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OCC files complaint over Dominion East Ohio Energy marketing practices

Consumer watchdog alleges that retail supplier’s postcard to Dominion customers is misleading and deceptive

COLUMBUS, Ohio – March 24, 2009 – The Office of the Ohio Consumers' Counsel (OCC), the advocate for the state's 4.5 million residential utility consumer households, today filed a complaint with the Public Utilities Commission of Ohio (PUCO), asking for punitive action against a natural gas marketer it believes has targeted thousands of Dominion East Ohio Gas customers with an unfair, deceptive, and misleading marketing postcard.

The OCC acted after receiving nearly two hundred complaints from consumers who received a postcard from Dominion East Ohio Energy, an affiliate retail supplier which participates in the Dominion East Ohio Gas Choice Program and is often confused with the utility itself.

The postcard warns customers that Dominion East Ohio Gas will no longer be providing their natural gas supply and that their inaction will cause an independent supplier to be selected for them. The postcard concludes with an encouragement for customers to call a toll free telephone number for information. Customers have reported, and the OCC has confirmed, that calling the telephone number results in a repeated busy signal.

“Our office continues to stress to Dominion East Ohio Gas customers that there will be no interruption to their natural gas service," said Consumers’ Counsel Janine L. Migden-Ostrander. "If consumers do nothing, the only change consumers will see is the name of a supplier on their bill. It is important for customers to understand that no matter which supplier’s name appears on their bill, the price paid by all customers on the Standard Choice Offer (SCO) will be the same.”

“It is distressing that the postcard issued by Dominion East Ohio Energy has caused such a high level of anxiety to customers,” Migden-Ostrander continued. “We urge the PUCO, as well as the utility itself, to take appropriate action to ensure that ratepayers do not act based on misleading information from overeager marketers.”

The consumer advocate is asking the PUCO to take the following actions:

Order Dominion East Ohio Energy to cease and desist sending any future materials or solicitations related to or similar to the information contained on the postcard;
Direct Dominion East Ohio Energy to identify all recipients of the postcard and offer them a chance to void any contract that may have been signed, with any cancellation fees waived;
Require review of future communications from Dominion East Ohio Energy by the OCC as well as the PUCO staff;
Prohibit Dominion East Ohio Energy from using the Dominion name or logo as part of its corporate name in Ohio, or on any marketing materials or contracts that it may distribute.
Assess a fine of no more than $10,000 per day (with each day a different offense) against Dominion East Ohio Energy, applicable from the day the postcard was first distributed until it can document that the mailings have been stopped; and
Condition Dominion East Ohio Energy’s certificate on not committing similar violations in the future.

In addition to filing a formal complaint with the PUCO, the OCC initiated a Code of Conduct Complaint with Dominion East Ohio Gas Company, alleging the postcard marked a second violation by the supplier of a rule that also prohibits "false, misleading and deceptive advertising." In addition to the language used in the postcard, the OCC also alleged Dominion East Ohio Energy failed to properly place its affiliate disclaimer in a manner that would enable customers to distinguish it from the gas company.

The disclaimer appeared in smaller font, on a separate page from the message marked "Important Information," an oversight that might reasonably lead customers to believe that the message was coming not from the affiliate supplier but from the utility itself. The OCC asked the PUCO and the gas company to prohibit Dominion East Ohio Energy from using the Dominion name in any of its promotional material or other documents that are publicly distributed. In addition, the OCC asked that any customer signing with the marketer as a result of the postcard be given the opportunity to void the contract at no cost.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC Web site at www.pickocc.org.