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Combating Misinformation and Deceptive Tactics
New utility operations that wanted to enter a highly competitive market like D.C. did a lot of overpromising. This gave consumers a new challenge to contend with: deceptive marketing practices.
TPSs targeted low-income neighborhoods, promising lower utility prices. But many residents felt duped; it was one thing to expect to receive a high energy bill but quite another to receive such a bill when
the TPSs had promised lower bills. The first series of consumer complaints OPC received was about a company called “Power Trust” in 2001. OPC investigated the complaints and confronted the company. Shortly thereafter, the company filed for bankruptcy and stopped doing business in the District.
Starion Energy: Third-Party Supplier Compliance and Settlement
By the time 2013 rolled around, the Consumer Services Division at OPC had received a flood of complaints against TPSs engaging in unauthorized account switching, aggressive marketing, misrepresentation, and deception. OPC was quick to petition the PSC to conduct a comprehensive investigation into all TPS companies operating within the District, which paved the way for increased oversight of TPSs, including their compliance with PSC regulations.
Among the TPSs that the PSC investigated was Starion Energy, one of the most aggressive TPSs at the time — one that had been the subject of more than 250 complaints about deceptive marketing practices and increasingly higher bills. OPC petitioned the PSC to convene a hearing to investigate Starion’s actions.
The Office’s persistent efforts resulted in a settlement agreement between Starion Energy and OPC, part of which was a $100,000 contribution from Starion Energy to the Greater Washington Urban League’s energy assistance program, which provides critical support to D.C.28 residents who are having a tough time paying their energy bills.
One of the primary objectives of the settlement fund was to compensate consumers who had filed complaints about Starion’s practices. The fund began serving consumers immediately after the settlement and successfully assisted 208 District consumers with their energy bills, which depleted the fund in two short months.
While the utility landscape in D.C. evolved and shifted through the years, one theme persisted through every administration: protecting consumers’ rights to affordable utility rates. One of the consumers’ most pressing concerns during this deregulation period was the prospect of rate increases. These increases, which were often driven by market competition factors — such as the need for new infrastructure
to enhance reliability — and the effects of merger and acquisition activity, challenged the financial stability of many residents, particularly seniors, people with disabilities, and families who were already weathering economic downturn. In response to consumer concerns, OPC took decisive action to shield them from the consequences of skyrocketing rate increases.
OPC’s Journey to Protect Utility Consumers 29