Enhancing Consumer Protection in Connecticut's Electric Supplier Enforcement
This content discusses various initiatives and regulations in Connecticut aimed at promoting transparency and protecting consumers in the electric supplier market. Topics covered include electric bill clarity, a ban on variable rates, data showing differences in costs between supplier and standard service customers, and updates on enforcement actions and penalties. The redesigned electric bill format enables consumers to compare pricing and contract terms easily, preventing surprises. Legislation enacted in 2014 and subsequent regulatory measures have enhanced consumer safeguards against deceptive practices by electric suppliers.
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Supplier Enforcement in Connecticut Lauren H. Bidra Staff Attorney Connecticut Office of Consumer Counsel
1) Promoting Electric Bill Clarity: More Consumer Information on the Bill 2) Variable Rate Ban 3) Number Crunching: Data Showing Customers of Electric Suppliers Pay Much More than Standard Service Customers 4) Regulatory Update: Enforcement Dockets & Civil Penalties
First Page Electric Bill Redesign: ordered by Legislation in 2014, and implemented by a regulatory docket in a two-phase redesign initiative Purpose to enable consumers to compare pricing and contract terms among electric suppliers No More Surprises
Some Features of the Redesigned Bill: The dollar amount the customer would have been billed if the customer were on the EDC Standard Service rate and not with a third-party supplier; The terms of a customer s third-party supply rate, including any cancellation fee, and the expiration of that rate; Next Month s Rate : Any changes to a customer s third-party supply rate that becomes effective in the next billing cycle; and
Sample Residential Electric Bill Sample Residential Electric Bill
Product of 2015 Legislative Session, with regulatory confirmation Applies to residential customers Expressly prohibits electric suppliers from entering into a contract for variable rates on or after Oct. 1, 2015 Prohibits suppliers from renewing customers into variable rates on or after Oct. 1, 2015
Under legislation and PURA ruling, suppliers must offer new customers rates that cannot go up for at least 4 months Suppliers can only offer renewal terms that cannot go up for at least 4 months
As a public, monthly compliance filing in a PURA docket, EDCs submit the number of residential customers, at each rate, for each supplier operating in Connecticut OCC tracks this data on a monthly and annual basis, and posts Facts Sheets on OCC s website And the data shows . . .
In 2015, Connecticut residential customers of electric suppliers paid approximately $58 Million more than Standard Service customers Based on an average monthly usage of 750 kWh In 2015, retail suppliers served on average 33.55% of Eversource Energy residential customers, and 37.84% of United Illuminating (UI) customers
During 2015, 64.21% of residential supplier customers paid more than Standard Service on average in Eversource territory, and 59.82% of residential supplier customers paid more than Standard Service on average in UI territory
Supplier Summary for 2015 (Eversource Territory) -$473,019.52 -$442,581.49 -$478,134.86 $1,417,698.34 $2,043,969.06 $513,938.60 -$562,650.68 $2,422,977.83 $19,288.35 $7,425,102.05 -$641,876.38 $2,734,919.60 -$531,564.68 $83,413.24 $2,119,838.25 -$17,428.00 $5,692,477.55 $2,615,019.08 $1,792,814.71 -$194,874.57 $8,357,818.10 $2,993,821.79 $3,262,222.31 -$365,661.14 -$1,234,394.24 $6,641,050.40 $2,264,998.52 $652,572.42 $48,111,754.63 Abest Power & Gas Aequitas Energy Inc. Ambit Energy LLC. Choice Energy Clearview Electric Connecticut Gas & Electric Inc. Consolidated Edison Solutions Inc. Constellation Energy Power Source Inc. Constellation Newenergy Direct Energy Services Discount Power Inc. Energy Plus Holdings Golf Oil Limited Partnership Hiko Energy LLC Liberty Power Holdings Nextera Energy Services North American Power & Gas LLC NRG Retail Solutions Palmco Power CT LLC Perigee Energy LLC. Public Power LLC. Spark Energy LP Starion Energy Inc. Sunwave Gas & Power CT Town Square Energy Verde Energy USA Inc. Viridian Energy Inc. Xoom Energy Total Overpayment
2016 PURA Enforcement Actions $13,000 Civil Penalty against Public Power, Jan. 20, 2016 $60,500 Civil Penalty against Liberty Power, Apr. 13, 2016 $300,000 Assessment of Civil Penalty & Notice of Violation against Choice Energy, May 18, 2016 (Choice requested a hearing)
Palmco Power: Pending PURA Enforcement Docket April 2015: PURA issued a Cease & Desist Order for Palmco s door-to-door marketing practices, in response to customer complaints of overly aggressive tactics including EDC impersonation and shut-off notices Palmco charges some of the highest rates, nearly 3X Standard Service for most customers in late 2015 March 2016: PURA ordered Palmco to issue notices to all existing customers advising of current rates and how to switch to Standard Service
Supplier Working Group Working with Allies, including Attorney General s Office and AARP Consumer Outreach
Regulatory and legislative reluctance to interfere with the competitive market (i.e., caveat emptor) Can we un-ring the bell of de-regulation? Focus on most deceptive practices: door-to-door marketing & telemarketing
Lauren H. Bidra Staff Attorney Office of Consumer Counsel 10 Franklin Square New Britain, CT 06051 (860) 827-2904 Lauren.Bidra@ct.gov http://www.ct.gov/occ
