Md. PSC Staff Seek Show Cause Order Against North American Power, $50,000 Fine

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January 10, 2011

Staff of the Maryland Public Service Commission have filed a complaint against North American Power and Gas LLC, and requested that the Commission issue an order directing North American Power to show cause why its electric supplier license should not be suspended or revoked, or, alternatively, why North American Power should not be subject to a civil penalty of up to $50,000 and/or precluded from soliciting additional customers.

Staff alleged that at least one of North American Power's agents misrepresented himself as a Commission employee.  Staff's allegation is based on a customer complaint in which the customer alleged that they were solicited door-to-door by a North American Power agent claiming to be "from the PSC."

Staff further alleged that North American Power, "falsely states that the agreement containing its terms of service displayed on its website have been approved by the Commission and deceptively implies that its variable rate, which is unstated in the contract and could be in effect for a single month only, may lead to savings that could only be realized through above average usage over at least six months."

Additionally, Staff alleged that North American Power's contract does not meet certain minimum requirements under COMAR, such as the inclusion of a price description for each service, a dispute procedure, and the Commission's toll free number and internet address.

Staff also alleged that an advertisement placed by a broker, who Staff alleged was a North American Power representative, contained "statements that are misleading and contrary to Public Service Commission law" due to claims that, "BG&E encourages their customers to find a new supplier" and there is "no contract to sign" in order to "Save up to 20%."

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