Press Release

CORRECTION - PUC Seeks Comment on Proposed Settlement with PECO Energy Company Regarding Past Improper Electric Service Terminations

Published on 8/25/2022

Filed under: Electric

Nearly 50,000 Electric Customers Improperly Terminated in 2018-19 as a Result of Computer Errors Caused by PECO Call Center Vendor

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today moved to seek public comment on a proposed settlement between PECO Energy Company (PECO) and the PUC’s independent Bureau of Investigation & Enforcement (I&E), following an informal investigation into the improper service termination for approximately 49,500 electric customers between June 25, 2018, and Sept. 10, 2019.

The Commission voted 3-0 to seek public comment on a Joint Petition for Approval of Settlement between PECO and I&E – which includes PECO’s ongoing implementation of system safeguards, a significant civil penalty and contributions to the company’s Matching Energy Assistance Fund (MEAF). 

Before making a final determination on this filing, the PUC will publish the settlement in the Pennsylvania Bulletin and allow interested parties to file comments within 25 days – either through the PUC’s free eFiling system or by filing written comments at the following address:

Rosemary Chiavetta, Secretary
Pennsylvania Public Utility Commission
Commonwealth Keystone Building
400 North Street
Harrisburg, PA 17120

As part of the settlement, PECO has agreed to the following:

• Continue taking corrective actions and implementing revisions to its operating procedures which will act as safeguards against future termination issues.

• Contribute $75,000 to the company’s MEAF – including donations of $15,000 to each of its five major MEAF agencies in southeastern Pennsylvania.
  
  
• Contribute an additional $320,591.88 to its MEAF due to erroneously charged customer reconnection fees that PECO was unable to apply to customer accounts.
  
  
• Summarize and report the results of its regulatory noticing with the PUC’s Bureau of Consumer Services for a two-year period.
  
  
• Pay a civil penalty of $150,000.

On June 25, 2018, PECO’s call center third-party vendor made a dialer platform change resulting in two separate computer errors that caused the improper service terminations.

PECO discovered the first error on Aug. 9, 2018, and suspended all service terminations.  This error led to the termination of a large number of electric customers without those customers first receiving the required second 72-hour telephone call to either the customer or an adult occupant of the household at least three days, or 72 hours, prior to the scheduled termination. 

PECO reported the incident to the Commission’s Bureau of Consumer Services (BCS) on Aug. 16, 2018, and BCS referred the matter for investigation to I&E.  PECO resolved the first issue on Aug. 20, 2018.

On Sept. 10, 2019, PECO discovered a second error that led to the company’s termination of service for a large number of customers on a day different than that on which the previous service termination occurred due to the first error.  PECO again suspended all service terminations until Sept. 12, 2019, which was the date the second error was resolved.

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.

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 No.:  M-2021-3014286

Contact:

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