D.C. PSC Commissioners Focus on Unlicensed Agents in Supplier Marketing Hearing

Much of the focus from District of Columbia Public Service Commissioners during a hearing on energy supplier marketing Friday was on the actions of, and jurisdiction over, unlicensed agents marketing retail energy to customers.

Commissioners heard testimony from customers concerning their experience with agents, such as door-to-door salespersons and telemarketers, claiming to offer supply from all suppliers. These agents, referred to alternatively as customer-agents, get customers to consent to have the agent act on their behalf in choosing an energy provider, with the agent then shopping the customers to varying suppliers.

Commissioner Joanne Doddy Fort reported that she had personally been contacted by an energy telemarketer not licensed in the District, and also another telemarketer that identified itself as Pepco.

The customer-agents are distinguished from various other non-exclusive third party channels in that, in many cases, they will not have a broker agreement with a supplier prior to bringing their customer book to that supplier. Many are also not seeking broker licenses from the PSC.

Questions from PSC Commissioners to supplier representatives focused on whether such customer-agents are required to be licensed under the current rules, and if not, how can the PSC ensure compliance with its customer protection rules when such agents interact with customers.

Under the D.C. code, for electricity, a "Broker" means, "a person who acts as an agent or intermediary in the sale and purchase of electricity but who does not take title to electricity," and an "Aggregator" means, "a person who acts on behalf of customers to purchase electricity."

Both brokers and aggregators are expressly included in the definition of "electricity supplier," and, "All electricity suppliers must obtain a license issued by the Commission in order to do business in the District of Columbia."

Given the broad definition of broker and aggregator in the code, it would appear that the customer-agents which drew much of the discussion at the hearing are required to be licensed by the PSC.

Chairman Betty Ann Kane, in closing the hearing, said:

"Retail choice and customer choice is the policy and the law of the District, and it is our obligation to see that it works, and to see that it works right ... If there are instances of bad actors or misunderstandings that create barriers to customer choice, then we all have an obligation to see what we can do to overcome that. When people are showing up and representing themselves as representing the utility, and they're bad actors, it reflects badly on not only that company, but on the utility also."

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