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State Opens Inquiry Into "Unbundling"

June 15, 2016

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

The Maine PUC has opened an inquiry regarding, "to what extent electricity and natural gas utility bills should be further unbundled and, if so, which components should be separately stated."

As used by the PUC, unbundling refers to the presentation of charges as line items on bills (including bills from a retail supplier), and not whether certain charges should be bypassable or nonbypassable. However, the PUC does ask for comment on whether certain costs can be discretely identified for delivery service, which may help serve any later determination regarding whether such costs are appropriately included in delivery rates

Under the PUC's current rules, a utility may not separately list line items on the bill that do not represent a separate, discrete utility service or a State or Federal Tax [Ch. 815, § 8(C)(6)].

To open the inquiry, the Commission requests comment in the following areas.

1. What components of electricity and natural gas delivery rates should be itemized on customer bills? Please explain the objective for itemizing each such item.

2. What components of electricity and natural gas supply prices should be itemized on customer bills? Please explain the objective for itemizing each such item.

3. With respect to supply, how should the charges for any unbundled item be determined? Should the charges be determined by the utility or the CEP/Marketer?

4. Should any unbundling requirements apply to bills issued by CEPs or Marketers?

5. Should the degree of bill unbundling vary by customer type, e.g., residential vs. industrial? If so, please explain how and why.

6. Should unbundling be limited to items for which the charge can be precisely calculated, e.g., electric transmission rates, or should it extend to estimated or illustrative amounts, e.g., renewable portfolio standard compliance costs? Please explain the response.

7. Should unbundling of a delivery rate component require that the component be explicitly stated in the utility’s tariffs or terms and conditions? Please explain your response.

8. Please identify all components of delivery rates that can be precisely calculated at all times.

9. Please identify all components of supply prices that can be precisely calculated at all times.

10. Please identify the components of delivery rates that are currently separately stated in utility terms and conditions.

11. What level of detail should accompany any unbundled component to explain or describe it?

12. Is there an optimal or preferred number of pages for utility bills?

13. Please identify alternative ways to convey information to customers about the components of their delivery rates and supply prices, and comment on the relative pros and cons compared to bill unbundling.

Docket No. 2016-00105

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