Viridian Energy Would Pay $20,000 to Resolve Maryland Complaint Under Settlement with Staff

Copyright 2011 Energy Choice Matters. Unauthorized copying, or reproduction prohibited
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Maryland PSC Staff and Viridian Energy PA, LLC have offered a joint recommendation to resolve an outstanding complaint against the supplier from Staff under which Viridian would pay $20,000 (Case 9255).

As first reported by Matters, the complaint relates to marketing claims by individual Viridian independent associates as well as Viridian's prior use of the term "no contract" to describe its variable product with no termination fee (see 1/17).

Staff and Viridian did not agree on the form of payment. Staff recommended that the $20,000 be assessed as a civil penalty. Viridian has requested that the Commission allow the payment to be made as a donation to the Fuel Fund of Maryland, in lieu of a civil penalty.

In a similar settlement between Staff and North American Power regarding a similar Staff complaint, Staff had recommended a donation to the fuel fund rather than a civil penalty, but Commissioners balked at the recommendation. The Commission has not yet taken final action on this issue with respect to North American Power.

The joint recommendation from Staff and Viridian also includes a remediation plan, with several of the steps already instituted and previously reported.

Actions taken by Viridian to date include voluntarily suspending, and later permanently ceasing, door-to-door marketing; prohibiting independent associates from creating their own marketing materials; instituting an IP address verification process for enrollments; and instituting a strengthened training program for agents and requiring completion prior to earning commissions.

Viridian will institute third party verifications for internet enrollments in April.

Viridian will also prohibit independent associates from customizing the content of their personal websites used for enrollments by the end of April.

The joint recommendation also includes various reporting requirements.

A hearing on the complaint will be continued April 1.

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