Pa. PUC Invites Comments On Need For Disclosure Of Broker Compensation, Broker's Affiliation With Retail Supplier

Possible Reporting Requirement For Suppliers Marketing A Price That Is "Significantly Higher" Than The Current Utility PTC

February 3, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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As part of an upcoming rulemaking to be opened on residential retail supplier marketing regulations, the Pennsylvania PUC’s Office of Competitive Market Oversight (OCMO) has invited informal comments on whether regulations concerning broker compensation disclosures should be developed, and whether a reporting requirement should be instituted for retail suppliers (EGSs) marketing a price that is "significantly higher" than the current utility Price to Compare (PTC)

OCMO invited comments on the issues during a recent CHARGE (Committee Handling Activities for Retail Growth in Electricity) conference call, in addressing an upcoming rulemaking to review and update the Chapter 111 Residential Supplier Marketing Regulations (52 Pa. Code § 111), which had exclusively been first reported by EnergyChoiceMatters.com in November

Apart from reiterating several issues on which it was seeking comment (first covered in our original story and recapped below), OCMO said, based on some initial feedback, it was seeking comments on two additional issues

Concerning brokers, OCMO is seeking comments on, "Any need for guidance regarding residential brokering (such as disclosing how and who compensates the broker for their services; and the broker disclosing any affiliations with other suppliers, etc.)."

Concerning supplier rates and marketing, OCMO is seeking comments on a, "Possible reporting requirement regarding EGS marketing a price that is significantly higher than the current utility PTC. Including: what would be the triggering price level (such as a percent of the PTC, i.e. 150%, etc.), possible exceptions (i.e. renewable products), applicable customer classes (residential only, or also small commercial, etc.)."

OCMO said that informal comments should be emailed to the Office of Competitive Market Oversight at: RA-OCMO@pa.gov. As these are informal comments, they should NOT be addressed to or submitted to the Commission’s Secretary (there is not yet a docket established for this proceeding as it is still in the preliminary, informal stage). OCMO directed that any informal comments be emailed by Friday, February 21, 2020.

OCMO is also seeking comment on the following topics, including a potential limit on robocalls, which had been previously announced

• Telemarketing rules – see 52 Pa. Code § 111.10; including a possible reporting requirement for telemarketing analogous to the reporting requirement [notice to PUC and EDCs] for door-to-door marketing at 52 Pa. Code § 111.14, and potential limitations on caller ID spoofing and robocalls.

• Updating the sales verification procedures at 52 Pa. Code § 111.7 to accommodate new and evolving technologies.

• Quality control and oversight of marketing vendors – see 52 Pa. Code § 111.5.

• Updating rules and guidance on the marketing of renewable energy products – see 52 Pa. Code § 54.6 and 52 Pa. Code § 75.68.3

• Rules for direct mail marketing and in person marketing.

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