's petition was docketed as GD 117.