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Consumer Counsel Petitions Regulator To Open Investigation Into "Abusive" Practices Of Retail Suppliers

Notes Regulator Can Mandate Hardship Customers Be Served Only On Default Service (Shopping Ban)

Asks That Regulator Collect Evidence From Retail Suppliers

January 31, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Connecticut Office of the Consumer Counsel petitioned PURA to, "open a proceeding investigating the effects of abusive electric supplier marketing practices on vulnerable populations."

"OCC has identified numerous troubling allegations of vulnerable populations being adversely affected by electric supplier marketing practices. The vulnerable populations include low-income consumers, senior citizens, consumers for whom English is a second language, and consumers with disabilities. To address the problems identified in recent consumer complaints, OCC respectfully maintains that PURA should collect evidence from all interested stakeholders in a proceeding exploring the issue of how vulnerable populations are affected by abusive supplier marketing practices," OCC said

OCC noted that General Statutes§ 16- 245o(m) authorizes PURA to require that all hardship customers be served on default service, and not be permitted to be served by electric suppliers

OCC noted that under statute, PURA, "may initiate a docket to review the feasibility, costs and benefits of placing on standard service all customers of all electric suppliers (1) who are hardship cases for purposes of subdivision (3) of subsection (b) of section 16-262c, (2) having moneys due and owing deducted from such customers' bills by the electric distribution company pursuant to subdivision (4) of subsection (b) of section 16-262c, (3) receiving other financial assistance from an electric distribution company, or (4) who are otherwise protected by laws from shutoff of electricity services. Notwithstanding the provisions of section 16-245r, the authority may, in a final decision issued pursuant to this subsection, order all such customers to be placed on standard service. If the authority issues such an order, it shall reopen such docket not less than every two years," statute provides

OCC further said, "The extent to which the general class of ratepayers is subsidizing uncollectible expenses associated with potentially high rates charged by retail energy suppliers is currently unknown, and merits investigation. Moreover, examining whether customers who receive federal Low Income Home Energy Assistance Program ('LIHEAP') money or other forms of energy assistance are unnecessarily overpaying for their electricity will provide useful information as to whether such energy assistance is being utilized to its maximum customer benefit."

The OCC said that for the rolling year of January 2016 through December 2016, residential consumers who chose a retail supplier paid, in aggregate, $59 million more than the Standard Offer (see OCC information here)

In the month of December 2016, nearly nine out of ten residential supplier customers paid more than the Standard Offer in Eversource territory, and over nearly seven out of ten residential supplier customers paid more than the Standard Offer in UI territory, OCC said

OCC's petition was backed by the state's Senate Democrats

"We now have proof that countless seniors and other vulnerable residents of our state have been targeted by deceptive salespeople pushing unreasonably expensive electricity generation contracts," said Senator Terry Gerratana (D-New Britain). "Unfortunately this does not come as any surprise. I have received calls from these salespeople, as has my elderly mother. We knew to say no, but many have not been so fortunate. Armed with the information collected by the Office of Consumer Counsel, we will be able to take on these shady salespeople and hopefully put a stop to this practice."

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