2015 -- H 5978 SUBSTITUTE A

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LC002247/SUB A

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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 -- NONREGULATED POWER

PRODUCER 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

NONREGULATED POWER PRODUCER CONSUMER BILL OF RIGHTS

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

"nonregulated power producer consumer bill of rights."

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

informed choice of nonregulated power producer.

     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) "Division" means the division of public utilities and carriers.

     (3) "Nonregulated power producer" shall have the same meaning as that which is

contained in § 39-1-2.

     39-26.7-4. Consumer information requirements. – (a) On or before September 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 of

nonregulated power producers to the standard offer service rate. The division shall issue a final

decision or rules in such docket not later than six (6) months after its initiation.

     (b) In addition to all information required by §§ 39-3-37.2 and 39-3-37.3, the rules shall

provide for the bill to include a standard offer service price to compare with the date of the next

expected rate change and the date by which a customer’s nonregulated power producer must

initiate the transfer of service in order for the transfer to be complete by the next meter read date.

If the standard offer service rate is ever a variable or time-of-use rate, the division shall prescribe

the manner in which the price to compare will be represented.

     (c) On or before September 1, 2020, and every five (5) years thereafter, the division shall

reopen such docket to ensure the standard billing format continues to meet the requirements of

this section.

     (d) The division shall facilitate the creation of an Internet website which shall provide

information necessary for a consumer to obtain service and compare pricing policies and changes

among nonregulated power producers. This website may be maintained by a third party chosen

through a competitive solicitation and the cost of such website shall be funded through an

assessment on any obligated entity, as such term is defined in § 39-26-2, but excluding electric

distribution companies, in a manner governed by division regulation.

     (e) On or before July 1, 2018, and every two (2) years thereafter, the division shall review

the Internet website and make any improvements to ensure such Internet website remains a useful

tool for customers to compare pricing policies and charges among nonregulated power producers.

     (f) The nonregulated power producer shall make available to the division and the

provider of the Internet website facilitated by the division on a monthly basis: (1) All of its

offerings currently available; (2) The expiration of all such offerings; (3) Pricing information for

all such offerings; (4) Cancellation fees, if any, of such offerings; (5) Contact information; and

(6) Any other information the division requires.

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

a residential customer to the standard offer service rate not later than the next billing cycle after

receipt of a request from a residential customer eligible for standard offer service.

     (b) The electric distribution company shall not be liable for any contract termination fees

that may be assessed by the nonregulated power producer.

     (c) An electric distribution company shall transfer a residential customer to the electric

generation service rate of a nonregulated power producer not later than the next billing cycle after

the electric distribution company receives from the nonregulated power producer a successful

enrollment of such residential customer unless the notification is not received by the electric

distribution company in accordance with its commission-approved terms and conditions on file

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with the division and commission.

     (d) 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 a nonregulated power producer, provided

such customer was receiving such service from a nonregulated power producer immediately prior

to such move.

     (e) The electric distribution company shall include in its terms and conditions, subject to

review and approval by the commission, conditions for release of customer information to a

nonregulated power producer.

     (f) Customers shall be entitled to any available individual information about their loads or

usage at no cost.

     (g) No 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 nonregulated power producer shall include a bill insert in an electric bill of an electric

distribution company.

     (h) On or before January 1, 2016, the division shall initiate a rulemaking 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

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

operated by and under long-term contract to the nonregulated power producer; (7) The trade name

of the nonregulated power producer; (8) The toll-free telephone number for customer service of

the nonregulated power producer; (9) The Internet website of the nonregulated power producer;

(10) The toll-free telephone number for customer complaints of the division; and (11) Any other

information required by the division. Upon the division’s filing of regulations pursuant to this

section, the commission shall initiate a rulemaking to repeal any rules which overlap with the

regulations filed by the division.

     (i) On and after January 1, 2016, each nonregulated power producer shall, prior to

initiation of electric generation services, provide the potential residential customer with a

completed summary form developed pursuant to this section. Each nonregulated power producer

shall, prior to the initiation of electric generation services, provide the potential commercial or

industrial customer with a written notice describing the rates, information that complies with §

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39-26-9 and the commission’s rules governing energy source disclosure which may be amended

from time to time, terms and conditions of the service, and a notice describing the customer's

right to cancel the service, as provided in this section.

     (j) No nonregulated power producer 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.

     (k) Each nonregulated power producer shall provide each residential customer and small

commercial and industrial customer with a written contract, such contract which may be

provided in electronic format, 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.

     (l) Each contract for electric generation services shall contain:

     (1) All material terms of the agreement;

     (2) A clear and conspicuous statement explaining the rates that such customer will be

paying, including the circumstances under which the rates may change;

     (3) 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;

     (4) 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;

     (5) The method by which a customer may cancel service through the nonregulated power

producer, including a method by which a customer without Internet access may cancel service;

and

     (6) Any other information required by the division.

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     (m) A customer served on the general commercial and industrial rate, or its successor,

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 nonregulated power producer as provided in this section, the right to cancel a

contract for electric generation services entered into with a nonregulated power producer.

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

price term for a residential customer, a nonregulated power producer 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 in a manner approved by the division.

Such customer shall have the option to change the method of notification at any time during the

contract.

     (o) No nonregulated power producer 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 conform to any rules that may be promulgated by the division. Such customer

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

     (p) No nonregulated power producer 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 nonregulated power producer, without disclosing the rate

change described in this section fifteen (15) days before it takes effect. Such disclosure shall be in

writing and shall conform to any rules that may be promulgated by the division.

     (q) No third-party agent may sell electric generation services on behalf of a nonregulated

power producer unless the third-party agent is an employee or independent contractor of such

nonregulated power producer, and the third-party agent has received appropriate training directly

from such nonregulated power producer.

     (r) All sales and solicitations of electric generation services by a nonregulated power

producer, aggregator or agent of a nonregulated power producer or aggregator to a customer

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 comply with all state and local laws and regulations.

     (s) Any representative of a nonregulated power producer, aggregator or agent of a

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nonregulated power producer or aggregator shall prominently display or wear a photo

identification badge stating the name of such person's employer or the nonregulated power

producer 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.

     (t) No nonregulated power producer, aggregator or agent of a nonregulated power

producer 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 nonregulated power producer, aggregator or agent of a

nonregulated power producer shall 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. Nonregulated power producer obligations. – (a) No contract for electric

generation services by a nonregulated power producer 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 that

when a nonregulated power producer 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 nonregulated power producer. If a residential

customer does not have a contract for electric generation services with a nonregulated power

producer and is receiving a month-to-month variable rate from such supplier, there shall be no fee

for termination or early cancellation.

     (b) Each nonregulated power producer shall file annually with the division a list of any

aggregator or agent working on behalf of such supplier.

     (c) Each nonregulated power producer 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.

     (d) Each nonregulated power producer, aggregator or agent of a nonregulated power

producer or aggregator shall comply with the provisions of the telemarketing regulations adopted

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pursuant to 15 U.S.C. § 6102.

     (e) Any violation or failure to comply with any provision of this chapter or rules

promulgated by the division shall be subject to civil penalties by the division including, a penalty

of not less than two hundred dollars ($200) nor more than one thousand dollars ($1,000), and in

the case of a continuing violation of any of the provisions of this chapter, every day’s continuance

shall be deemed to be a separate and distinct offense, an order of refund, and/or the suspension or

revocation of a nonregulated power producer’s certificate, or a prohibition on accepting new

customers following a hearing.

     (f) On or before July 1, 2016, the division shall initiate a rulemaking proceeding to

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

practices, solicitations and renewals by nonregulated power producers, the hiring and training of

sales representatives, door-to-door sales and telemarketing practices by nonregulated power

producers, in accordance with the goal of ensuring customers have sufficient information to make

an informed decision. The division shall issue final rules on such docket not later than six (6)

months after its initiation.

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

placing on standard offer service all customers of all nonregulated power producers who are

hardship cases.

     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 -- NONREGULATED POWER

PRODUCER 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 a nonregulated power producer.

     This act would take effect upon passage.

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