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Commission Adopts Final Competitive Electric Provider Rules
Excerpts from Order:
The Commission adopts amendments to Chapter 305 of its rules, which governs the licensing requirements, annual reporting, enforcement, and consumer protection provisions for the competitive provision of electricity.
“The amended rule conforms Chapter 305 to recent legislative changes regarding competitive electricity providers (CEPs) and consumer consent for certain contract renewals and regarding early termination fees. The rule also includes changes to reflect the Commission’s experience in enforcing the statutory and regulatory provisions applicable to CEPs and otherwise includes changes intended to provide consistency and clarity within the rule.”
“The Maine Legislature has recently enacted additional statutory provisions governing the regulation of CEPs, contained in An Act to Prohibit Early Termination Fees for Residential Electric Generation Service Contracts, P.L. 2023, ch. 375 (effective October 25, 2023) (Act on Termination Fees), and An Act to Require Consumer Consent for Certain Generation Service Contract Renewals, P.L. 2023, ch. 636 (effective Aug. 9, 2024) (Act on Consumer Consent). The Act on Termination fees, codified at 35-A M.R.S. § 3203(4-B)(E), prohibits the imposition of early termination fees. The Act on Consumer Consent, codified at 35-A M.R.S. § 3203(4-B), clarifies language stating that renewal of fixed rate contracts may not impose new fixed rates that are more than 20% higher than the existing rate and that the rate must be similar to those in contracts offered to new customers. It further requires a fixed-rate customer’s express consent if the renewed contract has a variable rate or if the term of the renewal contract differs from that in the original.”
- ADOPTED RULE PROVISIONS
The Commission adopts the amendments as presented in its Notice of Rulemaking. While CMP suggested two revisions, the Commission concludes additional amendments are not warranted at this time. CMP’s comments are addressed below and the amendments adopted by this Order are as follows:
- Renewals, subsection B(9)
“The first amendment in this subsection adds a requirement in subparagraph (a) that the two required notices to a customer from a CEP regarding an upcoming renewal of a term of service must each be dated and provided to the customer at least 14 calendar days apart. This is to ensure that the customer receives and reads the notice and has sufficient time to respond if necessary. A new subparagraph (b), amended to conform to the Act on Consumer Consent, protects customers by prohibiting renewal of a contract for electricity service without the customer’s express consent unless the renewal contract has the same term as the expiring contract. Further amendments change existing subparagraph (b) to (c) and amend the text as follows. The first sentence of new subparagraph (c) is deleted because the provisions in new subparagraph (b) now essentially address the issue. The amendment to the second sentence is required by the Act on Consumer Consent. This change preserves the 20% cap on charge increases associated with renewals or, alternatively, specifies that renewal of a fixed rate contract to a new fixed rate contract may not include a rate that is greater than a fixed rate and term that would be offered to new customers without the customer’s express consent. Additional amendments change existing subparagraph (c) to (d) and amend the text as follows. For a proposed renewal that would renew a fixed rate contract but convert it to a variable rate contract, the express written consent of the customer is required under the terms of the Act on Consumer Consent. Existing subparagraphs (d) through (g) are deleted because they are superseded by the above-described amendments.”
- Variable Rates and Charges, subsection B(11)
“The Commission adds a new subparagraph B(11)(e) which directs CEPs, when offering variable rate contracts or charges, to include in all Terms of Service documents and on its website the highest and lowest prices during the previous 12-month period, and the highest and lowest prices during any period of offered service that is less than 12 months. Existing subparagraph (e) becomes new subparagraph (f).”
- Termination Fees, subsection B(12)
“To conform with the Act on Termination Fees, the Commission amends subsection B(12) as follows. A new subparagraph (a) is added that states that starting with contracts dated June 30, 2023 or later, early termination fees are prohibited. Existing subparagraph (a) becomes subparagraph (b) and requires contracts containing a termination fee and that predate June 30, 2023 to comply with this subparagraph.”
Order Adopts Amendments to Chapter 305 (06/25/2025)
2025-00077
(Rulemaking Amendment to Chapter 305 Governing Competitive Electric Providers)
