Retail Supplier Seeks Reinstatement of Door-to-Door Marketing Authority, Citing "Deleterious Financial Impacts" from Door-to-Door Suspension

Liberty Power Holdings, LLC asked the New York PSC, in light of Liberty's remediation and compliance program, to enter an order reinstating Liberty Power's eligibility to conduct door-to-door marketing in New York, citing the, "deleterious financial impacts on the [c]ompany," from a prior suspension of the ESCO's eligibility to conduct door-to-door sales.

The PSC had ordered the suspension in April 2013 due to what the PSC described as, "marketing problems" which had previously prompted a show cause order (click here for prior story)

Since that time, Liberty has instituted a new sales compliance program, as more fully described in our September story (click here)

"Liberty Power strongly believes in its revised program, not based solely on its theoretical merits, but also on the proven results already demonstrated in several other markets. To date, Liberty Power has piloted this program in 4 markets, and contracted with approximately 1500 customers, and has received 0 complaints related to these activities. Department Staff have previously expressed their support and agreement that this program exceeds their expectations and I cannot impress upon you enough the negative consequences of continued delay in this matter," Liberty Power CEO David Hernandez said in a letter to the PSC.

"The Commission's April 22, 2013 Order has had deleterious financial impacts on the Company, and continued damage to its reputation. The inability to restart door-to-door marketing has put the Company at a severe competitive disadvantage," Liberty said.

Liberty requested that the PSC reinstate Liberty Power's door-to-door marketing eligibility through the issuance of a One Commissioner Order, prior to the Commission's November 14 session.

"While delay until the November 14 session may appear to be inconsequential, it is not. In the event the Commission does not act until its November 14 session, this will push any reintroduction of door-to-door marketing into the holiday season. Liberty Power's experience is that the holiday season is not conducive to successful marketing efforts for our products. The result is effectively to push reintroduction of the program into the new year, with the further consequence that Liberty Power will suffer additional financial and reputational harm," Liberty said.

Liberty Power provided the following statement to Matters:

"Liberty Power has conducted a detailed review of its field sales program and, as a result, has developed and implemented a revised program in four markets that as of October 27 has received no regulatory complaints. We have appreciated working with the NY PSC to ensure that our new program meets and, in some cases, exceeds the Commission's standards. We await the Commission's decision to allow us to introduce this program in New York, with the goal of becoming a standard of excellence for the industry."

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