Press Release

PUC Approves Settlements for Two Electric Suppliers Regarding Alleged Marketing Practices Violations

Published on 10/17/2013

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved civil settlements for two electric generation suppliers (EGSs) following complaints concerning suspect marketing practices.

The Commission voted 5-0 to accept the settlements, with modifications, between the suppliers and the PUC’s independent Bureau of Investigation & Enforcement (I&E).  On Aug. 15, 2013, the PUC invited interested parties to file comments on the settlements. 

IDT Energy Inc.

The settlement with IDT Energy follows an informal investigation into 21 consumer complaints in connection with marketing incidents with one of the company’s independent sales agents. The PUC’s I&E alleged that IDT violated PUC regulations and the Pennsylvania Public Utility Code after I&E was able to substantiate allegations of slamming and fraudulent, deceptive, or unlawful sales and marketing actions. In the settlement, the company admits no wrongdoing.

The settlement includes the following actions by the company:

• Paying a civil settlement of $39,000, which it agrees not to recover any portion from Pennsylvania consumers;
• Complying with the PUC’s supplier marketing guidelines;
• Retraining certain sales agents;
• Implementing better quality control;
• Providing the PUC with written notification of marketing activities as well as a list of independent marketers; and
• Increasing its reporting to the PUC on consumer complaints.

AP Gas & Electric (APG&E)

The settlement with APG&E follows an informal investigation into consumer allegations of slamming, which is an unauthorized change to a customer’s EGS. The PUC’s I&E alleged that APG&E violated PUC regulations and the Pennsylvania Public Utility Code by failing to obtain the direct oral confirmation or written authorization from multiple customers to change their EGS supplier; engaging in fraudulent, deceptive or otherwise unlawful acts in the process of marketing services to consumers; violating the “Do Not Call” provisions of the Telemarketer Registration Act; and violating the code of conduct for licensed suppliers. In the settlement, the company admits no wrongdoing.

The settlement includes the following actions by the company:

• Paying a civil settlement of $43,200, which it agrees not to recover any portion from Pennsylvania consumers;
• Sending annual information to its customers stating the company has no affiliation with the customer’s electric utility;
• Providing written notice to the PUC of any changes to its marketing practices; and
• Increasing its reporting to the PUC on consumer complaints.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket Nos. M-2013-2314312; M-2013-2311811

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov