Chapter 453
2016 -- H 7040
Enacted 07/12/2016

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

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 a 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, 2016,
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 standard-offer 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, 2021, 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 that shall provide
information necessary for a consumer to obtain service and compare pricing policies and charges
among nonregulated power producers. This website may be maintained by a third party chosen
through a competitive solicitation or through the Rhode Island government website, also known
as "ri.gov" or its successor, 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, 2019, 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 information required by the division on
a schedule to be determined by the division.
     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
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
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 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.
     (l) 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.
     (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 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.
     (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.
     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
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, 2017, 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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LC003311
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