Press Release

PUC Approves $150,200 Settlement for PA Gas & Electric Over Enrollment Practices

Published on 10/2/2014

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a $150,200 settlement agreement with Pennsylvania Gas & Electric (PaG&E), a PUC-licensed electric generation supplier and natural gas supplier, over the company’s enrollment practices in 2012.

The Commission voted 5-0 to approve the settlement between PaG&E and the Commission’s independent Bureau of Investigation & Enforcement (I&E).  On June 5, 2014, the Commission issued for comments the proposed settlement agreement after rejecting a previous settlement on Feb. 6, 2014, saying in a motion at the time 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.”

As part of the approved settlement, PaG&E will provide a refund to customers whose accounts were physically switched to PaG&E. The refund will be for the entire electric generation or natural gas supply portion of their bill for the period of time they were served by the company.  Other provisions of the settlement include background checks for all potential independent contractors, a courtesy call procedure to verify sales transactions involving more than five accounts per commercial or residential customer, and the retraining of agents about PUC regulations pertaining to consumer protection and the prohibition on slamming.

I&E began an informal investigation into the company after the Commission had received complaints about PaG&E’s marketing, alleging that the electric and natural gas accounts of large commercial customers were switched without customer authorizations.  The incidents that were part of this settlement occurred prior to Winter 2014 and the spikes in electric generation prices experienced by some variable rate customers.

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 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-2013-2325122

Contact:

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