The Georgia Public Service Commission slapped Centrica’s U.S. retail gas marketing subsidiary, Energy America, with a $413,800 fine, potentially much greater, for slamming customers in the state retail customer choice program. It’s the largest fine ever handed down against a Georgia natural gas marketer, but it’s the fourth fine, or “assessment” — as the Georgia regulators like to call it — this year against a retail marketer.

The fine is a response to 138 allegations of slamming, which is the switching of a consumer’s natural gas marketer without the consumer’s authorization. The commission approved the stipulated agreement on a 3-2 vote with Chairman Robert B. Baker Jr. and Commissioner Angela Speir voting no. Commissioner Speir offered an amendment that would have increased the assessment to $548,000, but a majority of the commission failed to support her amendment. Baker, however, did support Speir’s amendment.

Bill Edge, spokesman for the PSC, said Centrica has told Georgia regulators that it “got the message.”

Centrica spokeswoman Cindy Cordova said the company is “pleased to settle the matter…from a 2002 third-party telemarketing campaign. The outcome doesn’t change our focus, which is to provide our 58,000 Georgia customers with innovative products and services.” She said Energy America no longer is using the services of the telemarketer involved in the slamming.

The stipulation agreement, if formally accepted by Energy America, would require the company to contribute $400,000 to the Low Income Heat Energy Assistance Program (LIHEAP), with no tax benefits from the contribution, plus $100 in credits to each of the 138 customers slammed for a total payment of $413,800. In addition, Energy America would pay $5 to these customers for each day it took the gas marketer to return the customers to their preferred provider after being slammed. The company also would have 15 days to credit accounts of additional customers identified as being slammed.

Commissioner David Burgess noted that customers would receive free gas during the time they were switched from their preferred provider.

The stipulation also requires Energy America to develop an employee training program on the Commission’s natural gas rules and submit to the commission for review all of its proposed direct mail, email, television or billboard advertising. The company also is prohibited from engaging in activities to sign up new or former customers for a 12-month period without prior commission approval.

The PSC held hearings in May and June on slamming allegations against the company. Fourteen consumers filed complaints after being contacted during the summer and fall of 2002 by a telemarketing firm hired by Energy America. The commission found that Energy America had engaged in 138 instances of alleged slamming. These unauthorized switches occurred even though Energy America had been sanctioned in 2000 for unauthorized switching violations related to a door-to-door sales campaign.

The PSC has taken action against three other retail gas marketing companies for consumer rights violations this year: Georgia Natural Gas, Southern Company Gas and ACN. Each of the companies were required to pay a fine in the form of a contribution to LIHEAP and were required to credit customers for each day the violations occurred.

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