Resident Power Seeks Declaratory Order on Ability to Switch Former PNE Energy Supply Customers

On February 22, aggregator Resident Power LLC petitioned the New Hampshire PUC for a declaratory order that its transfer of aggregation customers from customers originally placed with PNE Energy Supply, LLC, who were dropped to default service due to a PNE Energy Supply default, to a new competitive supplier does not constitute slamming.

See prior story for PNE Energy default

Resident Power said that all of the former PNE customer accounts moved to PSNH default service are aggregation customers of Resident Power and have executed aggregation agreements which appoint Resident Power as their exclusive agent for the purpose of researching, negotiating and executing electricity supply agreements with electric energy suppliers where the competitive electricity rate will be lower than the posted utility rate.

"The intent of RP is to continue to work on behalf [of] those customers who have not submitted to RP a written notice of cancellation in accordance with those Aggregation Agreements, and move their accounts off of the PSNH default service and to a CEPS [retail supplier] with a rate plan that is lower than PSNH default service," Resident Power said.

PNE Energy Supply previously entered into a transaction to sell the accounts to FairPoint Energy. At that time (prior to the default), PNE sent out a notice to its customers announcing the agreement with FairPoint Energy and the impending transfer of PNE customer accounts to FairPoint Energy. That notice contained the following statement: "Resident Power will no longer be an aggregator for your account, but will cooperate with FairPoint Energy to assist in the transition between electricity suppliers."

"Based upon communications with PUC counsel, Petitioner understands that based on the statement in the PNE notice [noted] above, any attempt by Petitioner to place one of its aggregation customers now on PSNH default service as a result of the ISO-NE mandate described in Paragraph 11 above with a CEPS may constitute 'slamming' under the Commission's rules," Resident Power said.

"Neither RP or, to the best of RP's knowledge, any customer of RP has sent the other party a written notice of cancellation pursuant to Paragraph 6 of the Resident Power Terms and Conditions, except [for 5 customers] as noted above ... Thus, for staff or counsel for the PUC to assert that RP is no longer an aggregator for the PNE accounts intended to be, or being transferred to FPE, staff and counsel would have to claim that PNE was acting as an agent of Resident Power intending to cancel the aggregation agreements when PNE sent its notice to its customers on February 11," Resident Power said.

"While RP was a signatory to the Account Purchase and Sale Agreement between PNE and Fairpoint Energy, nothing in that agreement created an agency relationship empowering PNE to cancel the RP Aggregation Agreements. RP's aggregation authority remains in place with respect to its customers," Resident Power asserted.

Resident Power is specifically seeking:

"An Order that RP's, or any CEPS' to whom RP offers an aggregated load, proposed enrollment of those RP customers with whom an aggregation agreement exists, who were formerly customers of PNE and were transferred to PSNH default service on February 20, 2013, as a result of the suspension of PNE by ISO New England, for electric service to be provided by FairPoint Energy LLC or any other competitive electric power supplier at an energy service rate less than the PSNH default service rate, shall not constitute 'slamming' under applicable New Hampshire law, including PUC 2004.10(b), provided such customer of RP has not provided notice of cancellation to RP in accordance with the terms and conditions of his or her Aggregation Agreement with RP on or before the date of enrollment of such customer in the applicable electronic data interchange."

Docket DE 13-057