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Massachusetts Senate Passes Bill Ending Individual Residential Electric Choice
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The Massachusetts state senate today passed to be engrossed S.2738 which bans individual residential electric choice
The bill, which still must pass the House, does not apply to municipal aggregations
S.2738 specifically provides that, "Beginning on January 1, 2025, no supplier, energy marketer or energy broker shall execute a new contract or renew an existing contract for generation services with any individual residential retail customer. This section shall not apply to, or otherwise affect, any government body that aggregates the load of residential retail customers as part of a municipal load aggregation program pursuant to section 134."
A "corrective" floor amendment specifically modified the text (modification reflected in text quoted above) to apply to renewals of existing contracts
Prior to the floor debate of S.2738, the Retail Energy Supply Association (RESA) issued the following statement:
"When it comes to Massachusetts having residential retail electric choice, RESA advocates for a fair and competitive marketplace that prioritizes consumer protection. RESA supports the Commonwealth’s desire to protect consumers; however, taking away the option for 13.8% of households who use a competitive electric supplier without an issue is an overreach in correcting the problem. The proposed Senate Bill S.2738 (a new draft of S.2106) would effectively strip all residential retail electricity suppliers of their ability to serve consumers directly. This would impact a consumer’s freedom to choose their supplier and product and hinder their ability to select a plan that best suits their needs. Instead of such a drastic measure, it would be more prudent to utilize the DPU’s existing rules and authority to enforce actions against bad actors in the marketplace. Not only are most residential electric suppliers following best business practices and upholding consumer protections, they are also the same companies that the Attorney General, the Governor and consumer advocates hail as the solution for consumers to save money by buying electricity from under ‘municipal aggregation’ instead of basic service from the utility.
"RESA strongly supports proposed House Bill H.4499 (a new draft of H.3155), which offers a balanced approach by addressing consumer protection concerns while preserving a consumer’s right to choose. By implementing stringent regulations on new entrants, H.4499 ensures accountability that addresses consumer protection challenges while also setting a higher standard for new entrants before they even begin marketing to consumers by requiring suppliers to apply for a license with the state DPU to post a $5 million bond. The bill also adds new rules governing the sales, marketing and enrollment process. It will hold suppliers accountable after a sale, which increases the window for customers to file a formal complaint for any unauthorized switch from 30 days to two years.
"We respect the Healey administration’s commitment to its aggressive green energy goals. Competition plays a vital role in driving innovation and the development of renewable energy projects. We urge legislators who support a blanket ban on residential third-party electric suppliers to reconsider their position. Moving back to a single supplier (monopoly) structure would be regressive from an energy policy perspective. Since 2008, Massachusetts’ consumers have benefited from competitive power markets to the tune of $16 billion compared to the price performance of the traditional vertically integrated (monopoly) states.
"It’s time to work together and focus our joint efforts on strengthening regulations, enforcing existing rules, removing bad actors from operating in the marketplace and partnering with RESA to educate consumers and empower them to make well-informed choices."
--- Statement from RESA
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April 25, 2024
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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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