CONFIDENTIAL MATERIAL ENCLOSED July 29, 2015 Harry Lanphear Administrative Director Maine Public Utilities Commission State House Station #18 242 State Street Augusta, Maine 04333-0018 Re: CLEARVIEW ELECTRIC, INC., Application for License to Operate as a Competitive Electricity Provider Docket No. 2012-00376 Dear Mr. Lanphear: Pursuant to 35-A M.R.S. § 3203(13-A), Central Maine Power Company (“CMP”) respectfully requests that the Commission open an investigation into the door-to-door marketing practices of Clearview Electric Inc., doing business in Maine as Clearview Energy, and take appropriate action to enforce the provisions of Chapter 305 of the Commission’s rules. Beginning on June 23, 2015, CMP started receiving complaints and inquiries from its customers regarding the door-to-door marketing activities of representatives of Clearview Energy. To date, CMP has received complaints directly from at least 20 of its customers regarding Clearview Energy. A summary of these complaints is set forth in CONFIDENTIAL Attachment 1, which is provided pursuant to the terms of Temporary Protective Order No. 2 issued on July 29, 2015. Initial complaints were that Clearview Energy representatives were making false or misleading statements in an attempt to get customers to turn over their CMP bill to the Clearview Energy representatives. These statements led customers to believe that the representative was either a CMP employee or was working on behalf of CMP in some capacity. In addition, CMP customers have stated that Clearview Energy representatives have provided various explanations for needing to see the customer’s CMP bill, such as the bill including incorrect charges that the Clearview Energy representative could fix or that it was simply a requirement that the customer produce a copy of the CMP bill for inspection by the representative. CMP immediately notified Clearview Energy of these customer complaints. CMP was assured by Clearview Energy that it has a “zero-tolerance policy” with respect to its representatives making false or misleading statements, in particular with respect to any affiliation with a transmission and distribution utility such as CMP. CMP was also assured that any such activities were limited to a small number of Clearview Energy representatives, and that appropriate action was taken to remedy the situation, including the termination of at least one Clearview Energy representative. Despite these assurances, CMP has continued to receive similar complaints from customers, including complaints that Clearview Energy representatives were claiming to be CMP employees, displaying a badge purporting to demonstrate that the representative was there on behalf of CMP, or stating that the customer must provide certain information, including their CMP account number, to the Clearview Energy representative. To be clear, it potentially harms both CMP and its customers when representatives of a competitive electricity provider improperly identify themselves as being representatives of CMP. In the case of Clearview Energy, CMP customers have stated that these representatives have been rude and aggressive, which creates a negative perception of CMP if an affiliation between the Clearview Energy representative and CMP is stated or implied. Customers are harmed by not being given correct information as to the nature of the visit or true identity of the person to whom they are speaking. Additionally, customers are potentially harmed through false or misleading statements as to the need to show the Clearview Energy representative a copy of their CMP bill. This bill contains personal and confidential customer specific information, including the CMP account number, which could be used to enroll a customer without their specific authorization. As noted in the Commission’s July 16, 2015 Request for Information to Clearview Energy, Clearview Energy stated in a filing with the Commission that there were 34 Maine customers who were signed up for service with Clearview Energy using door-to-door sales techniques that were ultimately dropped. This raises serious questions as to whether any of these customers were signed up for service by Clearview Energy without affirmative consent. To date, CMP has been asked by Commission Staff to un-enroll approximately 16 customers who were enrolled by Clearview Energy. Based on this fact and other complaints received from customers, it appears that in at least some cases Clearview Energy has enrolled customers without waiting the five-day rescission period required by Section 4(B)(2) of Chapter 305. Through a letter dated July 9, 2015 to the President of Clearview Energy, CMP summarized the customer complaints that it had received up until that date and expressed its concerns regarding the door-to-door marketing tactics being used by Clearview Energy, in particular with respect to Clearview Energy representatives stating or implying that they are affiliated with CMP. CMP stated that it would take legal action if these activities continued. Despite CMP’s attempts to resolve these issues directly with Clearview Energy, CMP continues to receive the same types of customer complaints and inquiries concerning the door-to-door marketing tactics of Clearview Energy. Consequently, CMP requests that the Commission initiate an investigation as to whether Clearview Energy has violated any provisions of Chapter 305 or any other Commission rule. Based on the complaints that CMP has received from its customers to date, Clearview Energy has potentially violated the following provisions of Chapter 305: Section 4(A)(1) - Customer Authorization - Competitive electricity providers must obtain a customer’s authorization before providing service. - 2- Section 4(A)(3) – Trade Practices - Competitive electricity providers must comply with the provisions of the Maine Unfair Trade Practices Act, Title 5, chapter 10 and related consumer protection statutes. Section 4(B)(2) – Right of Recission – Competitive electricity providers must provide customers a minimum of five calendar days from the provision of the Terms of Service document to exercise the right of rescission. A competitive electricity provider may not enroll a customer until the rescission period has expired. Section 4(B)(3) – Verification of Affirmative Customer Choice – Competitive electricity providers must obtain verification that each customer choosing that provider has affirmatively chosen such entity. No provider may enroll a customer without first obtaining evidence of the affirmative choice from the customer. Section 4(B)(10) – Promotional Practices – Competitive electricity providers may not use fraudulent, coercive, or deceptive promotional practices. Further, competitive electricity providers may not, in any way, state, suggest or imply any affiliation or association with a transmission and distribution utility. Section 4(B)(11) – Trade Practices – Competitive electricity providers shall not engage in any unfair or deceptive act or practice that creates a likelihood of confusion or misunderstanding in connection with the offer for sale or the sale of electricity. Subsection 13-A of Section 3202 provides that the Commission may investigate any matter relating to the provision of service by a competitive electricity provider. In conducting such an investigation, the Commission is required to use the procedures established under subsection 2 of Section 1303. Subsection 2 of Section 1303 provides: If after the summary investigation, the commission is satisfied that sufficient grounds exist to warrant a formal public hearing as to the matters investigated, it shall give the interested public utility written notice of the matter under investigation. Seven days after the commission has given notice, it may set a time and place for a public hearing. The hearing shall be held in accordance with section 1304. CMP respectfully requests that the Commission conduct a summary investigation of the issues set forth above and set a time and place for a public hearing on this matter if it finds sufficient grounds to do so. In the event that the Commission determines that Clearview Energy has in fact engaged in the activities reported to CMP by its customers, CMP respectfully requests that the Commission impose such sanctions as it deems appropriate, including suspension or revocation of license until such time as the Commission can be assured that Clearview Energy will be in compliance with all aspects of Chapter 305. Finally, CMP notes that Clearview Energy has alleged directly to CMP and in its response to the Commission that CMP is spreading negative information about Clearview Energy and electric industry deregulation in general. As to the first point, CMP has simply passed on to the Commission, as well as the Office of the Attorney General, concerns and complaints expressed by our customers regarding the actions of Clearview Energy. CMP believes that it has an obligation to its customers to pass these issues on to the appropriate regulatory authorities. - 3- As to Clearview Energy’s statements regarding CMP’s position on electric industry deregulation, CMP has embraced deregulation in Maine since it was initially proposed in 1997 and implemented on March 1, 2000. Since that time, CMP has worked cooperatively with the Commission, more than 50 competitive electricity providers, and other stakeholders to implement electric industry restructuring and facilitate our customers’ participation in the competitive electricity market in Maine. As a transmission and distribution utility, CMP’s role is to deliver to our customers the electricity that they purchase in such competitive market. As the Commission is well aware, CMP does not serve customer load nor do we in any way compete against Clearview Energy or any other competitive electricity provider serving load in our service territory. Whether a particular CMP customer chooses to receive their electric supply from Clearview Energy, another competitive electricity provider, or chooses to receive standard offer service procured by the Commission, CMP is in no way affected and has no interest in the outcome of such a decision. Contrary to assertions made by Clearview Energy, CMP has no interest or incentive in disparaging deregulation in Maine or any competitive electricity provider operating in this deregulated market. To the contrary, CMP fully supports the competitive electricity market in Maine and works diligently to facilitate this market for all competitive electricity providers. It is with great reluctance that CMP makes this request for the Commission to investigate the actions of Clearview Energy. However, given the continued serious allegations that we are hearing from our customers, we feel that we have no other choice. CMP stands ready to provide the Commission with any assistance or information that it may need with respect to this matter. If any such assistance or information is necessary, please contact me at (207) 621-6546. Sincerely, Richard P, Hevey Senior Counsel Attachment 1 – Confidential Customer Complaint Summary - 4-