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Maine PUC Approves Revised Settlement That Includes $315,000 Penalty Against Electricity Maine And Approximately $1M In Customer Refunds
Commission Says Order Should Deter EME, As Well As Other Competitive Energy Providers From Future Rules Violations
The Maine Public Utilities Commission (PUC) found that a $315,000 administrative penalty to be paid by Electricity Maine, LLC (EME) under a revised settlement will serve to deter both EME, as well as other retail electric suppliers, from future rules violations.
The Maine Public Utility Commission (PUC) approved the revised settlement without modification that includes, a $315,000 administrative penalty on Electricity Maine, LLC (EME) as well as approximately $1 million in customer refunds.
The PUC said that the administrative penalty is appropriate given, “the severity and history of EME’s violations.”
“The public interest demands that any CEP [retail supplier] that violates statutes and rules must be held accountable.”
“The imposition of an administrative penalty should deter EME, as well as other CEPs, from violating Maine law and Commission rules in the future.”
As background, excerpts from the Order:
{***} “On February 10, 2023, the Commission opened this formal enforcement investigation into EME after receiving numerous customer complaints regarding EME business practices via the Commission’s Consumer Assistance and Safety Division (CASD). Public Utilities Commission, Commission Initiated Investigation Pertaining to Electricity Maine, LLC, Docket No. 2023-00024, Notice of Investigation (Feb. 10, 2023) (Notice of Investigation). Namely, customers complained “about sudden and significant bill increases with respect to their supply of electricity.” Notice of Investigation at 1. Many of these calls related to EME’s terms of service and the expiration of fixed term rate contracts resulting in customer contracts defaulting to month-to-month, variable rate contracts. Id. Customers also complained that they did not recall receiving any notice from EME regarding the expiration of their contract.”
“On May 14, 2024, Advisory Staff issued a written recommendation. The Advisory Staff Recommendation recommended that the Commission approve the Stipulation. Advisory Staff concluded that the Stipulation met the Commission’s standards for approval of stipulations: broad spectrum of interests, fair process, reasonableness and statutory compliance, and public interest. Electricity Maine, Advocacy Staff, and the OPA all filed comments or exceptions to the Advisory Staff Recommendation. Through an order issued on June 10, 2024, the Commission rejected the Stipulation.”
“Following the rejection of the Stipulation, the Hearing Examiners issued a procedural schedule on June 13, 2024, instructing EME to file direct testimony, with data requests and a technical conference to follow. Pursuant to the procedural schedule, EME filed testimony on June 28, 2024, and parties issued data requests to EME on July 19, 2024. On July 26, 2024, EME filed objections to a number of data requests filed by the OPA. On July 31, 2024, the OPA filed a letter to the docket requesting a conference of counsel to resolve the discovery dispute. On August 1, 2024, the Hearing Examiners issued a procedural order requesting the OPA and EME to meet and confer about the possibility of refining the OPA’s requests and requested the OPA to file any motion to compel as soon as possible. EME filed responses to data requests on August 2, 2024. Parties convened for a technical conference on August 8, 2024. EME responded to oral data requests on August 16, 2024.”
Following the technical conference, parties met for a conference of counsel on September 4, 2024. At the conference of counsel parties advised the Hearing Examiners they were working towards an Amended Stipulation resolving issues in the matter with Advocacy Staff, the OPA, and EME all signing on. Following negotiations between the parties, the Amended Stipulation was filed on September 23, 2024.”{***}
Excerpts from the Order:
{***} “By this Order, the Commission accepts the September 23, 2024, Amended Stipulation put forth by Advocacy Staff, the Office of the Public Advocate (OPA), and Electricity Maine, LLC (EME or Electricity Maine and, collectively with Advocacy Staff and the OPA, the Stipulating Parties).”
{***} IV. DESCRIPTION OF THE STIPULATION
In addition to the provisions of the first Stipulation, the Amended Stipulation contains additional or amended provisions. The following description describes the significant elements of the changes but does not seek to describe the entirety of the agreement.
Refunds – EME agrees to send each “eligible current and former non-indexed variable rate customer two separate refunds for the customer’s first, second and third month on the variable rate supply service.” Amended Stipulation at 12. The Amended Stipulation outlined the steps EME will take to issue two separate refunds to eligible customers, Order 6 Docket No. 2023-00024 one 30 days following the final order and any applicable reconsideration or appeal time; and the second 170 to 190 days following the first refund. Id. at 13. EME will send notice and instructions with the first refund, with the language in the notice agreed to by EME, the OPA and Advocacy Staff. Id. at 14. Refunds will take the form of a check or pre-paid debit card, at EME’s discretion. Id. at 13. EME will consider any refund not claimed within the 75-day refund window to have been relinquished by the customer and the refund amount would have reverted to EME. Id. at 14.
Provision of Supply Service – EME will provide customers with two opportunities to transition their supply service followed by annual notices to non-indexed rate customers starting in January 2026. Amended Stipulation at 15. EME will provide customers with two separate notices which outline the process and options available should they want to transition to a different supply contract. Id. The notices will also include a comparison of EME nonindexed variable rate to the current standard offer rate and the fixed rate product offered by EME. Id. The first and second round notices will also contain a letter on OPA letterhead which contains the substance as described in Attachment B to the Amended Stipulation. Id. at 16. Customers who did not respond to the notices within 30 days from the date on the notices will remain on EME’s non-indexed variable rate, subject to a cap of 14.99 cents/kWh through December 31, 2024, and then standard offer rate plus 6 cents/kWh from January 1, 2025 through June 30, 2026. Id. at 18.
Customer Renewals – EME will renew customers currently on a fixed rate supply contract with a new fixed rate supply contract at their first renewal following the Commission’s order approving the Amended Stipulation and any applicable reconsideration or appeal period. Amended Stipulation at 18. The renewal to a fixed rate supply contract will remain subject to the 20 percent cap in 35-A M.R.S. § 3203(4-B)(C). Id.
Customer Service – EME will adopt new customer service escalation procedures which will include automatic escalation for Maine customers claiming financial hardship or inability to pay their bill. Amended Stipulation at 19. EME will also adopt additional customer service training for its representatives servicing Maine customers. Id.
Future Renewals – EME will provide dates on all future renewal notices and will send the notices to customers on the dates represented on the renewal notices. Amended Stipulation at 19. Renewal notices will show the highest and lowest non-indexed variable rates charged to customers during the prior 12-month period. Id.
Administrative Penalty – EME will pay an administrative penalty of $315,000 pursuant to 35-A M.R.S. § 1508-A within 30 days of the Commission’s Order approving the Amended Stipulation becoming final and no longer subject to any request for reconsideration or appeal.” {***}
“V. DISCUSSION AND DECISION
For the reasons set forth below, the Commission finds and concludes that the Amended Stipulation meets all four prongs of the Commission’s test for approval of stipulations: that the signatories to the Amended Stipulation represent a broad spectrum of interests, that the process that led to the Amended Stipulation was fair to all parties, that the Amended Stipulation is reasonable and is not contrary to legislative mandate, and that the Amended Stipulation is in the public interest.”
Order (10/18/2024)
Amended Stipulation (09/23/2024)
2023-00024 (Opened 02/07/2023)
Commission Initiated Investigation Pertaining To Electricity Maine, LLC.
