May 27, 2015

BETTS, PAVALOCK ADVOCATE FOR ELECTRIC RATEPAYER PROTECTIONS

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HARTFORD—Consumers who use the retail marketplace to purchase their electricity won’t have to worry about potentially deceptive and unpredictable variable-rate contracts thanks to a bipartisan proposal making its way through the legislature, according to State Representatives Whit Betts (R-78) and Cara Pavalock (R-77).

The legislative proposal (S.B. 573) was approved in the state senate last week, and both Betts and Pavalock look forward to supporting the bill in the House before the session ends June 3.

“Consumers, and seniors in particular, sign up for these variable-rate plans with low introductory rates, thinking they are getting a good deal, only to find that at the end of the contract term that their rate has nearly doubled. I co-sponsored this bill in support of consumers by providing stronger protections for all against these predatory practices,” said Rep. Pavalock, who is a member of the legislature’s Aging committee.

The so-called marketplace allows customers to search and sign deals with retailers who offer per kilowatt hour rates different from the standard generation rate offered by Eversource or United Illuminating. If approved in the House and then signed into law, the bill would ban variable rates.

“Consumers should have choices and should also feel confident knowing that the rate they have signed on for will be the prevailing rate for the contract term. At a time when people are budgeting carefully for household expenses and living paycheck to paycheck, it is important that they can trust honest suppliers in the electricity marketplace to offer cost savings through lower generation rates.”

Last year, the General Assembly passed Public Act 14-75, which enacted reforms for the protection of electric consumers. Perhaps most significant was a requirement that, beginning this July, every residential electric customer’s monthly bill must display their rate for the coming month.

The latest proposal also requires the state’s Public Utilities Regulatory Agency to study what should happen when a customer’s contract with a retailer expires and the consumer fails to sign a new deal.

Betts noted that currently, a retailer can change the customer’s price each month until those customers signs a new contract or switches providers. “Many customers are getting very unpleasant surprises in the way of their monthly electric bill when their electric bills are much higher than expected due to this rate variance. This legislation will prevent that monthly variation from occurring.”

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