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RESA Alleges Utility Breached Supplier Service Agreement By Disclosing Confidential Information

April 3, 2014

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

The Retail Energy Supply Association alleged that Connecticut Light & Power's, "recent unauthorized public release of its members' confidential and trade secret information," had, "resulted in a material breach of the SSA [Supplier Service Agreement]."

In a letter to PURA, RESA said that the alleged breach occurred due to the release of confidential supplier pricing data to the Office of Consumer's Counsel and Hartford Courant.

RESA said that, "Pursuant to the SSA, '[n]either party may disclose to any third party, including affiliates of such party, without the express prior written consent of the other party, any Confidential Information . . . obtained pursuant to this Agreement.'"

"It is RESA’s understanding that CL&P did not request nor did it receive 'express prior written consent' prior to releasing the Confidential Information to the OCC or The Hartford Courant," RESA said.

RESA said that while the SSA allows for the release of certain confidential data to government agencies, "pursuant to any applicable law, regulation, ruling, or order," RESA, "is not aware of any law, regulation, ruling or order that required the disclosure of the Confidential Information to the OCC in these circumstances." Moreover, RESA alleged that CL&P failed to follow the required procedures regarding the release of such information even if the OCC were an authorized recipient

Moreover, RESA said that, "[a] periodical is not a 'governmental, judicial or regulatory authority.' Thus, the release of supplier Confidential Information to The Hartford Courant is not authorized under the SSA."

RESA said that, "Failure to abide by the terms of the SSA could expose CL&P to legal action for any and all remedies available at law and equity."

"To protect against any future breaches, RESA hereby requests that CL&P institute more robust processes and procedures to prevent the unauthorized use or disclosure of Confidential Information, including ensuring that it strictly complies with the requirements of the SSA generally and Section X (Nondisclosure) in particular. Furthermore, RESA respectfully requests that CL&P provide a written response regarding the measures and oversight it will institute to insure compliance with its SSA obligations," RESA said.

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