Faced with growing complaints against the dozens of independent firms that are selling electricity in Connecticut, state utility regulators this week said they would not license new aggregators until a full review is conducted of the conduct of those already operating.
The freeze comes as attention is focused on Positive Energy Electric Supply of Middlebury, whose CEO escaped criminal prosecution for bank fraud because the statute of limitations expired.
CEO Joseph Ventura was fined $100,000 by the state Banking Department which later unsuccessfully sought criminal prosecution against Ventura, who lied on his mortgage application while working as a loan originator.
However, when Positive Energy applied for a license last year, it listed an investment lawyer as its CEO and did not have Ventura’s name anywhere in its application.
CtWatchdog learned that before the DPUC approved the application, Ventura secretly became the CEO without informing the regulators.
State Attorney General Richard Blumenthal this week asked for an investigation of Positive Energy for this allegation as well as other issues. His PR staff said the AG’s office had been aware for weeks about Ventura’s failure to notify the DPUC but its unclear whether the DPUC was informed earlier about these issues by the AG’s office.
DPUC spokesman Phil Dukes said he only learned of the Ventura allegations when he read my column.
I have filed an FOI request with the AG’s office requesting all its documents regarding Ventura.
Some Positive Energy salesmen and marketers from other aggregators are also accused of misrepresenting themselves as representatives of the two major electric companies in Connecticut: UI and CL&P. There is also indications that salesmen are targeting elderly residents in federally subsidized housing.
Meanwhile, David Krechevsky of the Waterbury Republican-American said in an article this week that that Dukes told him that the DPUC investigation involves a close look at “aggregator conduct.”
“Under the state’s restructuring of the electric industry, alternate suppliers of electricity and aggregators — who create pools of business or residential customers to be served by suppliers — must first be approved by state regulators. But the state law covering the application process was changed in 2003, creating very different standards for suppliers and aggregators,” he wrote.
“While the law requires suppliers to go through a strict application process to receive a license, that process does not apply to aggregators, who are required only to receive “a certificate of registration” from the DPUC.”
“Under the law, aggregators must only provide the address of its headquarters and its principle office, its toll-free in-state phone number, and information about its corporate structure, Dukes said.
“There is concern that some of the parties are not actually aggregators as the statute defines them to be,” he said. “The statute defines aggregators as a person or entity that gathers business or people and then goes out into the market and negotiates the best deal with a supplier. We have reason to believe that some, if not many, are actually affiliated with a supplier and then going out and finding customers for that supplier.”
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- Ct Regulators Gave Positive Energy Electric A License Without Knowing Damaging Details Of Real Owner
- Positive Energy CEO Has No Assets To Pay $100,000 Bank Fraud Fine
- Positive Energy CEO Sued By State To Collect $100,000 Bank Fraud Fine
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- Positive Energy Asks State Regulators To Turn Down Request For Its Investigation
[...] Ct Regulators Freeze New Applications For Electric SuppliersConnecticut Watchdog (blog)There is also indications that salesmen are targeting elderly residents in federally subsidized housing. Meanwhile, David Krechevsky of the Waterbury …and more » [...]
two yrs ago I signed up with a new supplier and never was sent or signed a contract since the conversion took place on the phone. I just checked out there website and read their contract online and they state that if you terminate early (whatever that means, it’s very ambigous) there will be a $75 penalty on fixed accts. This supplier never told me about this fee two yrs later? How long is the period to cancel with this supplier if I never was sent or signed a contract. If he charge me this fee do I call and report him to the AG or DPUC.
I just had a “run-in” with a representative of North American Power on the phone, who, I feel misled me when he said that he was from the State of Cot. and starting to ask me about the info. on my account with C.L. & P = Then, I found out that all he had was a phone number and not the correct address for me. He was trying to switch me form the supplier I have.