Regulator Schedules Technical Meeting On Proposed Changes To Retail Supplier Amnesty Refund Mechanism (EDC Bill vs. Mail Check)

The Connecticut PURA has scheduled for October 24, 2019 a technical meeting concerning its recent draft decision in Docket 18-12-22 under which PURA would modify how retail electric suppliers are to provide refunds to customers under an amnesty program

As exclusively first reported by EnergyChoiceMatters.com, the Connecticut PURA recently issued a draft order to modify how retail electric suppliers are to refund customers amounts which were overbilled as the result of not providing customers with timely Next Cycle Rate information, under amnesty plans filed by various suppliers. See background on the amnesty plans and refunds here

Under the draft, suppliers will not provide refunds directly to residential customers. Instead, upon approval of an amnesty plan, the supplier will direct all refund monies to the electric distribution companies (EDC), who will apply individual refunds as a bill credit to the affected customer’s EDC account

The purpose of the technical meeting will be to discuss issues raised through written exceptions submitted in response to the draft decision.

CL&P had noted that as the concept of directing the EDCs to process supplier credits was not previously raised in this Docket, the EDCs have not yet had an opportunity to work with suppliers to develop the most efficient and cost-effective procedure for transmitting this customer data and the funds to be credited to customers.

CL&P had said that, "Based on the information available to the Company in this Docket, the Company believes it would be most efficient and cost-effective to receive the customer data and refund amounts from each supplier electronically through EDI," but noted that, "However, not all suppliers in this Docket may have the capability to transmit the information and funds in this format. Additionally, testing between the Company and each supplier in advance would be needed to ensure the process operates correctly."

Suppliers sought confirmation from PURA that the refunds will not decrease the receivables provided to suppliers under POR. Since the supplier will be paying a lump sum to the EDC, to be applied to the customer's account as a payment, there is no need for a reduction in the receivables paid to the supplier, the suppliers have said.

Though refunds will be paid via the utility bill, the draft would require suppliers to mail a notice concerning the refunds to customers. Suppliers have recommended that EDCs provide suppliers with the most recent customer information (e.g. address) prior to the mailing of such letters by the supplier