Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

Draft Order Would Require Retail Supplier To Refund Early Termination Fees to Certain Customers, While Noting "Good Faith" Effort By Supplier for Compliance

July 29, 2015

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

A draft PURA decision would require Viridian Energy, LLC to refund early termination fees to certain customers who left the supplier after an auto-renewal, as the draft would conclude that Viridian, "failed to uniformly apply the cancellation period set forth in Conn. Gen. Stat. §16-245o(h)(8) regarding automatic renewal of residential customers."

Conn. Gen. Stat. §16-245o(h)(8) provides that under an auto-renewed contract, an early termination fee shall not be charged, "to a customer who terminates or cancels such renewal not later than seven business days after receiving their first billing statement for the renewed contract," but as noted in our related story today (click here), PURA concedes that it is difficult for suppliers to comply with this statute as the customer's exact date of termination may not be known by the supplier in some situations. Specifically, where a customer cancels by switching to another supplier or default service, the supplier may not know the customer's exact date of cancellation, and whether it falls within the window for waiver of any termination fee.

With respect to Viridian, the supplier was previously assessing an early termination fee on customers which were auto-renewed onto a fixed rate contract and later left the company. As a result of a separate PURA decision in Docket No. 14-07-20, Viridian is no longer assessing early termination fees under its auto-renew contracts

The draft notes that Viridian made a, "good faith effort," to comply with Conn. Gen. Stat. §16-245o(h)(8), and waived termination fees for customers contacting the company directly within the termination fee waiver period or a reasonable amount of time thereafter.

However, the draft would conclude that Viridian did not uniformly apply the cancellation period as set forth in Conn. Gen. Stat. §16-245o(h)(8) because, "in those situations where customers did not contact Viridian directly to cancel a contract [and merely received a switch/drop EDI request], the Company made no attempt to determine the date on which their Auto-Renew Contract customers acted to cancel the contract."

"In these situations Viridian simply used the customer’s meter reading date to determine whether to assess an ETF," the draft states, noting that the customer could have acted to cancel the contract within the seven business day termination fee waiver period, but that the subsequent meter reading effecting that decision to drop Viridian then fell outside of the waiver window.

"Nevertheless, the Authority finds that Viridian made a good faith effort to comply with Conn. Gen. Stat. §16-245o(h)(8). It is important to note that Viridian allowed leeway in applying its Cancellation Period standard, allowing customers additional time to cancel and avoid an ETF, and that as a result of the Authority’s Decision in Docket No. 14-07-20, Viridian is no longer assessing ETFs under its Auto-Renew Contracts. Accordingly, the Authority directs Viridian to review its Auto-Renew Contracts and refund customers the cost of any ETF collected where the Company is unable to pinpoint the date the customer took action to cancel the contract within the statutorily mandated cancellation period. Viridian must monitor receipt of any previously assessed Auto-Enroll Contract ETF to assure compliance with the directives herein. Said payment must be refunded if Viridian is unable to pinpoint the date the customer took action to cancel the contract within the statutorily mandated cancellation period," the draft provides

Viridian Energy provided the following statement to EnergyChoiceMatters.com:

"Viridian Energy is pleased that PURA confirmed our 'good faith effort to comply' with Connecticut regulations. We are in complete alignment with CT PURA and agree that this proceeding highlighted an important inconsistency that makes it 'difficult for all licensed electric suppliers to uniformly apply' state guidelines. Viridian looks forward to our continued close working relationship with PURA as energy suppliers throughout the state work to further refine our procedures based on this latest guidance."

Docket 09-04-15RE03

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Manager, Market Transactions -- Retail Supplier -- Houston
NEW! -- Sales Manager -- Retail Supplier
NEW! -- Business Development Manager -- Retail Supplier -- DFW
NEW! -- Senior Analyst - Supply, Portfolio Management - ERCOT -- Retail Supplier
NEW! -- Power Supply System Administrator -- Retail Supplier
NEW! -- Operations Analyst -- Retail Supplier -- Houston
NEW! -- Senior Supply, Pricing & Risk Management Position -- Retail Supplier
NEW! -- Broker Manager -- Retail Supplier
NEW! -- Supply & Schedule Analyst -- Retail Supplier
NEW! -- Business Development Manager - Indirect -- Texas/DFW
NEW! -- Senior Supply Analyst, Power -- Retail Supplier
NEW! -- Structuring Analyst -- Retail Supplier
NEW! -- Sales & Pricing Analyst I
NEW! -- Business Development Manager (BDM) -- Retail Supplier -- Texas/Multiple States
NEW! -- Quality Assurance Analyst -- Retail Supplier
NEW! -- Customer Relations Operations Analyst -- Retail Supplier
NEW! -- Sales Manager, Energy Solutions -- Retail Supplier
NEW! -- Director of Digital Marketing -- DFW
NEW! -- Vice President, Commercial Sales -- Retail Supplier -- Houston
NEW! -- Director and Assistant General Manager -- Retail Supplier
NEW! -- Manager, Business Analysis -- Retail Supplier
NEW! -- Director, Operations -- Retail Supplier
NEW! -- Business Development Manager – Broker Sales -- Retail Supplier
NEW! -- Chief Supply Officer -- Retail Supplier
NEW! -- Vice President, Global Regulatory Affairs -- Retail Supplier -- Houston
NEW! -- Vice President - Supply, Pricing, and Risk Management -- Retail Provider -- Dallas
NEW! -- Controller -- Retail Supplier -- Dallas
NEW! -- Regional Sales Manager - Dallas, TX -- Retail Provider
NEW! -- Senior Business Analyst -- Retail Provider -- Houston
NEW! -- Billing Manager -- Retail Supplier -- Houston
NEW! -- Business Development Analyst -- Retail Provider -- Houston

Email This Story

HOME

Copyright 2010-15 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search