Retail Supplier To Provide Up To $215,000 In Additional Customer Re-Rates, Forego Collection Of $800,000, Under Settlement With PUC Staff

PALMco Power OH, LLC and PALMco Energy OH, LLC (PALMco) have entered into a settlement with Staff of the Public Utilities Commission of Ohio and the Office of the Ohio Consumers' Counsel under which PALMco would provide up to $215,000 in further re-rates to customers, and forego collection of over $800,000, to resolve an investigation into the supplier by PUCO

PALMco provided the following statement concerning the matter:

"PALMco stopped serving Ohio customers in March 2020. We are pleased to have reached an amicable Settlement Stipulation that directly benefits Ohio consumers and meets the approval of not only PALMco, but also PUCO Staff and the Office of the Ohio Consumers’ Counsel. We look forward to continued, cooperative efforts toward receiving Commission approval. Our highest priority continues to remain serving all of our customers across the country in full compliance with federal, state, and local laws and regulations."

--- Statement from PALMco

The settlement addresses alleged behavior after May 2019. As previously reported, a prior settlement addressed earlier alleged behavior by PALMco. Under such earlier settlement, PALMco agreed to exit the Ohio market and has already done so

During the period after May 2019 when PALMco was still operating in Ohio, Staff alleged that, during the relevant period prior to its market exit, PALMco charged "unconscionably high rates", with Staff alleging as an example an electric customer's variable rate which increased over 70% from about 9 cents per kWh to over 15 cents per kWh (when the SSO rate was about 5 cents per kWh)

As resolution of the proceeding, the settlement, among other terms, includes the following re-rates:

1) PALMco agrees to re-rate customers whose rates increased by 50% or more as compared to the initial offering rate for those customers during the period between August and December 2019 ('the refund period'), excluding customers that have unpaid bills for PALMco’s service and/or have already received an agreed upon re-rate or flat rate credit due to a complaint resulting from PALMco service. For each month during the refund period when a customer’s rates were at least 50% higher than the initial offering rate for the customer, the customer will receive a refund calculated by re-rating PALMco’s charges for service during that month to a charge that is halfway between the rate the customer paid during that month and the initial offer rate for that customer. The total amount of the re-rates shall not exceed $215,364.93, and will be allocated among the customers to be re-rated as described in an exhibit to the stipulation.

2) Separate and apart from the re-rates described in paragraph 1), PALMco has, in coordination with Staff, re-rated or otherwise resolved the specific customer complaints that were referenced in Staff’s December 16, 2019 notice of probable non-compliance.

Furthermore, the settlement provides that, "PALMco holds approximately $832,000.00 in aged accounts receivable ('A/R') related to its previous Ohio customers. PALMco agrees to release that entire book of A/R. PALMco will not seek collection of the $832,000 in A/R from customers or assign the A/R to another individual or entity for collection."

Expanding on a term from the prior settlement ("PALMco I"), the new stipulation provides that, "PALMco agrees that its current owners will not serve as an owner, officer, director, or partner for a CRES or CRNGS supplier in Ohio for 7 years from the date the PUCO approves this Stipulation; provided that after five years from the date of the execution of the Stipulation in PALMco I (July 31, 2019), PALMco’s current owners may operate as an owner, officer, director or partner for a CRES or CRNGS supplier if that supplier serves only large commercial and/or industrial customers."

Case 19-2153-GE-COI