Retail Supplier Would Make $40,000 Charitable Contribution To Resolve Alleged Contract Expiration Notice Non-Compliance

Constellation Energy Power Choice, Inc. would contribute $40,000 to Operation Fuel to resolve allegations that it failed to provide proper notice to some of its Connecticut customers regarding the expiration of their fixed price term, and that a price change would be effective after such expiration, in advance of the contract expiration.

A draft Connecticut PURA decision would accept the $40,000 contribution to resolve the matter. The draft also notes that Constellation previously provided refunds to the affected customers.

Conn. Gen. Stat. §16-245o(g)(1) provides, "Between thirty and sixty days, inclusive, prior to the expiration of a fixed price term for a residential customer, an electric supplier shall provide a written notice to such customer of any change to the customer’s electric generation price."

Constellation served 8,418 residential customers whose fixed price term expired between October 1, 2013 and June 15, 2014.

During this period, the draft states that Constellation sent renewal notices which informed customers that they would no longer be served under a fixed rate plan but would be moved to a month-to-month variable rate plan.

"While timely, this notice is largely meaningless to an electric generation customer because even if it informs the customer his plan is transitioning, it fails to mention the generation price. Moreover, the renewal notices also failed to state whether the generation rate would increase or decrease," the draft states

The draft would find that these renewal notices, "failed to provide information required under Conn. Gen. Stat. §16-245o(g)(1)."

Noting various measures taken by Constellation to correct the problems once identified, the draft states, "The Authority notes with favor Constellation's efforts to correct and improve its processes."

Constellation provided the following statement to EnergyChoiceMatters.com:

"Constellation is pleased with PURA’s proposed order. We look forward to a final order that closes the matter and provides Constellation’s contribution to Operation Fuel. As a long-time energy supplier to consumers and businesses throughout the U.S., Constellation is committed to providing the highest quality service and ensuring customers receive the information they need to make informed decisions about their energy purchases."

Docket 07-03-08RE03