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Ohio Adopts Stricter Marketing, Certification Rules for Retail Gas Suppliers

December 19, 2013

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Public Utilities Commission of Ohio has adopted revised rules relating to the certification of retail natural gas suppliers, and sales and marketing rules for retail gas suppliers.

The revised rules provide that retail suppliers and governmental aggregators shall perform a criminal background check on all employees and agents of retail natural gas suppliers or governmental aggregators engaged in door-to-door solicitation

PUCO also adopted language limiting door-to-door direct solicitation to the hours between 9:00 a.m. and 7:00 p.m., in cases where there are no local ordinances. The final rules also add language requiring that direct solicitors shall obey all local ordinances.

As part of the acknowledgement required under door-to-door sales, the acknowledgment form is now required to include a statement or question regarding, "Did the representative disclose whether or not an early termination liability fee would apply if you cancel the contract before the expiration of the contract term? If such a fee does apply to your contract, did the representative disclose the amount of the fee?"

Stricter third-party verification requirements were also adopted. The final rules provide that, "The independent third-party verifier must confirm with the customer that the representative of the retail natural gas supplier or governmental aggregator has left the property of the customer."

Additionally, "The independent third-party verifier shall structure the independent third-party verification interview to give the customer adequate time to respond to questions and shall not prompt answers from the customer in their response," the final rule provides.

Telephonic enrollments, as well as TPVs for other solicitations (such as door-to-door), shall now include a, "verbal statement and customer's acknowledgement that the retail natural gas supplier or governmental aggregator is not the customer's natural gas company and that the customer may choose to remain with the natural gas company's applicable tariff or default service or enroll with another retail natural gas supplier."

Additionally, knowingly taking advantage of a customer's inability to reasonably protect his/her interests because of physical or mental infirmities, ignorance, illiteracy, or inability to understand the language of an agreement has been added to the definition of prohibited misleading, deceptive, or unconscionable acts or practices.

The final rules provide that, "In an instance where the customer and retail natural gas supplier or governmental aggregator agree to a material change to an existing contract, the retail natural gas supplier or governmental aggregator shall obtain proof of the customer's consent to the material change as delineated in paragraphs (C), (D), and (E) [relating to rules for an initial enrollment] of this rule and in accordance with the applicable enrollment process for that customer."

Additionally, under the adopted rules, "Customer account numbers obtained from participation in a natural gas company's standard choice offer program shall not be used by retail natural gas suppliers in the marketing materials of competitive retail natural gas service. Account numbers must be provided by the customer prior to enrollment in any alternative offer to the standard choice offer."

The final rules provide that a retail natural gas supplier or governmental aggregator shall not transfer its certificate to any person without prior Commission approval.

Case No. 12-925-GA-ORD

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