|
|
|
|
|
PUC Adopts Additional Notice, Not Required By Statute, To Expired Fixed Rate Customers As Part Of Implementing New Law
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The Public Utilities Commission of Ohio has adopted final rules to implement two new laws addressing retail supplier notice requirements for the ending of an "introductory" fixed rate -- R.C. 4928.102 (electric) and 4929.221 (gas)
In adopting final rules, PUCO did not revise the language from the proposed rules issued for comment
As more fully discussed in our prior story, the new laws generally require retail suppliers to send, to customers on an "introductory" fixed rate that converts to a variable rate, notices concerning the expiration of the fixed rate, as well as an annual notice if the customer remains on a variable rate
While the final rules largely track the statutory language (including a previously reported statutory definition for "small commercial" electric customer [details here], to which notices must be sent), the proposed rules notably require an additional notice to electric customers only as part of the annual notice
Both the electric and gas statutes require that a supplier shall send an annual notice to each residential and small commercial electric customer (for gas, residential and non-mercantile commercial customer) that has entered into a contract with the supplier that has converted to a variable rate upon the expiration of the contract's fixed introductory rate.
For the annual notice, both the electric and gas statutes only provide that, "The notice shall inform the customer that the customer is currently subject to a variable rate and that other fixed rate contracts are available."
However, PUCO adopted, for the electricity rule only, that this annual notice shall also inform the customer of, "The commission web site that, as a comparison tool, lists rates offered by CRES suppliers." [i.e. PUCO's Apples to Apples]
The electric and gas statutes both require that the two expiration notices to be sent by a supplier to customers in advance of the end of an introductory fixed rate shall inform the customer of PUCO's Apples to Apples site, but statute does not require a statement concerning the availability of the Apples to Apples site in the annual notice
Additionally, PUCO does not require that the annual notice for natural gas customers include a notice of, "The commission web site that, as a comparison tool, lists rates offered by [retail gas] suppliers."
Generally, aside from the additional Apples to Apples notice described above, PUCO's final rules do not include any additional language or provisions not found in the new statutes, including no additional details or definition of what constitutes an "introductory" fixed rate
The adopted rules specifically provide as follows:
Electric:
(B) If a competitive retail electric service (CRES) supplier offers a residential or small commercial customer a contract for a fixed introductory rate that converts to a variable rate upon the expiration of the fixed rate, the CRES supplier shall send two notices to each residential and small commercial customer that enters into such a contract. Each notice shall provide all of the following information to the customer:
(1) The fixed rate that is expiring under the contract;
(2) The expiration date of the contract's fixed rate;
(3) The address for the commission web site that, as a comparison tool, lists rates offered by CRES suppliers; and
(4) A statement explaining that on each customer's bill is a price-to-compare notice that lists the utility's standard service offer price.
(C) The second notice shall include all of the requirements in paragraph (B) of this rule and shall also identify the initial rate to be charged upon the contract's conversion to a variable rate.
(D) The notices shall be sent by standard United States mail or electronically with a customer's verifiable consent, as follows:
(1) The CRES supplier shall send the first notice not earlier than ninety days, and not later than sixty days, prior to the expiration of the fixed rate.
(2) The CRES supplier shall send the second notice not earlier than forty-five days, and not later than fifteen days, prior to the expiration of the fixed rate.
(E) A CRES supplier shall provide an annual notice, by standard United States mail or electronically with a customer's verifiable consent, to each residential and small commercial customer that has entered into a contract with the CRES supplier that has converted to a variable rate upon the expiration of the contract's fixed introductory rate. The notice shall provide all of the following information to the customer:
(1) The customer is currently subject to a variable rate;
(2) Other fixed rate contracts are available; and
(3) The commission web site that, as a comparison tool, lists rates offered by CRES suppliers.
The rule for natural gas mirrors the above-listed rules for electricity with two exceptions.
As noted above, the natural gas rule does not include a requirement for the annual notice to include notice to the customer of the PUCO Apples to Apples site.
Additionally, the gas rule does not require that the fixed rate expiration notices include a statement explaining that on each customer's bill is a price-to-compare notice that lists the utility's standard offer price (statute only requires this statement for electricity, and the rules mirror this).
The gas rule applies to residential and non-mercantile commercial customers, compared to the electricity rule's applicability to residential and small commercial customers
Otherwise, the gas rules include the same substantive requirements listed above, with the rule language revised to refer to competitive retail natural gas service suppliers (CRNGS) rather than electric suppliers (CRES)
The final rules for electricity and gas both require that suppliers "shall ensure" that all notices required under the rules comply with the following:
(1) The notices must use clear and unambiguous language in order to enable the customer to make an informed decision; and
(2) The notices must be designed in a way to ensure that they cannot be confused with marketing materials.
The final rules do not further prescribe specific language or design necessary to comply with these two directives regarding language and design
As noted above, the electric rule includes a new definition for "small commercial customer" as required by statute. Note that this new definition is limited to applying to the specific new electric rule, 4901:1-21-20, Notification Requirements for Fixed Introductory Rate Contracts. The definition of "small commercial customer" has not yet been updated in other existing rules which use the term
Specifically, for new 4901:1-21-20, Notification Requirements for Fixed Introductory Rate Contracts, for electricity, the term "small commercial customer" excludes customers that receive electric service pursuant to a nonresidential tariff if any of the following apply:
(1) The customer's demand for electricity exceeds twenty-five kilowatts within the last twelve months;
(2) The customer does one or both of the following:
(a) Manages multiple electric meters and, within the last twelve months, the electricity demand for at least one of the meters is twenty-five kilowatts or more; or
(b) The customer has, at the customer's discretion, aggregated the demand for the customer-managed meters.
Addressing stakeholder comments in response to the proposed new rules previously issued for comment, PUCO said that the existing automatic renewal notices, required to be sent under separate current rules, shall not serve as a means of complying with the new annual notice requirement under the new rules for Notification Requirements for Fixed Introductory Rate Contracts
IGS and RESA had suggested allowing the existing automatic renewal notices (or similar notices) to suffice for the new annual notice requirement set forth in R.C. 4928.102 and 4929.221 so long as the automatic renewal notice contains all of the information required under the new rules.
PUCO said, "Due to the frequency of price changes and the indeterminate nature of contract length, it is highly unlikely that competitive suppliers will issue automatic renewal notices to customers who have been placed on a variable price supply relationship, which is the circumstance in which annual notices are required."
"The manifest intent of the statutory language is to require an annual communication advising customers of price and pricing options in the marketplace. Therefore, we disagree with the premise offered by IGS and RESA and, thus, will not adopt the proposed modification," PUCO said
IGS and RESA had also both sought rule language clarifying that, in terms of sending out the new annual notice, retail suppliers may comply with this requirement by issuing the annual notice at any time during each calendar year. IGS and RESA raised concern that, without such clarification, the annual notice requirement may be read as imposing a more specific compliance date on suppliers for the once-annual notice, such as requiring that the notice must be sent on a rolling 12-month basis unique to each customer contract based on each specific contract's unique anniversary date
In response, PUCO said, "we agree", that retail suppliers should have flexibility on when to send the annual notice to the variable rate customer, but PUCO said that no rule language change is necessary to effectuate this
The Ohio Consumers' Counsel had proposed specifying in the rule language that the new notices apply to a residential or small commercial fixed rate contract, "no matter the length of the fixed rate offer".
PUCO declined to adopt the specific language sought by OCC, as PUCO said, "While we agree that nothing in the statutory language limits the new notice requirements based upon the duration of the fixed rate, we have attempted to remain true to the statutorily adopted language and, therefore, decline to insert language not adopted by the General Assembly."
Concerning the effective date for the new rules, the Commission noted that the General Assembly, in adopting R.C. 4928.102 and 4929.221, directed the Commission to adopt rules satisfying these new statutes within 150 days after the statutes' effective date. PUCO said that 150 days after the statutes' effective date is January 11, 2026.
"It is the Commission’s intention to have proposed rules in place by that date," PUCO said
PUCO ordered that, "That the final rules be effective on the earliest date permitted," as the rules go through the customary JCARR, etc. process
PUCO declined to include a specific start date for the new rules or any of the requirements included therein, as had been sought by retail suppliers (suppliers had proposed that PUCO specify that the first annual notice not be required to be sent until 2026, with IGS also proposing an effective date of January 1, 2026 for the new rules generally)
Case 25-710-GE-ORD
Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
August 21, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
|
|
|
|
|