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Staff Files Its Recommendation Regarding a Supplier’s Rerate Obligations
Recommends Supplier to Use Ohio’s Escheatment Process for all Outstanding Rerates
Staff at the Public Utilities Commission of Ohio (PUCO) filed its Staff Review and Recommendation regarding SmartEnergy’s August 29, 2025 filed notice informing the Commission of its compliance with the final order in this case as well as a motion to change the status of this case to “closed.”
Based on information provided to Staff by SmartEnergy and its filing in this case on August 29, 2025, the Company has taken the following actions:
- Paid the forfeiture of $122,000 on November 13, 2023.
- Agreed to offer only fixed rate contracts through, at least, October 1, 2025.
- Mailed notices to active and inactive customers who enrolled in 2022 and received service for at least 6 months informing them that they were eligible for the rebate according to the terms and conditions of their contract. o Committed to continuing to pay rebates as customers contact SmartEnergy.
- Rerated many of the customers who were billed $0.299/kWh to the utility’s default service rate for that period: o Active customers received bill credits. o Inactive customers were mailed letters in batches (January 2024, July 2024, and November 2024) informing them of their eligibility for a rerate and requesting address verification. o From December 2024 to February 2025, SmartEnergy issued rerate checks to customers whose address information was verified with the utility by Staff. o SmartEnergy has committed to continuing to mail rerate checks as they are contacted by eligible former customers.
- Revised its marketing materials.
- Ceased direct mail advertising during as required by the Stipulation.
- Modified renewal notices and added a second renewal notice.
Based on Staff’s review it indicates that “the Company has processed approximately $200,000 in rebates or incentives for customers who responded to address-verification letters. SmartEnergy has also completed nearly 10,000 rerates totaling approximately $1,700,000 to current and former customers. However, Staff estimates that more than 2,300 rerates, with an estimated value of over $355,000, remain undispersed as of June 2025.
While SmartEnergy has made progress, the remaining undistributed rerates represent a substantial portion of the Company’s compliance obligation. To ensure that all affected customers receive the funds owed to them, Staff recommends that SmartEnergy be directed to follow Ohio’s escheatment process for all outstanding rerates. In general, an escheatment process is a process to assist in its efforts to enforce unclaimed property requirements due to widespread noncompliance.”
As reported previously, on September 6, 2022, Staff sent a Notice of Probable Noncompliance (“PNC”) to SmartEnergy Holdings, LLC (“SmartEnergy”), and a revised PNC on January 12, 2023, both regarding the marketing and enrollment of customers.
On May 30, 2023, a Joint Stipulation and Recommendation was filed in Case No. 23-0601-ELUNC to resolve the issues identified in the revised PNC notice.
The Commission, on August 23, 2023, issued an order modifying and approving the stipulation.
