Press Release

PUC Rejects Proposed PA Gas & Electric Settlement Agreement Over Marketing Practices

Published on 2/6/2014

Filed under: Electric Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today rejected a settlement agreement between its independent Bureau of Investigation & Enforcement (I&E) and Pennsylvania Gas & Electric (PaG&E), a PUC-licensed electric generation supplier and natural gas supplier, over the company’s marketing practices.

“While this is certainly not the first instance of alleged slamming that I&E has prosecuted, it is among the most egregious,” PUC Chairman Robert F. Powelson and Vice Chairman John F. Coleman Jr. said in a motion. “Moreover, while any supplier could be the victim of a rogue employee or agent, we are troubled that PaG&E did not appear to have any internal controls in place to prevent the volume of slamming that allegedly occurred here…we have said many times that this Commission will not tolerate behavior that erodes the public trust in Pennsylvania’s retail energy markets.  ”

The Commission voted 5-0 on the motion to reject the settlement. The matter will be referred back to I&E for further action. 

The Commission had received complaints about PaG&E’s marketing, alleging that the electric and natural gas accounts of several large commercial customers were switched without customer authorizations.  I&E alleges that one telephone sales representative was responsible for the attempted unauthorized switching of several hundred commercial electric and natural gas accounts to receive supply service provided by PaG&E.  According to I&E, the individual – who was employed by a third party vendor that contacts businesses with multiple locations and markets PaG&E’s programs for potential enrollment – willfully circumvented the quality controls of PaG&E’s sales system.  

The proposed settlement agreement states that, had this matter been litigated, I&E would have alleged 108 instances of slamming.  In order to settle these allegations, PaG&E had agreed to pay a $75,000 penalty and take certain corrective actions.

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.

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