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General Assembly Raised Bill No. 6526
January Session, 2021
LCO No. 3929
Referred to Committee on ENERGY AND TECHNOLOGY
Introduced by:
(ET)
AN ACT CONCERNING EL ECTRIC SUPPLIERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subparagraph (A) of subdivision (7) of subsection (h) of 1
section 16-245o of the general statutes is repealed and the following is 2
substituted in lieu thereof (Effective July 1, 2021): 3
(7) (A) No contract for electric generation services by an electric 4
supplier shall require a residential customer to pay any fee for 5
termination or early cancellation of a contract. [in excess of fifty dollars, 6
provided when an electric supplier offers a contract, it provides the 7
residential customer an estimate of such customer's average monthly 8
bill, and provided further it] It shall not be considered a termination or 9
early cancellation of a contract if a residential customer moves from one 10
dwelling within the state and remains with the same electric supplier. 11
Sec. 2. Subdivision (1) of subsection (h) of section 16-245o of the 12
general statutes is repealed and the following is substituted in lieu 13
thereof (Effective July 1, 2021): 14
(h) (1) Any third-party [agent] who contracts with or is otherwise 15 Raised Bill No. 6526
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compensated by an electric supplier to sell electric generation services, 16
or contracts with or is compensated by a third-party marketer of the 17
electric supplier to sell electric generation services for the electric 18
supplier, shall be a legal agent of the electric supplier. No third-party 19
[agent] may sell electric generation services on behalf of an electric 20
supplier unless [(A) the third-party agent is an employee or 21
independent contractor of such electric supplier, and (B) the] such third-22
party [agent] has received appropriate training directly from such 23
electric supplier. 24
Sec. 3. Subsection (m) of section 16-245o of the general statutes is 25
repealed and the following is substituted in lieu thereof (Effective July 1, 26
2021): 27
(m) The Public Utilities Regulatory Authority may initiate a docket to 28
review the feasibility, costs and benefits of placing on standard service, 29
or of otherwise limiting the ability to contract with electric suppliers, all 30
customers [of all electric suppliers] (1) who are hardship cases for 31
purposes of subdivision (3) of subsection (b) of section 16-262c, (2) 32
having moneys due and owing deducted from such customers' bills by 33
the electric distribution company pursuant to subdivision (4) of 34
subsection (b) of section 16-262c, (3) receiving other financial assistance 35
from an electric distribution company, or (4) who are otherwise 36
protected by law from shutoff of electricity services. Notwithstanding 37
the provisions of section 16-245r, the authority may, in a final decision 38
issued pursuant to this subsection, (A) order all such customers to be 39
placed on standard service, (B) order all customer contracts with electric 40
suppliers, entered into on and after a determined date, to be at or below 41
the standard service rate, or (C) order all customer contracts, entered 42
into on and after a determined date, to comply with appropriate 43
limitations the authority deems necessary. If the authority issues such 44
an order, it shall reopen such docket not less than every two years. 45
Sec. 4. Subsection (g) of section 16-245o of the general statutes is 46
repealed and the following is substituted in lieu thereof (Effective July 1, 47
2021): 48 Raised Bill No. 6526
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(g) (1) Between thirty and sixty days, inclusive, prior to the expiration 49
of a fixed price term for a residential customer, an electric supplier shall 50
provide a written notice of the contract expiration to such customer [of 51
any change to the customer's electric generation price] and shall not 52
automatically renew said contract. An electric supplier may enter into a 53
new contract with such customer's affirmative consent. Any new 54
contract shall contain a cover page highlighting each change from the 55
prior contract, in a format prescribed by the Public Utilities Regulatory 56
Authority. Such residential customer shall select the method of written 57
notice at the time the contract is signed or verified through third-party 58
verification as described in subdivision (2) of subsection (f) of this 59
section. Such selection shall include the option for written notice 60
through United States mail, electronic mail, text message, an application 61
on a cellular telephone or a third-party notification service approved by 62
the authority. Such customer shall have the option to change the method 63
of notification at any time during the contract. 64
(2) No electric supplier shall charge a residential customer month-to-65
month variable rates for electric generation services following the 66
expiration of a contract entered into after June 3, 2014, without 67
providing written notification to such residential customer forty-five 68
days prior to the commencement of such month-to-month variable 69
rates. Such notice shall include the highest and lowest electric 70
generation service rate charged by such supplier as part of a variable 71
rate offer in each of the preceding twelve months to any customer 72
eligible for standard service. The residential customer shall select the 73
method of written notification at the time the contract is signed or 74
verified through third-party verification as described in subdivision (2) 75
of subsection (f) of this section. Such selection shall include the option 76
for written notice through United States mail, electronic mail, text 77
messages, an application on a cellular telephone or a third-party 78
notification service approved by the authority. Such customer shall have 79
the option to change the method of notification at any time during the 80
contract. 81
(3) No electric supplier shall charge an electric generation service rate 82 Raised Bill No. 6526
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to a residential customer that is twenty-five per cent more than the 83
original contract price, [of a contract entered into after June 6, 2014,] or 84
more than the first price term offered in the contract, without notifying 85
such customer of the rate change [fifteen] thirty days before it takes 86
effect. [, provided such notice shall only be required for the first instance 87
such rate is twenty-five per cent more than the original contract price. 88
After such one-time notice, no electric supplier shall charge an electric 89
generation service rate to a residential customer that is twenty-five per 90
cent more than the most recent notice of the rate change without 91
notifying such customer of the rate change fifteen days before it takes 92
effect.] Any notification described in this subdivision shall be provided 93
pursuant to the method agreed to by the customer in the contract and 94
may include written notice through United States mail, electronic mail, 95
text message, an application on a cellular telephone, or third-party 96
notification service approved by the authority. The electric supplier 97
shall maintain documentation of the original method of communication 98
of the notice. 99
(4) On and after October 1, 2015, no electric supplier shall (A) enter 100
into a contract to charge a residential customer a variable rate for electric 101
generation services; (B) enter into a contract that contains an automatic 102
renewal provision; or [(B)] (C) automatically renew or cause to be 103
automatically renewed a contract with a residential customer and, 104
pursuant to such contract, charge such customer a variable rate for 105
electric generation services. 106
Sec. 5. Subdivision (8) of subsection (h) of section 16-245o of the 107
general statutes is repealed and the following is substituted in lieu 108
thereof (Effective July 1, 2021): 109
(8) An electric supplier shall not make a material change in the terms 110
or duration of any contract for the provision of electric generation 111
services by an electric supplier without the express consent of the 112
customer. [Nothing in this subdivision shall restrict an electric supplier 113
from renewing a contract by clearly informing the customer, in writing, 114
not less than thirty days or more than sixty days before the renewal date, 115 Raised Bill No. 6526
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of the renewal terms, including a summary of any new or altered terms, 116
and of the option not to accept the renewal offer, provided no fee 117
pursuant to subdivision (7) of this subsection shall be charged to a 118
customer who terminates or cancels such renewal within the first two 119
billing cycles of the renewed contract.] 120
Sec. 6. Subsection (j) of section 16-245 of the general statutes is 121
repealed and the following is substituted in lieu thereof (Effective July 1, 122
2021): 123
(j) No license may be transferred, and no customer may be assigned 124
or transferred, without the prior approval of the authority. Notice of 125
such assignment or transfer shall be provided to the Public Utilities 126
Regulatory Authority at least thirty days prior to the effective date of 127
the assignment or transfer of a customer from one electric supplier to 128
another electric supplier. The authority may, upon its review of such 129
notice, require certain conditions or deny assignment or transfer of such 130
customer. Customer assignment or transfer shall be approved, modified 131
or denied by the authority within thirty business days of the authority's 132
receipt of such notice from the electric supplier, unless the authority and 133
electric supplier agree to a specified extension of time, or such 134
assignment or transfer is deemed approved. The authority may assess 135
additional licensing fees to pay the administrative costs of reviewing a 136
request for such transfer. 137
Sec. 7. Subsection (a) of section 16-245 of the general statutes is 138
repealed and the following is substituted in lieu thereof (Effective July 1, 139
2021): 140
(a) No person shall execute any contract relating to the sale of electric 141
generation services to be rendered after January 1, 2000, to end use 142
customers located in the state unless such person has been issued a 143
license by the authority in accordance with the provisions of this section. 144
No license shall be valid before July 1, 1999. The Public Utilities 145
Regulatory Authority shall have the authority to condition an electric 146
supplier's license and access to the systems and billing of the electric 147 Raised Bill No. 6526
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distribution companies on terms the authority determines to be just and 148
reasonable, including, but not limited to, proof that the electric 149
supplier's products are not overpriced or harmful to customers. 150
Sec. 8. Subsection (k) of section 16-245 of the general statutes is 151
repealed and the following is substituted in lieu thereof (Effective July 1, 152
2021): 153
(k) Any licensee who fails to comply with a license condition or who 154
violates any provision of this section, except for the renewable portfolio 155
standards contained in subsection (g) of this section, shall be subject to 156
civil penalties by the Public Utilities Regulatory Authority in accordance 157
with section 16-41, [or] including direction that a portion of the civil 158
penalty be paid to a nonprofit agency engaged in energy assistance 159
programs named by the authority in its decision or notice of violation, 160
the suspension or revocation of such license [or] and a prohibition on 161
accepting new customers following a hearing that is conducted as a 162
contested case in accordance with chapter 54. Notwithstanding the 163
provisions of subsection (b) of section 16-244c regarding an alternative 164
transitional standard offer option or an alternative standard service 165
option, the authority shall require a payment by a licensee that fails to 166
comply with the renewable portfolio standards in accordance with 167
subdivision (4) of subsection (g) of this section in the amount of: (1) For 168
calendar years up to and including calendar year 2017, five and one-half 169
cents per kilowatt hour, (2) for calendar years commencing on January 170
1, 2018, and up to and including the calendar year commencing on 171
January 1, 2020, five and one-half cents per kilowatt hour if the licensee 172
fails to comply with the renewable portfolio standards during the 173
subject annual period for Class I renewable energy sources, and two and 174
one-half cents per kilowatt hour if the licensee fails to comply with the 175
renewable portfolio standards during the subject annual period for 176
Class II renewable energy sources, and (3) for calendar years 177
commencing on and after January 1, 2021, four cents per kilowatt hour 178
if the licensee fails to comply with the renewable portfolio standards 179
during the subject annual period for Class I renewable energy sources, 180
and two and one-half cents per kilowatt hour if the licensee fails to 181 Raised Bill No. 6526
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comply with the renewable portfolio standards during the subject 182
annual period for Class II renewable energy sources. On or before 183
December 31, 2013, the authority shall issue a decision, following an 184
uncontested proceeding, on whether any licensee has failed to comply 185
with the renewable portfolio standards for calendar years up to and 186
including 2012, for which a decision has not already been issued. On 187
and after June 5, 2013, the Public Utilities Regulatory Authority shall 188
annually conduct an uncontested proceeding in order to determine 189
whether any licensee has failed to comply with the renewable portfolio 190
standards during the preceding year. Not later than December 31, 2014, 191
and annually thereafter, the authority shall, following such proceeding, 192
issue a decision as to whether the licensee has failed to comply with the 193
renewable portfolio standards during the preceding year. The authority 194
shall allocate such payment to the Clean Energy Fund for the 195
development of Class I renewable energy sources, provided, on and 196
after June 5, 2013, any such payment shall be refunded to ratepayers by 197
using such payment to offset the costs to all customers of electric 198
distribution companies of the costs of contracts and tariffs entered into 199
pursuant to sections 16-244r, 16-244t and section 16-244z. Any excess 200
amount remaining from such payment shall be applied to reduce the 201
costs of contracts entered into pursuant to subdivision (2) of subsection 202
(j) of section 16-244c, and if any excess amount remains, such amount 203
shall be applied to reduce costs collected through nonbypassable, 204
federally mandated congestion charges, as defined in section 16-1. 205
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2021 16-245o(h)(7)(A)
Sec. 2 July 1, 2021 16-245o(h)(1)
Sec. 3 July 1, 2021 16-245o(m)
Sec. 4 July 1, 2021 16-245o(g)
Sec. 5 July 1, 2021 16-245o(h)(8)
Sec. 6 July 1, 2021 16-245(j)
Sec. 7 July 1, 2021 16-245(a)
Sec. 8 July 1, 2021 16-245(k)
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Statement of Purpose:
To mandate provisions in new electric supplier contracts and prohibit
the assignment or transfer of customers without approval.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]