(The Center Square) – The Public Utilities Commission of Ohio said a utility company it banned from doing business in the state six years ago for deceptive practice cannot come back.
The board turned down an application from PALMco Energy OH, LCC and PALMco Power OH, LCC, saying the company – with headquarters in New York – is not “managerially fit” to comply with board rules and orders, citing 10 enforcement actions taken against the company and its affiliates in 14 other jurisdictions where it operates.
It’s the same company the PUCO settled with in 2020 for alleged violations of PUCO regulations that included misleading and deceptive practices to market and enroll customers, according to the PUCO.
“Under the terms of the agreement, PALMco provided more than $1 million in relief to residential customers through refunds and debt forgiveness,” the board said. “PALMco’s owners, officers and partners were then barred from doing business in Ohio’s residential retail energy markets for seven years and industrial and commercial markets for five years.”
In documents filed with PUCO, PALMco said it has as “has taken several affirmative steps to modify its business practices and procedures. “
It has made “significant managerial investments” to improve its practices and procedures, the company, also known as Indra Energy, said.
“The addition of a new management team has provided greater control, monitoring and oversight of the business operations and has resulted in significant cultural changes at the company including a comprehensive top-down approach to compliance and regular weekly meetings to identify, discuss, and address issues effectively across departments,” the utility said.
PUCO staff members pointed out in documents that marketing services to large commercial and industrial customers is different from door-to- door marketing.
“The class of customers Indra seeks to serve are typically knowledgeable energy users unlikely to be misled,” the document said.
Although the PUCO staff recommended approval of the application, the board denied it.
“The addition of new personnel does not assuage the Commission’s concerns regarding the numerous enforcement actions against Palmco,” the board stated. “Therefore, the Commission finds that Applicant is not managerially fit.”
