July 8, 2022

Retail Energy Companies Resolve Regulatory Actions in Massachusetts, Pennsylvania

Lori Kalani, Bernard Nash

Cozen O'Connor

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Cozen O'Connor

Massachusetts AG Maura Healey has reached a settlement with retail electricity supplier Utility Expense Reduction, LLC to resolve allegations that UER knowingly failed to make payments under the state’s renewable and clean energy programs, in violation of the state False Claims Act, Consumer Protection Act, and environmental statutes.
Massachusetts law requires retail electricity companies to either generate a certain percentage of their electricity from renewable, alternative, and clean energy sources, or make an annual payment to a state fund to support and promote clean energy and combat climate change. According to the Complaint, UER failed to pay over $825,000 owed when it left the Massachusetts energy market in 2019. Under the terms of the Consent Judgment, UER has paid over $1.65 million in restitution and penalties, and will not operate in Massachusetts for five years.
Separately, Pennsylvania AG Josh Shapiro has reached a settlement with retail energy suppliers PalmCo Energy PA, LLC and PalmCo Power PA, LLC (collectively, “Indra Energy”) to resolve allegation that it violated state and federal telemarking violations through repeated calls, leaving pre-recorded messages, and calling numbers registered on the Do-Not-Call list, and also that it violated the Unfair Trade Practices and Consumer Protection Law by allegedly making misleading offers regarding energy savings and rebates, among other things.
Under the terms of the settlement, Indra Energy will pay $185,900, including $100 payments to each of the 9 consumers who filed a telemarketing complaint, and is prohibited from making unwanted telemarketing calls.

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