May 5, 2014

Bolinsky Supports Increased Protections for Electric Consumers

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Reforms will empower customers to make informed choices with re-designed bills and more information when shopping

HARTFORD, CT – State Rep. Mitch Bolinsky (R-106 Newtown) strongly supported a bipartisan legislative proposal in favor of greatly strengthened consumer protection measures for residential electric customers.

“Earlier this year some state residents experienced unexpected electric rate spikes due to extremely cold winter weather. Making the terms of electric service more transparent is a win-win for the consumers. This legislation pulls the most important consumer information out of the fine print and puts it right up front in plain view,” said Rep. Bolinsky.

Residential electric customers in Connecticut may choose to receive generation service from a variety of private electric suppliers offering various rates, rate structures and contract terms. Alternatively, customers may elect to receive default “standard offer” generation service from their utility company, Connecticut Light & Power (CL&P) or United Illuminating (UI).

In recent years and months there have been a growing number of consumer complaints about private electric suppliers, including 1,300 formal complaints filed with the Public Utilities Regulatory Authority (PURA). Customers have cited issues including price spikes, deceptive telemarketing and direct sales practices, and a lack of transparency regarding rate plans and contract terms.

The provisions of Senate Bill 2, An Act Concerning Electric Customer Consumer Protection, will empower customers to make informed choices by requiring more transparent billing and marketing, and prohibiting coercive or deceptive sales practices.

More transparent billing

The bill charges PURA with redesigning the standard billing format for residential electric customers by July 2015, as well as the account summary page for online billing. The new bills must display additional account information as applicable, beyond what is required under current law. Until bills are redesigned in July 2015, customers will receive a quarterly bill insert containing this information. The billing format will then be revised every five years.

An improved shopping experience

The bill directs PURA to redesign the online rate board at www.energizect.com, which allows customers to comparison shop for private supplier offers.

Further provisions of the bill will:

· Help customers to change suppliers quickly. Requires the utilities to transfer customers to standard offer service within 72 hours of their request. Directs PURA to study expediting switching of customers to and among the various private suppliers.
· Reduce early termination fees. Allow customers greater freedom of choice by reducing the maximum cancellation fee from $100 to $50.
· Require notice of new contract terms. Customers whose contracts provide for an auto renewal or transition to variable rates must receive notice 45 days in advance, including a plain-English description of the new terms and recent history of rates.
· Help customers who move. Allows customers who move to keep their electric supplier, and prevents their being charged a cancellation fee.
· Stabilize teaser rates. If a supplier markets a variable rate plan with an introductory “teaser” rate, that rate may not increase for at least three months.

The legislation now heads to the Governor for his signature.