Third-party electricity suppliers will have to fully disclose to customers their contract terms, conditions and rates, under an interim decision filed Thursday by the Public Utilities Regulatory Authority.
PURA opened an investigation into suppliers’ marketing tactics after receiving complaints from customers. Some were surprised to see their bills jump due to variable rates, while others said they found door-to-door tactics aggressive or misleading.
PURA is not seeking to eliminate variable-rate plans, but its decision curtails them by prohibiting suppliers from offering daily or weekly variable rates to homeowners and small businesses.
PURA’s decision also requires suppliers to keep each customer’s disclosure documents on file for at least three years, and PURA would be able to access the files on request. Suppliers would also be required to notify customers about pending rate changes at least 30 days in advance.
Customers of third-party suppliers will start to receive disclosure letters in May.
Attorney General George Jepsen praised the decision, but said he thinks legislation that would expand PURA’s ability to enforce regulations is needed.
