State targets electricity supplier for investigation

January 20, 2010 11:00 pm • Last Updated: January 21, 2010 12:00 am

By By PATRICIA DADDONA Day Staff Writer

State regulators are investigating Clearview Electric, an alternative energy supplier, after the company failed to respond last year to a state regulator's questions about 15 complaints of "slamming."Also known as "buzzing," slamming occurs when a company switches customers' suppliers without their knowledge.

Also known as "buzzing," slamming occurs when a company switches customers' suppliers without their knowledge.There are more than 10 alternative suppliers providing cheaper electricity to 259,885 of the 1.75 million consumers in Connecticut, said Kevin M. DelGobbo, the DPUC chairman. To date, about 16 percent of CL&P's residential customers have switched to an alternative supplier, DelGobbo said.

There are more than 10 alternative suppliers providing cheaper electricity to 259,885 of the 1.75 million consumers in Connecticut, said Kevin M. DelGobbo, the DPUC chairman. To date, about 16 percent of CL&P's residential customers have switched to an alternative supplier, DelGobbo said.The majority of consumers for both United Illuminating and the Connecticut Light & Power Co. continue to get their electricity through those companies, which do not produce it but buy it in advance on the open market.

The majority of consumers for both United Illuminating and the Connecticut Light & Power Co. continue to get their electricity through those companies, which do not produce it but buy it in advance on the open market.Peter Jucha, vice president of Dallas-based Clearview Electric, said Wednesday the company is addressing the state Department of Public Utility Control's concerns. Clearview's territory spans Texas, Connecticut and New York.

Peter Jucha, vice president of Dallas-based Clearview Electric, said Wednesday the company is addressing the state Department of Public Utility Control's concerns. Clearview's territory spans Texas, Connecticut and New York."We employed some questionable telemarketers that we trusted more so than we should have, and we put a lot of processes in place now where that gets vetted out way beforehand," Jucha said.

"We employed some questionable telemarketers that we trusted more so than we should have, and we put a lot of processes in place now where that gets vetted out way beforehand," Jucha said.Most of the company's testimony filed on the DPUC Web site in the case is confidential and guarded under a protective order, but the documents available show action taken by the company to right the situation. Those actions include dismissing an employee, removing an Iowa-based backup facility and alerting customers who had been contacted by an "unauthorized" marketer by letter of the situation.

Most of the company's testimony filed on the DPUC Web site in the case is confidential and guarded under a protective order, but the documents available show action taken by the company to right the situation. Those actions include dismissing an employee, removing an Iowa-based backup facility and alerting customers who had been contacted by an "unauthorized" marketer by letter of the situation. DelGobbo said that the department received only 22 complaints about slamming last year, and that the probe of Clearview is the only action considered necessary so far.

DelGobbo said that the department received only 22 complaints about slamming last year, and that the probe of Clearview is the only action considered necessary so far.Direct Energy Services had six complaints levied against it, while MXenergy had one. Most of the complaints regarding Direct Energy of Houston, Texas, were discovered to be unfounded, while MXenergy of Stamford's single complaint was resolved in a settlement, DelGobbo said.

Direct Energy Services had six complaints levied against it, while MXenergy had one. Most of the complaints regarding Direct Energy of Houston, Texas, were discovered to be unfounded, while MXenergy of Stamford's single complaint was resolved in a settlement, DelGobbo said.Nonetheless, last summer, when the DPUC first got wind of this problem, DelGobbo called a meeting of alternative suppliers and told them evidence of slamming would result in suspension or revocation of the supplier's license to operate in Connecticut.

Nonetheless, last summer, when the DPUC first got wind of this problem, DelGobbo called a meeting of alternative suppliers and told them evidence of slamming would result in suspension or revocation of the supplier's license to operate in Connecticut. "We're doing everything to make sure all suppliers operate legitimately and fairly and we won't hesitate to take any action we need to if any of those suppliers does not act in the best interest of consumers in this state," DelGobbo said. "Behavior has improved since summer."

"We're doing everything to make sure all suppliers operate legitimately and fairly and we won't hesitate to take any action we need to if any of those suppliers does not act in the best interest of consumers in this state," DelGobbo said. "Behavior has improved since summer." Lisa Dornan, director of public relations for Direct Energy, said: "We take customer experience and compliance with market rules very seriously and we have a number of processes in place to make sure it's a high-quality experience with consumers, whether they sign with us or not."

Lisa Dornan, director of public relations for Direct Energy, said: "We take customer experience and compliance with market rules very seriously and we have a number of processes in place to make sure it's a high-quality experience with consumers, whether they sign with us or not." Jeffrey Mayer, president and chief executive officer of MXenergy, said his company vigorously fights this type of scam, which he's seen play out all over the country. MXenergy's market extends to 15 states and 40 different utility territories, he said.

Jeffrey Mayer, president and chief executive officer of MXenergy, said his company vigorously fights this type of scam, which he's seen play out all over the country. MXenergy's market extends to 15 states and 40 different utility territories, he said."We want regulators to clamp down on this conduct and punish marketers and agents for doing this," Mayer said. "Customers need to have their antennae up. They need to know who they're dealing with."

"We want regulators to clamp down on this conduct and punish marketers and agents for doing this," Mayer said. "Customers need to have their antennae up. They need to know who they're dealing with."Despite the findings regarding slamming, DelGobbo emphasized that the market for less expensive alternative electric suppliers is legitimate and valuable to the state.

Despite the findings regarding slamming, DelGobbo emphasized that the market for less expensive alternative electric suppliers is legitimate and valuable to the state."Like anything else, I encourage people to take a look at that (and) see what makes sense for them," he said.

"Like anything else, I encourage people to take a look at that (and) see what makes sense for them," he said.CL&P's standard offer for residential customers through the end of this year is just over 11 cents a kilowatt hour. Rates vary according to monthly variable, six-month and year-long contracts and range between a low of just under 10 cents a kilowatt hour to nearly 12 cents a kilowatt hour.

CL&P's standard offer for residential customers through the end of this year is just over 11 cents a kilowatt hour. Rates vary according to monthly variable, six-month and year-long contracts and range between a low of just under 10 cents a kilowatt hour to nearly 12 cents a kilowatt hour.The full range of "negotiable" or stated prices, plans and savings are available at two different locations on www.ctenergy.com: under "Compare CGS Suppliers" www.ctenergyinfo.com/display_rates.htm and "List of Suppliers and Aggregators" http://www.ctenergyinfo.com/all_suppliers.htm.

The full range of "negotiable" or stated prices, plans and savings are available at two different locations on www.ctenergy.com: under "Compare CGS Suppliers" www.ctenergyinfo.com/display_rates.htm and "List of Suppliers and Aggregators" http://www.ctenergyinfo.com/all_suppliers.htm.To file a complaint, visit the "Consumer Services" section of the DPUC Web site.

To file a complaint, visit the "Consumer Services" section of the DPUC Web site.p.daddona@theday.com

p.daddona@theday.com