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Right Now: Final Connecticut Decision on Supplier Marketing Limits Guidelines to <50 kW, Decision Kicks Mid-Cycle Enrollments to Working Group
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March 17, 2011
The Connecticut DPUC issued this morning a final written order concerning several supplier marketing issues in Docket 10-06-24, under which the voluntary guidelines will be limited to small volume customers, and issues related to the cost of utility consolidated billing and the use of mid-cycle enrollments will be left to a working group.
One of the most significant changes from the DPUC's draft (2/21) is that the customer-facing voluntary marketing guidelines (which will be revisited after the legislative session) will only apply to customers with monthly demands below 50 kW. Other provisions in the guidelines, such as the requirement for agent training and criminal background checks for door-to-door agents, will apply to all suppliers regardless of their target customer size.
Additionally, the final prohibition on making changes to a contract without 30-days written notice to the customer has been amended to only apply to "material" changes, and to only apply to agreements with customers as defined in the guidelines (e.g. under 50 kW).
Permissible hours for residential door-to-door marketing are again limited to 10 a.m. to 6 p.m. as originally proposed, rather than the expanded 9 a.m. to 7 p.m. contained in the most recent draft.
The proposed Notice of Right to Cancel, which suppliers would have been required to provide to customers, has been excised from the final order, though it is still referenced in several places (likely due to oversight). However, nowhere does the final order obligate the provision of a separate Notice of Right to Cancel disclosure.
As noted, the marketing guidelines are "voluntary," though the DPUC, "strongly urges all Suppliers and Aggregators to voluntarily comply with the intent and sprit of the Guidelines," during the legislative session, and the Department will revisit the guidelines based on any legislation which is or isn't enacted.
The final order also removes the requirement that the current Standard Service generation rate be listed on the electric bill of those customers who have selected an alternate supplier, and omits any discussion which would have delegated to a working group the potential of including monthly savings versus the default service rate on migrated customers' bills.
The DPUC said that since the issue of a fee for utility consolidated billing was not fully explored in the docket, it would be inappropriate to impose any costs on suppliers at this time. The DPUC delegated the issue to a working group.
The order also allows suppliers to dual bill any class of customer at their discretion.
Regarding mid-cycle price changes and enrollments, the DPUC was swayed by the exceptions of the utilities that such policies are not primed for implementation.
"The evidence demonstrates that while the structure is in place to implement Mid-Cycle price changes through prorated bills not all necessary pricing has been programmed into the system of each utility to do so. The evidence also demonstrates that it is necessary to more fully explore Mid-Cycle enrollment to determine how best to accelerate the enrollment process," the DPUC said, in delegating the issue to a working group as a "first priority."
"Customers participating in the retail electric market should not have to wait until their next billing cycle to enroll with a new Supplier or change rates or rate plans with an existing Supplier," the DPUC concluded despite deferring final action to speed enrollments.
The final decision affirms that aggregators may not have a business relationship with a supplier, and must represent the customer's, and not the supplier's, interest.
Furthermore, the DPUC ruled that aggregators are not authorized to enter into Power of Attorney agreements with customers, and aggregators are not allowed to enroll with any suppliers on any customers' behalf. Any suppliers who enroll customers through aggregators, instead of contracting directly with the customers, shall be deemed to have "slammed" such customers and shall be subject to civil penalties pursuant to C.G.S. Sec. 16-41 or revocation or suspension of license, the DPUC said.
"Suppliers and Aggregators are put on notice that they are responsible for the actions of their agents, and that the Department expects each Supplier and Aggregator to actively monitor the conduct and activities of all entities authorized to market, sell or support such Supplier or Aggregator," the DPUC added.
Consistent with the earlier draft, the DPUC concluded that the supplier referral program has met its purpose and seeks legislative direction on the program's future. The final order also affirms that three-way calls among suppliers, customers, and the utility are permissible, so long as the utility discloses to the customer that customer information may be disclosed to the supplier as part of the call.
Finally, the final order affirms that "all residential and business offers (except negotiated rates)" shall be available on the CT Energy Info Rate Board, including value added plans. Offers shall also now list their start and end date.
The DPUC will use the following new definitions on the rate board, and allow customers to sort by these definitions. The default rate board view will remain by price.
• Variable Price: price that is subject to change at predefined intervals within a one month period or within one complete billing cycle (e.g., daily, weekly, or bi-weekly);
• Monthly Variable Price: price that does not change for 30 days, a complete calendar month or one complete billing cycle;
• Fixed Price: price that does not change for a specified period of time of not less than 90 days, three calendar months or three complete billing cycles; • Renewable: offer for a product that exceeds the applicable minimum Renewable Portfolio Standard requirement; • Promotional Price: a price that is not available to current customers or is designed to increase customer enrollment with a Supplier. Promotional prices will not be used to calculate potential savings on the Rate Board. Copyright 2010-
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