Energy Choice
                            

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Proposal Would Require Utility to Verify Consent for All Customer Switches, Ban Variable Rates

March 12, 2014

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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Connecticut PURA has invited stakeholders to submit, "written comments on the following topics or proposed rules and requirements," for electric suppliers.

Notable proposals include utility verification of all enrollments, the prohibition of variable rate contracts, and the prohibition of hardship customers from being served by an electric supplier.

Specific proposals include:

• "Prior to switching a customer to a new supplier, the EDC must verify the customer's consent."

• "At the end of a customer's contract or price plan period with a third party supplier, the EDC must switch the customer back to Standard Service unless the supplier can provide evidence that the customer has agreed to extend the contract or entered into a new contract with the supplier."

• "Require hardship customers to be on Standard Service."

• "Eliminate Variable Rate offers (currently defined as offers that allow a supplier to change rates during a billing cycle)."

• "Regarding Promotional and Monthly Variable Rate offers, require that customers receive the initial or introductory or promotional rate for three full billing cycles before moving to an alternate price offer."

• "Each supplier must maintain a website which clearly displays:

       a) a list of all current offers in the format used on the EnergizeCT.com Rate Board;

       b) sufficient information about each offer for customers to make an informed choice; and

       c) all rates charged by the supplier during each calendar month for the preceding 24-month period. Offers can be separately listed, (e.g., Fixed, Promotional, Renewable) but must be clearly identified."

• "Current and historical rates must be provided without requiring customer to provide information such as account number, address, etc."

• "Each customer contract must prominently display:

       a) the beginning and end dates of the contract;

       b) the effective rate and the end date of such rate;

       c) potential rates ('your variable rate may go up as high as...'); and

       d) a cap rate ('your rate will not go higher than...')."

• "Each customer contract must include language that customer consent is required for continuation of service at the end of the contract; absent such consent, the customer reverts to Standard Service."

• "Alternative, all suppliers must use a standard contract to be developed by the Authority."

• "Regardless of any contracts, suppliers must provide seven day advance notice of any price change (up or down) and must provide customers the option to receive such notice in writing via email, postcard or letter. Suppliers must retain such information for three years and provide it to the Authority upon request."

• "Regarding Fixed Rate offers, require suppliers to bill these rates for a minimum of six full billing cycles instead of the minimum of three months that is currently allowed."

• "No cancellation fees are permitted in variable rate contracts."

• "Variable rate contracts are prohibited from being assigned from one supplier to another."

• "Any assignment of customer contracts that involves more than 50 contracts or more than 5% of a supplier's total number of customers must obtain PURA's prior approval."

• "Customers must be provided written notice no less than 30 days prior to the assignment of their contracts."

• "Eliminate the practice of providing supplier rates on the quarterly EDCs bill insert and instead use the quarterly EDC bill insert to promote the EnergizeCT.com Rate Board and provide other general educational information about retail choice. As an alternative, eliminate supplier-related bill inserts."

• "Repeal Conn. Gen. Stat. §16-244c(k), commonly referred to as the Supplier Referral Program."

• "Repeal the registration of electric aggregators, Conn. Gen. Stat. §16-245(l)."

• "Regarding Voluntary Renewable Rate offers (offers that exceed the minimum renewable portfolio standard), require the voluntary renewable sources to be Connecticut Class I or Class II only. Supplier must have on file with the Authority a separate disclosure label for all Renewable Rate offers."

• "Require voluntary renewable offers to be met only with Connecticut Class I or II renewable energy sources."

• "Require electric supplier licenses to be renewed every two years (instead of every five years as is currently required), and renewal shall be based on the current requirements as well as the supplier's records of customer service, call-center experience, training and energy purchasing practices."

• "The electric distribution companies (EDCs) must implement mid-cycle enrollment to allow customers to switch their electric supplier within five business days after receipt of notification to do so. If the EDC cannot obtain an actual meter reading to implement a switch it shall use its standard prorating practice to assign energy consumption during the billing period. Comment on limiting the number of times a customer can switch suppliers."

• "All electric suppliers are required to offer the option of direct billing or billing through the EDC bill. Alternative, all suppliers are required to directly bill their customers using a billing format established by the Authority."

• "Comment on additional educational options that should be explored."

Docket Number: 13-07-18

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