PUC Adopts As Final $7 Million Settlement With Retail Supplier, With Additional Customer Notice Regarding Release of Claims Provision

The Pennsylvania PUC adopted a final order which approved, with one modification, a $7 million settlement between Energy Services Providers Inc. (d/b/a Pennsylvania Gas & Electric or PAG&E) and the state's Attorney General and Office of Consumer Advocate

As previously reported by EnergyChoiceMatters.com, the settlement, addressing polar vortex complaints about variable rates and associated marketing and disclosures, includes $2.3 million in refunds to eligible PAG&E consumers in addition to the $4.5 million the company has already paid. The company also agreed to pay a civil penalty of $25,000 and make a contribution of $100,000 to the electric distribution companies’ hardship funds

The only opposition to the settlement was from an individual customer, who purported to act on behalf of a class of affected customers (though the PUC said that such representation could not occur before the PUC) and objected to a provision which requires customers to release associated claims against PAG&E in order to receive a refund.

The PUC dismissed this objection, noting that customers are free to decide whether to accept the refund and release their claim, or reject the refund, maintain their claim and pursue it at the appropriate forum.

The PUC did modify a requirement of the settlement to make clear that customers would release their claims against PAG&E in accepting a refund.

Specifically, the PUC is requiring that the AG/OCA ensure that following notice has been provided to each consumer who voluntarily elects to receive payment from the refund pool and sign a "Release of Claims": "Signing the Release of Claims and receipt of payment from the Refund Pool may affect your right to recover amounts for the same conduct of Pennsylvania Gas & Electric Company that could result from legal proceedings against this supplier in a court of law."

The settlement also included a moratorium on offering variable rates and other marketing provisions, click here for further details on the settlement

Docket No. C-2014-2427656