Energy Choice
                            

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Regulator Opens Review of Retail Supplier's Compliance With Renewal Notice Requirement

October 23, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Connecticut PURA has opened a review of Choice Energy, LLC's compliance with the requirement to send renewal notices to customers whose fixed price contracts are expiring.

PURA said that Conn. Gen. Stat. §16﷓245o(g)(1) (formerly §16-245o(f)), as amended by Public Act 14﷓75, provides in pertinent part: "Between thirty and sixty days, inclusive, prior to the expiration of a fixed price term for a residential customer, an electric supplier shall provide a written notice to such customer of any change to the customer’s electric generation price."

PURA said that, "In response to interrogatories issued in Docket No. 14-05-38, Choice Energy, LLC (Choice) stated that it served 4,183 residential customers whose fixed price term expired between October 1, 2013 and June 15, 2014 (2,785 CL&P customers and 1,398 UI customers). Choice Response to Interrogatory AD-2. According to Choice, all customers had their initial fixed price expire by their respective December 2013 billing date and none had their initial fixed price expire after their December 2013 billing date."

PURA quoted a Choice Energy response as stating, "the contract provision of fixed rate through December with automatic variable renewal was specifically called out to the customers’ attention with a Schumer Box style disclosure in their welcome letters stating that '[t]he rate that you pay is fixed through December 2013, after which it may vary from month to month based on market conditions and our wholesale supply costs.'"

PURA said that, "Choice claimed the information provided in its welcome letter is 'a clear and unambiguous disclosure to the consumers of the pricing terms that would govern at the end of the fixed price period.' Choice also noted that the Authority took no action to implement the notice required under Conn. Gen. Stat. §16-245o(g)(1), other than the inclusion of a statement in the July 12, 2013 opening memorandum in Docket No. 13-07-18 indicating that it intended to 'clarify the new legislative requirements and establish rules and guidelines' during the course of that docket. Choice stated that given the short time involved and the absence of new PURA guidance clarifying the content and form of the new notice, Choice did not develop and process a notice in time to meet the fall 2013 window for its 2013 expiring customers."

Based on such responses, PURA re-opened Choice’s current licensing docket, "to review Choice’s compliance with Conn. Gen. Stat. §16-245o(g)(1) and to determine the appropriate remedies for the affected customers and/or civil penalties for Choice."

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