2015 -- H 5978

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LC002247

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- ELECTRIC SUPPLIER

CONSUMER BILL OF RIGHTS

     Introduced By: Representatives Kennedy, Carnevale, Shekarchi, Keable, and Marshall

     Date Introduced: March 25, 2015

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 39 of the General Laws entitled "PUBLIC UTILITIES AND

CARRIERS" is hereby amended by adding thereto the following chapter:

CHAPTER 26.7

ELECTRIC SUPPLIER CONSUMER BILL OF RIGHTS

     39-26.7-1. Short title. – This chapter shall be known and may be cited as the "electric

supplier consumer bill of rights."

     39-26.7-2. Purpose. – The purpose of this act is to assist consumers in making an

informed choice of electric supplier.

     39-26.7-3. Definitions. – When used in this chapter, the following terms shall have the

following meanings:

     (1) "Commission" means the Rhode Island public utilities commission.

     (2) "Board" means the distributed generation standard contract board established pursuant

to the provisions of chapter 26.2 of this title, or the office of energy resources. Until such time as

the board is duly constituted, the office of energy resources shall serve as the board with the same

powers and duties pursuant to this chapter.

     (3) "Division" means the division of public utilities.

     (4) "Non-regulated power producer" means a power producer offering electric power for

sale pursuant to chapter 1 of this title, and otherwise known as an "electric supplier."

     39-26.7-4. Consumer information requirements. – (a) On or before July 1, 2015, the

division shall initiate a docket to redesign the standard billing format for residential customers to

better enable such residential customers to compare pricing policies and charges among electric

suppliers, and the account summary page of a residential customer located on the electric

distribution company's Internet website. The division shall issue a final decision on such docket

not later than six (6) months after its initiation. Such final decision shall include the placement of

the following items on the first page of each residential customer's bill from an electric

distribution company: The electric generation service rate; the term and expiration date of such

rate; any change to such rate effective for the next billing cycle; the cancellation fee, if applicable,

provided there is such a change; notification that such rate is variable, if applicable; the standard

service rate; the term and expiration date of the standard service rate; the dollar amount that

would have been billed for the electric generation services component had the customer been

receiving standard service; and a toll-free telephone number and other information necessary to

enable the customer to obtain service. Such final decision shall also include the feasibility of an

electric distribution company transferring a residential customer receiving electric generation

service from an electric supplier to a different electric supplier in a timely manner and ensuring

that the electric distribution company and the relevant electric suppliers provide timely

information to each other to facilitate such transfer, and allowing residential customers to choose

how to receive information related to bill notices, including United States mail, electronic mail,

text message, an application on a cellular telephone or a third-party notification service approved

by the division. On or before July 1, 2015, the division shall implement, or cause to be

implemented, the redesigned standard billing format for a customer's account summary. On or

before July 1, 2020, and every five (5) years thereafter, the division shall reopen such docket to

ensure the standard billing format and Internet website for a customer's account summary remains

a useful tool for customers to compare pricing policies and charges among electric suppliers.

     (b) The division shall also implement an Internet website which shall provide information

necessary for a consumer to obtain service.

     (c) From the effective date of this section, each electric distribution company shall, on a

quarterly basis, include the following items in a bill insert to each residential customer who

obtains standard service or electric generation service from an electric supplier: (1) The electric

generation service rate; (2) The term and expiration date of such rate; (3) Any change to the

standard offer rate not later than forty-five (45) days after the standard rate is approved by the

division; and (4) Before any reference to the term "standard offer," the name of the electric

distribution company.

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     (d) From the effective date of this section, each electric supplier shall, on a quarterly

basis, include the following items in a mailing to each residential customer receiving electric

generation service from such supplier: (1) The electric generation service rate; (2) The term and

expiration date of such rate; (3) Any change to such rate effective for the next billing cycle; (4)

The cancellation fee, if applicable, provided there is such a change; (5) Notification that such rate

is variable, if applicable; (6) The standard service rate; (7) The term and expiration date of the

standard service rate; and (8) The dollar amount that would have been billed for the electric

generation services component had the customer been receiving standard service.

     (e) On and after July 1, 2015, if a residential customer is enrolled in automatic electronic

bill payments and does not receive a bill through United States mail, an electric distribution

company shall send such customer a link to such customer's bill in electronic mail with

confirmation of bill payment.

     (f) The distribution company shall make available to the division for posting on the

division's Internet website and shall list on the company's own Internet website, on a monthly

basis, the highest and lowest electric generation service rate charged by the distribution company

as part of a variable rate offer in each of the preceding twelve (12) months to any customer

eligible for standard service. Any contract between a distribution company and a residential

customer entered into on and after the effective date of this section shall provide for the same

electric generation service rate that may not be exceeded for at least the first three (3) billing

cycles of the contract, provided the licensee may decrease such rate at any time.

     39-26.7-5. Certain customer rights. – (a) An electric distribution company shall transfer

a residential customer to the standard service rate not later than seventy-two hours (72) after

receipt of a request from a residential customer eligible for standard service, provided such

customer shall remain on the standard service rate for at least the remainder of that billing cycle.

An electric distribution company shall transfer a residential customer to the electric generation

service rate of an electric supplier not later than forty-five (45) days after the electric distribution

company receives from the electric supplier a successful enrollment of such residential customer.

     (b) Notwithstanding any other provision of the general laws, nothing shall prohibit a

residential customer who moves from one dwelling to another dwelling within the state from

immediately receiving electric generation service from an electric supplier, provided such

customer was receiving such service from an electric supplier immediately prior to such move.

     (c) To protect a customer's right to privacy from unwanted solicitation, each electric

company or electric distribution company, as the case may be, shall distribute to each customer a

form approved by the division which the customer shall submit to the customer's electric or

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electric distribution company in a timely manner if the customer does not want the customer's

name, address, telephone number and rate class to be released to electric suppliers. Each electric

or electric distribution company, as the case may be, shall make available to all electric suppliers

customer names, addresses, telephone numbers, if known, and rate class, unless the electric

company or electric distribution company has received a form from a customer requesting that

such information not be released. Additional information about a customer for marketing

purposes shall not be released to any electric supplier unless a customer consents to a release by

one of the following: (1) An independent third-party telephone verification; (2) Receipt of a

written confirmation received in the United States mail from the customer after the customer has

received an information package confirming any telephone agreement; (3) The customer signs a

document fully explaining the nature and effect of the release; or (4) The customer's consent is

obtained through electronic means, including, but not limited to, a computer transaction.

     (d) All electric suppliers shall have equal access to customer information required to be

disclosed under subsection (a) of this section. No electric supplier shall have preferential access

to historical distribution company customer usage data.

     (e) No electric or electric distribution company shall include in any bill or bill insert

anything that directly or indirectly promotes a generation entity or affiliate of the electric

distribution company. No electric supplier shall include a bill insert in an electric bill of an

electric distribution company.

     (f) All marketing information provided pursuant to the provisions of this section shall be

formatted electronically by the electric company or electric distribution company, as the case may

be, in a form that is readily usable by standard commercial software packages. Updated lists shall

be made available within a reasonable time, as determined by the division, following a request by

an electric supplier. Each electric supplier seeking the information shall pay a fee to the electric

company or electric distribution company, as the case may be, which reflects the incremental

costs of formatting, sorting and distributing this information, together with related software

changes. Customers shall be entitled to any available individual information about their loads or

usage at no cost.

     (g) On or before January 1, 2016, the division shall initiate a contested proceeding to

develop a standard summary form of the material terms and conditions of the contract for electric

generation services signed by a residential customer. Such form shall include, but not be limited

to, the following: (1) A description of the rate the customer will be paying; (2) Whether such rate

is a fixed or variable rate; (3) The term and expiration date of such rate; (4) Whether the contract

will automatically renew; (5) A notice describing the customer's right to cancel the service, as

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provided in this section; (6) Information on air emissions and resource mix of generation facilities

operated by and under long-term contract to the electric supplier; (7) The trade name of the

electric supplier; (8) The toll-free telephone number for customer service of the electric supplier;

(9) The Internet website of the electric supplier; and (10) The toll-free telephone number for

customer complaints of the division.

     (h) On and after January 1, 2016, each electric supplier shall, prior to initiation of electric

generation services, provide the potential residential customer with a completed summary form

developed pursuant to this section. Each electric supplier shall, prior to the initiation of electric

generation services, provide the potential commercial or industrial customer with a written notice

describing the rates, information on air emissions and resource mix of generation facilities

operated by and under long-term contract to the supplier, terms and conditions of the service, and

a notice describing the customer's right to cancel the service, as provided in this section.

     (i) No electric supplier shall provide electric generation services unless the customer has

signed a service contract or consents to such services by one of the following: (1) An independent

third-party telephone verification; (2) Receipt of a written confirmation received in the United

States mail from the customer after the customer has received an information package confirming

any telephone agreement; (3) The customer signs a contract that conforms with the provisions of

this section; or (4) The customer's consent is obtained through electronic means, including, but

not limited to, a computer transaction. Each electric supplier shall provide each customer with a

demand of less than one hundred kilowatts (100 kw), a written contract that conforms with the

provisions of this section and maintain records of such signed service contract or consent to

service for a period of not less than two (2) years from the date of expiration of such contract,

which records shall be provided to the division or the customer upon request. Each contract for

electric generation services shall contain all material terms of the agreement, a clear and

conspicuous statement explaining the rates that such customer will be paying, including the

circumstances under which the rates may change, a statement that provides specific directions to

the customer as to how to compare the price term in the contract to the customer's existing

electric generation service charge on the electric bill and how long those rates are guaranteed.

Such contract shall also include a clear and conspicuous statement providing the customer's right

to cancel such contract not later than three (3) days after signature or receipt in accordance with

the provisions of this subsection, describing under what circumstances, if any, the supplier may

terminate the contract and describing any penalty for early termination of such contract. Each

contract shall be signed by the customer, or otherwise agreed to in accordance with the provisions

of this subsection. A customer who has a maximum demand of five hundred kilowatts (500 kw)

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or less shall have, until midnight of the third business day after the latter of the day on which the

customer enters into a service agreement or the day on which the customer receives the written

contract from the electric supplier as provided in this section, the right to cancel a contract for

electric generation services entered into with an electric supplier.

     (j) Between thirty (30) and sixty (60) days, inclusive, prior to the expiration of a fixed

price term for a residential customer, an electric supplier shall provide a written notice to such

customer of any change to the customer's electric generation price. Such residential customer

shall select the method of written notice at the time the contract is signed or verified through

third-party verification as described in this section. Such selection shall include the option for

written notice through United States mail, electronic mail, text message, an application on a

cellular telephone or a third-party notification service approved by the division. Such customer

shall have the option to change the method of notification at any time during the contract.

     (k) No electric supplier shall charge a residential customer month-to-month variable rates

for electric generation services following the expiration of a contract entered into after the

effective date of this section without providing written notification to such residential customer

forty-five (45) days prior to the commencement of such month-to-month variable rates. Such

notice shall include the highest and lowest electric generation service rate charged by such

supplier as part of a variable rate offer in each of the preceding twelve (12) months to any

customer eligible for standard service. The residential customer shall select the method of written

notification at the time the contract is signed or verified through third-party verification as

described in this section. Such selection shall include the option for written notice through United

States mail, electronic mail, text messages, an application on a cellular telephone or a third-party

notification service approved by the division. Such customer shall have the option to change the

method of notification at any time during the contract.

     (l) No electric supplier shall charge an electric generation service rate to a residential

customer that is twenty-five percent (25%) more than the original contract price, or the last rate

notification provided by the electric supplier, without disclosing the rate change described in this

section fifteen (15) days before it takes effect. The notification shall be provided pursuant to the

method agreed to by the customer in the contract and may include written notice through United

States mail, electronic mail, text message, an application on a cellular telephone, or a third-party

notification service approved by the division.

     (m) Any third-party agent who contracts with or is otherwise compensated by an electric

supplier to sell electric generation services shall be a legal agent of the electric supplier. No third-

party agent may sell electric generation services on behalf of an electric supplier unless the third-

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party agent is an employee or independent contractor of such electric supplier, and the third-party

agent has received appropriate training directly from such electric supplier.

     (n) All sales and solicitations of electric generation services by an electric supplier,

aggregator or agent of an electric supplier or aggregator to a customer with a maximum demand

of one hundred kilowatts (100 kw) or less conducted and consummated entirely by United States

mail, door-to-door sale, telephone or other electronic means, during a scheduled appointment at

the premises of a customer or at a fair, trade or business show, convention or exposition in

addition to complying with the provisions of this section shall:

     (1) For any sale or solicitation, including from any person representing such electric

supplier, aggregator or agent of an electric supplier or aggregator: (i) Identify the person and the

electric generation services company or companies the person represents; (ii) Provide a statement

that the person does not represent an electric distribution company; (iii) Explain the purpose of

the solicitation; and (iv) Explain all rates, fees, variable charges and terms and conditions for the

services provided; and

     (2) For door-to-door sales to customers with a maximum demand of one hundred

kilowatts (100 kw), which shall include the sale of electric generation services in which the

electric supplier, aggregator or agent of an electric supplier or aggregator solicits the sale and

receives the customer's agreement or offer to purchase at a place other than the seller's place of

business, be conducted: (i) In accordance with any municipal and local ordinances regarding

door-to-door solicitations; (ii) Between the hours of ten o'clock a.m. and six o'clock p.m. unless

the customer schedules an earlier or later appointment; and (iii) With both English and Spanish

written materials available. Any representative of an electric supplier, aggregator or agent of an

electric supplier or aggregator shall prominently display or wear a photo identification badge

stating the name of such person's employer or the electric supplier the person represents and shall

not wear apparel, carry equipment or distribute materials that includes the logo or emblem of an

electric distribution company or contains any language suggesting a relationship that does not

exist with an electric distribution company, government agency or other supplier.

     (o) No electric supplier, aggregator or agent of an electric supplier or aggregator shall

advertise or disclose the price of electricity to mislead a reasonable person into believing that the

electric generation services portion of the bill will be the total bill amount for the delivery of

electricity to the customer's location, or make any statement, oral or written, suggesting a

prospective customer is required to choose a supplier. When advertising or disclosing the price

for electricity, the electric supplier, aggregator or agent of an electric supplier or aggregator shall

disclose the electric distribution company's current charges, including the competitive transition

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assessment and the systems benefits charge, for that customer class, and on and after January 1,

2016, indicate, using at least a ten (10) point font size, in a conspicuous part of any advertisement

or disclosure that includes an advertised price, the expiration of such advertised price, and any

fixed or recurring charge, including, but not limited to, any minimum monthly charge.

     39-26.7-6. Electric supplier obligations. – (a) No contract for electric generation

services by an electric supplier shall require a residential customer to pay any fee for termination

or early cancellation of a contract in excess of fifty dollars ($50.00), or twice the estimated bill

for energy services for an average month, whichever is less, provided when an electric supplier

offers a contract, it provides the residential customer an estimate of such customer's average

monthly bill; and provided further, it shall not be considered a termination or early cancellation of

a contract if a residential customer moves from one dwelling within the state and remains with the

same electric supplier. If a residential customer does not have a contract for electric generation

services with an electric supplier and is receiving a month-to-month variable rate from such

supplier, there shall be no fee for termination or early cancellation.

     (b) An electric supplier shall not make a material change in the terms or duration of any

contract for the provision of electric generation services by an electric supplier without the

express consent of the customer. Nothing in this section shall restrict an electric supplier from

renewing a contract by clearly informing the customer, in writing, not less than thirty (30) days or

more than sixty (60) days before the renewal date, of the renewal terms, including a summary of

any new or altered terms, and of the option not to accept the renewal offer, provided no fee

pursuant to this section shall be charged to a customer who terminates or cancels such renewal

not later than seven (7) business days after receiving the first billing statement for the renewed

contract.

     (c) Each electric supplier shall file annually with the division a list of any aggregator or

agent working on behalf of such supplier.

     (d) Each electric supplier shall develop and implement standards and qualifications for

employees and third-party agents who are engaged in the sale or solicitation of electric generation

services by such supplier.

     (e) Each electric supplier, aggregator or agent of an electric supplier or aggregator shall

comply with the provisions of the telemarketing regulations adopted pursuant to 15 U.S.C. 6102.

     (f) Any violation of this section shall be deemed an unfair or deceptive trade practice.

Any contract for electric generation services that the division finds to be the product of unfair or

deceptive marketing practices or in material violation of the provisions of this section shall be

void and unenforceable. Any waiver of the provisions of this section by a customer of electric

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generation services shall be deemed void and unenforceable by the electric supplier.

     (g) Any violation or failure to comply with any provision of this section shall be subject

to civil penalties by the division, the suspension or revocation of an electric supplier or

aggregator's license, or a prohibition on accepting new customers following a hearing.

     (h) The division may adopt regulations to include, but not be limited to, abusive

switching practices, solicitations and renewals by electric suppliers, provided the division shall

alter or repeal any relevant regulations in conjunction with the development and implementation

of the standards and practices described in this section.

     (i) On or before July 1, 2016, the division shall initiate a contested proceeding to develop

and implement, or cause to be implemented, standards relating to abusive switching practices,

solicitations and renewals by electric suppliers, the hiring and training of sales representatives,

door-to-door sales and telemarketing practices by electric suppliers. Such docket shall examine a

disclosure statement for all electric suppliers to use on all promotional materials directed to

residential customers that will direct consumers where they can find the highest and lowest

electric generation service rate charged by such supplier as part of a variable rate offer in each of

the preceding twelve (12) months to any customer eligible for standard service. The division shall

issue a final decision on such docket not later than six (6) months after its initiation.

     (j) The division may initiate a docket to review the feasibility, costs and benefits of

placing on standard service all customers of all electric suppliers who are hardship cases.

     39-26.7-7. Additional duties of division. – (a)(1) On or before October 1, 2015, the

division shall redesign the rate board Internet website to better enable customers to compare

pricing policies and charges among electric suppliers. Such redesign shall reflect the best

practices of similar rate board Internet websites in other states and the development of a process

to remove an electric supplier's price listings from such Internet website based on protocols

established by the division to ensure compliance with this chapter and to address customer

complaints, and emphasize uniformity in how electric suppliers provide information for each

category on the rate board Internet website, ease of use by customers, and ease of selecting and

purchasing a specific contract from an electric supplier shown on the rate board Internet website.

     (2) On or before July 1, 2017, and every two (2) years thereafter, the division shall

review the rate board Internet website and to make any improvements to ensure such Internet

website remains a progressive tool for customers to compare pricing policies and charges among

electric suppliers.

     (b) The division shall monitor the market for electric generation services and electric

distribution services to end use customers and take actions to prevent unfair or deceptive trade

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practices, anticompetitive or discriminatory conduct, and the unlawful exercise of market power.

     (c) Upon complaint or upon its own motion, for cause shown, the division shall conduct

an investigation of any possible anticompetitive or discriminatory conduct affecting the retail sale

of electricity or any unfair or deceptive trade practices. Such investigations may include, but are

not limited to, the effect of mergers, consolidations, acquisition and disposition of assets or

securities of electric suppliers, or transmission congestion on the proper functioning of a fully

competitive market, or targeting, with an artificially elevated electric generation services rate, a

customer eligible for standard service who is a hardship case. Having monies due and owing

deducted from such customer's bill by the electric distribution company or receiving other

financial assistance from an electric distribution company, or otherwise protected by law from

shut off of electricity services.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- ELECTRIC SUPPLIER

CONSUMER BILL OF RIGHTS

***

     This act would impose a series of regulatory requirements upon the electrical generation

and distribution industry for the protection of consumers. This act includes a variety of consumer

information which would have to be given to consumers. The act would also set forth procedures

for sale and solicitation of electric generation services by an electric supplier.

     This act would take effect upon passage.

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