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Office Of People’s Counsel Files Response To SmartEnergy’s Motion To Modify Remedy Portion Of Order
From Response:
[ *** ] The company is attempting to turn this proceeding into an accounting examination of how much refunds it could pay while still being a “viable business entity.” The company’s motion seeks to reduce the refund remedy ordered by the Commission—not a civil penalty. As the Commission is aware, the decision on the amount of any civil penalty has been deferred. A full forensic accounting examination of the company’s financial situation since the Commission’s refund order—including an examination of all revenues and costs, an examination of whether any of the company’s expenses are actually payments to affiliated persons or companies, an examination of all of the company’s distributions to employees and shareholders and review of whether they were commercially reasonable, and a review of the company’s tax practices—should be beyond the scope of this proceeding. The Commission should not reduce the remedy it ordered years ago based on the assertions of how much cash the company claims to be available at a point in time to pay the remedy. Such a reduction would be unconscionable, given that the Commission-ordered remedy would be based on assertions by a company the Commission found had a marketing scheme in Maryland based on deception and that has repeatedly attempted to mislead the Commission about this case since that finding.
A limited review of the financial documents produced by the company casts significant doubt on the company’s claims that it is entitled to a reduction in the Commission-ordered remedy based on its inability to pay. [ *** ]
For the reasons stated in Staff’s opposition to SmartEnergy’s motion and those stated above, the Commission should deny the company’s motion. OPC renews its request for the Commission to immediately call the appeal bond and place the proceeds of the bond in escrow pending further proceedings on the payment of refunds to customers. The Commission should set a date certain for the company to pay the refunds ordered in 2021 and file and audited report on those payments.
OPC Response (ML# 311615) (08/12/2024)
9613 (05/10/2019)
(In The Matter Of The Complaint Of The Staff Of The Public Service Commission Against SmartEnergy Holdings,LLC D/B/A SmartEnergy)
