Retail Supplier Seeks Waiver Related to Renewal Notice Requirements

Electricity Maine, LLC sought a waiver from the Maine PUC from Chapter 305 § 4(B)(6)(a) of the Commission’s Rule governing competitive electricity providers, concerning the timing of renewal letters.

Electricity Maine’s Terms of Service provide for two methods by which the term of a supply contract is automatically renewed in accordance with Chapter 305: a customer either automatically renews into a full Renewal Term, or a customer automatically renews into a monthly, fixed-rate Holdover Term upon expiration of an initial term of a supply contract.

During the Holdover Term, "the terms and rates of the [prior] Supply Contract will continue until such time as a Contract Renewal issues."

"This flexibility allows a customer to continue to purchase power from Electricity Maine at fixed, known rates, but without a full Renewal Term, during periods when future rates are pending resolution (e.g., just prior to the issuance of the Standard Offer)," Electricity Maine said

Electricity Maine’s Terms of Service also permit a customer to cancel the Supply Contract during the Holdover Term without payment of a Cost Recovery Fee.

The requested for waiver involves two classes of Electricity Maine’s customers: (1) a small number of customers who are automatically renewing from an initial supply contract directly to a Renewal Term at this time; and (2) customers who automatically renew from a Holdover Term to a Renewal Term.

"For these customers, the 30-60 day notice requirement set forth in Section 4(B)(6)(a) of Chapter 305 is currently creating significant difficulty for Electricity Maine," the company said

"Specifically, the timing of the Commission’s announcement of rates for the next Standard Offer period, along with the time Electricity Maine’s suppliers needed to secure fixed-rate quotes for the Renewal Term, resulted in a compressed time period for Electricity Maine to quote renewal rates for those current customers for whom renewal is imminent. Similarly, there is insufficient time to provide the required notices to Holdover Term customers prior to the start of the Renewal Term because the Renewal Term is now scheduled to begin in less than 30 days," the company said

"Accordingly, Electricity Maine requests a limited waiver to allow it to send, outside of the required 30-60 days period but as close as reasonably possible thereto, the two Contract Renewal Notices to the affected customers outlined above. As part of this waiver request, Electricity Maine commits that if any of the affected customers request to opt out from either the Holdover Term or the Renewal Term beyond the 10-day required rescission period, that customer will not be charged a Cost Recovery Fee pursuant to Electricity Maine’s Terms of Service," Electricity Maine said

Docket 2015-00355