Retail Supplier to Pay $60,000 Under Settlement With Regulator, Principal Prohibited from Serving in Similar Capacity For 10 Years

The Connecticut PURA approved a settlement under which the principal of People's Power & Gas, LLC is to pay $35,000, plus forego claims to a $25,000 letter of credit, to resolve alleged violations arising from its market exit as a result of defaulting at ISO New England last winter, and allegations related to its switching practices.

As first reported by EnergyChoiceMatters.com, PURA was seeking a $2.3 million fine for the alleged violations.

Under the settlement, the principal of People's Power & Gas, LLC will pay $35,000, directed as a non-tax deductible contribution to a local low-income fuel fund, and PPG will release all claims to its $25,000 letter of credit on file with the Authority and allow the Authority to claim such funds. All proceeds collected from the letter of credit will be used to offset any alternative compliance payments owed by PPG for alleged failure to comply with the Connecticut renewable portfolio standards.

Furthermore, the settlement provides that the principal of PPG (David Pearsall), "agrees not to be an officer, director, owner, manager, investor or consultant in or to a company holding a license as a Connecticut retail electric supplier or a Connecticut natural gas retail supplier for a period of not less than ten years following approval of this settlement, after which time any such application will be subject to all applicable requirements of Connecticut law and regulations."

PURA's decision accepting the settlement states that, "People's acknowledged that 48 of the complaints [at issue] appeared to be valid slamming claims based on the activities of a broker whom People's had previously terminated."