Customers of Xoom Energy Maryland Inc., an electric and gas supplier, may be eligible for a partial refund after the Maryland Public Service Commission determined the company violated consumer protection rules during the harsh 2013-2014 winter.
The public service commission launched an investigation that winter into the billing practices of five energy suppliers, including Xoom, after consumers, backed by Maryland's Office of People's Counsel, complained of price spikes as the so-called "Polar Vortex" swept through the area.
In a December order, the commission said that in 2013 and 2014 Xoom did not properly inform residential consumers they were being switched from fixed price contract, in which they pay the same price every month, to a variable price contract, where the bill changes depending on that month's usage. The commission said the company also violated rules that require contract notices to inform customers how to cancel their account.
Xoom could not be reached for comment late Wednesday.
The order called on Xoom to notify people who were residential customers between Jan 1., 2013 and Dec. 31, 2014 that they are eligible for a partial refund. Xoom sent the notices on Dec. 23. To get the refund, Xoom customers must respond to the notice in writing within 30 days, or by Jan. 23.
The amount of the refund will vary but, "for some of these customers it could be a big sum of money," said Paula Carmody, People's Counsel for the State of Maryland.