|
|
|
|
|
Retail Supplier Agrees To $1 Million Penalty Under Settlement, Which PUC Enforcement Staff Hopes Will Show PUC's "Fervent Disapproval" With Alleged Actions
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The Pennsylvania PUC's Bureau of Investigation and Enforcement (“I&E”) hopes that a $1 million penalty agreed to by Planet Energy (Pennsylvania) Corporation (“Planet Energy” or “Company”), under a settlement with I&E, will show that the PUC "fervent[ly]" disapproves of Planet Energy's alleged behavior and, by sending a, "stern message to all energy suppliers," deter other retail suppliers from engaging in similar actions
The settlement resolves allegations that Planet Energy terminated fixed price contracts (via dropping customers to default service) without various notices required under PUC rules
See background on the allegations here
The settlement states that parties stipulate that, from January 1, 2022 to October 6, 2022, Planet Energy canceled approximately 5,690 fixed-rate contracts of customers in Pennsylvania.
The settlement states that parties stipulate that Planet Energy did not provide 90 days’ prior written notice to the PUC, its customers, the applicable utilities, and the default service providers before ceasing service as a retail supplier.
The settlement states that parties stipulate that, "Planet Energy’s rapid exit from the Pennsylvania energy market was a result of perceived economic conditions and financial distress of its parent entity in Canada."
I&E was prepared to allege that Planet Energy violated certain regulations, including 52 Pa. Code § 54.10. and 52 Pa. Code §54.5, due to the stipulated behavior cited above. Planet Energy denied such claims and would have defended against all claims had the matter not been settled.
The settlement requests that the PUC issue an order levying a $1 million civil penalty against Planet Energy.
The settlement notes that I&E understands that collection of any civil penalty will be unlikely due to the bankruptcy proceeding of Planet Energy’s parent company in Canada
I&E under the settlement agrees not to pursue the collection of the $1 million fine.
Notwithstanding the unlikelihood of collection, I&E asked for a "token" $1 million fine to be imposed as part of the settlement, "as a means to illustrate the Commission’s fervent disapproval of Planet Energy’s actions and to deter similar actions by other energy suppliers serving consumers in this Commonwealth[.]"
Calling the settlement and its "token" penalty "creative", the settling parties in a joint statement accompany the stipulation said that there is no evidence of "financial harm" to Planet Energy's customers.
Planet Energy had provided testimony stating, "I&E did not show that any
customers, not even one, was harmed by Planet Energy’s
actions. In fact, many customers financially benefitted
from Planet Energy’s actions because of lower costs
when returned to the system."
Planet Energy further offered testimony that about 72% of
customers who were returned to default service either paid a lower rate, or did not experience a change in pricing
Planet Energy offered testimony stating that, for customers experiencing an
increase in their bills as a result of the drop to default service, "many" only saw an increase of $0.004 per
kWh.
In addition to Planet Energy relinquishing its electric generation supplier (EGS) license, the settlement provides that Planet Energy agrees to refrain from conducting business in Pennsylvania, "as an EGS or otherwise", in perpetuity unless otherwise authorized by the PUC.
The settlement states that Planet Energy does not admit and expressly denies any violation of law or other wrongdoing by itself, any affiliated entities, and all current or former officers, directors, employees, agents, attorneys, contractors, or other persons who ever acted on behalf of Planet Energy.
The settling parties agree that the settlement resolves all litigation between I&E and Planet Energy, and I&E does not oppose actions taken by Planet Energy intended to gain immediate release/return of its Letter of Credit from the PUC.
Docket C-2023-3041126
ADVERTISEMENT ADVERTISEMENT Copyright 2024 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
June 5, 2024
Email This Story
Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Energy Regulatory Specialist
• Sr. Market Risk Analyst -- Retail Supplier
|
|
|
|