PUC Staff Seeks $2.8 Million Penalty Against Retail Supplier, Alleges "Abhorrent Behavior" -- EnergyChoiceMatters.com

PUC Staff Seeks $2.8 Million Penalty Against Retail Supplier, Alleges "Abhorrent Behavior"

June 6, 2023

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Reporting by Paul Ring • ring@energychoicematters.com

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The Bureau of Investigation and Enforcement (I&E) of the Pennsylvania PUC, filed a Formal Complaint against Planet Energy (Pennsylvania) Corp. d/b/a RiteRate Energy d/b/a Value Plus Energy (cumulatively referred to as "Planet Energy" or "Company" or "Respondent"), seeking in excess of $2.8 million in penalties for Planet Energy's alleged termination of fixed price contracts (via dropping customers to default service) without various notice required under PUC rules

I&E alleged that I&E identified 5,690 customers, which I&E alleged consisted of the entirety of Planet Energy’s customer base, whose contracts with Planet Energy were allegedly terminated without the required notices. Such customers were dropped to default service during the summer of 2022

I&E said, pursuant to Section 54.10 of the Commission’s regulations, an EGS shall provide notice to customers prior to the expiration of a fixed duration contract or prior to a change in contract terms. An initial notice shall be provided to the customer 45 to 60 days prior to the expiration date of the fixed duration contract or the effective date of the proposed change in terms. An options notice shall be provided, by first class mail, at least 30 days prior to the expiration date of the fixed duration contract or the effective date of the proposed change in terms. 52 Pa. Code § 54.10.

I&E said, pursuant to Section 54.5 of the Commission’s regulations, an EGS shall provide the customer written disclosure of the terms of service whenever the EGS proposes to change the terms of service. 52 Pa. Code § 54.5.

I&E said, pursuant to Section 54.43 of the Commission’s regulations, an EGS shall provide notification of change in conditions of service, intent to cease operations as an electric generation supplier, and an explanation of denial of service. 52 Pa. Code § 54.43.

I&E said, pursuant to Section 54.41 of the Commission’s regulations, an EGS may not abandon service without providing 90 days prior written notice to the Commission, the EGS’s customers, the affected distribution utilities, and the default service providers prior to abandonment. Additionally, the EGS shall provide individual notice to its customers in each of the three billing cycles preceding the effective date of abandonment. 52 Pa. Code § 54.41.

I&E alleged, "Planet Energy violated the Commission’s regulations when it failed to provide notice to its customers of its discontinuance of service or change in contract terms."

I&E alleged, "Planet Energy customers whose fixed-rate contracts were canceled by Planet Energy were made aware of the change in service through notice from the local electric distribution company. No advance notice was provided by Planet Energy as is required by its fixed-rate customer agreements and disclosure statements."

I&E alleged, "Planet Energy did not provide an initial or first notice to its customers that it was unilaterally discontinuing service. Planet Energy did not provide subsequent or second notice to its customers prior to discontinuing service."

I&E alleged, "Moreover, Planet Energy violated the terms and conditions of its fixed-rate contracts and disclosure forms when it failed to provide advance notice to its customers that it was discontinuing service."

I&E proposed a civil penalty of $500.00 per customer, resulting in a total proposed civil penalty of $2,845,000

I&E alleged, "In addition to this monetary civil penalty, as a result of the abhorrent behavior described herein and in the best interest of the consumers of this Commonwealth, pursuant to 52 Pa. Code § 54.42, I&E seeks the revocation of Planet Energy’s license to provide electric generation services in Pennsylvania for its failure to comply with numerous Commission regulations, including its failure to follow the principles of 52 Pa. Code § 54.43 by unilaterally cancelling its customers’ fixed-rate contracts and essentially removing itself from the electric generation market without Commission approval."

I&E alleged in its complaint that, "As of April 11, 2023, Planet Energy was not offering any electric generation services to Pennsylvania customers and indicated that it did not have an established time frame in which it would offer services in the future."

As previously reported, Planet Energy (Pennsylvania) Corp. formally filed at the Pennsylvania PUC last month to abandon its electric supplier license

Docket Number C-2023-3041126

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