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PUC Approves Settlement with Verde Energy USA Regarding Company’s Sales and Marketing Practices

PUC Approves Settlement with Verde Energy USA Regarding Company’s Sales and Marketing Practices

Published on 9/15/2022

Settlement Centers on
Deceptive Sales Tactics, Unauthorized Customer Enrollments and Access to
Customer Accounts During Three-Year Period

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a Joint Petition for Approval of Settlement
between the PUC’s independent Bureau of Investigation & Enforcement
(I&E) and Verde Energy USA Inc (Verde) stemming from alleged
unlawful conduct related to Verde’s sales and marketing practices as a
licensed electric generation supplier in Pennsylvania.

The Commission voted 2-1 to adopt the Initial Decision of PUC Administrative Law Judge Christopher P. Pell – which accepted the settlement agreement
between the parties and resolved the formal complaint proceeding
initiated by I&E on Jan. 30, 2020.  That complaint alleged that
Verde, and/or a third-party marketing agent acting on Verde’s behalf,
conducted deceptive and misleading sales tactics, enrolled customers
without authorization, and accessed customer accounts without
authorization between February 2017 and the date of the complaint.

Under the settlement agreement, Verde agrees to the following terms and conditions:

• Pay a civil penalty of $1 million. No amount of the civil penalty may be passed through as an additional charge to Verde’s Pennsylvania customers.
  
  
  
  


• Pay $75,000 to PPL Electric’s Hardship Fund.
  
  
  
  


• Provide a refund to each customer identified in the complaint who enrolled with Verde - equal to the first two months of electric supply charges, less any amounts previously refunded to the customer.
  
  
  
  


• Notify customers identified in the complaint who alleged unauthorized enrollment by Verde of the potential refund of early termination fees, and steps required to secure a refund.
  
  
  
  


• Provide a refund of any early termination fees to
  each customer identified in the complaint who alleged unauthorized
  enrollment by Verde and can provide proof of payment of an early
  termination fee.
  
  
  
  


• Provide quarterly summaries for a two-year period
  to I&E relating to Verde’s ongoing sales and marketing activities in
  Pennsylvania – including the number and type of customer complaints and
  disputes received by Verde, as well providing written notice to I&E
  of any changes to its practices and procedures related to marketing in
  Pennsylvania.

The PUC balances the needs of consumers and utilities; ensures safe
and reliable utility service at reasonable rates; protects the public
interest; educates consumers to make independent and informed utility
choices; furthers economic development; and fosters new technologies and
competitive markets in an environmentally sound manner.

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