Press Release

PUC Approves Settlements with Retail Energy Suppliers Concerning Sales & Marketing Practices

Published on 2/24/2022

Filed under: Electric

Settlements with Green Mountain Energy, Greenlight Energy and Discount Power Address Allegations of Misleading and Deceptive Telemarketing, Incorrect Billing and Unauthorized Enrollments

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved settlement agreements between the PUC’s independent Bureau of Investigation & Enforcement (I&E) and three electric generation suppliers – Green Mountain Energy Company (Green Mountain), Greenlight Energy Inc. (Greenlight) and Discount Power Inc. (Discount).  The settlements center on, but are not limited to, alleged misleading and deceptive telemarketing practices and unauthorized customer enrollments.

The Commission voted 3-0 to adopt the proposed settlement between I&E and Green Mountain  – which followed an informal investigation by I&E based on numerous informal complaints by residential customers to the PUC’s Bureau of Consumer Services (BCS) alleging that their accounts had been switched to receive electric generation supply provided by Green Mountain without the customers’ authorizations. The unauthorized switching allegations centered on Green Mountain’s marketing activities at in-person locations, including retail and event sites, where Green Mountain agents were utilizing eligible customer lists to obtain the information of prospective customers.

Under the settlement agreement, Green Mountain agreed to the following terms and conditions:

• Pay a civil penalty of $156,000, which is not tax deductible.
  
  
• Provide each customer whose account was improperly switched with a refund of the entire electric generation supply portion on the customer’s bill for the first two billing periods that the customer was switched to Green Mountain. Following payment of the refunds, Green Mountain will file with the Commission a verification acknowledging that all refund payments have been disbursed.
  
  
• Refund any cancellation or early termination fees imposed by other suppliers and incurred by the customers who were switched to Green Mountain without authorization.
  
  
• Provide monthly reports, for a period of one year, detailing complaints from Pennsylvania consumers that were received by the Company from the PUC’s Bureau of Consumer Services (BCS), the Pennsylvania Attorney General’s Office, the Better Business Bureau and/or complaints directed to the Company. The monthly report to I&E shall include customer complaint data from the previous month.
  
  
• Retain customer signatures placed on enrollment tablets used at in-person marketing locations for a period of one (1) year starting after the entry of a Final Commission Order in this matter and provide such records to BCS and I&E upon request.

Additionally, the Commission voted 3-0 to adopt the proposed settlement between I&E and Greenlight stemming from alleged misleading and deceptive telemarketing practices and unauthorized customer enrollments completed by third-party vendors acting on behalf of Greenlight.  I&E had initiated an investigation into the alleged violations based on a referral from the PUC’s Office of Competitive Market Oversight (OCMO) and five informal customer complaints.

As a result, the Parties agreed that Greenlight will play a civil penalty of $8,250, broken down as follows:

• A civil penalty for each of 15 identified violations related to telemarketing calls received by the director of OCMO in the Fall of 2020, totaling $4,500.
  
  
• A civil penalty of $750 for each of five complaints related to unauthorized enrollments, totaling $3,750.

The civil penalty will not be tax deductible or passed through as an additional charge to Greenlight’s customers in Pennsylvania.

Additionally, the Commission voted 3-0 to approve the proposed settlement between I&E and Discount concerning I&E’s informal investigation into possible violations of the Public Utility Code and specific consumer protections regulations – including misleading and deceptive telemarketing; billing of incorrect rates; failure to issue renewal letters; unauthorized enrollments; and lack of record keeping.  I&E had initiated the informal investigation into the alleged violations based on a referral from OCMO.

Pursuant to the proposed settlement, Discount will do the following:

• Pay a total civil penalty of $42,250, with the penalty not being tax deductible or passed through as an additional charge to Discount’s customers in Pennsylvania.
  
  
• Create and implement a robust customer complaint tracking system which will include the inquiry, dispute or complaint, subsequent communications between the supplier and the customer, and the resolution of the inquiry, dispute or complaint.
  
  
• Train its customer service agents on the new system and ensure that all information logged into the system is detailed, accurate and responsive to the inquiry, dispute or complaint.
  
  
• Process, investigate and be responsive to a customer inquiry, dispute or complaint within a 6-month period of time from the date the inquiry, dispute or complaint is received.

About the PUC

Pennsylvania’s 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.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket Nos.: 

M-2021-3009235
M-2021-3023026
M-2021-3022658

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov