Chapter 281 |
2019 -- S 0399 Enacted 07/16/2019 |
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 |
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 this 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 this |
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 |
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 this |
title, 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: |
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 the 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 the signed service contract or consent to |
service for a period of not less than two (2) years from the date of expiration of such the 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 the 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 The 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 |
the 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 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 the customer of any change to the customer's electric-generation price the |
contract expiration date. Such The 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 The 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 |
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 The 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 the |
nonregulated power producer and the third-party agent has received appropriate training directly |
from such the 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 the 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. |
SECTION 3. This act shall take effect upon passage. |
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LC001868 |
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