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Regulator Approves $2 Million Settlement With Retail Supplier
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The Connecticut PURA has approved without modification a settlement between Major Energy Electric Services, LLC (Major) and PURA's Office of Education, Outreach, and Enforcement (EOE) under which
Major is to pay $2 million to resolve alleged violations relating to certain enrollments onto Major from Utiliz Services, LLC (Utiliz), as EOE had previously alleged that Utiliz impermissibly acted as an agent for Major while allegedly also acting, or purporting to act, as the agent for the customer
Major Energy provided the following statement concerning the matter:
"We are pleased that we have reached a settlement agreement with PURA. Many Connecticut customers liked the service that helped them find energy rates lower than the ones their utility offered. Unfortunately, due to a change in vendor licensing structure, Major Energy had to end its relationship with the vendor that provided this service. We felt donating money to reduce the arrearages of hardship customers and discontinuing the vendor relationship was the most efficient path forward. Major Energy is still committed to serving Connecticut with competitive electricity rates and collaborating on new ways to help customers in the future."
--- Statement from Major Energy
Tom Schmidt, CEO of Utiliz Services, provided the following statement concerning the matter:
"Major Energy made the decision to settle with PURA without input from Utiliz. We do not believe either party violated any rules. Utiliz was able to negotiate significant savings for its customers through its partnership with Major. All of those savings have now been lost because of PURA intervention and misconstruction of the parties’ agreements. It is clear that PURA intends to drive all competitive retailers from the Connecticut market and this is a great step towards achieving that goal. We feel sorry for the people of Connecticut who are losing the ability to choose their retailer and save money in the process. By driving competitive re-tailers out of the state, PURA has decreased competition and raised prices for Connecticut residents. Utiliz and its affiliated companies have saved customers over $25 million across the country and will continue to save residential electricity customers millions of dollars in the other deregulated states."
--- Statement from Tom Schmidt, CEO of Utiliz Services
See a full discussion of the alleged violations to be resolved by the settlement in our prior story here
In brief, an earlier Notice of Violation and Assessment of Civil Penalty (NOV) alleged that Utiliz Services, LLC acted as an agent of Major, while Utiliz Services, LLC represented to customers that Utiliz Services, LLC was the customer's agent, including for a period during which Utiliz Services, LLC previously held a Connecticut aggregator certificate (aggregators in Connecticut are only permitted to represent the customer and may not be an agent of a supplier)
The $2 million stipulation between Major and EOE constitutes, with respect to Major, full and final settlement of PURA's prosecution of all claims, known or knowable, specifically regarding Major Energy's interactions with Utiliz, as of the time PURA approved the settlement agreement
The $2 million payment from Major is to be directed to the electric utilities as a donation to reduce hardship customer arrearages
Under the settlement, Major Energy agrees to, "permanently cease doing business with Utiliz in Connecticut[.]"
Under the settlement, Major shall ensure that 144 customers enrolled with Major by Utiliz in October 2023, as identified in the NOV, do not pay more than the applicable default service rate, for as long as the customers are served by Major
The settlement states, "This Settlement Agreement does not represent an admission or concession by Major Energy as to the claims, or facts or circumstances surrounding the claims, or proper disposition of any issue related to the NOV or this Settlement Agreement."
As of publication time, no Notice of Violation against Utiliz has been issued or proposed. Utiliz Services, LLC is not currently a licensed aggregator in Connecticut.
Docket 14-03-03
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July 9, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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