PSC Places Retail Supplier on Probation; Warns Future Violations May Lead to Immediate License Revocation; Reinstates Supplier's Door-to-Door Marketing Authority

The New York PSC reinstated Liberty Power Holdings LLC's ability to conduct door-to-door marketing, but placed the supplier on probation during which time, "any Liberty Power UBP marketing violations may subject Liberty Power to immediate revocation of its authority to act as an ESCO in New York."

Liberty Power Holdings LLC's ability to conduct door-to-door marketing was suspended as part of a show cause proceeding prompted by customer complaints. Liberty Power Holdings LLC has since developed various remedial measures and a new sales compliance program, and petitioned for reinstatement of its ability to conduct door-to-door sales.

"Given that Staff believes Liberty Power has developed a marketing program that is sufficient to protect customers from misleading marketing practices going forward, and based on the success of that program in other states, we will grant Liberty Power's motion to reinstate door-to-door sales," the PSC said.

However, "[w]hile we do not discount the possibility that Liberty Power's proposed marketing plan may be fully effective in stemming any future customer marketing complaints, we must also be mindful of the customer impacts if Liberty Power again fails to abide by the UBP's [Uniform Business Practices] marketing standards," the PSC said.

"Given the exhaustive procedural safeguards already provided to Liberty Power, application of the UBP's enforcement protocols allows the Commission to act swiftly if future Liberty Power deceptive marketing problems occur. Therefore, as a condition of reentering the door-to-door market, Liberty Power will be subject to a two year probationary period during which any Liberty Power UBP marketing violations may subject Liberty Power to immediate revocation of its authority to act as an ESCO in New York," the PSC ordered.

More specifically, the PSC ordered that, "As a condition of the Commission's approval allowing Liberty Power to reenter the door-to-door market, the Commission, in response to any future UBP violations by Liberty, may revoke or limit Liberty's authority to provide ESCO services on 10 days' notice or, in appropriate circumstances, a shorter period. Liberty shall be subject to a two-year probationary period during which this condition will remain in effect."

Case 13-E-0062