Regulator Provides Examples of Non-Compliant Contract Summary Disclosure Statements from Retail Suppliers

The Connecticut PURA has issued a notice concerning new standard contract summary templates and examples of contract summaries which it said are non-compliant with the new standard.

PURA established a standard Contract Summary template in an order issued on February 11, 2015, and had directed suppliers to submit their forms for review and approval.

"[T]he Authority finds that while many suppliers are in full compliance, some are adding additional information and/or comingling marketing related-language with the Contract Summary template as provided by the Authority," PURA said.

Many suppliers have added their logo to the top of the Contract Summary form or made minor modifications to the text provided by the Authority. These are acceptable changes, PURA said

However, "some suppliers have significantly modified the text provided by the Authority or have added information not prescribed by the template. For example, suppliers have added marketing-related language to the form, or added inappropriate information outside of the template format," PURA said.

PURA explained that, "Suppliers must mirror the template as issued in the Final Decision in Docket No. 14-07-17. Additional information, particularly additional marketing information must not be included. The spirit and intent of Conn. Gen. Stat. §16-245o is to provide the materials, terms and conditions of the contract to the customer in an accurate and concise manner so that residential customers can easily understand their contracts. Additional language serves only to confuse the customer."

Examples of non-compliant text include (non-compliant text bolded):

Rate Plan: Fixed. Even if the market rate changes, your rate will remain the same for the length of your term agreement ("contract")

Generation Rate: <00.0000>¢/kWh for the first three complete billing cycles of the initial contract, variable thereafter and can increase up to 25% without notice. At any time you decide that a Variable rate plan is no longer suitable for you, please contact [Supplier Name] for an available Fixed rate plan.

Service Location: [Supplier] will provide your service location in your welcome letter

Service Location: Utility Company: [CL&P/UI], Account #: [Utility Account #], Address: [Customer Address]

PURA further specified:

• Suppliers are required to follow the template as prescribed in the prior final decision.

• Supplier logos are acceptable at the top of the Contract Summary Form.

• In the "Service Location" field, the Supplier must include only the customer address, without additions.

• In the "Rate Plan" field, Suppliers must only include "Fixed" or "Variable."

The Authority is providing an opportunity for suppliers to submit revised copies for review and approval. Any revised Contract Summaries must be submitted to the Authority in the instant docket by May 31, 2015.

"Failure to show compliance by this deadline may result in adverse actions against the supplier's license," PURA said.

Docket No. 14-07-17