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PSC Proposes To Place Five-year Expiration On Supplier Licenses, Require Renewals; Language Could Be Interpreted As Requiring Photo ID For "Each" Sales Rep (Not Just Door-to-Door)

February 21, 2017

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

The District of Columbia PSC has issued a revised set of proposed rules for electricity supplier licensing standards.

Notably, the revised proposed rules would provide that electricity supplier licenses expire five years after issuance. Currently, licenses are valid until revoked by the PSC.

The revised proposal would maintain the requirement that an electricity supplier license is not transferable without the prior approval of the Commission

Additionally, the revised proposal would maintain the requirement that a licensee who has not initially started serving customers is required to notify the Commission as soon as the licensee begins soliciting or marketing to customers directly or through an authorized representative in the District of Columbia.

Language concerning an earlier proposal that the supplier shall provide photo IDs, to the PSC as written (though perhaps not the intent), of any individual engaged in in-person solicitations has been changed, but the new language appears to be imprecise.

Specifically, the revised proposal provides, "each sales representatives [sic], and marketing agent or representative conducting door to door solicitations shall be required to present a company photo identification to customers as part of the solicitation process."

While this language does make clear that photo IDs are to be presented to customers, not the PSC, the use (or lack thereof) of commas in the language could be read as requiring that photo IDs be presented for "each sales representative," not just door-to-door representatives, because there is not a second comma after "or representative," which would, if present, make clear that the phrase "conducting door to door solicitations" modifies the earlier language, "each sales representatives," and that "each sales representative" means only each such representative engaged in door-to-door sales (or alternatively, if the comma after each sales representatives was not present, it would be clear that the phrase "conducting door to door solicitations" applies to each sales representatives and not just "marketing agent or representative".)

The revised proposal adds a definition for "nontraditional marketer", and such entities would be excluded from the definition of electricity supplier (and thus not required to be licensed)

Under the proposal, a nontraditional marketer means a community-based organization, civic, fraternal or business association that works with a licensed electricity supplier as agent to market electricity to its members or constituents. A nontraditional marketer: (i) conducts its transactions through a licensed electricity supplier; (ii) does not collect revenue directly from retail customers; (iii) does not require its members or constituents to obtain its electricity through the nontraditional marketer or a specific licensed electricity supplier; and (iv) is not responsible for the payment of the costs of the electricity to its suppliers or producers.

The latest proposal maintains language that a licensee shall provide to the Commission at least sixty days prior written notice of the licensee's intention to cease providing electricity to: (a) all customers in the District of Columbia; or (b) all customers within a specified customer class.

The latest proposal maintains language that the PSC may impose a civil penalty of not more than $10,000 for each violation under the rules

Also unchanged are provisions regarding the PSC's authority to order customer refunds or credits.

Under the proposal, the Commission may order a licensee or an electricity supplier to issue a full refund for all charges billed or collected by the licensee or electricity supplier or a credit to the customer's account. Specifically:

(1) if slamming occurred, the licensee or the electricity supplier shall refund to the customer all monies paid to the licensee or the electricity supplier; and

(2) if cramming occurred, the licensee or the electricity supplier shall refund to the customer three times the amount of the unauthorized charges paid to the licensee or the electricity supplier.

Under unmodified language, the PSC may order the cancellation of a contract or part of a contract between a Customer and a Licensee or an Electricity Supplier as a sanction for a violation of the rules

Docket RM46-2015-0l-E

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