State Opens Investigation of Retail Supplier's Surcharge

The Maine PUC has opened an investigation into a surcharge levied by People's Power and Gas, LLC on its customers

People's Power and Gas defaulted at ISO New England in late 2013 and again in 2014. However, prior to these defaults, it added a surcharge to customer bills.

"People's no longer has any customers in Maine, but it appears it has an outstanding financial obligation to Maine customers to whom it charged a fee that is inconsistent with the Commission's rules governing the provision of competitive electricity in Maine," the PUC said in opening the investigation

The PUC began receiving complaints from People's customers in January 2014 about an unidentified charge on their bills.

According to the PUC, People's said in correspondence to the PUC that the unidentified charge was a "basic service charge" (BSC), identified in an as-amended terms of service as a charge to cover People's bad debt costs.

In response, the PUC said that Commission Staff, "informed People's that it appeared that the BSC violated the Commission's rules governing competitive electricity providers because People's had failed to notify its customers in writing when it amended the original terms of service by adding the BSC."

Chapter 305, Section 4(B)(5)(requiring 30-60 days advance written notice of material change in terms and conditions). According to the PUC, near the end of January, People's agreed to notify its Maine customers that it would, among other things, refund the BSC.

However, People's and Emera Maine disagree on how much was collected from People's customers under the BSC. Emera Maine has stated that its records show that customers have paid approximately $101,000 toward the BSC, while People's has stated that its records show customers have paid approximately $20,000 toward the BSC.

The PUC's investigation is to determine whether People's unlawfully charged the BSC to Maine customers, and, if so, to determine the amount unlawfully charged and collected by Emera

The PUC is currently withholding return of People's $100,000 in security, which People's had requested be returned as it sought to abandon its supplier license, until the PUC determines whether customers are owed any outstanding amounts.

Docket No. 2014-00208