Hoydick Moves Electric Customer Protection Measure Through House of Representatives

HARTFORD- State Rep. Laura Hoydick (R-120) ushered legislation through the House of Representatives today that offers new protections to residential electricity customers who switch to retail energy providers.  Provisions of the bill include the development of greater transparency in electric rate statements, requiring utilities to take no longer than 72 hours to switch over ratepayers who have chosen a retail provider, and creates prohibitions against coercive and deceptive sales practices employed by some retail energy suppliers.

“Last winter I spoke to numerous constituents who suffered spiking electricity rates that caught them off-guard at prices two or three times what they had been paying previously,” said Rep. Hoydick, who serves as Ranking Member on the Legislature’s Energy and Technology Committee.  “These consumers discovered that they were caught up in products and concepts that were intentionally misleading and confusing, such as hidden short-term rates rolling into very high rates.  Predatory practices had turned what was supposed to be cost-savings into a fleecing.”

Hoydick noted that another important element of the legislation requires utilities to switch consumers who choose another provider no later than 72 hours after the request.  She said many consumers complained of requesting a change once they decided they did not like their rate, but not having it processed for well over two months in many instances.

The Public Utility Regulatory Authority (PURA) is required to develop a billing design so electric consumers will be able to see their rate, and see how it compares to standard offer rates.  It also allows consumers to choose the method which they receive that information including regular mail, email, text alert, through an app, or online. PURA will also require providers to give quarterly notices to consumers that will notify them as to whether their rates are staying the same or changing, and if they will be saving money or not.

“This is an example of a great collaborative effort across the aisle between Republicans, Democrats and the governor’s office in working to identify and correct serious problems with the current retail electricity market,” said Hoydick.  “It is a great first step toward addressing numerous problems, and I am hopeful we can address some additional concerns following a docket review by PURA.”

Hoydick hastened to add that some available retailers were actually saving people money, were providing good service and savings, and were not predatory. 

She also said that the bill passed today does not cap rates or turn back to a regulated product.

Further provisions of the bill will:

·          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 Bill, SB 2, An Act Concerning Electric Customer Consumer Protection and Clarifying the Property Tax Exemption for Certain Solar Thermal or Geothermal Renewable Energy Sources passed the House unanimously by a vote of 145-0.  It previously also passed the State Senate unanimously on April 29th.  It now heads to the desk of Governor Dannel P. Malloy for his signature.  This session of the Connecticut General Assembly adjourns at midnight on Wednesday, May 7th.