Office of the Ohio Consumers' Counsel

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Contact: Marty Berkowitz
(614) 387-2962

Retailer will pay forfeiture, allow customers to cancel agreement without penalty

OCC pleased with PUCO decision resolving DEOE complaint

COLUMBUS, Ohio – October 14, 2009 – A retail natural gas marketer will pay a $50,000 forfeiture as part of an order issued today by the Public Utilities Commission of Ohio (PUCO).

The decision followed an agreement announced earlier among the Office of the Ohio Consumers' Counsel (OCC), staff of the PUCO and Dominion East Ohio Energy (DEOE) resolving a complaint filed by the state utility consumer advocate.

The OCC alleged DEOE, a retail affiliate of the Dominion East Ohio Gas Co., had incorrectly informed Standard Choice Offer customers that their natural gas supply might be interrupted if they did not choose an independent supplier.

In addition to the $50,000 forfeiture, which will go into Ohio’s general revenue fund, DEOE agreed to a $100,000 forfeiture that will be collected if the company violates any PUCO rule governing marketing practices within one year.

“The OCC worked hard to achieve this positive outcome for Ohio consumers and appreciates the cooperation of the PUCO staff in working with us to take action to protect Ohio’s consumers from confusing marketing literature,” said Consumers’ Counsel Janine Migden-Ostrander. “Our office looks forward to working with DEOE and other marketers to ensure natural gas customers have a full and complete understanding of the options available to them.”

DEOE agreed to the terms of the agreement to settle the issue, but disputed whether the postcard was misleading and admitted no wrongdoing.

In addition to the forfeiture, DEOE also agreed to:

  • Submit future marketing materials to the OCC and PUCO staff for review;

  • Distribute a letter to customers who had agreed to a fixed-rate contract as a result of the postcard, giving them the option of voiding the contract without penalty;

  • Issue a separate letter to customers with variable-rate contracts reminding them they can switch suppliers at any time; and

  • Adhere to standards governing the use of the utility logo in future marketing materials.

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.
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