Regulator Opens Proceeding To Determine "Appropriate Limitations" For ALL Retail Supplier Contracts -- EnergyChoiceMatters.com

Regulator Opens Proceeding To Determine "Appropriate Limitations" For ALL Retail Supplier Contracts

July 3, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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On July 3, 2023, the Connecticut Public Utilities Regulatory Authority (Authority or PURA) initiated Docket 18-06-02RE02 to determine the "appropriate limitations" with which all customer contracts with electric suppliers, entered into on and after a determined date, must comply.

The opening of the proceeding follows the signing of Public Act 23-102 by the Governor last week

Section 31 of Public Act 23-102 amends Conn. Gen. Stat. § 16-245o(m) to state, in part: "The [A]uthority may initiate a docket to order all customer contracts with electric suppliers, entered into on and after a determined date, to comply with appropriate limitations the authority deems necessary."

The "appropriate limitations" language existed prior to Public Act 23-102; however, it was previously subject to a now-struck limitation that applied the provision to any order, "pursuant to this subsection", related to service to hardship customers. In brief, the "appropriate limitations" language was previously limited to hardship customers, but under Public Act 23-102, it is now no longer limited to hardship customers

While Public Act 23-102 specifically expands the applicability of PURA's "appropriate limitations" authority, PURA, as previously reported, was previously granted authority, "to condition an electric supplier's license and access to the systems and billing of the electric distribution companies on terms the authority determines to be just and reasonable, including, but not limited to, proof that the electric supplier's products are not overpriced or harmful to residential customer."

PURA had been conducting a proceeding to determine whether to impose any such conditions on retail suppliers pursuant to this previously granted authority. Phase II of such proceeding will now essentially be addressed in the new Docket 18-06-02RE02. PURA has taken administrative notice of various filings in its prior "just and reasonable" investigation as part of new Docket 18-06-02RE02

As previously reported, PURA's Office of Education, Outreach, and Enforcement (EOE) had previously proposed conditions, such as price caps, for retail supplier licenses (see details here) in the "just and reasonable" investigation.

As part of the new Docket 18-06-02RE02, PURA sought comment on the following:

1. The Retail Energy Advancement League’s (REAL) Expert Report and accompanying Exhibits submitted on January 13, 2023, in Docket No. 18-06-02RE01 (see details on the report here)
2. PURA’s Office of Education, Outreach, and Enforcement’s (EOE) Investigative Report submitted on February 10, 2023, in Docket No. 18-06-02RE01, which found that retail supplier residential prices are "overpriced and harmful" and which proposed various conditions on customer choice (see details on the report here)
3. Each EDCs’ Cost and Timeline Filing for the implementation of any billing changes to accommodate the relevant section of Public Act 23-102, which the EDCs were directed to file by July 31
4. Potential allocation methods for dividing the EDCs’ costs associated with billing system changes required to comply with Conn. Gen. Stat. § 16-245o(m), as amended by § 31 of Public Act 23-102, among licensed electric suppliers.

Section 31 of Public Act 23-102 also provides, effective January 1, 2024, that hardship customers may enroll with an electric supplier, provided that the supplier's rate is at or below the standard service rate for the duration of the contract. PURA previously moved all hardship customers to default service.

Specifically, Section 31 of Public Act 23-102 amends Conn. Gen. Stat. § 16-245o(m) to state, in part: "On and after January 1, 2024, customers of electric distribution companies who (1) are hardship cases for purposes of subdivision (3) of subsection (b) of section 16-262c, as amended by this act, (2) have arrearages deducted from such customers' bills by the electric distribution company pursuant to subdivision (4) of subsection (b) of section 16-262c, as amended by this act, (3) receive other financial assistance from an electric distribution company, or (4) are otherwise protected by law from shutoff of electricity services may enroll with an electric supplier, provided all customer contracts with electric suppliers, for rates effective on and after January 1, 2024, shall be at or below the standard service rate for the duration of the contracts. Any billing system costs incurred by an electric distribution company to comply with this section shall be recoverable from all licensed electric suppliers."

In the new docket, the Authority will determine the electric distribution companies’ costs and timeline for implementation of any billing system changes required to comply with Conn. Gen. Stat. § 16-262o(m), as amended by § 31 of Public Act 23-102, as well as the recovery of such costs from all licensed electric suppliers.

Docket 18-06-02RE02

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