Houston-based Verde Energy has agreed to pay $1.5 million and withdraw from the Connecticut market for seven years after violating Connecticut’s marketing requirements for energy suppliers.
It’s the second energy supplier to face sanctions after being hit recently with a Notice of Violation by the Public Utilities Authority. In September, PURA fined Sunwave Gas & Power CT $1 million and revoked its license for failing to maintain membership in ISO-NE.
PURA began an investigation of Verde’s compliance with marketing requirements in February 2020, according to the agreement.
The investigation found that Verde conducted illegal telemarketing from at least 2019 through 2021, including not explaining the purpose of the call was a solicitation; using undefined and misleading terms, such as “price protection;” implying that a customer must choose a supplier; misrepresenting the standard service rate; implying the call was from a utility; failing to provide supply summary transactions, which caused the customer to revert to standard service, then calling the customer to re-enroll them at a higher rate; and claiming 100% “green” or “renewable,” but not purchasing Renewable Energy Certificates to cover the usage.
In August 2022, PURA issued a violation proposing that Verde pay a $2 million fine along with a 10-year suspension. The parties agreed to settle the case for a lighter punishment.
Verde did not admit wrongdoing as part of the agreement, but agreed there was evidence to support that the settlement was “reasonable and in the public interest.”
The agreement requires Verde to pay $1.2 million to Eversource Energy and $300,000 to United Illuminating, which the companies will apply to the accounts of residential customers who meet certain criteria for financial hardship.
Also, as of Oct. 12, Verde agreed to exit the Connecticut market for seven years. Customers will receive a notice from Verde stating that they are being transferred to standard service as of their next meter read date.
Further, Verde was ordered to send funds to Eversource and UI to reimburse customers enrolled via telemarketing after May, 2019 for the difference between what they paid Verde and the applicable standard service rates for the length of the enrollment with Verde.
Verde will also reimburse customers through a bill credit on a rate less than the current standard service rate, for a total of $100 per customer.
Verde had about 10,000 customers in Connecticut, according to PURA.
