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Regulator Won't Force Retail Supplier To Return Customers To Utility For Late-Filed License "Renewal" Application

May 14, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Connecticut PURA will not require South Jersey Energy Company to return customers to default service because South Jersey Energy did not timely file an application to "renew" its license, as PURA has now concluded that licenses, though subject to review every five years, do not automatically expire

A year ago, PURA said that it would consider, "determining how South Jersey's customers should be notified and returned to Standard Service or Last Resort Service," given that South Jersey Energy's license was due to be "renewed" on February 27, 2013, but the company did not apply for renewal until May 2014.

However, upon further consideration, PURA noted that while it grants licenses for five-year periods, regulations require PURA to "review" a supplier license every five years, but the regulations do not contain the word "renew."

"Both Conn. Gen. Stat. §16-245 and Conn. Agencies Regs. §16-245-2(f) state that the Electric Supplier license is subject to a periodic review, rather than renewal," PURA said.

"[B]ecause the word 'review,' rather than the word 'renewal' is used in both Conn. Gen. Stat. §16-245 and Conn. Agencies Regs. §16-245-2(f), the Authority concludes that electric supplier licenses do not automatically terminate or expire at the end of their five year anniversary in the event a review application is not timely submitted. Rather, pursuant to Conn. Gen. Stat. §16-245(k), the Authority may revoke the license only upon a hearing in a contested case," PURA said.

"Consequently, despite SJE's noncompliance with the periodic review requirements, its electric supplier license remains valid," PURA said.

"The Authority concludes that SJE failed to comply with its periodic review requirements pursuant to §16-245(c) of Conn. Gen. Stat. and §16-245-2(f) of Conn. Agencies Regs. Nevertheless, because SJE has now submitted the required review application, the Authority declines to take any further action in this matter. Accordingly, SJE may retain its customer base and is not required to notify and return its customers to standard service," PURA said.

South Jersey Energy did previously pay a $30,000 civil penalty related to its late filing.

South Jersey Energy provided the following statement to EnergyChoiceMatters.com:

"South Jersey Energy is pleased with PURA's decision. From the beginning, we felt that an administrative oversight should not result in license revocation and appreciate PURA's acknowledgement of the same. The real winners here are our current and future electric customers in the state of Connecticut who have and will continue to benefit from the products and services that we provide."

Docket 07-08-23RE02

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