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

The Public Utilities Commission of Ohio has adopted revised 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 final rules provide that CRES providers, "shall perform criminal background checks on all employees and agents engaged in door-to-door marketing and enrollment."

PUCO also adopted language limiting door-to-door direct solicitations to the hours between 9:00 a.m. and 7:00 p.m., in cases where there are no local ordinances. The final rules also add language requiring that direct solicitors shall obey all local ordinances.

Additionally, all door-to-door sales shall now be independently third-party verified.

Under the final 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.

A notable addition from the draft rule is that telephonic enrollments, and TPVs of door-to-door sales, must include, "[a] verbal statement and the customer's acknowledgement that the CRES provider is not the customer's current electric utility company and that the customer may choose to remain with the electric utility company or enroll with another CRES provider."

Under the revised rules, the form of identification required to be worn by door-to-door solicitors now requires PUCO Staff approval.

In the final rule, PUCO has maintained the seven calendar day rescission period (a draft had proposed extending it to seven business days). Rescission shall be accomplished by contacting the utility, not the retail supplier.

Under the final rule, a new section was added for contract pricing disclosures related to "Percent Off" contracts, and provides that, for percent off discounted rates, the disclosure shall include an explanation of the discount and the basis on which any discount is calculated.

For variable rate disclosures, the final rule provides the disclosure 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, 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.

Per the final rules, 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 rule 4901:1-21-06 of the Administrative Code [relating to an initial enrollment]."

Rules regarding automatic contract renewals remain limited to residential and small commercial customers, 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 final rules.

Case No. 12-1924-EL-ORD