News Stories

The settlement resolves allegations that Planet Energy terminated fixed price contracts (via dropping customers to default service) without sending required customer notices per the Pennsylvania PUC rules.

The settlement states that parties stipulate the following:

From January 1, 2022, to October 6, 2022, Planet Energy canceled approximately 5,690 fixed-rate contracts of customers in Pennsylvania.

Planet Energy did not provide 90 days’ prior written notice to the PUC, its customers, the applicable utilities, and the default service providers before ceasing service as a retail supplier.

“Planet Energy’s rapid exit from the Pennsylvania energy market was a result of perceived economic conditions and financial distress of its parent entity in Canada.”

I&E was prepared to allege that Planet Energy violated certain regulations, including 52 Pa. Code § 54.10. and 52 Pa. Code §54.5, due to the stipulated behavior cited above. Planet Energy denied such claims and would have defended against all claims had the matter not been settled.

The settlement requests that the PUC issue an order levying a $1 million civil penalty against Planet Energy.

The settlement notes that I&E understands that collection of any civil penalty will be unlikely due to the bankruptcy proceeding of Planet Energy’s parent company in Canada

I&E under the settlement agrees not to pursue the collection of the $1 million fine.

Notwithstanding the unlikelihood of collection, I&E asked for a “token” $1 million fine to be imposed as part of the settlement, “as a means to illustrate the Commission’s fervent disapproval of Planet Energy’s actions and to deter similar actions by other energy suppliers serving consumers in this Commonwealth[.]” [Emphasis added]

In addition to Planet Energy relinquishing its electric generation supplier (EGS) license, the settlement provides that Planet Energy agrees to refrain from conducting business in Pennsylvania, “as an EGS or otherwise”, in perpetuity unless otherwise authorized by the PUC.

The settlement states that Planet Energy does not admit and expressly denies any violation of law or other wrongdoing by itself, any affiliated entities, and all current or former officers, directors, employees, agents, attorneys, contractors, or other persons who ever acted on behalf of Planet Energy.

The settling parties agree that the settlement resolves all litigation between I&E and Planet Energy, and I&E does not oppose actions taken by Planet Energy intended to gain immediate release/return of its Letter of Credit from the PUC.

Excerpts of Alleged Violations: 

23. Had this matter been fully litigated, I&E would have proffered evidence and legal arguments that Planet Energy committed the following violations impacting all 5,690 of its customers in Pennsylvania: 

Planet Energy failed to comply with the terms of the disclosure statements and contract summaries that they provided to their customers. They failed to fulfill the duration (length) of contract that they promised in the disclosure and contract summary in violation of 52 Pa. Code § 54.10.

Upon making this change in duration, Planet Energy failed to provide advance notice of this change per the terms of their disclosure and our regulations in violation of 52 Pa. Code §54.5. c. Planet Energy failed to provide notice to the Commission or the affected distribution utilities and default service providers 90 days prior to abandonment in violation of 52 Pa. Code § 54.41. d. 

Planet Energy failed to provide notification of change in conditions or service, intent to cease operations as an EGS, and an explanation of denial of service in violation of 52 Pa. Code § 54.43.

Planet Energy denies these claims. Had this matter been fully litigated, Planet Energy would have defended each and every one of these claims.

1. Settlement Terms: 
2. Pursuant to the Commission’s policy of encouraging settlements that are reasonable and in the public interest, the Parties held a series of discussions that culminated in this Settlement. 
3. I&E and Planet Energy desire to (1) allow KSV to efficiently settle Planet Energy (Ontario)’s bankruptcy estate; and (2) settle this matter completely without further litigation. 
4. The Parties recognize that this is a disputed matter. Given the inherent unpredictability of the outcome of a contested proceeding, the Parties further recognize the benefits of amicably resolving the disputed issues. The terms and conditions of the Settlement Agreement, for which the Parties seek Commission approval, are set forth below. 
5. The Parties submit this Joint Petition for Approval of Settlement and respectfully request a Commission Order approving this Joint Petition for Approval of Settlement without modification.  
6. The Parties acknowledge and agree that because of the bankruptcy described herein, as well as the language of the LOC prohibiting its use to satisfy penalties, no civil penalty judgment can be satisfied by the LOC. 
7. Subject to the conditions of settlement outlined in Section V below, the Parties agree to the following terms for the sole purpose of resolving this complaint docket: 

1. The Parties agree to the entry of a civil penalty in order to amicably resolve this matter in the amount of One Million ($1,000,000) Dollars solely against Planet Energy, which takes into account the nature and extent of the violations, the harm caused, the benefit gained, the history of compliance, and the deterrent effect. 
2. The Parties agree to the admission into the record of all pleadings and testimonies submitted to date for the purpose of creating a record from which the presiding officer and Commission can review and use to support the assessment of said civil penalty and ultimate overall approval of this Settlement Agreement. 
3. While I&E desires that this Commission enter an Order assessing a civil penalty in the amount of $1,000,000 against Planet Energy, as a means to illustrate the Commission’s fervent disapproval of Planet Energy’s actions and to deter similar actions by other energy suppliers serving consumers in this Commonwealth, I&E accepts that recovery of any civil penalty imposed herein is unlikely due to the bankruptcy proceeding of Planet Energy’s parent company in Canada impacting Planet Energy as described, supra., and agrees not to pursue the collection thereof. 
4. Planet Energy does not admit and expressly denies any violation of law or other wrongdoing by itself, any affiliated entities, and all current or former officers, directors, employees, agents, attorneys, contractors, or other persons who ever acted on behalf of Planet Energy. 
5. Planet Energy agrees to surrender its license to operate as an EGS in the Commonwealth of Pennsylvania and to comply with all applicable rules and orders regarding the same. 
6. Planet Energy agrees to refrain from conducting business in the Commonwealth of Pennsylvania, as an EGS or otherwise, in perpetuity from the date of entry of the Commission’s Final Order, unless otherwise authorized by the Commission. 9 
7. I&E agrees to withdraw its protests/comments filed in Docket Nos. A2023-3040904 and M-2023-3037455. 
8. The Parties agree that this Settlement Agreement resolves all issues in this case, fulfills all factors and standards for evaluating litigated and settled proceedings involving violations of the Public Utility Code and Commission regulations, and constitutes a full and final settlement of all claims and disputes among the Parties arising from or related to this case. 
9. The Parties agree that this Settlement Agreement eliminates all litigation between I&E and Planet Energy and I&E does not oppose actions taken by Planet Energy intended to gain immediate release/return of its Letter of Credit from the Commission. 
10. The Parties agree to cooperate in good faith and use their best efforts to execute the terms of this Settlement Agreement in a timely and effective manner subject to the conditions of this Settlement Agreement.

Settlement And Briefing Order  (06/05/2024)
Joint Petition For Approval Of Settlement W/Planet Energy & BIE (06/05/2024)
C-2023-3041126
(BIE vs Planet Energy (Pennsylvania) Corp d/b/a RiteRate Energy d/b/a Value Plus Energy)