Connecticut 2020 Regular Session

Connecticut House Bill HB05225 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3	LCO No. 1638 1 of 6
4	4
5	5	General Assembly Raised Bill No. 5225
6	6	February Session, 2020
7	7	LCO No. 1638
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9	9
10	10	Referred to Committee on ENERGY AND TECHNOLOGY
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12	12
13	13	Introduced by:
14	14	(ET)
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19	19	AN ACT CONCERNING CO NSUMER PROTECTIONS F OR
20	20	CUSTOMERS OF ELECTRI C SUPPLIERS.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Subsection (a) of section 16-1 of the general statutes is 1
25	25	amended by adding subdivisions (51) and (52) as follows (Effective 2
26	26	October 1, 2020): 3
27	27	(NEW) (51) "Telesales call" means any communication using a 4
28	28	telephonic device, including, but not limited to, land telephone lines and 5
29	29	cellular telephone lines, in which the purpose of the communication is 6
30	30	to inform a customer or potential customer about a product offering, 7
31	31	engage a customer or potential customer in a conversation that may 8
32	32	result in entering into a contract for services or discuss current or future 9
33	33	contract terms with a customer or potential customer; and 10
34	34	(NEW) (52) "Record" or "Recording" means an audio recording of the 11
35	35	telesales call with the customer or potential customer. 12
36	36	Sec. 2. Section 16-245o of the general statutes is amended by adding 13
37	37	subsection (p) as follows (Effective October 1, 2020): 14 Raised Bill No. 5225
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41	41	LCO No. 1638 2 of 6
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43	43	(NEW) (p) (1) Each electric supplier shall record the entirety of all 15
44	44	telesales calls lasting ten seconds or longer with all residential customers 16
45	45	or potential residential customers, and shall retain such telesales call 17
46	46	recordings for two years after the date the recording was made. 18
47	47	(2) When conducting telesales calls to any residential customer or 19
48	48	potential residential customer, each electric supplier shall begin by 20
49	49	immediately stating: (A) The full name of the electric supplier 21
50	50	conducting the call; (B) that the purpose of the call is to sell electric 22
51	51	supply service to the residential customer or potential residential 23
52	52	customer; and (C) that such electric supplier does not represent, and is 24
53	53	not affiliated with, any electric distribution company. 25
54	54	(3) When conducting telesales or face-to-face marketing to any 26
55	55	residential customer or potential residential customer, prior to initiating 27
56	56	the third-party verification as described in subsection (b) of section 16-28
57	57	245s of the general statutes, each electric supplier shall inform the 29
58	58	residential customer or potential residential customer: (A) That, if the 30
59	59	residential customer or potential residential customer assents, the 31
60	60	telesales call or face-to-face marketing will result in the residential 32
61	61	customer or potential residential customer immediately entering into a 33
62	62	contract with the electric supplier; (B) that the residential customer or 34
63	63	potential residential customer may rescind the contract with the electric 35
64	64	supplier without penalty as required by subdivision (2) of subsection (f) 36
65	65	of section 16-245o of the general statutes, as amended by this act; (C) 37
66	66	what the standard service rate is on the date of the telesales call or face-38
67	67	to-face marketing in cents per kilowatt hour, and, if the telesales call or 39
68	68	face-to-face marketing is being conducted within forty-five calendar 40
69	69	days of a change to the standard service rate, the date that the standard 41
70	70	service rate will change and what the standard service rate will be on 42
71	71	that date in cents per kilowatt hour; and (D) of all material contract 43
72	72	terms, as defined by the authority in its decisions. 44
73	73	(4) When conducting telesales calls or face-to-face marketing to any 45
74	74	residential customer or potential residential customer, each electric 46
75	75	supplier is prohibited from representing that: (A) The electric supplier 47 Raised Bill No. 5225
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79	79	LCO No. 1638 3 of 6
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81	81	or its offer is affiliated with any state or utility program; (B) any state 48
82	82	program encourages or requires Connecticut electric customers to 49
83	83	obtain an electric supplier; (C) the electric distribution company 50
84	84	encourages or requires Connecticut electric customers to obtain an 51
85	85	electric supplier; and (D) the standard service rate is a variable rate. 52
86	86	(5) When conducting telesales calls or face-to-face marketing to any 53
87	87	residential customer or potential residential customer, no electric 54
88	88	supplier may request the account information from a potential 55
89	89	residential customer or request that a potential residential customer 56
90	90	retrieve account information or the potential residential customer's 57
91	91	electric distribution company bill prior to the residential customer or 58
92	92	potential residential customer affirmatively assenting to contract with 59
93	93	the electric supplier. 60
94	94	(6) Each electric supplier shall terminate any telesales call when a 61
95	95	residential customer or potential residential customer connects with the 62
96	96	third-party verification, as described in subsection (b) of section 16-245s 63
97	97	of the general statutes, and may not remain on the telephone line while 64
98	98	the residential customer or potential residential customer participates in 65
99	99	the third-party verification. 66
100	100	(7) Each electric supplier shall process a residential customer's 67
101	101	enrollment or reenrollment and submit such enrollment or reenrollment 68
102	102	to the electric distribution company within three business days after the 69
103	103	conclusion of the rescission period required by subdivision (2) of 70
104	104	subsection (f) of section 16-245o of the general statutes, as amended by 71
105	105	this act, unless the residential customer agrees to a later date. 72
106	106	Sec. 3. Subparagraph (A) of subdivision (7) of subsection (h) of section 73
107	107	16-245o of the general statutes is repealed and the following is 74
108	108	substituted in lieu thereof (Effective October 1, 2020): 75
109	109	(7) (A) No contract for electric generation services by an electric 76
110	110	supplier shall require a residential customer to pay any fee for 77
111	111	termination or early cancellation of a contract. [in excess of fifty dollars, 78
112	112	provided when an electric supplier offers a contract, it provides the 79 Raised Bill No. 5225
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116	116	LCO No. 1638 4 of 6
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118	118	residential customer an estimate of such customer's average monthly 80
119	119	bill, and provided further it] It shall not be considered a termination or 81
120	120	early cancellation of a contract if a residential customer moves from one 82
121	121	dwelling within the state and remains with the same electric supplier. 83
122	122	Sec. 4. Subdivision (1) of subsection (h) of section 16-245o of the 84
123	123	general statutes is repealed and the following is substituted in lieu 85
124	124	thereof (Effective October 1, 2020): 86
125	125	(h) (1) Any third-party agent who contracts with or is otherwise 87
126	126	compensated by an electric supplier to sell electric generation services, 88
127	127	or contracts with or is compensated by an agent or third-party marketer 89
128	128	of the electric supplier to sell electric generation services for the electric 90
129	129	supplier, shall be a legal agent of the electric supplier. No third-party 91
130	130	agent may sell electric generation services on behalf of an electric 92
131	131	supplier unless (A) the third-party agent is an employee or independent 93
132	132	contractor of such electric supplier, and (B) the third-party agent has 94
133	133	received appropriate training directly from such electric supplier. 95
134	134	Sec. 5. Subsection (a) of section 16-41 of the general statutes is 96
135	135	repealed and the following is substituted in lieu thereof (Effective October 97
136	136	1, 2020): 98
137	137	(a) Each (1) public service company and its officers, agents and 99
138	138	employees, (2) electric supplier or person providing electric generation 100
139	139	services without a license in violation of section 16-245, as amended by 101
140	140	this act, and its officers, agents and employees, (3) certified 102
141	141	telecommunications provider or person providing telecommunications 103
142	142	services without authorization pursuant to sections 16-247f to 16-247h, 104
143	143	inclusive, and its officers, agents and employees, (4) person, public 105
144	144	agency or public utility, as such terms are defined in section 16-345, 106
145	145	subject to the requirements of chapter 293, (5) person subject to the 107
146	146	registration requirements under section 16-258a, (6) cellular mobile 108
147	147	telephone carrier, as described in section 16-250b, (7) Connecticut 109
148	148	electric efficiency partner, as defined in section 16-243v, (8) company, as 110
149	149	defined in section 16-49, and (9) entity approved to submeter pursuant 111 Raised Bill No. 5225
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153	153	LCO No. 1638 5 of 6
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155	155	to section 16-19ff shall obey, observe and comply with all applicable 112
156	156	provisions of this title and each applicable order made or applicable 113
157	157	regulations adopted by the Public Utilities Regulatory Authority by 114
158	158	virtue of this title as long as the same remains in force. Any such 115
159	159	company, electric supplier, certified telecommunications provider, 116
160	160	cellular mobile telephone carrier, Connecticut electric efficiency partner, 117
161	161	entity approved to submeter, person, any officer, agent or employee 118
162	162	thereof, public agency or public utility which the authority finds has 119
163	163	failed to obey or comply with any such provision of this title, order or 120
164	164	regulation shall be fined, ordered to pay restitution to customers or 121
165	165	ordered to pay a combination of a fine and restitution by order of the 122
166	166	authority in accordance with the penalty prescribed for the violated 123
167	167	provision of this title or, if no penalty is prescribed, not more than ten 124
168	168	thousand dollars for each offense, except that the penalty shall be a fine, 125
169	169	restitution to customers or a combination of a fine and restitution of not 126
170	170	more than forty thousand dollars for failure to comply with an order of 127
171	171	the authority made in accordance with the provisions of section 16-19 or 128
172	172	16-247k or within thirty days of such order or within any specific time 129
173	173	period for compliance specified in such order. The authority may direct 130
174	174	a portion of any fine levied pursuant to this section to be paid to a 131
175	175	nonprofit agency engaged in energy assistance programs named by the 132
176	176	authority in its decision or notice of violation. Each distinct violation of 133
177	177	any such provision of this title, order or regulation shall be a separate 134
178	178	offense and, in case of a continued violation, each day thereof shall be 135
179	179	deemed a separate offense. Each such penalty and any interest charged 136
180	180	pursuant to subsection (g) or (h) of section 16-49 shall be excluded from 137
181	181	operating expenses for purposes of rate-making. 138
182	182	Sec. 6. Subsection (j) of section 16-245 of the general statutes is 139
183	183	repealed and the following is substituted in lieu thereof (Effective October 140
184	184	1, 2020): 141
185	185	(j) No license may be transferred, and no customer may be assigned 142
186	186	or transferred, without the prior approval of the authority. Notice of the 143
187	187	assignment or transfer of a customer shall be provided to the authority 144
188	188	at least thirty days prior to the effective date of the assignment or 145 Raised Bill No. 5225
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192	192	LCO No. 1638 6 of 6
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194	194	transfer of a customer from one electric supplier to another electric 146
195	195	supplier. The authority may, upon its review of the notice, require 147
196	196	certain conditions or deny assignment or transfer of the customer. 148
197	197	Customer assignment or transfer shall be approved by the authority 149
198	198	within thirty business days of the authority's receipt of notice from the 150
199	199	electric supplier unless the authority and electric supplier agree to a 151
200	200	specified extension of time. The authority may assess additional 152
201	201	licensing fees to pay the administrative costs of reviewing a request for 153
202	202	such transfer. 154
203	203	This act shall take effect as follows and shall amend the following
204	204	sections:
205	205
206	206	Section 1 October 1, 2020 16-1(a)
207	207	Sec. 2 October 1, 2020 16-245o
208	208	Sec. 3 October 1, 2020 16-245o(h)(7)(A)
209	209	Sec. 4 October 1, 2020 16-245o(h)(1)
210	210	Sec. 5 October 1, 2020 16-41(a)
211	211	Sec. 6 October 1, 2020 16-245(j)
212	212
213	213	Statement of Purpose:
214	214	To (1) define "telesales call", "record" and "recording", (2) add
215	215	requirements for electric suppliers regarding telesales calls and face-to-
216	216	face marketing, to (3) permit the Public Utilities Regulatory Authority
217	217	to order fines, restitution to customers or a combination of fines and
218	218	restitution, and (4) prohibit the assignment or transfer of customers
219	219	without prior approval of the authority.
220	220	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
221	221	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
222	222	underlined.]
223	223