2019 -- S 0399

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LC001868

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

     Introduced By: Senators Seveney, Coyne, DiPalma, Valverde, and Euer

     Date Introduced: February 27, 2019

     Referred To: Senate Commerce

     (Lieutenant Governor)

It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-1-27.1 of the General Laws in Chapter 39-1 entitled "Public

Utilities Commission" is hereby amended to read as follows:

     39-1-27.1. Retail electric-licensing-commission plan requirements and nonregulated

power producer registration requirements.

     (a) The retail electric-licensing commission shall, by January 1, 1997, submit a plan to

the legislature that shall include, but not be limited to, the following:

     (1) A recommendation for taxing and/or assessing electric-distribution companies,

electric-transmission companies and nonregulated power producers;

     (2) Recommendations regarding changes to the regional power pool that would facilitate

the creation of an independent-system operator and voluntary power exchange; and

     (3) Proposals for consumer protections, access to books and records, and other

requirements the retail electric licensing commission determines to be reasonable, necessary, and

in the public interest.

     (b)(1) On or before January 1, 1997, the public utilities commission shall establish

regulations applicable to nonregulated power producers that are selling electricity in this state that

are necessary to meet (directly or through contract) the operating and reliability standards of the

regional power pool.

     (2) In addition, the public utilities commission shall participate in all proceedings before

the Federal Energy Regulatory Commission with respect to the modification and/or termination

of wholesale all requirements contracts in place as of January 1, 1996, between electric-

distribution companies operating in this state and their affiliated power suppliers. The purpose of

such participation is to ensure that termination fees payable by ultimate customers in this state are

determined in accordance with the provisions of § 39-1-27.4. To facilitate such participation, the

public utilities commission is authorized to assess electric-distribution companies under its

jurisdiction for its reasonable expenses incurred in connection with its participation in those

proceedings, up to a maximum of one hundred thousand dollars ($100,000) per year, which

assessments shall be in addition to all other assessments authorized by this title.

     (3) On January 1, 1998, and annually for the next four (4) years thereafter, the public

utilities commission shall transmit to the governor, the speaker of the house, and the president of

the senate, a report detailing: developments in the competitive power supply market in this state;

estimated savings realized by customers as a result of the introduction of retail competition in the

power supply market; progress towards implementation of a regional transmission agreement for

New England and other reforms implemented by the regional power pool; and the status of

electric industry restructuring activities in the other New England states and any

recommendations for statutory changes.

     (c) All nonregulated power producers seeking to do business engage in the retail sale of

electricity in this state must file with the division of public utilities and carriers a notarized

registration application that includes the information identified below and any additional

information required by the division of public utilities and carriers pursuant to regulations issued

to protect the public interest in connection with the registration of entities seeking to sell

electricity at retail:

     (1) Legal name;

     (2) Business address;

     (3) The name of the state where organized; the date of organization; a copy of the articles

of incorporation, association, partnership agreement, or other similar document regarding legal

organization;

     (4) Name and business address of all officers and directors, partners, or other similar

officials;

     (5) Name, title, and telephone number of customer-service contact person;

     (6) Name, title, and telephone number of regulatory contact person;

     (7) Name, title, and address of registered agent for service of process;

     (8) Brief description of the nature of business being conducted; and

     (9) Evidence of financial soundness, except those nonregulated power producers that may

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be obligated entities under § 39-26-2(16) shall provide security such as a surety bond or other

financial instrument showing evidence of liquid funds, such as a certificate of deposit, an

irrevocable letter of credit, a line of credit, a loan, or guarantees in an amount specified by the

division, pursuant to rules and regulations promulgated by the division on or before February 1,

2017, provided that the amount be not less than twenty-five thousand dollars ($25,000), nor more

than five hundred thousand dollars ($500,000). The financial instrument shall name the public

utilities commission and division of public utilities and carriers as obligees. Financial security

shall be reviewed each year at the time a nonregulated power producer makes its annual filing.

The financial security shall be available to satisfy penalties assessed by the division for violations

of any consumer-protection rules or laws related to nonregulated power producers; refunds

ordered by the division; or failure to comply with the provisions of chapter 26 of title 39, as

determined by the public utilities commission. Payments made pursuant to this subsection for

violation of the provisions of § 39-26-4 shall be forfeited, and shall be remitted to the renewable

energy development fund established in § 39-26-7, or any successor funds, and all other

forfeitures will be remitted to the state's general fund.

     (d) Copies of all filings pursuant to subsection (c) shall be served upon the commission

and all electric-distribution companies. Updated information shall be filed within ten (10) days of

any change to the information included in a registration application, as filed or previously

updated. Registration applications filed pursuant to subsection (c) shall become effective thirty

(30) days after filing with the division, unless rejected during the thirty-day (30) period. If the

division should reject a registration application, it shall specify the applicable reasons in writing

and, if practicable, identify alternative ways to overcome any deficiencies. After an opportunity

of a hearing, the division may rescind a nonregulated power producer's registration for cause.

Nonregulated power producers shall be authorized to do business in this state after their

registration becomes effective and while it remains in good standing.

     (e) A filing fee of one hundred dollars ($100) shall accompany all registration

applications filed pursuant to subsection (c). Nonregulated power producers shall thereafter renew

their registrations with the division on an annual basis. Applications for renewal shall be filed

before the close of business on December 31 of each calendar year. Applications for renewal shall

specify any changes in previously filed registration information. A filing fee of one hundred

dollars ($100) shall accompany all applications for renewal of nonregulated power producer

status.

     SECTION 2. Section 39-26.7-5 of the General Laws in Chapter 39-26.7 entitled

"Nonregulated Power Producer Consumer Bill of Rights" is hereby amended to read as follows:

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     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

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) On or before January 1, 2017, 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, including the right to

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

provided in this section;

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

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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 proceeding to

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

     (h) On and after January 1, 2017, 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 §

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.

     (i) 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.

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

contract, which contract may be provided in an 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.

     (k) 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

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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 terms 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 methods by which a customer may cancel service through the

nonregulated power producer which shall include electronic termination of an existing

consumer’s service agreement prior to the consumer’s next bill read date so long as the request to

disenroll has been made at least seven (7) calendar days in advance of the next bill read date. The

electronic termination shall be provided in a clear and conspicuous location on the nonregulated

power producer’s Internet website, including and a method by which a customer without internet

access may cancel service; and

     (6) Any other information required by the division.

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

price term contract 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 the

contract expiration date. 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.

     (m) 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 [July 12, 2016] 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. On and after August 1, 2019, no nonregulated power producer shall

automatically renew or cause to be automatically renewed a contract with a residential customer;

provided however that, a new contract with a residential customer shall be required if the terms

for electric generation services change from variable to fixed rates, fixed to variable rates, or to a

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different fixed rate.

     (n) 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.

     (o) 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.

     (p) 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.

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

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.

     (r) 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, 2017, indicate, using at least a ten

point (10) 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.

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     SECTION 3. This act shall take effect upon passage.

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LC001868

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

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     This act would provide that nonregulated power producers must provide residential

customers with the ability to cancel electricity service electronically, as well as an alternative

method for customers without Internet access and would further require the nonregulated power

producers to provide the customer with the contract expiration date at least thirty (30) days prior

to expiration. Nonregulated power producers would further be prohibited from automatically

renewing a contract with a residential customer as of August 1, 2019.

     This act would take effect upon passage.

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LC001868

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