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The Pennsylvania Public Utilities Commission (PUC) reject one of the proposed terms of a settlement between its Investigation & Enforcement (E&I) Staff and Planet Energy namely stipulation’s terms providing that, due to the supplier’s insolvency, the PUC would not seek to collect a $1 million penalty agreed to under the settlement.

In taking up the unopposed settlement between Planet Energy (Pennsylvania) Corporation (‘Planet Energy’ or ‘Company’) and the PUC’s Bureau of Investigation and Enforcement (‘I&E’) which included, among other terms, a self-described “token” $1 million penalty to resolve 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 bankruptcy proceedings, and the settling parties acknowledged that payment of the penalty is unlikely.  As such, I&E under the settlement agreed not to pursue the collection of the $1 million fine due to the remote possibility of collection.  Nonetheless, the $1 million penalty was included as a term of the settlement in hopes that the fine would, “illustrate the Commission’s fervent disapproval of Planet Energy’s actions,” and to deter future bad actors.

However, PUC Chair Stephen DeFrank said that it is inappropriate for the PUC to agree to not even “attempt” collection of any civil penalty, as such inaction could embolden retail suppliers to engage in bad behavior.

DeFrank said that the alleged actions of Planet Energy, if proven, would constitute “gross violations” of PUC rules.

An agreement by the PUC to not pursue collection, “would signal to other potential bad actors that even egregious business practices could go unpunished simply because the pursuit of Commission imposed penalties may be difficult,” DeFrank said.

“Preserving the integrity of Pennsylvania’s retail electricity market is an essential function of this Commission and no entities licensed by this Commission should operate under the misapprehension that its penalties are meaningless,” DeFrank said.

The PUC, adopting a motion from DeFrank, modified the settlement to remove the provision stating that the PUC will not pursue collection of the $1 million fine.

The PUC will issue a tentative order reflecting such modification. Parties will be given an opportunity to comment on the modification, and settling parties have the right to withdraw from the settlement given such modification. Any withdrawal would return the matter to the PUC’s investigative division for further proceedings.

DeFrank said in the motion that, under the settlement, Planet Energy would withdraw its retail supplier license and, as stated by DeFrank, “never do business in Pennsylvania again.”

Chairman Defrank Motion  (11/07/2024)
Vc Barrow Conflict Statement (11/07/2024)
C-2023-3041126
Bureau of Investigation & Enforcement v. Planet Energy Corporation d/b/a Rite Rate Energy d/b/a Value Plus Energy.