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From Motion: 

[ *** ] The goal of EOE’s recommended language to be included in suppliers’ contracts is to allow hardship customers to stay with their third-party electric supplier for the term of their contract and to ensure the rate charged to the customer never exceeds the Standard Service Rate. 

Below is the sample contract language proposed by EOE. The bracketed terms should be modified by suppliers to include the defined terms used by the individual suppliers. EOE understands that each supplier may have different company policies requiring the modification of certain items or additional language to be consistent with the remainder of the supplier’s contract; however, any modifications made should not alter the original intent of the language to allow hardship customers to remain with suppliers for the entirety of their contract and be charged the lesser of the contracted supply rate or the Standard Service Rate. 

If you are currently a Hardship Customer or become a Hardship Customer during the term of this contract or any renewal thereof, [Supplier] is hereby authorized to change the [Supply Rate] and charge per kWh the [Eversource/UI] Standard Service Rate so long as the Standard Service Rate is less than the [Supply Rate]. At such time that the Standard Service Rate is no longer less than the [Supply Rate] or you are no longer a Hardship Customer you will return to the [Supply Rate]. 

EOE also recommends that “Hardship Customer” should be defined within suppliers’ contracts to include the standard set in applicable statutes, regulations, and Authority decisions. Finally, EOE recommends that the sample language above and the “Hardship Customer” definition be included in the terms and conditions sent to residential customers. [ *** ] 

1. Implementation 

During the Working Group meetings, the members discussed potential implementation methodologies and other possible solutions to ensure that residential hardship customers were not charged by suppliers a supply rate more than the Standard Service Rate. First, EOE thanks the Working Group members for bringing their insight and suggestions to the meetings which EOE believes lead to a genuine discussion to resolve the issues at hand. These meetings highlighted the complexity behind implementation of EOE’s sample language in accordance with General Statutes § 16- 245o(m). 

Some of the challenges discussed by the Working Group include the changes proposed and implemented from the Working Group Report, and their interaction with a new process, if any; the Next Cycle Rate requirement pursuant to the Final Decision dated December 19, 2018, Docket No. 14-07-19RE05, PURA Investigation Into Redesign of the Residential Electric Billing Format – Review of Summary Information, Implementation and Display; Variable Rates pursuant to Final Decision dated November 5, 2014, Docket No. 13-07-18, PURA Establishment of Rules for Electric Suppliers and EDCs Concerning Operations and Marketing in the Electric Retail Market, and pursuant to General Statutes § 16-245o(g)(4); and date of the supply rate price change.

Out of the different methodologies and solutions6 discussed, EOE believes that the EDCs should continue providing hardship information to suppliers so that suppliers have notification of which of their customers cannot be charged a rate greater than Standard Service. At such time that a customer is identified as a hardship customer and their contracted supply rate is greater than Standard Service or if a Standard Service Rate change is below the contracted supply rate, suppliers would submit an EDI transaction to change that customer’s supply rate. When the Standard Service rate changes in January and July, suppliers would submit an EDI transaction as soon as practicable7 after the Standard Service Rate is approved by the Authority. Supply rate changes would begin at the beginning of the customer’s next billing cycle. For example, if a customer’s billing cycle was from June 15th to July 15th and their contracted supply rate was higher than the Standard Service Rate beginning July 1st, the supplier would submit the EDI transaction at the new Standard Service Rate to begin on July 16th. The inverse is also true, if on the following January 1st the Standard Service Rate is now higher than the contracted supply rate, the supplier would submit an EDI transaction to return to the contracted supply rate beginning January 15th . EOE stresses that more information and further analysis is still required and reserves the right to change its opinion based upon any new information received. EOE also notes that this methodology would require an exemption, modifications, or clarifications of the Next Cycle Rate and Variable Rates requirements listed above.

1. Conclusion 

As discussed, this docket is currently in Phase 2. Phase 3 will consider the appropriate limitations in supplier contracts for all customers. EOE recommends that no changes be ordered or approved here due to the number of technical and decisional changes required to support General Statutes § 16-245o(m) and the sample contract language provided in this motion. Instead, EOE recommends the Authority defer ordering the recommended contract language changes until Phase 3 is complete. Any determinations made by the Authority at the end of Phase 3 may result in additional contract, IT, or billing changes that would likely alter how the changes discussed in this motion be implemented. [ *** ]

Motion (06/17/2025)
18-06-02RE02 (07-03-2023)
(Investigation of Appropriate Limitations on All Customer Contracts with Electric Suppliers Pursuant to Conn. Gen. Stat. § 16-245o(m))