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Conn. Lawmakers Draft Language for Anti-Retail Markets Bill, Mirrors Language from 2010 Session
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March 14, 2011
Connecticut lawmakers have drafted language for SB 1, essentially incorporating language nearly identical to the language of SB 493 which was vetoed in the 2010 session.
Among most of the retail supplier-related provisions, the committee draft of SB 1 makes no material changes from the amended version of SB 493, which is more fully discussed in our May 5, 2010 story. SB 1 even retains an inconsistency in applying a certain regulation to customers under 100 kW, but applying most of the marketing related provisions to customers up to and including 100 kW.
As expected, SB 1 would require the DPUC to determine the costs of utility consolidated billing and collection applicable to retail suppliers and aggregators, and equitably allocate such costs to retail suppliers and aggregators. The POR program would continue.
Any customer of an electric supplier which is directly billed by the supplier would be eligible for a backout credit for any costs of billing paid to the distribution company related to generation.
For customers under 100 kW, suppliers must provide customers with a statement that provides specific directions to the customer, "as to how to compare the price term in the contract to the customer's existing electric generation service charge on the electric bill and how long those rates are guaranteed."
SB 1 would also delay the start of the three-day rescission period, which would remain applicable only to customers at or under 500 kW, until the customer receives a written contract, regardless of the method of enrollment.
Per SB 1, any third-party agent who contracts with or is otherwise compensated by an electric supplier to sell electric generation services shall be a legal agent of the electric supplier.
For customers at or under 100 kW, door-to-door marketing would be limited to between the hours of 10 a.m. and 6 p.m. Suppliers and aggregators would be required to conduct a criminal background check on each agent engaged in door-to-door sales.
SB 1, for residential customers, would limit early termination fees to the lesser of $100 or twice the estimated bill for energy services for an average month.
When advertising or disclosing the price for electricity for customers at or below 100 kW, the supplier shall also disclose the electric distribution company's current charges, including the competitive transition assessment and the system benefits charge, for that customer class.
Suppliers would be prohibited from making material changes in contracts without express consent of the customer. Automatic renewals would be permitted under several provisions requiring adequate notice; however, customers who are automatically renewed would be exempt from any early termination fee for a period of seven business days after receiving the first billing statement for the renewed contract.
SB1 would require the new Department of Energy and Environmental Protection, which replaces the DPUC, to conduct integrated resource planning for procurements, directing such plans to consider specific options to reduce the price of electricity and maintain such reductions for another five years. "Such options may include the procurement of new sources of generation. In reviewing new sources of generation, the plan shall determine whether the private wholesale market can supply such additional sources or whether state financial assistance, long-term purchasing of electricity contracts or other interventions are needed to achieve the goal," the bill states.
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