PUC Doubles Fine on Retail Supplier for "Aggressive Telemarketing Practices"

The Pennsylvania PUC adopted, in large part, an initial decision regarding a customer complaint against Great American Power, LLC, but which doubled the fine levied on Great American Power to $10,000.

As first reported by EnergyChoiceMatters.com in March, the initial decision arose from a customer complaint against Great American Power, LLC, and addressed marketing practices of Great American Power and its third-party marketing agents, including the use of the utility's name during the solicitation, the representation of the verification used for enrollment, and Do Not Call procedures

Although a final written order from the PUC was not yet available, the PUC adopted a motion from Chairman Robert Powelson and Commissioner Pamela Witmer to deny most of the exceptions to the initial decision, and to increase the civil penalty on Great American Power from $5,000 to $10,000.

"In this case, it is factually undisputed that GAP contacted Mr. Towne 14 times over a 26 day period despite repeated requests by the Complainant to stop calling," Powelson and Witmer said.

The higher fine was necessitated, Powelson and Witmer said, due to the ALJ's conclusion that Great American Power's agents used, "potentially misleading statements that at the very least created a substantial risk that the consumer would not understand who was calling and that they were enrolling in an electric supply agreement that they would have to opt-out of rather than affirmatively consenting to choose GAP as their independent electric supplier."

"We find this conduct by GAP not only troubling but also potentially detrimental to the ongoing enhancements and the ultimate success of Pennsylvania's retail electric market. As we have stated in prior cases, we strongly believe the competitive market can provide consumers with a variety of electric supply products and services, and that consumers do bear some responsibility to make choices that are appropriate for their individual circumstances. However, for those market forces to work, this Commission must continue to send a clear message to EGSs [electric generation suppliers] that the egregious and deliberate behavior utilized in this case, including the use of potentially misleading statements that could result in slamming, will not be tolerated," Powelson and Witmer said.

The Commission also subjected Great American Power's license to the following conditions for the next 18 months:

a. In its response to the Commission's Bureau of Consumer Services (BCS) regarding a complaint alleging slamming, improper enrollment or deception, GAP shall provide BCS with copies of the documentation that GAP has supporting its position. The documentation can include written enrollment forms, disclosure statements, audio recordings, third party verification, marketing and sales materials and any other relevant documentation. Failure to provide documentation supporting an enrollment may result in a finding against GAP and possible referral to the Commission's office responsible for enforcement action.

b. GAP will provide a report the first week of each calendar quarter to staff capturing: (i) the complaints by category; (ii) the resolution for each complaint and (iii) any process improvements/changes, organizational changes, etc. implemented to reduce and/or eliminate similar complaints going forward;

c. GAP will provide a single point of contact for Commission staff for resolution of consumer inquiries and/or complaints received by BCS.

d. GAP shall operate in accordance with BCS requirements for complaint management and handling, including deadlines for responses

Docket No. C-2012-2307991