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Delaware Adopts Final New Electric Supplier Marketing, Customer Protection Rules

Paves Way For Action on POR

Advance Notice Of Variable Rates Required

February 3, 2017

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

The Delaware PSC has adopted as final new electricity marketing and customer protection rules under Reg. Docket 49.

The new rules also address electric supplier certification and other issues.

The new rules were a consensus among the Retail Energy Supply Association and the Delaware Public Advocate

The Public Advocate has desired that long-standing proposed revisions to the marketing rules be adopted in Reg. Docket 49 prior to adopting purchase of receivables, which are among other retail market enhancements being considered in Docket 15-1693.

Highlights of the new rules include:

For variable rate products:

Among other things, the supplier must disclose to customers the following or comply with the following:

• An explanation of the basis(es) on which the Price will vary and any limits on Price variability

• If there is a limit on price variability, such as a specific Price cap, a maximum percentage increase in Price between billing cycles or minimum/maximum charges per kilowatt-hour for electricity during the term of the Contract, the Electric Supplier shall clearly explain applicable limits

• If there is not a limit on Price variability, the Electric Supplier shall clearly and conspicuously state that there is not a limit on how much the Price may change from one billing cycle to the next

• A telephone number and Internet address at which a Residential or Small Commercial Customer may obtain the previous 24 months' average monthly billed prices for that customer's rate class and EDC service territory. If an Electric Supplier has not been providing service in a rate class and EDC service territory for 24 months, the Electric Supplier shall provide the average monthly billed prices for the months available to date

• When a Residential or Small Commercial Customer’s Variable Price changes, an Electric Supplier shall make available to the Residential or Small Commercial Customers the Variable Price for the next billing period

• When a variable price changes, the Variable Price shall be made available at least 12 days prior to close of the customer’s billing period

• The Variable Price shall be made available in a clear, easy to access format prescribed by the Electric Supplier

• For the purposes of disclosing the new variable rate, an Electric Supplier may provide an estimated Variable Price. If the Electric Supplier provides an estimated Variable Price, the Electric Supplier shall not use a rate for billing purposes that is higher than the estimate.

• "Variable Price" means a Price that can change from month to month (but not more frequently) on a Residential or Small Commercial Customer’s bill according to the terms and conditions in the Contract.

Other Issues:

The rules establish a three business day rescission period

"Fixed Price" means a Price that will remain the same for at least three billing cycles or the term of the Contract, whichever is longer.

Automatic contract renewals are allowed, with various notice provisions established in the rules

If the Supplier proposes to renew a Fixed Price Contract with a Variable Price Contract and the change to the Variable Price will be equal to or exceed 30 percent of the Residential or Small Commercial Customer’s Fixed Price, the Electric Supplier shall provide Written Notice of the new Variable Price to the customer at least 12 days prior to the close of the customer’s billing period.

The rules permit three principal ways in which an Electric Supplier may obtain a Residential or Small Commercial Customer’s authorization to enter into a Contract for Electric Supply Service:

• Recorded verbal consent via the telephone;

• Electronic contract; or

• Written contract

Earlier drafts had suggested that telephonic enrollments would be prohibited, but such proposals were dropped.

When a Residential or Small Commercial Customer enrolls with an Electric Supplier during a Telemarketing call, the Electric Supplier shall record the entire telephone call between the Residential or Small Commercial Customer and the Electric Supplier or its Agent, and also record a TPV.

For Door-to-Door Contracts, the Electric Supplier must obtain:

• Written or Electronic authorization; and

• A completed TPV or other process established by the Electric Supplier to verify the transaction. A process other than a TPV shall be separate from the sales transaction process and initiated only after the sales transaction has been finalized, and be initiated only after the Agent has physically exited the Residential or Small Commercial Customer’s premises;

Door-to-Door Sales at a residential dwelling shall be conducted by an Electric Supplier’s Agent between the hours of 9 a.m. to 8 p.m. EST, except where a local ordinance has stricter limitations.

An Electric Supplier shall not permit an Agent to conduct Door-to-Door Sales to Residential or Small Commercial Customers until it has completed a criminal background investigation on the Agent.

The Electric Supplier, or the independent contractor or vendor it utilizes, shall obtain and review the criminal history results from the following searches:

• Delaware state and county courts;

• A nationwide federal criminal court search, such as the Federal Public Access to Court Electronic Records (PACER) System;

• The U.S. Department of Justice National Sex Offender Public Registry; and

• Every other state in which the Agent resided during the last twelve (12) months.

• For a current Agent who conducts Door-to-Door Sales, an Electric Supplier must obtain a criminal history record for such individual not later than ninety (90) days after the effective date of these Regulations

When an Electric Supplier engages in Door-to-Door Sales, the Electric Supplier shall notify Staff and DPA no later than the morning of the day that the activity begins. The notification shall include general, nonproprietary information about the activity, the period involved and a general description of the geographical area.

An Electric Supplier shall provide the EDC with general, nonproprietary information about the Door-to-Door activity that caused the Electric Supplier to provide notice to Staff and DPA. The Electric Supplier shall provide this general information to the EDC no later than the morning of the day that the sales and marketing activities begin. The EDC shall use this information only for acquainting its customer service representatives with sales and marketing activity occurring in its service territory so that they may address customer inquiries knowledgeably. An EDC may not use the information for other purposes

For internet enrollments, the final rules drop problematic language from the PSC's December 2015 proposed rules which would have required that, "An Electric Supplier that contracts with a Customer by means of the internet shall confirm the identity of the Person authorizing the Contract."

The new rules also include a new contract summary form required to be used for mass market sales, which include information generally required on such forms in other states

The new rules are effective April 11, 2017

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