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Latest Proposed Rules Drops More Expansive Definition of Broker

December 24, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

A revised proposal for new electricity supplier rules in Delaware drops the more expansive definition of broker contained in an earlier proposal, and would essentially maintain the current definition.

Brokers must be licensed by the Delaware PSC.

Specifically, under an April 2014 proposal (click here for story), "broker" would have been defined as having, "the same definition set forth in 26 Del. C. §1001, and shall also include anyone who conducts marketing activities including, but not limited to, promotion and sales of electricity and related services to Retail Electric Customers."

For reference, the definition of broker under 26 Del. C. §1001 is, "a person or entity that acts as an agent or intermediary in the sale or purchase of, but that does not take title to, electricity for sale to retail electric customers."

Potentially problematic was the second half of the April 2014 proposed definition as, arguably, multi-level marketing representatives, affinity groups (charities, trade associations, chambers of commerce, etc.), and contracted agents are entities which, "conduct[] marketing activities," and are engaged in the "promotion" of retail electric service, and therefore fall within that proposal's definition of broker, absent any sort of carve-out for agents falling within the supplier's responsibility and license.

The revised proposed rules issued in Regulation Docket 49 drop the second half of the April 2014 proposed definition, omitting the provision that a "broker" also includes, "anyone who conducts marketing activities including, but not limited to, promotion and sales of electricity and related services."

The revised proposed rules essentially maintain the current definition (which is the same as under 26 Del. C. §1001), and would define broker as meaning, "an entity or Person that acts as an agent or intermediary in the sale or purchase of, but that does not take title to, electricity for sale to Retail Electric Customers."

See RetailEnergyX.com's story from earlier this month (click here) for more details on the latest revised proposed rules, which also address telemarketing and door-to-door sales, variable rate disclosures, and the rescission period

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