PSC Concerned With Concierge Shopping Service's Use Of Term "Saving"

November 7, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Maryland PSC has expressed concern with various statements using the term "saving" used by the website myutiliz.com

The concern arose as Utiliz Services, LLC applied for electric and natural gas broker licenses in Maryland

A distinct entity with separate and unique ownership -- Utiliz LLC -- is already operating in Maryland and serving customers using the website. However, as the general business model and similar marketing are used by both entities, the PSC's concern extended to both of them (the distinct Utiliz Services, LLC is seeking its own licenses to execute a prior acquisition concerning certain Utiliz LLC assets, since the licenses themselves were not transferred)

Utiliz charges $3.99 per month for its shopping service

PSC Staff cited three statements alleged to be on the Utiliz website:

• "Utiliz saves you money on your power bills automatically. Satisfaction guaranteed."

• "Start Saving."

• "Utiliz handles your electricity supplier switching, so you’re always saving money on a low cost plan."

Staff alleged that such statements are not accurate to the extent a customer is already on SOS and Utiliz cannot find a better deal for customers, or if the customer is already on the lowest retail supplier rate in the market (below SOS).

Tom Schmidt, CEO of Utility Rescue Holdings, Inc., parent of Utiliz Services, LLC, said that such quotes are taken out of context, and that the customer is reimbursed Utiliz's subscription fee if the customer does not save money. Schmidt also said that Utiliz Services, LLC does not charge a fee if the customer is placed on SOS if SOS is the best rate

Schmidt also addressed a scenario where the savings are marginal and do not exceed the cost of the subscription fee. Schmidt said that Utiliz Services, LLC's practice in such case is to reimburse the customer the difference between the subscription fee and savings, though such action is not currently a contractual obligation but rather an action taken to promote customer satisfaction

Schmidt noted that in five years of operation of the service in multiple states (under both entities), there has not been a single complaint filed at any PSC or similar agency against Utiliz

While the Commission did not take a vote addressing the specific language, multiple Commissioners did express general concerns about the presented language

Schmidt said that Utiliz Services, LLC would be happy to discuss Staff's concerns and is open to changes

The PSC voted to take the matter under advisement and asked that Utiliz Services, LLC meet with various PSC Staff and Office of People's Counsel to address the stated concerns

Schmidt, in a statement to EnergyChoiceMatters, said, "We pointed out that there had never been a consumer complaint for Utiliz, LLC, in its five years of operation in multiple states, and that no customer has ever been charged a fee without receiving some financial benefit from Utiliz. The commission asked us to work with staff to perhaps make agreed modifications to our website such that staff will withdraw its recommendation of denial. I am confident that we can get that done."

Due to the above-stated concerns, Staff had recommended that the PSC refer the currently operating entity Utiliz LLC to the Commission’s Consumer Affairs Division for investigation of potential violations. The PSC did not address this recommendation in taking the matters under advisement

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