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Conn. PURA Sets Briefing on Supplier-Agency Issue, Other Topics
July 13, 2011
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The Connecticut PURA has established a briefing schedule for several issues related to electric customer protection rules under Docket No. 10-06-24 and changes under recent statute (Public Act 11-80).
On the issue which has been the most contentious among stakeholders, PURA will accept briefs on the interpretation of P.A. 11-80's requirement establishing that all third party agents compensated by suppliers shall be legal agents of the supplier.
Specifically, P.A. 11-80 requires that, "[a]ny 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." Additionally, any such third-party agents must receive appropriate training directly from such electric supplier.
Suppliers have attempted to parse this language to not apply it to brokers who "buy" electric generation services on behalf of customers, and simply receive pricing from suppliers. Suppliers argued that they have no ability to direct such brokers to take any sort of action to comply with various disclosure requirements, as the brokers are not selling on behalf of the supplier and the supplier simply does not have this control over the broker.
Furthermore, suppliers warned that if suppliers were held liable for the actions of these brokers, it would lead to the elimination of such brokers from the market, as suppliers, averse to taking on such liability risk for entities they cannot control, will simply cease using these types of independent brokers, and instead rely on exclusive agents who only sell for the supplier and thus can be directed by the supplier.
PURA expects to eventually issue a declaratory order on the agency question after briefing.
PURA will also accept briefs on a variety of issues, including the automatic re-enrollment of customers without new authorization due to contractual clauses (see 6/16); requirements for supplier Time of Use rates; requirements for suppliers to disclose distribution company charges; and the extension of limits on residential termination fees to residential meters bundled with non-residential accounts. Unlike with the declaratory order process for the agency question, PURA said that it has not yet decided how to approach the remaining issues procedurally.
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