Competitive energy provider Electricity Maine will refund customers up to $6 million to settle complaints it overbilled clients.
The company also must pay a $315,000 fine, according to an agreement with the Maine Public Utilities Commission and Maine Office of the Public Advocate. And it has to annually notify customers with variable rates of other electricity supply options and cap their rates for 18 months.
Commission Chairman Phil Bartlett said the settlement includes more refunds and penalties than a version the commission rejected earlier this year.
But Bartlett said he still has concerns about the company’s history of alleged violations.
"Going forward Electricity Maine must comply with all applicable rules and statutes or face additional enforcement action up to and including revocation of its license," Bartlett said.
Electricity Maine offers an alternative to the state’s standard offer price for electricity.
But last year the company was accused of switching accounts from fixed rates to much higher variable rates without telling customers.
The office of the public advocate reported receiving more than 125 phone calls from Electricity Maine customers claiming that their bills had suddenly skyrocketed. In some cases, customers said they were charged 40 cents per kilowatt hour, more than twice the state's standard offer, according to the office.
About 20,000 current and former Electricity Maine customers could receive refunds of up to $4,000 apiece under the settlement.
Public Advocate Bill Harwood, in a press release, said the company had demonstrated unsatisfactory practices in Maine in the last few years. He hoped the commission's fine "will remind them to respect our laws of fair trade."
In a statement, an Electricity Maine spokesperson declined to comment on the details of the settlement.
“We are pleased to have worked with the Commission’s Staff and the Office of the Public Advocate to resolve this matter amicably and will continue in our commitment to compliantly serve and provide Mainers with a choice in their electricity supplier,” the company said.
