Press Release

PUC Fines Great American Power LLC $10,000 for Violations Regarding Marketing Practices

Published on 9/26/2013

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today fined Great American Power $10,000 following a consumer complaint concerning aggressive telemarketing practices by electric generation suppliers (EGS).

The Commission voted 5-0 to approve a joint motion by Commission Chairman Robert F. Powelson and Commissioner Pamela A. Witmer that fined the company $10,000, referred the company to the PUC’s Bureau of Investigation & Enforcement and required other remedial actions by the company.  The fine is paid to the state general fund. 

“The company’s conduct is not only troubling but also potentially detrimental to the ongoing enhancements and the ultimate success of Pennsylvania’s retail electric market,” said Commissioner Witmer. “I remain a strong proponent of the competitive market to provide consumers with a variety of electric supply products and services. Consumers do bear some responsibility to make choices that are appropriate for their individual circumstances.  However, for the market to work, a clear message must be sent to EGSs that egregious behavior will not be tolerated.”

The Commission also said the company’s ability to operate as an EGS in Pennsylvania is contingent upon it meeting certain requirements for the next 18 months. Those requirements include:

• Providing documentation of proper enrollment of customers such as written enrollment forms, disclosure statements, audio recordings, third party verification, marketing and sales materials and any other relevant documentation;
• Reporting complaints by category; the resolution for each complaint and any process improvements/changes, organizational changes, etc. implemented to reduce and/or eliminate similar complaints going forward;
• Providing a single point of contact for Commission staff for resolution of consumer inquiries and/or complaints;
• Answering all PUC inquiries into complaints within 10 days; and
• Filing a status report describing its compliance with the Public Utility Code, Commission Orders and Regulations and the other conditions.

On May 29, 2012, William Towne of Pittsburgh filed a formal complaint with the Commission against Great American Power for aggressive marketing. The Commission determined that the company deliberately misrepresented its relationship with electric distribution companies and engaged in abusive telemarketing, among other allegations.

The Commission continues to emphasize the importance of fair and honest sales and marketing practices in safeguarding consumers and preserving the integrity and honesty of the electric generation market. 

The Pennsylvania Public Utility Commission 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. 

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket Number C-2012-2307991

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