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Hearing Examiners Identifies Next Steps In Retail Energy Investigation

Dockets: 19-07 
Category: Massachusetts
Related Categories: Customer Protection, Supplier

During the April 16 Meeting, Dr. Debra Borie-Holtz, on behalf of NRG, provided guidance on how focus groups could assist the Working Group in addressing the Energy Switch Proposal. The initial meeting of the subgroup addressing focus groups will focus on the guidance provided by Dr. Borie-Holtz:

Identify three or four major topics about which you want to learn more – e.g.,

o Why do some customers shop and others not? 

o What would make it easier to shop?

o What do customers care most about? 

Identify the types of customers you want to participate in focus groups.

 VOLUNTARY RENEWABLE PRODUCT – The Energy Switch Proposal requires that, to be listed on Energy Switch as a renewable energy product, the voluntary renewable energy content of the product must be composed entirely of RPS Class 1 certificates. 8 Based on the presentations made by stakeholders at the April 16 meeting, 9 staff revises the Energy Switch Proposal to require that suppliers demonstrate that the voluntary renewable energy certificates (1) are tracked in a rigorous accounting system, and (2) provide additionality in terms of increased generation for renewable resources and the construction of new renewable resources. The initial meeting of the sub-group addressing voluntary renewable products will discuss the revised criteria and focus on how these criteria can be validated. 

 AUTOMATIC CONTRACT RENEWALS  = The Energy Switch Proposal calls for the elimination of automatic renewals; instead, customers would be required to re-enroll through Energy Switch at the end of each contract term. 10 The initial meeting of the sub-group addressing automatic renewals will focus on the following stakeholder questions and proposals, as well as other questions and proposals that stakeholders may raise during the meeting: 

RESA/REAL

  • How would eliminating automatic renewals impact customers on more complex products (e.g., electric vehicle time of use rates) who modify behavior and then may be moved to a flat rate product (and possibly end up paying more)?
  • Would banning automatic renewals increase customer uncertainty and costs because customers would be switching back and forth between retail supply and basic service? 
  • Could eliminating automatic renewals result in customers reverting to a higher basic service price?

NRG 

  • Eliminating automatic renewals runs the risk of negatively impacting customer experience and increasing supplier costs. 
  • Proposes: 

o required notification for all price increases 

o multiple notifications: (1) 60 days prior, to give customers a “heads-up;” (2) 30 days prior, to provide customers with renewal details; and (3) 10 days prior, to provide customers with a final notice. 

 INTERIM STEPS

The sub-group addressing interim steps focuses on steps that the Department and/or suppliers could implement during the development phase of the Energy Switch Proposal. The initial meeting of the sub-group will focus on the proposals put forth by RESA/REAL,13 as well as other questions and proposals that stakeholders may raise during the meeting: 1. Implement accelerated switching; • Waive early termination fees; • Prohibit enrollment of low-income customers; and • Increase supplier license renewal fees and establish a bonding threshold. 

VII. INITIAL SUB-GROUP MEETINGS 

The initial meetings of the sub-groups will be held as follows: 

  • Mechanics of Energy Switch Enrollments Thursday, May 1, 2025, 1pm – 2pm 
  • Link to Meeting 
  • Focus Groups Thursday, May 1, 2025, 2pm – 3pm – Link to Meeting.
  • Voluntary Renewable Products Friday May 2, 2025, 1pm – 2pm  –Link to Meeting 
  • Automatic Contract Renewals Monday, May 5, 2025, 10am-11am – Link to Meeting 
  • Interim Steps Monday, May 5, 2025, 1pm -2pm – Link to Meeting 

All meetings will be held virtually via Teams. Please click the links above to attend each meeting.

D.P.U. 19-07 

(Investigation into Initiatives to Promote and Protect Consumer Interests in the Retail Electric Competitive Supply Market, D.P.U. 19-07 Stakeholder Sub-Groups)