People's Counsel: Action Needed to Prevent "Epidemic" in Retail Energy Market

The District of Columbia Office of People's Counsel urged the D.C. PSC to take a "proactive" stance against bad behavior by certain retail energy suppliers by instituting a market-wide investigation of supplier behavior, "and not wait until we have an epidemic on our hands."

OPC's comments came after a recent hearing which the PSC held to determine whether a market-wide investigation of supplier behavior is warranted (see prior story).

During the hearing, suppliers noted, and OPC conceded, that 21 of the 22 public witnesses all name a single supplier -- Starion Energy -- as the source of their complaints.

Washington Gas Energy Services said that such evidence shows that, "the Commission heard nothing that substantiates the notion that there is a widespread problem concerning solicitations by retail energy suppliers operating in the District," and does not support the need for a comprehensive investigation of the entire body of competitive energy suppliers.

However, OPC dismissed any argument that the problems which engendered the hearing were isolated to a single supplier. OPC noted that the PSC has received 355 complaints since January 1, 2013, and the PSC has said that 129 of those complaints were against Starion. "If 129 complaints out of a total of 355 complaints handled by the Commission can be attributed to Starion, the remaining 226 complaints are arguably against other providers," OPC said.

"This suggests that the unlawful marketing and sales practices may extend far beyond retail energy supplier Starion," OPC said.

OPC said that this view was supported by continued concerns expressed to OPC by customers regarding multiple suppliers, as well as the experience of Commissioner Joanne Doddy Fort with unlicensed supplier agents as reported at the hearing (see prior story).

"It is apparent that without oversight and enforcement, certain retail energy suppliers will take advantage of the most vulnerable in the pursuit of earning profits," OPC said.

"The Commission' s mission of 'fostering fair and open competition in the retail market in the District of Columbia,' is at risk because of the actions of some retail energy suppliers ... OPC therefore implores the Commission to take a proactive stance in this regard and not wait until we have an epidemic on our hands, and we receive a wave of complaints from residents who have fallen victim to other suppliers' bad tactics, to look further into the practices of retail energy suppliers," OPC said.

"OPC respectfully suggests that the information received by the PSC and the Office regarding the unlawful solicitation and sales practices of retail energy suppliers conducting business in the District, to date, is sufficient to prompt an investigation that will serve to 'flush out' the bad actors and protect DC's residents from the predatory actions of the culpable suppliers," OPC said.

Of note is that OPC also reported an additional action it has become aware of which OPC claims in not consistent with the D.C. Consumer Bill of Rights.

"During the course of its handling of these AES matters, the Office was made aware of an additional tactic allegedly employed by retail energy supplier, Public Power in the sale of energy to consumers. According to consumers, Public Power has asked for the last four digits of consumers' social security numbers as a pre-requisite to securing their energy supply from this company. Consumer Bill of Rights section 308.1 clearly states that 'an applicant need not disclose his or her social security number to an energy supplier to obtain or maintain service.' Further, upon requesting a customer's social security number, the retail energy supplier must inform the customer that providing such information is voluntary, and that failure to provide same may not be used as a basis for the denial of the provision of service to the consumer. Public Power's practice of requiring consumers to divulge the last four digits of their social security numbers, as a precondition to the provision of electric supply is in direct violation of the Consumer Bill of Rights and of great concern to the Office," OPC alleged.

It was unclear if asking for only the last four digits of the SSN, and not the entire SSN, was prohibited by the language of the Consumer Bill of Rights.

Also of note, WGES opposed a proposal from Pepco, which was exclusively reported by EnergyChoiceMatters.com, that customer switches only be accepted if the utility receives direct consent from a customer for a switch. WGES said that the current rules for enrollments include appropriate customer safeguards, and ability for the PSC to penalize non-compliant suppliers, and said that the current rules, "eliminated the customer confusion that was introduced when the utility played a larger role in the enrollment process."

Docket GD 117

Related Story Today: Retail Supplier Says Door-to-Door Agents Should Pass TWO Background Checks; All Door-to-Door Sales Should be TPV'd