Ohio Proposes Stricter Marketing Rules for Retail Electric Suppliers (Criminal Background Checks, TPVs Included)

The Public Utilities Commission of Ohio has opened a review of rules relating to the certification of Competitive Retail Electric Service (CRES) providers, including retail suppliers, aggregators, brokers, and marketers, and the sales and marketing rules for CRES providers.

Notably, the draft rules provide that CRES providers, "shall perform criminal background checks on all employees and agents engaged in door-to-door marketing and enrollment."

The draft rules would add language requiring that direct solicitors shall obey all local ordinances.

Additionally, all door-to-door sales shall be third-party verified, per the draft.

Under the draft rules, the independent third-party verifier must confirm with the customer that the sales agent has left the property of the customer. The sales agent is not to return before, during or after the TPV process. The independent third-party verifier shall structure the TPV interview to give the customer adequate time to respond to questions and shall not lead the customer in their response.

The form of identification required to be worn by door-to-door solicitors would require Staff approval under the draft.

Under the draft, telephonic enrollments would require a, "verbal statement and the customer's acknowledgement that the CRES provider is not the customer's current electric utility company."

The rescission period would be extended to seven business days, from seven calendar days. Rescission would be accomplished by contacting the utility, not the retail supplier.

Under the draft, the required contract pricing disclosure would add a new section related to "Percent Off" contracts, and provide that, for percent off discounted rates, the disclosure shall include a explanation of the discount and the basis on which any discount is calculated.

For variable rate disclosures, the draft provides the requirement may be met by either of the following:

(i) A clear and understandable formula, based on publicly available indices or data that the CRES provider will use to determine the rate that will be charged. In the event that the CRES provider chooses to follow this option, the indices or data on which the price is based must be clearly identified in the contract terms and conditions.

(ii) A clear and understandable explanation of the factors that will cause the price to vary including any related indices and how often the price can change. In the event that the CRES provider chooses to follow this option, then no early termination fee may be charged.

The pricing disclosure must now also include the amount of any other recurring or nonrecurring CRES provider charges and a statement that the customer will incur additional service and delivery charges from the electric utility, under the draft.

Staff has also recommended the addition of transmission service to required price disclosures.

Per the draft, in instances where the customer and the CRES provider agree to a material change to an existing contract, the CRES provider, "shall obtain proof of consent and provide details of the revised contract terms and conditions as delineated in paragraph (D) of this rule [relating to an initial enrollment]."

Current rules regarding automatic contract renewals would be limited to residential and small commercial customer, rather than applying to all customers.

A competitive retail electric service (CRES) provider shall not transfer its certificate to any person without prior commission approval, per the draft.

Case No. 12-1924-EL-ORD

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