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State Proposes to Expand Rescission Period to 30th Day After First Bill
The California PUC has proposed expanding the rescission period to natural gas service to core customers from 3 days after contract signing to 30 days after the first bill, in a proposed order which would also establish a registration process for retail gas suppliers (core transportation agents, or CTAs).
Recent legislation requires registration of gas suppliers, and provides for a 3-day rescission period.
However, the PUC's draft order would agree with the utilities and consumer advocates and would find that a longer rescission period is needed, for residential customers only, due to the logistics of utility switching notices.
The PUC noted that PG&E currently sends a notice to the customer 7-10 days after the CTA submits a Direct Access Service Request (DASR) to the utility requesting a particular customer be switched to CTA service. "The current three-day cancellation provision in the bill is therefore not enough time to allow customers to be notified by the utility of an unintended switch to CTA service," the draft states
"Furthermore, the notice that the utility sends to the customer may not be enough to provide nonnative English speakers, elderly, or disabled customers with enough forewarning that they have been switched to CTA service. Indeed, there have been several documented instances of customers not realizing they had been switched from bundled to CTA service until several months after the fact," the draft states.
"To ensure residential customers have a fair chance to cancel CTA service agreements without penalty, we will extend the cancellation period for residential gas customers to midnight of the thirtieth day after the date of the first bill for CTA service being issued to the customer," the draft states
With respect to the 3-day rescission period which would remain applicable to commercial customers, the draft order proposes the commercial customers will be allowed to waive their right to rescission; however, such waiver must be in writing as a separate document, and not part of the supplier's standard contract.
The PUC's draft order would also establish a process for retail gas suppliers to become registered with the PUC. Under the draft, suppliers would be required to register with the Commission within 90 days of the effective date of the final decision.
The draft would defer a decision on the calculation of the appropriate security deposit or bond required of retail gas suppliers, which would be addressed in the next phase of the proceeding.
The draft would also defer a decision regarding the format and information to be disclosed in a required customer notice concerning the pricing and terms of competitive gas service.
The proposed registration form for gas suppliers can be found on the PUC's site (click here)
Rulemaking 14-03-002
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July 10, 2014
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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com
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