Regulator Concerned New Entrants Are Unaware That Aggregators May Not Represent a Supplier, Must Solely Represent Customers

Recommends Requiring Aggregators To Certify They Are Not Compensated By Suppliers; Have No Agency Relationship With Suppliers

February 25, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Office of Education, Outreach, and Enforcement (EOE) of the Connecticut PURA said in a letter to PURA's Chairman that EOE is concerned that new market entrants are not aware of PURA's long-standing determination that an electric aggregator may only represent a customer, and may not represent a supplier

EOE noted that, in 2011, PURA reiterated its determination that, "Aggregators must act as the customers’ agents in negotiating electric generation prices for the gathered customers, and that the law precluded Aggregators from acting as agents for Suppliers."

Earlier, in a 2009 decision, PURA held that, "As evident by the express language of [C.G.S. §16-1(a)(31)], electric Aggregators must negotiate prices of electric generation services with the Electric Suppliers on the customers’ behalf. Thus, Electric Aggregators must act as the customers’ agents. As customers’ agents, Aggregators may not simultaneously be agents or representatives for Electric Suppliers."

PURA has held that Suppliers are not permitted to use Aggregators to represent them or market on their behalf on any matters, and similarly, Aggregators are not permitted to market or represent any Suppliers in any capacity.

In 2011, PURA held, "The Department holds that pursuant to the express language of C.G.S. §16-1(a)(31) and intent of the electric restructuring laws, Aggregators are the customers’ agents. Aggregators’ loyalty must lie with the customers, and as such, Aggregators may not represent or act as agents or representatives for any Suppliers at any time, or in any capacity. As required by statute, Aggregators must represent customers in negotiating the best electric generation price for those customers. Similarly, Suppliers are not permitted to employ Aggregators to (a) represent them, (b) market on their behalf on any matter, or (c) provide any customer service-related functions on their behalf ... the Department will not sanction any type of Supplier-Aggregator agency relationship that (a) continues to operate contrary to these findings; (b) enters into an agency agreement with any Supplier(s); (c) has any types of business relationship or arrangement with a Supplier; or (d) whose aggregation activities are inconsistent with the language or intent of C.G.S. §§16-1(a)(31) and 16-245(l)."

In a Feb. 25 filing, EOE stated, "The Authority’s Office of Education, Outreach, and Enforcement (EOE) is concerned that in the intervening decade since the Authority’s Decision, new aggregators have entered the market that are unaware of the Decision and regression may have occurred with existing aggregators."

"As a result, EOE requests that the Authority issue [a] Notice in the present docket requiring all aggregators to again certify that they do not have an agency relationship with a supplier, that they are not compensated by a supplier, and that they solely represent customers and not suppliers," EOE said

Docket No. 10-06-24

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