Several retail suppliers who were directed by the Maryland PSC to show cause why their electric supplier licenses should not be revoked have submitted their responses to the Maryland PSC.
As first reported by EnergyChoiceMatters.com, the Maryland PSC had issued show cause orders to American Power Partners, LLC; Blue Pilot Energy, LLC; Major Energy Electric Services, LLC and Major Energy Services, LLC; Xoom Energy Maryland, LLC; and U.S. Gas & Electric and Energy Services Providers, Inc. d/b/a Maryland Gas & Electric concerning marketing and complaints, and with respect to USG&E, allegations that USG&E was marketing in service areas in which it was not licensed.
The PSC reported that an investigation had revealed, "an uncharacteristically high volume of complaints filed during the first quarter of 2014." However, other than the escalated number of complaints, the PSC did not levy any specific allegations against the suppliers in its show cause orders, except with respect to USG&E's licenses.
Many of the suppliers noted this in their responses, arguing that the lack of specific charges raised constitutional due process concerns.
It also made for rater prosaic reading of the suppliers' responses, as the absence of specific allegations meant that the suppliers could not rebut anything specific, and were left to provide generalities regarding their compliance, disclosure and marketing procedures, and the winter wholesale pricing environment. Nothing in particular stood out to us in the supplier responses, all of which said that their responses demonstrated compliance with applicable rules and showed cause why they should retain their licenses and not be subject to any other penalties.
Online copies of the responses from Major Energy and Blue Pilot Energy were not available.
With respect to USG&E, which admitted that it did not check the appropriate box on its license applications to serve customers at WGL and SMECO, USG&E said that it immediately ceased all marketing activities in those territories upon learning of the issue. Additionally, it pointed to PSC precedent that unlicensed suppliers (typically brokers) have been fined the greater of $100 of their unpaid Commission assessments, but have not been denied (or stripped) of their licenses.
Though not cited by USG&E, the recent Starion case appears to have the most precedential value for a supplier operating in a specific territory without being licensed for that territory. Unfortunately, that case also involved other violations which the PSC ruled Starion had committed, so a penalty attributable solely to Starion's service in an area in which was not licensed is not available for reference. Notably, however, Starion did retain its license.