Regulator Opens Investigations Into Two Retail Energy Suppliers -- EnergyChoiceMatters.com

Regulator Opens Investigations Into Two Retail Energy Suppliers

April 16, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Illinois Commerce Commission has opened separate investigations into Liberty Power Holdings LLC (Liberty Power) and Switch Energy LLC to review alleged potential violations of various provisions of the Ill. Adm. Code, Public Utilities Act (PUA) and Section 2EE of the Consumer Fraud and Deceptive Business Practices Act (CFA)

With respect to both suppliers, ICC Staff has not alleged that any violation has occurred, but requested that the ICC open the investigations to determine if violations have occurred.

"Staff recommends that neither the initiation of the docket nor the filing of a charging document should be deemed to be nor construed as a finding of violation and further recommends that the Commission take no remedial action until such time as it is presented with a Proposed Order for its consideration by the ALJ," Staff said in a report concerning each supplier

Liberty Power

Addressing a request from Staff, the ICC initiated a proceeding to investigate whether Liberty Power’s sales, solicitation and marketing practices, policies, procedures, reporting requirement compliance, and customer call center operations related to ARES products have complied with and continue to comply with 83 Ill. Adm. Code 412, 83 Ill. Adm. Code 410, 83 Ill. Adm. Code 421, 83 Ill. Adm. Code 465, Article XVI of the Public Utilities Act, and Section 2EE of the Consumer Fraud and Deceptive Business Practices Act

A Liberty Power spokesperson provided the following statement concerning the matter:

"Liberty Power is of course aware of the Order to initiate a proceeding. We have no further details beyond what is contained in the Order which offers no specific allegations. The company remains committed to an excellent customer experience, including full compliance with applicable laws and regulations, and quick resolution of any issue of customer dissatisfaction."
--- Statement from Liberty Power spokesperson

Staff alleged that the ICC's Consumer Services Division (CSD), "has handled numerous informal complaints about Liberty Power from residential customers, primarily through consumer calls to CSD’s 800 number or through the online complaint form on the Commission’s website."

Staff alleged, "The material the Company provided to Staff in response to informal complaints raised concerns that Liberty Power may not be fully compliant with multiple provisions of Part 412. While not intended to be an exhaustive list, Staff’s concerns at this time include the Company’s conduct with regard to portions of Part 412 as those rules relate to providing minimum contract terms and conditions to consumers; the content of the Uniform Disclosure Statement provided to consumers directly and on its website; telemarketing to consumers; training agents; advertising Renewable Energy Products; and enrolling customers."

"Finally, a review of filings by Liberty Power on the Commission’s eDocket system suggests Liberty Power may have failed to file many required reports with the Commission including but not limited to Part 410: Standards of Service for Electric Utilities Part 421: Environmental Disclosure, and Alternative Retail Electric Suppliers; and Part 465: Net Metering," Staff alleged

In a Notice of Apparent Violations issued to Liberty, Staff had alleged, "The apparent violations include but are not necessarily limited to possible violations of Part 412.110; Part 412.115; Part 412.120; Part 412.130; Part 412.170; Part 412.180; Part 412.190; Part 412.210; Part 412.310; Part 412.320; Part 410.45; Part 421.30; Part 465.40; 220 ILCS 5/16-115; 220 ILCS 5/16-115A; and 220 ILCS 5/16-123."

Aside from citing these areas of concern, Staff did not provide specifics concerning any language and/or behavior related to the documents and disclosures listed above that Staff believes raises concern.

Staff will investigate the sales, solicitation, and marketing practices and reporting requirement compliance of Liberty Power for the period in question to determine if violations have occurred

Staff had recommended that the investigation cover the period January 1, 2019, up to and including the date the docket was initiated (April 15, 2021)

Docket 21-0362

Switch Energy

Addressing a request from Staff, the ICC initiated a proceeding to investigate whether Switch Energy’s customer call center operations and its sales, solicitation and marketing practices, policies, and procedures related to ARES products have complied with and continue to comply with 83 Ill. Adm. Code Part 410, Part 412, Article XVI of the PUA, and Section 2EE of the CFA.

Staff alleged that CSD has handled numerous informal complaints about Switch Energy from residential customers, primarily through consumer calls to CSD’s 800 number or through the online complaint form on the Commission’s website.

Notably, Staff alleged that, "concerns were ... raised that Switch Energy may not be fully compliant with certain provisions of the PUA and CFA regarding Price to Compare and contract renewal disclosures."

Staff alleged that, "The material the Company provided to Staff in response to informal complaints raised concerns that Switch Energy may not be fully compliant with multiple provisions of Part 412. Moreover, the persistent allegations made by consumers raise concerns about the Company’s compliance with call center requirements under Part 410. While not intended to be an exhaustive list, Staff’s concerns at this time include the Company’s conduct with regard to portions of Part 410 and Part 412 as those rules relate to providing a customer call center where customers can reach a representative; minimum contract terms and conditions to consumers; telemarketing to consumers; training agents; timely responses to consumer complaints; and enrolling customers."

Staff alleged that it received, "information from consumers that suggests calls to Switch Energy’s customer service line are met with a 'mailbox full' message and customers are unable to leave a message."

"Finally, a review of filings by Switch Energy on the Commission’s eDocket system suggests Switch Energy may have failed to file required reports with the Commission," Staff alleged

Aside from citing these areas of concern and the one discrete customer service mailbox issue noted above, Staff did not provide specifics concerning any language and/or behavior related to the documents and disclosures listed above that Staff believes raises concern.

Staff will investigate Switch Energy LLC’s customer call center operations and sales, solicitation, and marketing practices, policies, and procedures related to ARES products for the period in question to determine if violations have occurred

Staff had recommended that the investigation cover the period October 1, 2019, up to and including the date the docket was initiated (April 15, 2021)

Docket 21-0363

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