The Public Utility Commission Wednesday requested comments on proposed regulation changes that will provide electric shopping customers with greater, uniform detail in electric supplier disclosure statements and more timely information on “contract renewal” and “change in terms” notices.
“The intent of the revisions is to make disclosure statements more understandable and useful to consumers, especially in the context of variable-priced products,” the Commission said in a Secretarial Letter seeking comments on the proposed changes. “The intent... is to make the notices more prominent and to provide electric generation supplier (EGS) customers with important and timely information about their options upon the expiration or change in terms of their EGS contracts.”
The comments will be considered as part of an expedited rulemaking proceeding where the Commission will require EGSs to display key contractual terms and conditions more prominently, especially for customers on variable-priced products, provide historical pricing data on their products, and mark conspicuously customer notices on contract renewals and changes in terms.
The Commission believes these changes will provide additional information and greater protections for residential and small business customers choosing a competitive supplier for their electric generation.
As of March 14, 2014, more than 12,283 consumers have contacted the Commission with concerns about electric supply prices, many of whom have expressed frustration with not understanding the terms and conditions of their supplier contracts. Of those, more than 4,800 consumers have filed informal complaints with the PUC’s Bureau of Consumer Services.
The Secretarial Letter contains a draft of the proposed regulations and a summary to the proposals, which include the following:
— More contractual information on conditions of price variability, including whether or not there are limits on variability;
— A clear statement of the price per kilowatt hour for the first billing cycle of electric generation;
— Customer access to historical pricing information;
— Separate mailings for either fixed-term contracts that are expiring, or any changes to terms of service;
— A separate EGS contract summary along with the full disclosure statement to ensure EGSs highlight key terms and conditions in a uniform, consistent manner;
— New requirements for contract “renewal notices” and customer “options notices” prior to the expiration of a contract;
— A renewed emphasis on highlighting changes in pricing or any terms and conditions - including a fixed rate becoming a month-to-month, variable product if the customer does not respond to the notice(s); and
— Prominent marking on front of the “options notice” envelope clearly stating that it contains important information regarding the expiration or changes in terms of the customer’s electric supply contract.
Interested parties will have five days to submit comments. The Secretarial Letter contains specific instructions on how to file comments. Consumers can email or write the PUC with comments.
