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Latest Proposed Rules Include New Definition For "Completed Written Contract", Rescission Period Start Times

Requires Suppliers Must Include "Prominent" Link To PSC's Consumer Rate Board On Website


March 26, 2018

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

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

The District of Columbia PSC has issued a third notice of proposed rulemaking addressing the consumer bill of rights for customers of retail electric and gas suppliers.

The latest proposal largely mirrors the proposed text from a December second notice, but includes a new definition for a "Completed Written Contract" and changes the rescission period start time for certain sales channels

Specifically, the latest proposal includes the new term "Completed Written Contract" which is defined as, "An agreement between a Customer and an Energy Supplier that specifies the terms, conditions and charges for the provision of electric or natural gas services to the Customer and the agreement is signed or acknowledged through Third Party Verification, an electronic signature, or an electronic recording."

Notably, the now-defined term is used in proposed rules governing telephonic contracting, which states, "Once the Customer's choice of Energy Supplier is verified by an Independent Third-Party Verifier or an electronic recording is made, the Energy Supplier shall, within five (5) business days from the day the Customer agreed telephonically to Contract with the Energy Supplier, provide to the Customer via U.S. Mail or electronic mail a copy of the Completed Written Contract."

In contrast, the second proposed rulemaking had stated in this same provision, "Once the Customer's choice of Energy Supplier is verified by an Independent Third-Party Verifier or an electronic recording is made, the Energy Supplier shall, within five (5) business days from the day the Customer agreed telephonically to Contract with the Energy Supplier, provide to the Customer via U.S. mail or electronic mail a complete written Contract."

Note also that the latest language acknowledges that, in telephonic contracting, the customer will receive a "copy" of the Completed Written Contract, as opposed to the earlier direction that the customer receive "a" complete written Contract, as the latter's more ambiguous language could have led to an interpretation that the telephonic contract was not "a" contract and therefore not an enforceable contract

The latest proposal does not change the earlier proposal that states there are three principal ways in which a residential Customer may enter into a Contract with an Energy Supplier:

(a) Through a recorded verbal consent via telephone solicitation;

(b) Electronic contract; or

(c) Written contract.

The latest proposal maintains that, to verify a residential customer's intent to contract with an energy supplier by telephone, an energy supplier must utilize either:

1. An Independent Third-Party telephone verification; or

2. An automated, computerized system; or

3. An electronic recording of the entire conversation between the customer and the energy supplier which the energy supplier shall maintain for three (3) years.

Regarding the rescission period, the latest proposed rule maintains a three business day rescission period. However, under the latest proposal, the rescission period would begin on one of the following dates:

(a) When the Customer signs the Contract;

(b) When a positive Third-Party Verification or electronic recording has been made;

(c) When the Customer transmits the electronic acceptance of the Contract electronically; or

(d) When the Completed Written Contract is deposited in the U.S. Mail.

Where this differs from the earlier second proposed rule is subsection (d). Previously, subsection (d) had proposed the start date for the rescission period as, "If the Contract is mailed by the Energy Supplier to the Customer, when the Contract is received by the Customer."

The prior second proposed rule had further stated, "There shall be a rebuttable presumption that a Contract correctly addressed to a Customer with sufficient first class postage attached shall be received by the Customer three (3) days after it has been properly deposited in the United States mail with the instruction that if the Customer accepts the contract by signing and returning the contract, the Customer has three business days to rescind the contract from the date of acceptance. Date of acceptance is the date that the Customer deposits a signed contract in the United States mail."

The latest proposed rule also deletes the requirement that the supplier provide their website address to the electric utility or natural gas utility. The latest proposal deletes that earlier proposal that, "The Natural Gas Utility or Electric Utility shall include a link to the Energy Supplier's website on its website."

The latest proposal would require that Energy Suppliers shall, "prominently display on their websites' homepages links to the Commission's website pages for Customer Retail Choice and Consumer Suppliers' Offers."

The prior second notice proposal has required a link to the PSC website, though it did not list the specific consumer info and offer pages to be linked to, and more importantly, did not specify that such link be "prominent". An earlier proposal that suppliers be required to link to the websites of the natural gas utility and electric utility has been deleted

The latest proposed rule would change the natural gas enrollment deadline. The latest proposal stated, "Not less than seven (7) days before the first day of the next month each Energy Supplier shall provide to the Natural Gas Utility a list of new Customers to be supplied by that Energy Supplier beginning with the first day of the next month."

In contrast, the second notice proposed rule had stated, "By the seventh (7th) calendar Day of the month (or next Business Day, if the seventh day falls on a holiday or weekend), each Energy Supplier shall provide to the Natural Gas Utility a list of Customers to be supplied by that Energy Supplier beginning with the Customer's Meter read date the following month."

Docket RM3-2014-01

Separately, the PSC issued a second notice of proposed rulemaking in Docket RM41-2017-01, regarding changes to the SOS rules to reflect a 3 business day switching period. The latest proposal alters language to apparently address concerns the prior language conflicted with the rescission period, and omits language about when suppliers must send transactions to the utility (which are instead addressed in the consumer bill of rights rule)

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