Public Power Group Raises Concern Over Retail Supplier's Name

The American Public Power Association, a trade association of municipal utilities, has sent a letter to the District of Columbia PSC concerning confusion it encounters from customers of retail supplier Public Power, LLC.

"Specifically, as discussed further below, APPA and certain of its members have received communications from customers or potential customers who are attempting to reach Public Power, LLC or one of its subsidiaries directly, to complain either about the service they were receiving or the manner in which their business was solicited. Some of the calls or emails that APPA employees have received reflect great frustration on the part of the caller/sender. As also noted below, APPA believes this is occurring because consumers are confused by the use of the words 'public power' in the names of Public Power, LLC and its subsidiaries," APPA said.

"This is of great concern to APPA and its members. As the Commission is aware, in our industry the term 'public power' generally refers to an entity that is a not-for-profit, publicly owned electric utility. Hence, if consumers are unhappy with the retail activities of for-profit entities such as Public Power, LLC and its subsidiaries, and identify these activities with 'public power,' this can have a negative impact on APPA and its members," APPA said.

APPA said that it and one of its members, the Public Power Association of New Jersey, entered into a settlement agreement with Public Power, LLC, effective August 9, 2012, in which Public Power, LLC agreed, among other things, to post the following disclaimer on certain pages of its and its subsidiaries' websites: "Public Power, LLC and its subsidiaries are not endorsed by or affiliated with the American Public Power Association (APPA) or its members, the Public Power Association of New Jersey, or any government owned, not-for-profit utility."

APPA said that Public Power, LLC also agreed to require its and its subsidiaries' telephone and in-person marketing and sales personnel to recite the disclaimer above in sales pitches and marketing call scripts.

"However, APPA and its members nonetheless continue to receive communications from time to time from customers or potential customers who are attempting to reach Public Power, LLC or one of its subsidiaries directly, to complain either about the service they were receiving or the manner in which their business was solicited," APPA said.

"The most obvious way to avoid confusion on the part of retail consumers would be for Public Power, LLC and its subsidiaries to refrain from using the term 'Public Power' in connection with their services and remove the term 'public power' from their names," APPA said.