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RESCOM Energy Application Denied Without Prejudice Due To Insufficient Financial Information Demonstrating Its Financial Fitness

Category: Uncategorized

The Pennsylvania PUC denied without prejudice the electric generation supplier (EGS) license application of RESCOM ENERGY LLC.

Excerpts from the Commission Order outlining prior RESCOM Energy Licenses matters with the PaPUC:
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RESCOM ENERGY previously had an EGS license approved by the Commission on April 4, 2011, at Docket No. A-2011-2220388, to begin to offer, render, furnish, or supply electricity or electric generation supplier services to all classes of customers within the Commonwealth of Pennsylvania. See April 2011 Order – Page 5 Ordering Paragraph No. 1. 4.

On September 17, 2012, the Bureau of Investigation & Enforcement (BI&E) instituted an investigation of RESCOM ENERGY regarding allegations of slamming1 and related unauthorized marketing practices received in 2012 from multiple sources, including consumer complaints filed with the Bureau of Consumer Services, reports from EDCs, other EGSs, and other direct consumer contacts with Commission Staff. On November 13, 2014, the Commission issued an Opinion and Order, at Docket No. M-2013-2320112, that approved a Settlement Agreement between BI&E and RESCOM ENERGY requiring, among other things, the payment of a civil penalty in the amount of $59,000 regarding the alleged multiple violations of regulations. 2 See November 2014 Opinion and Order – Page 2 ¶1 and Ordering Paragraphs 1-2. 

On December 19, 2019, the Commission issued an Order, at Docket No. M-2019-3006865, that cancelled RESCOM ENERGY’s EGS supplier license, due to RESCOM ENERGY’s failure to provide a bond or other approved security in the amount required by the Commission. 

On January 27, 2021, the Commission accepted a new EGS Application from RESCOM ENERGY, at Docket No. A-2021-3023855, seeking to become a licensed EGS Supplier in Pennsylvania. On August 5, 2021, the Commission denied the application due to RESCOM ENERGY failing to provide sufficient financial documentation to demonstrate adequate financial fitness to be licensed as an EGS Supplier in Pennsylvania. See January 2021 Order – Page 5 ¶2 and Ordering Paragraph 1. Now RESCOM ENERGY has filed a new EGS Application before the Commission, at Docket No. A-2023-3043724.

From the Commission Order:

Disposition Excerpts from Public Pa PUC Order:
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“{W}e find that RESCOM ENERGY has failed to provide sufficient financial information demonstrating its financial fitness. We find that RESCOM ENERGY has failed to adequately demonstrate its ability to fulfil its future annual obligations relating to gross receipt taxes, its Alternate Energy Portfolio Standards Act obligations, and to meet its regulatory assessment obligations. Further, RESCOM ENERGY has not provided substantially improved financial information than it provided in its application at A-2021-3023855, which was denied. As such, we find that RESCOM ENERGY failed to provide sufficient financial documentation to demonstrate adequate financial fitness to be licensed as an EGS Supplier in the Commonwealth of Pennsylvania.”

“The Commission’s regulations at 52 Pa. Code § 54.33(a)(6) and (7) states that financial information must be sufficient to demonstrate financial fitness and evidence of competency and experience in providing the scope and nature of the applicant’s proposed services. Given the applicant’s failure to demonstrate adequate financial fitness to become a licensed EGS Supplier in Pennsylvania, RESCOM ENERGY’s EGS Supplier Application to become a licensed electric generation supplier, as a supplier of retail electric power to residential, small commercial (25 kW and under demand), large commercial (over 25 kW demand), industrial, and governmental customers, in all of the EDC service territories throughout the Commonwealth of Pennsylvania is denied, without prejudice;” {***}

Public Order  (02/22/2024
A-2023-3043724  (10/24/2023)