Retail Supplier To Drop Up To 12,000 Customers To Default Service

November 17, 2021

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

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Town Square Energy, LLC is dropping up to 12,145 customers in Connecticut to default service, unless such customers first select an alternative supplier, due to such customers' contracts expiring during the peak winter season and the high prices that would be applicable if Town Square Energy continued to serve such customers after the end of the current term

In a filing with the Connecticut PURA, Town Square Energy said, "Since October 1, 2021, Town Square Energy, LLC ('Town Square') has sent notices to 12,145 customers with contract end dates during peak winter months of December 2021 through and including February 2022 ('peak winter months') informing them that their accounts will be returned to standard service unless they opt for a new competitive supplier offer."

A Town Square Energy (TSE) spokesperson provided the following statement concerning the matter:

"Due to wholesale price spikes, Town Square Energy determined it would not be able to provide competitively priced service to many customers during this winter. So, in accordance with customers’ best interests, TSE is returning them to standard service."

--- Statement from Town Square Energy spokesperson

In a filing with the Connecticut PURA, Town Square Energy said, "Due to expected high wholesale market prices, Town Square determined it would not be able to provide service to its customers during peak winter months except at very high prices that would not be in the customers’ best interests."

In a filing with the Connecticut PURA, Town Square Energy said, "Accordingly, beginning in September 2021, Town Square began sending email notices to all of its Connecticut customers who opted into email service and/or posting messages on its website (1) advising all customers of upcoming expected high winter prices and urging customers to explore possible options available on the EnergizeCT website, including standard service and then-available competitive service offers, and (2) reminding all of recent Connecticut law changes precluding any termination fees if they switched away from Town Square. Finally, during October 2021, Town Square began sending the termination drop notices referenced above in the Responses to EOE-1a and 1d to the subset of residential customers whose contracts would end in the peak winter months so that customers could have an opportunity to choose competitive supply options at a time when lower priced options were available or, if no action is taken, migrate to standard service prior to the peak winter months."

A data response to PURA concerning such proactive communication to customers indicates Town Square issues similar communications to similarly-situated customers in Massachusetts as well. Asked specifically whether Town Square was dropping any similarly-situated Massachusetts customers, whose contracts may be expiring during the winter peak, to default service, Town Square responded only with the statement reproduced above.

Town Square said in the PURA filing that, "The [above-cited] customers identified in Response to EOE-1a supra were on more than 100 unique rates ranging from a low of $0.0626 to a high of $0.1598 per kWh. The weighted average customer rate for the customers receiving the notices was $0.0907 per kWh and the median rate was $0.0834 per kWh. These customers were selected based on the fact that their contract terms were set to expire within peak winter months, not based on their contract pricing. However, the average rate of customers dropped is higher than the current standard service rates."

Town Square said in the PURA filing that, "Town Square’s terms of service allow for Town Square to terminate for any reason following customer notice (provided that termination is not for nonpayment, which has specified notice requirements). Town Square has taken this action in the best interest of its customers, for the reasons discussed below in the Response to EOE-1f."

Town Square is still serving its Connecticut customers whose contracts do not end in the peak winter months.

"Additionally, while Town Square has suspended new or renewing offers on EnergizeCT and its own website and other marketing channels, it hopes to resume such offers at such time as it determines that it can develop offers that would provide value to Connecticut consumers, likely at some point in early 2022," Town Square said in the PURA filing

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