
Contact: Marty Berkowitz
(614) 387-2962
COLUMBUS, Ohio – September 24, 2009 – Dominion East Ohio Energy (DEOE) has agreed to a $50,000 forfeiture as part of agreement with the Office of the Ohio Consumers' Counsel (OCC) and the staff of the Public Utilities Commission of Ohio (PUCO).
If approved by the PUCO the settlement will resolve a complaint filed by the OCC in March. The supplier, an affiliate of Dominion East Ohio Gas, participates in the gas company’s choice program and is sometimes confused with the utility itself. In its complaint, the state’s residential consumer advocate said the supplier distributed a false and misleading postcard to Standard Choice Offer customers of the gas company.
The postcard told customers that the gas company would no longer provide their natural gas supply and their inaction would cause an independent supplier to be selected for them. The OCC received calls from customers who were confused by the wording of the postcard and concerned their supply of natural gas might be interrupted unless they took action.
DEOE agreed to the terms of the agreement in order to settle the issue, but disputes whether the postcard was misleading and admits no wrongdoing.
In addition to the $50,000 forfeiture, which will go into Ohio’s general revenue fund, DEOE agreed to a $100,000 forfeiture that would be collected if the company violates any PUCO rule governing marketing practices within one year.
“The OCC is committed to protecting the interests of Ohio’s 4.5 million residential utility customers,” said Consumers’ Counsel Janine Migden-Ostrander. “With this agreement, our office looks forward to working with the PUCO staff as well as DEOE and other marketers to ensure that natural gas customers have a full and complete understanding of the options available to them.”
In addition to the forfeiture, the parties also agreed that:
Future marketing materials will be subject to PUCO staff approval, with non-binding input from the OCC;
A letter will be mailed to customers who had agreed to a fixed-rate contract with DEOE as a result of the postcard, giving them the option of voiding the contract without penalty;
A letter will be mailed to DEOE customers with a variable-rate contract reminding them that they can switch suppliers at any time; and
In future mailings, DEOE will use at least a 10 point type-size, and prominently place the affiliate disclaimer to distinguish itself from its affiliate.
End of Page