Faced with the possibility of loosing its electric marketinglicense in New Jersey because of seedy marketing maneuvers,Sempra’s Energy America cut a deal with the state’s Board of PublicUtilities last week, agreeing to halt its marketing efforts for athree-week span, retrain its agents and stop all “unconscionablemarketing tactics.”

The consent agreement is expected to be signed by the BPUsometime this week. The division of Consumer Affairs was alsoinvolved in the proceedings. Under the terms of the deal, EnergyAmerica agreed to the three-week stoppage and to make seriouschanges in its marketing materials, alter its training of newagents to allow the BPU to supervise the process, and retrain all150 of its old agents. When the marketer reenters the field, allswitches must be performed in a common language and the marketermust explain the switching process more thoroughly.

The consent agreement allowed Energy America to avoid goingbefore the BPU in a full hearing in which its license to market inthe state could have been removed. “The parties had a preliminarymeeting, and I thought Energy America was headed toward a fullhearing for certain,” said Eric Hartsfield, a BPU spokesman. “Butthe morning after that meeting, all the lawyers were locked in aroom and when they came out they had this agreement in hand.”

“Today’s decision has established a process through which EnergyAmerica and state officials will develop a revised marketingprogram that we hope will be approved by both the BPU and the DCA,”said David Messer, president of Energy America. “This constructivedialogue and the process by which we reach an agreement is welcomedby Energy America and we are very pleased with this decision.”

According to the BPU, more than 350 complaints have been leviedagainst Energy America as it tries to sign electric customers inNew Jersey’s newly-deregulated electric market. So far, themarketer has signed up more than 40,000 customers since Sept. 17.”I’d have to say they are the most complained-about company sofar,” said Hartsfield. “That is a direct result of them being oneof, if not the most aggressive marketers. The wrongdoings rangeacross the spectrum from lying about rebates, to pressuringresidential customers, to telling people that their utility isgoing out of business.”

New Jersey is not the only place Energy America is havingtrouble. It is also a certified gas marketer in Georgia. Accordingto the Georgia Public Service Commission’s Internet-based marketerscorecard, Energy America gained the most complaints per thousandcustomers in October. In the three months in which the GPSC haskept score, Energy America has never been out of the top-five mostcomplained-about marketers in the state.

Despite the Energy America problem, Hartsfield said the state’selectric deregulation is proceeding smoothly. Since statewideelectric choice started earlier this year, more than 8,400customers have chosen an alternate supplier. Gas choice for NewJersey begins Jan. 1.

John Norris

©Copyright 1999 Intelligence Press, Inc. All rightsreserved. The preceding news report may not be republished orredistributed in whole or in part without prior written consent ofIntelligence Press, Inc.