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Regulator Issues Revised Proposal For New Retail Supplier Contract Summary (Proposes To End Requirement To Send Info To Customers Quarterly)

August 12, 2016

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

The Massachusetts DPU has issued a revised proposal for changes to the retail electric supplier Contract Summary Label for fixed price offers.

Generally, the revised proposal does not make major changes, but tweaks minute language from an earlier proposal.

One notable proposed change, however, is that the revised proposal eliminates the existing requirement that competitive suppliers distribute the information contained in the Contract Summary Label to customers on a quarterly basis. The DPU noted that the information included on the Contract Summary Label remains unchanged during the term of the contract (with limited exceptions). As such, the Department questions the usefulness of having competitive suppliers distribute the Contract Summary Label to customers quarterly. Indeed, such distribution may lead to confusion and dissatisfaction if customers assume that the reason they are receiving the Contract Summary Label is to inform them of changes in their service, the DPU noted.

The revised proposed Contract Summary Label includes fields for suppliers to list the following:

• Competitive Electric Supplier (Name)

• Contract Term

• Price

• One-time Fee(s) (if applicable)

• Early Termination Fee

• End of Contract/ Renewal Terms

• Renewable Energy

• Other Product and Services (if applicable)

• Distribution Company Contact

The revised proposed Contract Summary Label would require suppliers to use uniform language issued by the DPU except in limited circumstances. The revised proposed Contract Summary Label accordingly would add new language specific to a variety of specific situations, such as adding language to be used to disclose the following pricing designs apart from a standard ¢/kwh rate:

• Cents/kWh with Introductory Offer

• $/month (flat fee) + Cents/kWh

• $/month (flat fee)+ Cents/kWh with Introductory Offer

Additionally, the revised proposed Contract Summary Label would provide specifics to be followed for disclosure or the presence of an early termination fee, based on whether there is no fee, a fee based on months left on the contract, or a flat fee.

The revised contract proposal also addresses language that shall be used to inform customers of when their contract will start, rejecting suppliers' proposed language which referenced the next available meter read, but attempting to address suppliers concerns about not knowing a customer's specific billing cycle at the time of enrollment. The revised proposal would require suppliers to use the language, "Your product is scheduled to begin on your billing cycle in either [month or month of year], and will continue for a [xx]-month term."

See the revised Contract Summary Label here

Docket 14-140

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