Business & Tech

CT Regulators, Electric Supplier, Agree To Stiff Sanctions

A third-party electric supplier in Connecticut has agreed to a settlement amid serious marketing violation accusations.

A third-party electricity supplier has agreed to sanctions.
A third-party electricity supplier has agreed to sanctions. (Chris Dehnel/Patch )

CONNECTICUT — A deal reached between Connecticut utility regulators and a third-party electric supplier over marketing violation accusations sets a half-million-dollar fine, establishes 'hardship' compensation and imposes a license suspension.

The Connecticut Public Utilities Regulatory Authority Wednesday approved a settlement agreement negotiated by state officials that requires Clearview Electric Inc. to pay $500,000, voluntarily withdraw from the Connecticut electric supplier market for six years and reimburse certain customers "in resolution of claims that the Company violated electric supplier marketing laws."

PURA commissioners issued a motion ruling from the authority’s Office of Education, Outreach, and Enforcement, which requested approval of a settlement agreement (Docket No. 07-08-17) that PURA, the state Consumer Counsel, the Connecticut Attorney General, and Clearview negotiated.

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Under the settlement, Clearview has agree to:

  • Pay $500,000 toward non-medical hardship customer arrearages, to the benefit of all customers of Eversource Energy and The United Illuminating Company
  • Voluntarily withdraw from the Connecticut electric supplier market for six years
  • Provide advance notice to PURA if and when it seeks to re-enter the Connecticut market
  • Increased regulatory oversight if and when it begins marketing to Connecticut customers again
  • Reimburse customers enrolled through certain third-party verifications the difference between what they paid Clearview and the applicable standard service rate for the length of the enrollment with the Company.

Approval of the settlement agreement comes two months after PURA issued a Notice of Violation and Assessment of Civil Penalty against Clearview in which it stated it had reason to believe the Company violated Connecticut's electricsupplier marketing laws.

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To resolve the notice, the parties in September and October 2021 negotiated a "comprehensive settlement of the issues."

The parties reached an agreement in principle on the settlement terms on Oct. 18, and submitted the settlement agreement to PURA for approval on Nov. 8, 2021.

PURA'a Office of Education, Outreach, and Enforcement has led enforcement actions that resulted in more than $1.73 million in electric supplier settlement payments and more than $52,000 in restitution credits to customers since it commenced operations in July 2020.

"In just one short year since its inception, the Authority's Office of Education, Outreach, and Enforcement has successfully executed on its multi-part mission, yielding tangible relief for Connecticut customers harmed by deceptive marketing practices," PURA Chairwoman Marissa P. Gillett said. "As EOE’s momentum continues to build, ratepayers can be assured that Authority orders will be enforced on a consistent basis moving forward. Equal resources will be devoted to education and outreach efforts as well, to ensure that the programs and decisions codified by the Authority are meaningfully implemented."

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