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PUC Clarifies Requirement For Fees To Be Disclosed Related To Brokers, "Etc."

May 19, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Public Utilities Commission of Ohio issued an order clarifying a 2014 finding on rehearing that requires the, "disclosure of all fees including those by brokers, governmental aggregators, etc."

As reported by EnergyChoiceMatters.com, the February 2014 rehearing order addressed new rules that adopted a requirement that, "[a]n itemized list and explanation of all prices and all fees associated with the service," shall be provided to customers.

On rehearing, PUCO clarified that, "[this] change to Ohio Adm. Code 4901:1-21-12(B)(7) was made to require disclosure of all fees including those by brokers, governmental aggregators, etc., and does not require disclosure of cost components such as postage."

The Energy Professionals of Ohio (EPO) sought clarification of the order, asking whether the disclosure requirement applies to non-broker independent agents of suppliers, and whether the disclosure requires the exact amount of the fee to be disclosed.

On clarification, PUCO clarified that, "if a broker fee is embedded within the contract price (an all-inclusive price), then a disclosure statement advising that the price includes a broker fee shall be set forth in the contract in order to comply with the requirements in Ohio Adm. Code 4901:1-21-12(B)(7) and 4901:l-29-ll(J). The amount of the broker fee itself need not be disclosed in those situations where the broker fee is embedded within the contract price."

Regarding the applicability of the disclosure requirement to non-broker third parties, PUCO ruled that, "Regarding EPO's request for clarity that fee disclosure be required for all third-party entities that serve to connect retail customers with CRES [competitive retail electric service] suppliers, including exclusive independent agents of CRES suppliers, the Commission intended this provision to only apply to entities within our statutory jurisdiction, which would include brokers, aggregators, and governmental aggregators only."

Additionally, PUCO affirmed that the fee disclosure requirement applies only to residential and small commercial contracts only

"The Commission finds that Ohio Adm. Code 4901:1-21-12(B) expressly provides that the list of contract requirements, including the 'all fees' requirement, applies to CRES provider contracts with residential and small commercial customers. Additionally, lest any confusion arise regarding the corresponding CRNGS rule, Ohio Adm. Code 4901:1-29-11 (J), the Commission notes that Ohio Adm. Code 4901:1-29-02(0) states that the chapter does not apply to mercantile natural gas customers. Thus, the 'all fees' requirement applies only to residential and small commercial CRES customers and non-mercantile CRNGS customers," PUCO said

Docket 12-1924-EL-ORD

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