Although rumors that Energy America was in imminent danger ofloosing its marketer license in New Jersey proved untrue, theSempra Energy affiliate will have to go before the state’s Board ofPublic Utilities (BPU) this week to defend itself against claims ofunfair and unlawful marketing activities. According to the BPU,more than 350 complaints have been levied against Energy America asit tries to sign electric customers in New Jersey’snewly-deregulated electric market.

“I’d have to say they are the most complained-about company sofar,” said Eric Hartsfield, a BPU spokesman. “That is a directresult of them being one of, if not the most aggressive marketers.The allegations range across the spectrum from lying about rebates,to pressuring residential customers, to telling people that theirutility is going out of business.”

The BPU and Energy America, with help from the Consumer AffairsCommittee, have scheduled a ‘show cause’ hearing for Dec. 14. Atthe meeting, Energy America will have a chance to explain itsactions and dispel any wrongful allegations. Rumors had swirledaround that the Dec. 14 meeting would determine if the marketerwould be able to keep its license. “That is not the case at all,”Hartsfield said. “They have been warned about this activity, andnow we are going to hear what they have to say.”

If Energy America is unable to explain the complaints to theliking of the BPU, the next step would be a full hearing before thecommission. That hearing, Hartsfield said, would determine themarketer’s status. So far, the marketer has signed up more than40,000 customers since Sept. 17 but is unable to switch them fromtheir current suppliers until Dec. 17 when utility computer systemschecks are scheduled to be finished.

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.

Alex Hemmrick, a spokeswoman for Energy America, said thecompany is confident. “Energy America has not had a chance to voiceits opinion. After the BPU hears our case, we are very confidentour operations in New Jersey will proceed unchanged. Additionally,we’ve recently introduced assurance programs, which have cut downthe number of complaints considerably.”

Despite the Energy America problem, Hartsfield said the state’selectric deregulation is proceeding smoothly. Since statewideelectric choice started earlier this year, more than 8,400 customerhave chosen an alternate supplier. Gas choice for New Jersey beginsJan. 1.

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