Retail Suppliers: Make Utility Send Mailed Notice of Default Service Rate Changes

If retail electric suppliers will be required to send customers advanced mailed notice of price changes, as proposed in Connecticut, then utilities should be required to similarly mail customers notice of default service price changes, the Retail Energy Supply Association said in exception to a Connecticut draft

Click here for prior story on proposed price change notice rules

RESA noted that a draft proposing interim changes to Connecticut's retail market would require a supplier to mail a written notice of any price change 30 days in advance.

RESA noted PURA has proposed this price change notice rule because, "[i]t is critical that customers receive timely and specific information about their future generation rates in order to properly assess their options."

"Just as customers should be provided advance notice of supplier price changes so as to be able to properly assess their options, customers should also be provided advance notice of EDC [electric distribution company] generation rate changes to properly assess their options," RESA said.

"Each electric supplier competes with the EDCs and each and every other electric supplier for a limited customer base on a variety of factors, including price. In order to promote a competitive market, electric suppliers must be able to operate on as level a playing field with the EDCs as possible. Thus, just as suppliers are directed to provide advance notice of ongoing generation price changes, the EDCs should also be required to provide such notices. Otherwise, the structural bias that directly inures to the benefit of the EDCs as the default service providers will continue to prevail to the further detriment of the competitive market. In these circumstances, there is no reason that the EDCs should be treated any differently than suppliers. In fact, it would be good policy to require the EDCs to keep their customers fully informed as well. Thus, RESA requests that, in the interim final decision, the Authority also require the EDCs to provide notices of any change in generation rates," RESA said.