State energy regulators have fined a Connecticut electricity supplier $100,000 after finding that it engaged in deceptive marketing practices, the Maryland Public Service Commission announced Friday.
The commission also ordered North American Power and Gas to undertake a series of measures, including suspending all telemarketing activities in Maryland, to retain its license.
The commission, responding to a complaint filed by its staff, held a hearing and concluded that NAP's advertisements contained four deceptive statements, such as there is "no contract to sign"; that NAP falsely stated that its terms and conditions were approved by state regulators; and that NAP failed to provide a "complete and accurate" price description in its terms and conditions, as well as the required PSC's toll-free number and Web address for complaints.
"This case should be read to stand emphatically for the proposition that this Commission cannot and will not tolerate misleading or deceptive advertising or sales tactics in the retail electricity space, and that we intend to react severely when we find that they have occurred," the commission wrote in its order.
In a statement, North American Power CEO Kerry Breitbart said while the fine is "significant," the company was "grateful" to the PSC staff for bringing the issues to its attention and "for acknowledging that this was not intentional."
"It was the result of an early-stage company experiencing rapid growth," Breitbart said. "This process has caused us to re-examine our practices and hire some of the best compliance and energy experts in the business — we are a better company because of it."
NAP began service in March 2010 and has more than 100,000 customers in Maryland, Connecticut, New York and Pennsylvania.
In Maryland, consumers can shop around for electricity and choose a supplier other than their area's traditional utility. Some 16 percent of Maryland's nearly 2 million residential customers have signed up with an alternative supplier as of April, according to the PSC's most recent data.
Under state law, alternative electricity providers must be licensed by the PSC.
