Attorney General Seeks To Establish "Code of Conduct" For Retail Suppliers, Increase Maximum Fines

The Massachusetts Office of the Attorney General, in comments on proposed guidelines governing retail supplier enforcement proceedings, asked that the Massachusetts DPU establish a "code of conduct" for retail suppliers, which would include standards for categories of behavior that could lead to licensure action or civil penalties.

Click here for background on the proposed guidelines to govern supplier investigation and enforcement proceedings

"Although the Interim Guidelines seek to put a process in place for dealing with violations, the Department could strengthen that process if it also took steps to establish a formal code of conduct applicable to Competitive Supply Companies," the AG said

"The AGO recommends that the Department, with input from stakeholders, develop and adopt a code of conduct that would include, but not be limited to, standards regarding the level and type of complaints that would lead to informal or formal review of a Competitive Supply Company’s conduct, as well as standards for categories of behavior that could lead to licensure action or civil penalties," the AG said

The AG noted that, "The Department has the authority to establish such standards. G.L. c. 164, § 1F states that 'the Department shall promulgate rules and regulations to provide retail customers with the utmost consumer protections contained in law ...' G.L. c. 164, § 1F. Moreover, G.L. c. 164, § 1F(7) expressly directs the Department to 'establish a code of conduct applicable to… the retail sale of electricity to all customers, including, but not limited to, rules and regulations governing the confidentiality of customer records, metering, billing, and information systems, and conformance with fair labor practices.' G.L. c. 164, § 1F(7). Although the Department has established standards of conduct for Distribution Companies and their affiliates (see 220 C.M.R. § 12) it has not, to-date, established a similar code of conduct for Competitive Supply Companies. Clear standards are essential to putting Competitive Supply Companies on notice as to the types of behavior that would lead to Department action and are necessary to ensure retail customers are provided the 'utmost consumer protection contained in law.” G.L. c. 164, § 1F(7). The AGO therefore recommends that the Department initiate further process to develop a code of conduct applicable to all Competitive Supply Companies operating in the Commonwealth."

The AG also recommended that the Department amend the "shall not exceed" amount for civil penalties under the draft interim guidelines from $1 million to $5 million

Echoing comments made by a municipal aggregator, the AG also sought to make information concerning enforcement actions public (click here for related story today)

Docket D.P.U. 16-156