STATE OF MAINE
PUBLIC UTILITIES COMMISSION

Mark A. Vannoy

Harry Lanphear

CHAIRMAN

ADMINISTRATIVE DIRECTOR

Carlisle J. T. McLean
R. Bruce Williamson
COMMISSIONERS

July 10, 2015

Patricia Zacharie
Corporate Counsel & Manager,
Regulatory & Compliance
1801 North Lamar Street, Suite 600
Dallas, TX 75202
(via e-mail) [pzacharie@ambitenergy.com]
Re:

Request for Information, Docket No. 2014-00184

Dear Ms. Zacharie:
The Maine Public Utilities Commission (MPUC) is responsible for overseeing the retail
electricity market in Maine and for monitoring the activities of any entity licensed as a
competitive electricity provider (CEP). Ambit Northeast, LLC (Ambit) is licensed as a CEP in
Maine, see Commission Order Granting License, Docket No. 2014-00184 (September 25,
2014), and as such is subject to the regulatory oversight of the MPUC, including with respect
to, among other statutory and regulatory provisions, Chapter 305 of the Commission’s rules,
Licensing Requirements, Annual Reporting, Enforcement and Consumer Protection Provisions
for Competitive Electricity Providers. The Commission also has oversight over the provisions
of Chapter 322, which establishes procedures governing customer enrollment for generation
service, transfers among generation service providers, and termination of generation service.
In March 2015, the Commission’s Consumer Assistance and Safety Division (CASD)
received two complaints regarding Ambit claiming that the CEP had switched customers to
their service without their permission and over their objection. On June 16, 2015, CASD found
Ambit to be in violation of Chapter 305 and Chapter 322. Chapter 305, section 4(B)(3), of the
Commission’s rules requires a CEP to obtain verification that a prospective customer “has
affirmatively chosen” to take service from that CEP. A CEP may not enroll a customer without
first obtaining verification of affirmative choice. Chapter 305, section 4(B)(2), of the
Commission’s rules requires a CEP to provide a prospective customer with the opportunity to
rescind her choice to take service from that CEP. A CEP may not enroll a customer until after
the rescission period has expired. Chapter 322, section 7(A)(1), of the Commission’s rules
prohibits a CEP from providing a transmission and distribution utility with notification to enroll a
customer until the end of the rescission period.
The Commission is concerned that there may have been more customers improperly
enrolled by Ambit and that the company failed to adequately verify with its customers their
choice to select Ambit as their provider, did not provide them with any rescission opportunity,
and improperly enrolled them as Ambit customers. To evaluate whether these concerns are
LOCATION: 101 Second Street, Hallowell, ME 04347
PHONE: (207) 287-3831 (VOICE)

MAIL: 18 State House Station, Augusta, ME 04333-0018
TTY: 711

FAX: (207) 287-1039

 warranted and require further Commission action, the MPUC Staff asks Ambit to respond to
the following requests for information. Please provide a response in the Commission's Case
Management System by July 20, 2015.
1. Please explain how many Ambit employees or agents are doing business in Maine and
whether they are direct employees, independent contractors, or other agents? How are
the sales representatives compensated for their work, e.g., paid by commission, hourly?
2. On June 16, 2015, CASD staff found that Ambit failed to obtain verification that a
prospective customer affirmatively chose to take service from Ambit because an Ambit
independent consultant pretended to be the prospective customer. CASD found that at
least one other prospective customer experienced this same problem, and believe other
electricity customers could be impacted by the Ambit independent consultant who
signed up their co-workers unwillingly or willingly under a “friends and family” promotion
from Ambit.
a. How many customers were signed up with Ambit as a result of this Ambit
independent consultant’s actions?
b. Please provide the “Affirmative Customer Choice” Verification transcript or mp3
recording of any and all Ambit customers that were signed up as a result of the
friends and family promotion related to question 2 above.
3. Please provide all materials that Ambit has provided its Maine independent consultants
regarding compliance with all applicable statutory and regulatory provisions related to
the trade and promotional practices of CEPs.
4. Please provide any action plan or steps that Ambit has taken since the June 16, 2015
decisions by CASD to assure compliance with all applicable statutory and regulatory
provisions including Chapter 305 and Chapter 322?
We appreciate your anticipated attention to this matter. Please contact me if you would
like to discuss any matter raised in this letter in advance of your written submission.

/s/ Mitchell Tannenbaum
Mitchell Tannenbaum
General Counsel