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PA PUC ALJ Approves Tentative $1 Million Settlement Agreement Against Planet Energy to Illustrate PUC’s “Fervent Disapproval” of Alleged Actions
A Pennsylvania Public Utility Commission (PUC) Administrative Law Judge (ALJ) issued an Initial Decision that approves (with such approval stated to be without modification) a settlement between Planet Energy (Pennsylvania) Corporation (‘Planet Energy’ or ‘Company’) and the PUC’s Bureau of Investigation and Enforcement (‘I&E’) under which a “token” $1 million penalty against Planet Energy is hoped by the PUC to, “illustrate the Commission’s fervent disapproval of Planet Energy’s actions.”
The initial decision represents final action by the PUC unless a party files exceptions to the initial decision. No party to the proceeding is actively opposing the settlement, and it is expected that the initial decision will serve as the PUC’s final decision in the matter.
The settlement resolves allegations that Planet Energy terminated fixed price contracts (via dropping customers to default service) for about 5,600 customers without various notices required under PUC rules.
As previously reported, Planet Energy entered into bankruptcy proceedings, and the settling parties acknowledge that payment of the penalty is unlikely. I&E under the settlement agrees not to pursue the collection of the $1 million fine.
As also previously reported, 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[.]”
The ALJ accepted with this reasoning in the initial decision. The ALJ said,”I agree that it is important to set a civil penalty in this proceeding, while recognizing that recovery of the civil penalty is unlikely,”
The settlement states that such prohibition is, “in perpetuity unless otherwise authorized by the PUC.”
The settlement also 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.
See also: Order (07/01/2024) and BIE Vs Planet Energy Formal Complaint (6/6/2023)
