2016 -- H 7040

========

LC003311

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

____________

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: January 07, 2016

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

1

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

2

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

3

CHAPTER 26.7

4

NONREGULATED POWER PRODUCER CONSUMER BILL OF RIGHTS

5

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

6

"nonregulated power producer consumer bill of rights."

7

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

8

informed choice of a nonregulated power producer.

9

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

10

following meanings:

11

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

12

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

13

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

14

contained in §39-1-2.

15

     39-26.7-4. Consumer information requirements. – (a) On or before September 1, 2016,

16

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

17

to better enable such residential customers to compare pricing policies and charges of

18

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

 

1

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

2

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

3

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

4

expected standard offer rate change and the date by which a customer's nonregulated power

5

producer must initiate the transfer of service in order for the transfer to be complete by the next

6

meter read date. If the standard offer service rate is ever a variable or time-of-use rate, the

7

division shall prescribe the manner in which the price to compare will be represented.

8

     (c) On or before September 1, 2021, and every five (5) years thereafter, the division shall

9

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

10

this section.

11

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

12

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

13

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

14

through a competitive solicitation or through the Rhode Island government website, also known

15

as "ri.gov" or its successor, and the cost of such website shall be funded through an assessment on

16

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

17

companies, in a manner governed by division regulation.

18

     (e) On or before July 1, 2019, and every two (2) years thereafter, the division shall review

19

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

20

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

21

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

22

provider of the Internet website facilitated by the division information required by the division on

23

a schedule to be determined by the division.

24

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

25

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

26

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

27

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

28

that may be assessed by the nonregulated power producer.

29

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

30

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

31

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

32

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

33

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

34

with the division and commission.

 

LC003311 - Page 2 of 8

1

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

2

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

3

immediately receiving electric generation service from a nonregulated power producer, provided

4

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

5

to such move.

6

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

7

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

8

nonregulated power producer.

9

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

10

usage at no cost.

11

     (g) On or before January 1, 2017, the division shall initiate a rulemaking proceeding to

12

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

13

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

14

to, the following:

15

     (1) A description of the rate the customer will be paying;

16

     (2) Whether such rate is a fixed or variable rate;

17

     (3) The term and expiration date of such rate;

18

     (4) Whether the contract will automatically renew;

19

     (5) A notice describing the customer's right to cancel the service, including the right to

20

schedule the cancellation of service on a date certain at any time during the contract period, as

21

provided in this section;

22

     (6) Information on air emissions and resource mix of generation facilities operated by and

23

under long-term contract to the nonregulated power producer;

24

     (7) The trade name of the nonregulated power producer;

25

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

26

producer;

27

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

28

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

29

     (11) Any other information required by the division. Upon the division's filing of

30

regulations pursuant to this section, the commission shall initiate a rulemaking proceeding to

31

repeal any rules which overlap with the regulations filed by the division.

32

     (h) On and after January 1, 2017, each nonregulated power producer shall, prior to

33

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

34

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

 

LC003311 - Page 3 of 8

1

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

2

industrial customer with a written notice describing the rates, information that complies with §39-

3

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

4

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

5

cancel the service, as provided in this section.

6

     (i) No nonregulated power producer shall provide electric generation services unless the

7

customer has signed a service contract or consents to such services by one of the following:

8

     (1) An independent third-party telephone verification;

9

     (2) Receipt of a written confirmation received in the United States mail from the

10

customer after the customer has received an information package confirming any telephone

11

agreement;

12

     (3) The customer signs a contract that conforms with the provisions of this section; or

13

     (4) The customer's consent is obtained through electronic means, including, but not

14

limited to, a computer transaction.

15

     (j) Each nonregulated power producer shall provide each customer with a written

16

contract, which contract may be provided in an electronic format, that conforms with the

17

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

18

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

19

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

20

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

21

     (1) All material terms of the agreement;

22

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

23

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

24

     (3) A statement that provides specific directions to the customer as to how to compare the

25

price terms in the contract to the customer's existing electric generation service charge on the

26

electric bill and how long those rates are guaranteed;

27

     (4) Such contract shall also include a clear and conspicuous statement providing the

28

customer's right to cancel such contract not later than three (3) days after signature or receipt in

29

accordance with the provisions of this subsection, describing under what circumstances, if any,

30

the supplier may terminate the contract and describing any penalty for early termination of such

31

contract;

32

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

33

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

34

and

 

LC003311 - Page 4 of 8

1

     (6) Any other information required by the division.

2

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

3

price term for a residential customer, a nonregulated power producer shall provide a written

4

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

5

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

6

through third-party verification as described in this section in a manner approved by the division.

7

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

8

contract.

9

     (m) No nonregulated power producer shall charge a residential customer month-to-month

10

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

11

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

12

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

13

Such notice shall conform to any rules that may be promulgated by the division. Such customer

14

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

15

     (n) No nonregulated power producer shall charge an electric generation service rate to a

16

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

17

last rate notification provided by the nonregulated power producer, without disclosing the rate

18

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

19

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

20

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

21

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

22

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

23

from such nonregulated power producer.

24

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

25

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

26

conducted and consummated entirely by United States mail, door-to-door sale, telephone or other

27

electronic means, during a scheduled appointment at the premises of a customer or at a fair, trade

28

or business show, convention or exposition in addition to complying with the provisions of this

29

section shall comply with all state and local laws and regulations.

30

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

31

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

32

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

33

producer the person represents and shall not wear apparel, carry equipment or distribute materials

34

that includes the logo or emblem of an electric distribution company or contains any language

 

LC003311 - Page 5 of 8

1

suggesting a relationship that does not exist with an electric distribution company, government

2

agency or other supplier.

3

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

4

producer or aggregator shall advertise or disclose the price of electricity to mislead a reasonable

5

person into believing that the electric generation services portion of the bill will be the total bill

6

amount for the delivery of electricity to the customer's location, or make any statement, oral or

7

written, suggesting a prospective customer is required to choose a supplier. When advertising or

8

disclosing the price for electricity, the nonregulated power producer, aggregator or agent of a

9

nonregulated power producer shall on and after January 1, 2017, indicate, using at least a ten (10)

10

point font size, in a conspicuous part of any advertisement or disclosure that includes an

11

advertised price, the expiration of such advertised price, and any fixed or recurring charge,

12

including, but not limited to, any minimum monthly charge.

13

     39-26.7-6. Nonregulated power producer obligations. – (a) No contract for electric

14

generation services by a nonregulated power producer shall require a residential customer to pay

15

any fee for termination or early cancellation of a contract in excess of fifty dollars ($50.00), or

16

twice the estimated bill for energy services for an average month, whichever is less, provided that

17

when a nonregulated power producer offers a contract, it provides the residential customer an

18

estimate of such customer's average monthly bill; and provided further, it shall not be considered

19

a termination or early cancellation of a contract if a residential customer moves from one

20

dwelling within the state and remains with the same nonregulated power producer. If a residential

21

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

22

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

23

for termination or early cancellation.

24

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

25

aggregator or agent working on behalf of such supplier.

26

     (c) Each nonregulated power producer shall develop and implement standards and

27

qualifications for employees and third-party agents who are engaged in the sale or solicitation of

28

electric generation services by such supplier.

29

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

30

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

31

pursuant to 15 U.S.C. §6102.

32

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

33

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

34

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

 

LC003311 - Page 6 of 8

1

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

2

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

3

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

4

customers following a hearing.

5

     (f) On or before July 1, 2017, the division shall initiate a rulemaking proceeding to

6

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

7

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

8

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

9

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

10

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

11

months after its initiation.

12

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

13

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

14

hardship cases.

15

     SECTION 2. This act shall take effect upon passage.

========

LC003311

========

 

LC003311 - Page 7 of 8

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- NONREGULATED POWER

PRODUCER CONSUMER BILL OF RIGHTS

***

1

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

2

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

3

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

4

for sale and solicitation of electric generation services by a nonregulated power producer.

5

     This act would take effect upon passage.

========

LC003311

========

 

LC003311 - Page 8 of 8