Utility Reports Switches To Default Service From Retail Suppliers Resulting From Utility Notice To Customers Of Incorrect Default Service Rates

August 6, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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United Illuminating has filed a report concerning customer response to a notice of incorrect default service rates that had been posted in May

As exclusively first reported by EnergyChoiceMatters.com, United Illuminating had informed the Connecticut PURA on May 24 that its previous submission of standard service rates, for all standard service customer classes, for the period beginning July 1, 2019 were incorrect. On average across various customer classes, the incorrect standard service rates that were posted were approximately 0.6 cents per kWh higher than the correct rates

UI previously reported that roughly 3,500 customers either switched suppliers or switched from standard service to a supplier from May 3 to June 4.

As previously reported (details here), PURA directed UI to send each customer that switched suppliers during that period a notice concerning the prior incorrect posting of the default service rate, with the letter encouraging customers to call UI if the customer's shopping decision had been driven by the listing of the incorrect rate. UI was directed to compensate the customer up to $50 for any early termination fee due to switching away as a result of UI's notice; however, the UI letter to customers did not inform customers of this compensation, and customers would be notified of such available compensation only upon calling UI to discuss the matter.

UI reported that, as a result of the customer notice, UI received 36 calls from 34 customers to the dedicated telephone number provided to affected customers. Of those 34 customers, one was a commercial customer and 33 were residential customers.

Of such customers, a total of 12 customers, all of whom were residential customers, chose to switch to Standard Service, UI said. Of those 12 customers, seven had a cancellation fee of $50 and four had no cancellation fee. The supplier of the remaining customer did not provide a cancellation fee, UI said

UI will provide a $50 credit on the August 2019 monthly electric bill to each of the customers who had a $50 cancellation fee. UI will ascertain if the customer whose supplier did not provide a cancellation fee did have such a fee and will reimburse that customer, if necessary. The total amount of cancellation fees that UI will reimburse will then be either $350 or $400.

UI said that suppliers with one or more affected customers who switched to Standard Service were:

• Ambit Energy

• Clearview Energy

• Constellation NewEnergy

• Direct Energy Services

• Liberty Power Holdings

• Town Square Energy

• Xoom Energy Connecticut

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