Zupkus Supports Consumer Protections for Electric Ratepayers

HARTFORD—State Reps. Lezlye Zupkus on Monday supported legislation that offers protections for customers who purchase electricity from retail suppliers rather than the two major transmission companies.

The proposal is a response to residents on variable rate plans from third party providers who complained they had no idea that their rate had changed until they saw dramatic increases to mid and late-winter electric bills.

Under the legislation, the Public Utilities Regulatory Authority must impose a new billing format by July 1, 2015 that will clearly show the retail supplier’s rate compared to the standard rate offered by Connecticut Light & Power or United Illuminating. The new billing format must also include the length of the contract, any scheduled rate change in the next billing cycle, and information about contract cancellation fees.

“As the saying goes, ‘information is power,’ and this proposal empowers ratepayers to make more informed choices in their pursuits to lower their energy bills,” said Zupkus, who serves Bethany, Cheshire and Prospect.

The legislation, previously approved in the state senate, passed through the House by a 145-0 vote.

Zupkus and other lawmakers expressed concern about “bad actors” in the retail energy market—companies that use deceitful or predatory marketing, such as offering enticing teaser rates that expire quickly.

Other customer-friendly aspects of the bill include a prohibition on suppliers increasing rates within the first three billing cycles on new contracts after July 1, 2014. Retail electric suppliers must also notify residential customers before rate hikes, and they can’t charge cancellation or early termination fees to customers who move within the state and don’t change suppliers.