PSC Opening Review of Retail Energy Consumer Protection Rules

The District of Columbia PSC is opening a new rulemaking to review consumer protections in the retail electric and natural gas markets, declining to institute a market-wide investigation into retail supplier practices.

Instead, because the PSC found that the vast majority of testimony submitted at an informational hearing on supplier marketing concerned a single retail supplier, Starion Energy, the PSC will hold a separate evidentiary hearing regarding Starion Energy's practices, and issued a cease and desist order to Starion Energy

See related story today: PSC Issues Cease and Desist Order to Starion Energy

"A specific, focused investigation of whether Starion is in violation of the statute or our rules, coupled with a Cease and Desist Order and the possibility of forfeitures, will send any necessary signal to the community," the PSC said in denying the specific investigation into all suppliers' practices which had been sought by the People's Counsel.

However, the PSC warned suppliers that, "[i]f we do not see an improvement in the business practices of energy suppliers, we will reconsider whether or not to initiate a general investigation."

Additionally, the PSC will undertake, "a thorough review of our existing rules and procedures to determine whether any changes are necessary in light of the changes in the electricity competition marketplace in the thirteen years since those rules were adopted."

In particular, the PSC said that it intends to review rules regarding:

• Enrollment procedures

• Renewal procedures

• Termination of contracts

• Slamming and cramming

• Licensing

• Billing

• Security deposits

• Disconnections and reconnections of service

• Resolution of formal and informal complaints

"Our review will balance two important goals: the development of a healthy competitive market and the enforcement of effective consumer protections," the PSC said.

A formal Notice of Proposed Rulemaking is to be issued in the future.

"In addition, the Commission will take other steps to assure that consumers can exercise informed choices in selecting retail electricity suppliers," the PSC said, including:

• Establishing an Office of Compliance and Enforcement

• Implementing outreach programs focusing on consumer safeguards.

• Working with retail electricity suppliers and the organizations which represent them to be sure that sales personnel, and other representatives of the industry, are familiar with our consumer protection requirements.

"[W]e will not hesitate to use the powers the D.C. Council has given us in that Act whenever we have reasonable cause to believe that 'customers or the reliability of electric supply in the District of Columbia will be harmed by the actions of a market participant,'" the PSC said.

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