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Retail Supplier To Pay $183,000 Under Settlement
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The Maryland PSC approved a settlement among Eligo Energy MD, LLC, Staff of the PSC, and the Office of People’s Counsel under which, among other things, Eligo agrees to pay $183,088 to resolve alleged violations stemming from its operation in the Delmarva Power and Potomac Edison territories when it had not indicated to the PSC in its license application, or any prior amendment, that it would serve customers in such areas, and thus was not authorized to serve those areas.
Eligo Energy provided the following statement concerning the matter:
"The settlement stems from inadvertent errors in Eligo Energy's initial license application process. Despite the challenges encountered, Eligo Energy has demonstrated a steadfast dedication to rectifying these issues in a transparent and cooperative manner.
"'We are pleased to have resolved this matter with the Maryland Public Utilities Commission', said Mike Osowski, CEO of Eligo Energy. 'As a company deeply committed to compliance and integrity, we take these matters seriously and have taken proactive steps to ensure full compliance moving forward.'"
--- Statement from Eligo Energy
According to the settlement, Eligo was granted an electricity supplier license in 2012 to operate in the Baltimore Gas and Electric and Pepco service territories
Eligo began operating at DP&L and PE in 2017 and 2018, respectively
The settlement states that, "Eligo acknowledged that, due to an administrative oversight, it did not realize that the electricity license granted in 2012 was limited to the BGE and Pepco service territories."
Retail suppliers on the Maryland application check boxes for those utility service areas the supplier "intends to serve". There is no "statewide" option. License orders from the PSC typically grant licenses, "limited solely to electricity supplier services for the customer classes
and service territories applied for."
Upon learning that it was not licensed at Delmarva and Potomac Edison, Eligo paused its marketing in such service areas
Under the settlement, Eligo shall send a letter to its current customers at DP&L and PE informing the customers that:
i. At the time the customer enrolled, Eligo was not properly licensed by the Public Service Commission, but that Eligo has now cured that deficiency.
ii. The licensing issue has not affected, and will not affect, any customer’s electricity supply service from Eligo or any customer’s contract with Eligo.
iii. The customer may leave Eligo’s service at any time without a termination fee.
The settlement states that Eligo shall not be required to provide re-rates or refunds to current and past customers at Delmarva and Potomac Edison
The settlement provides that Eligo shall increase its level of security on file with the Commission pursuant to COMAR 20.51.02.08 and 20.54.02.08 to $500,000.
The PSC approved Eligo's application to expand its authorized service areas to Delmarva and Potomac Edison, effective upon completion of the settlement terms described above
The settlement states, "That this Settlement is not intended to be and shall not be deemed to be
evidence or an admission of liability on the part of the Settling Parties, or
anyone else regarding Eligo’s licensing in the Delmarva and Potomac
Edison service territories."
The settlement states, "None of the provisions in this Settlement shall be considered, or shall
constitute, an admission, a finding of fact, or a finding of culpability on the
part of Eligo arising out of Eligo’s marketing to or contracting with
customers in the Delmarva and PE service territories."
The settling parties agree that, "Eligo promptly made good faith efforts to achieve compliance through its cessation of marketing, filing of [an] Expansion Request, and agreement to these Settlement terms."
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May 22, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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