PSC Issues Cease and Desist Order to Retail Supplier

The District of Columbia PSC issued an order yesterday directing Starion Energy, "to cease and desist from all violations of the D.C. Code or the Commission's rules regarding consumer protection standards applicable to energy suppliers."

The PSC said that it will also convene an evidentiary hearing on October 3, "to determine whether and to what extent Starion may be in violation of the provisions in D.C. Code § 34-1507 (2001) and 15 DCMR § 327 (2008) concerning consumer protection."

The PSC said that its order was prompted by a recent informational hearing on retail suppliers' practices during which 22 District consumers testified, "and all but one complained about allegedly unlawful, misleading, and deceptive sales practices of Starion."

"The nature of complaints included allegations that Starion representatives falsely stated their affiliation with Pepco, and requested and acquired Pepco account numbers from potential customers in order to switch their accounts to Starion without express customer approval (commonly known as 'Slamming'). Witnesses also testified that Starion representatives promised lower energy bills if they signed with Starion. Customers later realized that their bills were higher, not lower," the PSC said.

FC 1105

See related story today: PSC Opening Review of Retail Energy Consumer Protection Rules