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PUCO fines energy firm for 'deceptive behavior'
KEITH ARNOLD
Special to the Legal News
Published: September 5, 2023
The Public Utilities Commission of Ohio has assessed a $122,000 fine against a New York City-based retail energy supplier for employing “misleading and deceptive behavior” in efforts to convince Ohio consumers to sign up with the company.
PUCO ordered SmartEnergy Holdings LLC to issue credits to certain customers and honor rebate incentives it promised customers during enrollment for service.
“Misleading and deceptive behavior by retail energy providers will not be tolerated in Ohio,” commission Chair Jenifer French said in a statement.
According to the commission’s finding and order, PUCO staff in January issued a notice of probable noncompliance to SmartEnergy with respect to certain marketing and enrollment practices.
In the notice, PUCO staff stated that during the previous several months, the commission had received consumer complaints regarding those issues.
Upon review of customer complaints leveled against SmartEnergy, supporting documents, call recordings and responses from the company, commission personnel determined that SmartEnergy had provided customers misleading and deceptive information.
The commission’s investigation found that the retail energy supplier misled customers in a number of ways, including:
• Informing customers they would be protected from rate increases;
• Informing customers they were eligible to claim a gift card for which they were ineligible;
• Charging customers extremely high variable rates; and
• Enrolling customers who were clearly confused.
The investigation also revealed that there were multiple instances of SmartEnergy representatives failing to provide customers with a unique enrollment number and to send a notice indicating expiration of the contract term was imminent.
Company officials joined the commission to file a joint stipulation and recommendation May 30 to resolve the issues identified in the probable noncompliance notice, according to PUCO filings.
The commission ordered SmartEnergy to identify all customers charged $0.299 per kWh and re-rate their bills to the utility’s standard service offer at the time, a news release detailed.
Additionally, the company will be limited to offering only fixed-rate contracts to customers for a 24-month period.
SmartEnergy also will pay a $122,000 civil forfeiture to the state of Ohio, according to the terms of the agreement.
“Today’s decision provides redress for aggrieved customers,” PUCO Commissioner Larry Friedeman said in the release. “Our order sets forth prescribed conduct governing customer acquisition and contract administration for both current and newly acquired customers.”
The Ohio attorney general’s office received three consumer complaints of company practices dating back to October 2020.
A review of the attorney general’s website found that consumers complained about company representatives’ use of high-pressure sales, a failure by the company to deliver a product or service and unsolicited contact.
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