PSC to Hold Generic Hearing on Investigating Retail Supplier Marketing; Opens Case Reviewing Individual Supplier As Well

The District of Columbia PSC will hold a hearing to determine whether a wide-ranging investigation into the business practices of alternative energy suppliers is warranted, and opened a proceeding to review the actions of an individual retail supplier.

The PSC was responding to a petition from the Office of the People's Counsel, which had said that deceptive marketing by suppliers has been a "recurring" problem, click here for further discussion on OPC petition

"The concern that OPC has expressed has also come to the attention of the Commission's Office of Consumer Services ('OCS') that has seen a high number of inquiries and/or complaints from consumers since the beginning of 2013 regarding alternative energy suppliers," the PSC said.

"Although inquiries and/or complaints have been made against several suppliers, the number against one company in particular is noteworthy. Specifically, through March of this year, OCS has recorded 129 complaints from residential consumers against Starion [Energy], including 71 complaints related to slamming, in which Starion representatives [are alleged to have] changed suppliers without customer permission, or where Starion personnel represented themselves as being from the Potomac Electric Power Company ('Pepco'); 37 complaints related to billing, where customers were unaware of early termination fees and contract-related issues; nine complaints related to high bills, including high per therm rates and where promised actual savings were not realized; six complaints related to consumers signing up but requested an immediate switch back to their previous provider; and six complaints from consumers who were dissatisfied with the length of time it took to switch back to standard offer service," the PSC alleged.

[Note: the PSC's order states all these complaints concerned Starion, however, Matters is unaware of Starion acting as a gas supplier or broker in the District (the price per therm complaints)]

"In view of the clear evidence of customer concern with the business and solicitation practices of Starion, including the possible violation of several consumer protection rules," the PSC opened an investigation into Starion's business practices. Starion was directed to respond to several data requests, and develop an action/remedial plan.

At this time, the PSC is only initiating an investigation into Starion. Seven suppliers had been cited in the OPC's original petition.

However, "[t]he information received from OPC along with the information from the Commission's OCS is sufficient to convince us that there is merit to OPC's suggestion that a public hearing be held to hear more about the experiences of District consumers and to determine whether a more wide-ranging investigation into the business practices of other or all alternative energy supplies [sic] is warranted."

"After the Commission holds a hearing about the general business practices of the suppliers in the District, the Commission will revisit OPC's Petition, along with any additional substantiation and evidence that it may choose to supply to further support its Petition and its argument that a comprehensive investigation is warranted if the Commission does not conclude, sua sponte, that the remainder of the Petition should be granted."

GD 117, FC 1105