|
|
|
|
|
After Several Years Of Inactivity, Regulator Resumes Consideration Of Major Retail Energy Market Consumer Protections, Citing Absence Of Legislative Action
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The Massachusetts DPU is resuming consideration of a host of retail market rules and related consumer protection issues, after mostly pausing the review since 2021
The DPU had paused consideration of various retail market issues to allow time to implement landmark policies from a May 2020 decision (see details here), and to provide an opportunity for what the DPU had seen, at such time, as the likelihood for "significant" legislative action on the retail market
Citing the lack of major legislative changes, and the passage of time, a hearing examiner memorandum is reconvening the retail energy working group under Docket 19-07, "to discuss actions
the Department could take to ensure sufficient customer protections."
Generally, the 19-07 proceeding is addressing both electricity and natural gas, and all policies discussed in this story apply to both markets, unless specifically noted otherwise or unless an issue is generally specific to only one of the commodities (i.e. RPS)
When last left, the DPU had two groups of issues before it in 19-07:
(1) Implementation or sought modifications of various aspects of a May 2020 decision on Tier I retail market changes
(2) Tier II issues, which have not yet been subject to a DPU order
See the links below for background and full discussion of issues in each Tier:
Tier I
Tier II
The DPU set a March 6, 2025 meeting of the 19-07 working group
At this time, the DPU did not provide any scope or focus for the resumption of the working group, other than broadly citing consumer protection
Among various issues pending in the 19-07 working group are:
• DPU Staff straw proposal that, for monthly price products, suppliers would be required to notify customers of all price increases, regardless of the size of the increase, and with such notice specifically listing the "action required" from the customer to avoid the price increase (Tier 2)
• Changing a current notice requirement that effectively limits suppliers to conducting door to door marketing in no more than five municipalities per day. Suppliers propose that the five municipality limit be imposed by utility service area, not statewide. This would allow a supplier to conduct door to door sales in up to 19 municipalities daily for electricity, and 32 municipalities for gas (some service areas have less than 5 municipalities, thus the totals are not divisible by 5) (Modification of Tier 1 policy)
• How to implement the Tier 1 requirement that the supplier Contract Summary Form list the default service rate. Staff proposes that the default service info be limited to the existing
and upcoming basic service rate (dropping an earlier straw proposal that the disclosure also include, if the upcoming basic service rate is not
known, a statement regarding whether the upcoming rate is expected to increase or
decrease) (Modification of Tier 1 policy)
• Creation of a wholesale price benchmark for supplier variable rates which would allow DPU Staff to determine whether retail suppliers' rates track the wholesale market (Tier 2)
• Limiting retail supplier products offered to low-income customers to a fixed rate, with no auto renewal, and no early cancellation (or other) fees (Tier 2)
• Requiring that the supplier Contract Summary Form shall indicate whether a product’s voluntary renewable energy resources (1) are located outside or within the New England region, and (2) have been designated by MA as RPS Class I resources (Modification of Tier 1 policy)
• Staff's proposal that would eliminate the current policy for the Energy Switch MA rate board that does not list a plan's voluntary green component if, for plans relying on Non-RPS Class I RECs, the voluntary component is under 50%. Under Staff's proposal, the rate board would
display information related to the voluntary renewable energy content of all products that
exceed the content required by the RPS law, irrespective of whether the product is
composed entirely of RPS Class I resources. (Modification of Tier 1 policy)
• Definition of Small C&I customer (Modification of Tier 1 policy)
• Applying to the natural gas market the required notices a retail supplier must send to customers, utilities, and the DPU for supplier contract assignments (currently the notices are for electric only) (Modification of Tier 1 policy)
19-07
Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
Requirement For Retail Suppliers To Send Notice To Customers For Any Rate Increase
Expansion Of Daily Five Municipality Limit For Door to Door Marketing
Wholesale Market Price Benchmark For Retail Products
Default Service Rates On Supplier Disclosure Summary
February 6, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
|
|
|
|
|