News Stories

The Maine PUC adopted final rules codifying various legislation limiting retail electric supplier auto-renewals and termination fees

In doing so, the PUC considered a proposal from Central Maine Power to limit the number of times a retail supplier may change a variable rate in a billing cycle

In June comments, CMP reported that CMP had recently received a customer call regarding the customer’s monthly invoice. Upon investigation, CMP found that the customer’s retail supplier changed the customer’s variable rate 4 times within the same billing period

CMP had recommended limiting the number of times that a CEP [competitive electric provider] may modify the customer’s rate within the monthly billing period to once, such that a customer would see no more than 2 different CEP rates on their monthly invoice.

The PUC “appreciated” CMP’s comments and said that the PUC may seek to amend the rule in accordance with CMP’s suggestions at a later time, but declined to adopt CMP’s proposals in the instant rulemaking, as such proposals would require the rules to be re-noticed

The PUC further stated that the PUC was not aware of any practice of retail suppliers changing rates multiple times per month apart from CMP’s report, and that CMP’s report appears to be based on a single occurrence.

The PUC said, “If the Commission becomes aware through its Consumer Assistance (CASD) and Safety Division that this is a reoccurring issue, the Commission will consider its authority to amend the rule to prohibit this type of behavior, which may be confusing and contrary to the public interest.”

In terms of the adopted rule changes, which largely implement already effective statute, the new rules provide that Competitive Electricity Providers may not renew a contract for Generation Service for a term that differs from the term of the expiring contract without the express consent of the customer, with such express consent obtained in accordance with the existing rules governing verification of affirmative customer choice

Additionally, a Competitive Electricity Provider may not renew Terms of Service providing service at a fixed rate with Terms of Service providing service at an Indexed Variable Rate or a Non-indexed Variable Rate without the express consent of the Customer

The new rules also add another limit to a fixed-to-fixed rate auto-renewal, in addition to the current 20% price increase limit on such auto-renewals

Specifically, a Competitive Electricity Provider may not renew the Terms of Service providing service at a fixed rate at a fixed rate that is 20% or more above the fixed rate of the expiring Terms of Service, or at a fixed rate greater than the fixed rate that would, at the time of the Customer’s contract renewal, be offered by the Competitive Electricity Provider to Customers Enrolling with the provider for an initial contract of a similar term and product offering, without the express consent of the Customer

The new rules also add provisions concerning the current renewal notices

While two renewal notices are still required between 30 and 60 calendar days in advance of a renewal of service, the new rules specifically provide that each notice must be dated, and that the notices must be sent at least 14 calendar days apart

The rules include a new provision applicable to variable rates as follows: the supplier, among other requirements for variable rates, “Must clearly specify in all Terms of Service documents and on its webpage the highest and lowest price during the prior 12-month period or the highest and lowest price during whatever period if the rate or charge has been offered or provided during less than a 12-month period[.]”

Implementing a 2023 law, the rules provide that termination fees are prohibited on or after June 30, 2023. Competitive Electricity Providers may not enter into or renew a contract for Generation Service on or after June 30, 2023, that includes an early termination fee.

The rules provide that termination fees existing in contracts for Generation Service that were effective prior to June 30, 2023, must comply with the currently existing rule provisions governing the form of the termination fee, and the existing limits governing to which products such a fee may be applied