Press Release

PUC Seeks Comments on Settlement with ResCom Energy Over Unauthorized Marketing Practices

Published on 6/19/2014

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a settlement agreement with ResCom Energy, LLC (ResCom) after investigations into alleged slamming and unauthorized marketing practices in 2012 and 2013.

The Commission voted 5-0 to issue the settlement for comments. Interested parties have 20 days to file comments. More information will be available in the Commission’s Order.

Informal investigations were instituted by the Commission’s independent Bureau of Investigation & Enforcement (I&E) in September 2012 and July 2013 due to allegations of slamming, which is an unauthorized switch of a customer’s electric generation supplier (EGS), and other related unlawful marketing practices in Pennsylvania, including “Do Not Call” violations. Based on its investigations, I&E determined there was sufficient data to substantiate allegations of violations of the Public Utility Code, the Telemarketer Registration Act and Commission regulations.

The initial allegations stemmed from three ResCom customers who were slammed and switched to their previous EGS. In a statement at the June 19 Public Meeting, Commissioner James H. Cawley asked these affected customers to use the comment period to elaborate on the treatment and financial impact they experienced as a result of the incidents, noting that case records do not list this information.

On March 19, 2014, the Commission issued an order directing the parties to file supplemental statements in support of the December 2013 settlement. The Commission wanted more information on the number of ResCom customers affected by alleged illegal marketing practices; the number of customers allegedly slammed or attempted to slam; how many Do Not Call violations allegedly occurred; and how ResCom has revised its operating procedures to prevent future slamming incidences. The proposed settlement agreement includes the following actions:

• Paying a civil penalty of $59,000;
• Revising operating procedures as safeguards against future unauthorized EGS marketing practices by its employees or agents, including better identification and script improvements; caller IDs and extended customer service hours; abiding by Do Not Call lists; and additional training resources for its field agents;
• Providing the Commission with written notification of changes in marketing activities for one year following the Commission’s final order; and
• Providing quarterly reports detailing consumer complaints and trends.

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 No. M-2013-2320112

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• Deputy Press Secretary
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