Pennsylvania Adopts $22,000 Settlement with Retail Supplier, Including Cap on Termination Fee

The Pennsylvania PUC adopted in a final order a revised settlement with Constellation Energy Power Choice, Inc. f/k/a MXenergy Electric Inc. which includes a $22,000 fine to resolve 22 allegations of slamming, and includes a cap and other prohibitions on early termination fees.

An earlier settlement proposal between MXenergy and Staff had proposed an $11,000 fine, but the amount was rejected by the PUC in 2012 as too low.

The revised, adopted settlement provides that MXenergy will pay a civil settlement amount of $22,000, i.e., $1,000 per alleged violation

An investigation of alleged unauthorized switches which led to the settlement was initiated prior to Constellation (and then Exelon's) ownership of MXenergy.

Other notable terms of the adopted settlement include:

• MXenergy (including its successor corporate entities) or its Direct Marketing Organizations (DMOs) will conduct background checks on all potential independent contractors or agents.

• MXenergy will provide an extended cancellation period of up to 30 days after the issuance of the first bill for the company's electric generation supply service during which the customer will not pay a termination fee, though a customer shall remain responsible for costs of supply provided by MXenergy prior to cancellation and until such time that the customer is able to be switched away from, and is no longer served by, MXenergy.

• Any early termination or exit fee imposed by MXenergy will not exceed $150.00 per residential contract. This does not affect any MXenergy commercial or industrial early termination or exit fee.

MXenergy will be released from these conditions at the end of a twelve month probationary period, if it has exhibited good faith and exhibited reasonable compliance with the conditions set forth and applicable laws

Docket M-2012-2201861